This statement compares the functional activities of TESCO excellent market and H & M (Hennes and Mauritz) clothing organisation
In first part of this report identification of every organisation's current and potential customers is given and explained that if the organisation operations are designed in a manner that fulfil the needs of customers by analysing the competitive priorities such as cost, acceleration, overall flexibility etc and quality management at both organisations.
In second part of record two concepts have been discussed. TQM (Total Quality Management) for Tesco and Supply string management for H & M. And up to which degree and how these are practised in the firms.
In third part of report, mixture of whole operation management concepts is mentioned for both organisations. The ideas are similar in both organisations.
Customers will be the primary of any business. Whatever the business enterprise could be, but it may survive only when it'll fulfil the needs and requirements of its customer. Brands have grown to be brands, because they look after their customers.
Brands like Tesco and H & M are having the same reason behind success that they actually care for their customers and in exchange from it customers are devoted and devoted to them.
Tesco is known as one of the greatest in world and UK's leading food retailer. It is working around 2318 stores and even more than 326000 people are working in Tesco (www. Tescoplc. com). It offers services under four banners known as Extra, Superstore, Metro and Express. We can find these in every part of city. This easy access and huge variety of food make it the first choice of customers. It fulfils the necessity of every kind of customer. Whether it is a school going child or it is a senior. It's the first food retailer that provides the internet shopping for food. So it is not going out of even a little hole behind. It really is attracting more and more people beyond the physical barriers. It really is providing the service of club cards on point founded system for its loyal customers and give them a little rebate on buys.
H and M is the third largest company popular clothes. It is old more than 60 years (www. hm. com). It includes around 2000 shopping centres in 35 countries. It will serve the need for every age group like women, men, young adults and children. H and M's clothes are well-liked by fashion oriented people for their leadership in 'fast fashion'. It really is now deciding to broaden the business enterprise in special choices such as '&Denim' and cosmetic makeup products. So in future it'll attract the more customers especially young girls and women.
Competitive priorities have got six components called as low cost, quality, delivery time, flexibility, speed and dependability (Slack N, Chambers S). By having these components Tesco has got the competitive advantage and fulfil the needs of customers in following ways:-
UK grocery market offers very few dominated competitors, where Tesco, Asda and Sainsbury will be the brand and have purchased the 70% of market stocks. Brands like Tesco have built their image due to their working efficiency and one stop shopping. Tesco has invested in advanced technology such as self check outs and stock control system. It offers the wide selection of stock, better customer handling, introduction of new lines and potential to escape stock provides the versatility to it.
Here the suppliers have fear of dropping their business to the large supermarkets such as Tesco. So they negotiate with supermarkets with better promotional prices of products. Thus customers get products at lower prices but with the same quality.
Tesco know known as a brand. Being truly a brand this can be a way of measuring quality. So it provides food with better quality.
Tesco uses the economies of level and differentiation insurance plan in their product development, promotional activities and distribution. By which it gets dependability of customers. They make their products different from their competition and get benefit of that. Undifferentiated products and services could cause the easy turning of customer. Services like membership greeting card, online food shopping and refrigerated delivery, and movement of in store marketing promotions make the Tesco to fulfil the needs of customer and maintain them. By using club card Tesco is gathering the useful information about their customer such as where they may be spending their money? What things do they like? So with this type of information they can understand what people need? What they prefer? So that it helps Tesco to boost their products and get edge over competition.
Speed and Delivery Time
Tesco is reliable in rate and delivery time. As small level businesses of Tesco are available at every place of places and towns under the brand name Metro and Express. So addressing the store, making acquisitions and returning requires very much less time.
H & M offers these competitive priorities and fulfils the need of customers in following ways:-
H and M has many showrooms in locations and towns alternatively than simply a sole one. And every showroom is packed with latest fashion clothes. A person can get quick access to it.
Main idea of H & M is to provide popular clothes at best prices. In its preceding years, it began the selling of women fashion apparel but at lower rates than market. Since that time it is practising the same idea of low cost but with a wide variety of clothes for any age groups.
H & M is also a Brand. So retaining its image and reputation it must manage its quality among all the competitors like Distance. It provides quality of product as the clothes undergo different quality checks such as cleaning to check on the shrinkage and colourfastness, flammability. Only after these bank checks clothes are brought to the showrooms.
As H & M provides the fashion focused folks of every age group and every day clothes of latest fashion brought to the showrooms. So it increases the stability of customers on it.
