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A Definition Of Operation Management
All the business around the world need to several activities in order to get the returns on investment and generate profits and some of those are production, goods supply, quality control and maintaining proper customer relations. All the activities may be single or mutually related or a combination of two. But, the ultimate aim of any company is to see to it that the operations are efficient and effective. The interrelated activities need to be coordinated properly and the customer should be finally satisfied. While conducting the operations in a company, all the activities should be time perfectly without any deviation of schedule.
运营管理的作用-The role of the operation management
Three different roles can be identified in the operations of an organisation and they are Implementer, Driver, and Supporter.
Implementer: this role is being played by the top management of the organisation and they decide the strategies to be implemented by the company based on the market trends and the competitor's strategies. While developing the strategies the company should keep in mind the customer who is the end role player of the business. The higher management will decide the decisions and expect the lower management to implement them.
Driver: The driver role includes the activity that will make the company move towards achieving their vision, goal and objectives of the company. The activities performed by the company are the drivers that will help the company reach the goals there are several people involved as drivers within the company and are in touch with the market, business associates and the customers.
Supporter: As soon as the company has started its operations and when they are operating, there should be enough support from different aspects and departments to provide necessary input to the company i.e. the implementer and the driver. They can gather data and information about the current market trends taking place in the market. The competitors can gain a lot of information about the competitor's strength and weakness. By knowing such information, the higher management can devise strategies that will counter the competitors. Once these strategies are implemented, the people in the operation side can monitor the result and give feed back to the top management. As a result, new strategies can be framed and this is cyclic in any business organisation.
运营管理及其重要性-Operation Management and its Importance
Several reasons can be attributed to the importance of operations management for any organisation as it helps to analyse the strong and weak points of the competitor. Moreover, it helps the higher management to know the trends occurring in the market and the needs of the customer. In addition, the implementation of the strategies designed can be implemented with the help of operations management. Obtaining feed back from the market about the strategies implemented and the reputation of the company will depend on operations and if this is done perfectly, the credibility of the company will be good.
Introduction of the company
Starbucks is world famous company that specialises in coffee making and related products. It has the largest coffee chain outlets and started its operations in 1970 in Seattle in the United States. The company has started approximately 16706 coffee stores, out of which some are company operated while the others are licensed to other companies and is spread across the globe in countries like UK, USA, Japan, Canada etc. The main activity of the company is selling coffee, beverages and several other food varieties along with the selected tea brands and accessories and equipments related to coffee-making. The speciality of the company is that it serves the Italian-style espresso coffee. The ethics of the company are strong and the roasting coffee is of the highest quality.
Starbucks- Swot Analysis
As the international business is becoming competitive, a clear understanding of the market conditions should be analysed initially. Analysis of the company should be conducted on a regular basis to know whether the company is into profits or running into loss. Such analysis is known as SWOT analysis. The analysis can be done by different segments or as a whole by the company. I will assist the company in planning new strategies and achieve the business objectives by overcoming the problems and utilising the resources.
Strengths: The strengths include the wide product range, technological tools related to coffee making , professional management policies and practices, rich distribution network, large number of retail sores, good customer relations, proper working conditions for employees and the necessary motivation for excelling in their job and maintaining cordial relations with the stake holders like customers and suppliers, and strong financial capacity to expand their operations to different parts of the world.
Weaknesses: Starbucks has weakness where it needs to concentrate more in order to become strong in the market. Some of the weaknesses are lack of skilled and trained hospitality employees, weak brand image in certain parts of the world, expensive products. Some other weaknesses are the weak brand focus in the local markets and therefore has to face lot of competition from local brands.
The External Areas include the opportunities and threats: These are confined to the external environment and are purely based on the external factors.
Opportunities: Company can utilize the opportunities that it come across and some of them are changing customer needs and preferences in the developing countries, accessible to new and emerging markets like Asia, new technologies being used in coffee making machines thus providing quality products and tax policies take up y different governments throughout the world. Apart from these, several other opportunities would be to increase the business by establishing more retails units, incorporate new technologies in the manufacturing of products, and promoting new brands in countries like India which is the developing markets in the world.
Threats: Most important threat to Starbucks is the changing customer needs and technology that is changing rapidly and the need to invest frequently in upgrading will be a financial burden, changes in the political, economical and social changes in the developing markets, more competition from local brands and products, and changes occurring in different societies with different cultural back ground across various nations. As the preferences of both the genders are changing and more importantly the aging population are few threats to the company.
The present market conditions are not as favourable for Starbucks as they are not able to penetrate quickly into emerging markets like their competitors. It may take lot of time to build the brand image and then gain the confidence of the customers and reach a large group of customers. The prices of the products should be affordable and should be at reach for the customers to spend the desired money. Production technologies should be minimised or should be handled by a different organisation thereby reducing the cost of production and investment of technology.
Strabucks- Operational Strategy and the competitive advantage
Having started the operations in 1970's, the idea has been to establish more outlets throughout the world and more particularly focusing on the international markets. The company has been maintaining good relations with the suppliers and the customers of the company throughout the world and this has been achieved by providing quality coffee products to the customers all these years. The brand image created by the company is very strong in may developed markets and this needs to become strong in the international markets.
Maintaining strong relations with the customers, farmers and suppliers of coffee.
By developing strong relations with all its business associates and stake holders, the company is able to retain those valued customer without making them focus on low cost brands The company is not willing to loose a vendor and if they do so they have lost an employee and this results in huge loss of investment done on an employee for hiring, training and the time spent by the staff on that particular employee. The raw materials purchased by the company and the suppliers supplying it are strongly bonded with each other. This enables the company to purchase quality products and delivers quality without compromise.
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