M&S has over 520 stores located throughout the UK, providing nearly 12. 5 million square feet of selling space. This includes their largest store at Marble Arch, London, which has around 170,000 square feet of sales floor. In addition, the Company has 150 stores worldwide, including over 130 franchise businesses, operating in 27 countries.
Clothing & Home M&S is the UK’s largest clothing retailer with a market share of 11. 1% (source: TNS World panel) and sales accounting for 44. 8% of UK business. M;S grew the lingerie market share to 26.1%, offering clearly defined brands; and in children’s wear they reversed their poor performance with stronger ranges. Home, represents 5.
4% of the UK business which helped outstanding value and strong demand in furniture. Food Food accounts for 49. 8% of the UK business and M&S have a market share of 4. 3% (source: TNS World panel). In 2006/07, M&S launched a range of 120 ‘Nutritionally Balanced’ ready meals which are free from artificial colours, flavours and hydrogenated fats and follow government salt, fat and sugar guidelines. InternationalM&S international business accounts for 7. 1% of Group turnover and has grown to 219 franchise stores in 34 territories worldwide as well as eight wholly-owned stores in Hong Kong and 13 in the Republic of Ireland. During the year, they entered four new territories and opened 36 new stores including their largest ever franchise store in Dubai at 52,000 sq ft.
As a retail service business M&S processing of Materials(product) is dominating here as an input. On the other hand transforming resources are the resources which act upon the transformed resources.There are two types which form the ‘building blocks’ of all operations. One of them is facilities and another one is staff. Facilities mean the equipment such as their stores and process technology of the operation. And staff means the people who operate, maintain and manage the operation such as store in charge, sales staff etc. However an input resource differs on the basis of operation system of different company.
What is going on within a transformation process depends on what input it is transforming.Processing of materials means transforming of their physical properties for example shape or composition or location. On the other hand information processing means the conversion of informational properties. Operations which process customers might change their physical properties in a similar way to materials processors. Products are usually tangible but services that are given by M&S are intangible.
5 performance objectives: Operation requires a tightly defined set of objectives which is specifically related to its basic task of satisfying customer requirements.There are five basic ‘performance objectives’ and they apply to all types of operation. Quality: It is one type of advantage to the customer. It means doing the things accurately without any mistakes.
To satisfy the customer the company should provide error-free goods and services which are fit for their purpose. It is the most visible of an operation function. Quality is a major influence on customer satisfaction or dissatisfaction. A customer perception of high-quality products and services means customer satisfaction and therefore the probability that the customer will return.It satisfies not only the external customer but also internal customer as well.
M&S has always set itself high quality, social, environmental and ethical standards but we have not always communicated these values and achievements effectively. This may have been less important in the past but today we know that our customers want more information about how we do business and increasingly they want us to help them take action themselves. These considerations are now an important part of how customers judge the quality of the goods they buy.Speed: Speed means the elapsed time between customers requesting products or services and then receiving them. The main benefit to the external customers of speedy delivery of goods and services lies in the way it enhances the operation’s offering to the customer (Slack N. et al, 2004). For the operation of retail business Company speed means the time between a customer wants and reaching his or her satisfaction to a minimum level. We saw growth in our business last year with sales of clothing, food and home products all increasing in 2006/07.
Total turnover increased by 10.1% to 8. 6bn (2005/06: 7. 8bn), while Group profit before tax rose by 28. 5% to i?? 965.
2m (2005/06: 751 . 4m). At a time of fierce competition in all our markets, we increased our share of the UK clothing market to 11. 1%, while our market share in food was 4. 3%. Dependability: Dependability means doing things in time for customers to receive their goods or services exactly when they are needed, or at least when they were promised.
M;S always try to keep their promises or, loyal to their customer. They always try to keep their punctuality.And the result is ” Your M&S”. Flexibility: It means being able to change the operation in some way. This may mean changing what the operation does, how it is doing it, or when it is doing it. At M;S, we have a phrase that ‘doing nothing is not an option’. Our plan of action to meet the new environmental and ethical challenges we all face, and respond to the changing demands of our customers, employees and shareholders. We know that we don’t have all the answers but we’re committed to driving the business forward in a way that benefits everyone, now and in the future.
Cost: The company like M;S which compete directly on price, cost will clearly be their major operation objectives. The lower the cost of producing their services, the lower can be the price to their customer. To reduce the cost the company should control their waste. By using modern technology they can reduce their cost. The company should place right people in right place. Task – 3 Question: Examine the role of product/ process design and technology as well as facility layout and discuss how the design activity can improve the quality of operating system.You may also want to consider the current operating issues and problems of the organization and how such problems can be solved.
It is widely accepted that in order to survive in today’s manufacturing environments, companies need to produce highly customized products and faster than their competitors. In operation management design means the process by which some functional requirement of people is satisfied through the shaping or configuration of the resources and/or activities that comprise a product, or a service, or the transformation process that produce them (Slack N.et al, 2004).Its purpose is always to satisfy the customer needs. OM practitioners need up-to-date, comprehensive and sufficiently detailed organisation design theory.
Design is one of the four principals of operation. According to video game developer Dino Dini in a talk given at the 2005 Game Design and Technology Workshop held by Liverpool JM University, “design underpins every form of creation from objects such as chairs to the way we plan and execute our lives”.