It will not provide only clothes but also matching accessories and shoes to complement the dress so it increases the overall flexibility as well.
Speed and delivery Time
The time of getting to showroom, making acquisitions and returning is currently quite definitely less.
Approach to quality management at Tesco
'100% client satisfaction and with no defect' is an idea of Tesco. Every product moves under quality inspections to supply the experienced product and value your money can buy of customer. Quality is checked throughout the supply chain. From growers to until the product is put in store.
Approach to quality management at H & M
'Fashion and Quality at best price' is the idea of H & M. Fashion and quality will be the keywords for company. By remember this they want to provide services to customers with best value. To do that they have different checks for quality guarantee such as cleansing, piling, flammability, durability of buttons and zips, absorption, chemical substance checks. Clothes are inspected not only H & M's own laboratories but also sent to external laboratories.
Operations management will not deal with the complete organisation. Its main concern is production business device of organisation somewhat than Financing, HR or IT. It consists of the activities to create and distribute the merchandise and services. Following is one of the main element concept of controlling functions at Tesco.
Total quality management is the key principle to be managed in Tesco. It generally does not only package with assuring the merchandise and service quality but it explains to about the way to do business. It handles managing people and techniques of business so the customer satisfaction can be achieved. Client satisfaction is of primary importance in Tesco business. Here, TQM is related to the 'doing the right things right, first time'. Customer can be interior as well as external. When Tesco buys food products from other suppliers then it is a customer and when it sells products then it is portion its customers. Tesco handles its total quality concept in following ways:-
Prevention:- it is good to all the production of defected products rather than finding of defects in them.
Zero defects:-Tesco's primary goal is to produce the defect free products and minimise the defect level if product is complicated.
Getting things right initially:- it is best never to produce the merchandise alternatively than producing faulty one.
Quality will involve everyone :- Tesco can be applied this concept not only to the production and operation section but it requires other sections of organisation such as marketing, human being resource and fund as well.
Continuous improvement:- it always searches for the improvement in the merchandise and processes. To do that it applies the Low fat management strategy.
Employee participation:- it includes the employees that get excited about the production and operation techniques to take the feedback from them. So that it can do the mandatory improvements.
Introducing TQM in a business like Tesco, where client satisfaction is most important, is not an easy task. Tesco gives the chance to employees to be involved in the development process because they are actually involved in manufacturing products. But it is problematic for it as the center managers may feel like unimportant.
Here, the next is one of the main element Concepts of taking care of procedures in H & M
Supply string management of H & M (www. icmrindia. org)
Hennes & Mauritz( H& M) is one of the successful clothing dealer on earth. It designs the apparel in Sweden. From then on these are delivered to production offices and then finally to the manufacturers. As the H & M will not own the processing section so all the production process is carried out by the suppliers which are located in Asia and Europe. Then these ready clothes are delivered to the warehouse positioned in Hamburg, Germany. From Germany they are delivered to different distribution centres that can be found in several countries where they can be delivered to local showrooms.
Garments are replenished every day thus sustains the freshness and uniqueness of clothing. Because of this reason customer visit the stores frequently no almost everything remains at the shelves of store several month.
Well integrated source chain is the trick of success of H & M. H & M has its staff of designers. the complete concept could it be based from the coming up with of clothes to the management of stores everything is dependant on IT. After planning the look at Sweden they are sent to manufacturers through internet.
Differences between the organisations
Tesco and H & M both are world's leading suppliers but in several sectors. They may have their own way of carrying out operations.
H & M activities the multimedia more than Tesco as it is fast fashion changing company. with the blink of eyes, where movements are changing. It requires more general market trends than Tesco. These fast moving changes are put in place by the IT centered communication system of company.
Tesco is an area company. It brings its raw material to their own manufacturers at cheaper rates then distributes it whereas H & M is a Sweden centered company. All the coming up with process is carried out in Sweden and then delivered to manufacturers through internet where manufacturers are third party.
By being a head of changing fashion, it's very much popular popular oriented women, Whereas Tesco will not serve just one single group of culture. It provides food for every age group.
H & M is more advertising focused. It uses super star endorsement. It spends the 4% of income only in marketing which is a huge amount as compared to Tesco ad.
Tesco uses the differentiation online marketing strategy whereas H & M uses the diversification.
There are very few middlemen along the way of designing clothes to bring those clothes to showrooms as compared to the Tesco's middlemen.
Tesco supply the temporary work to needy people such as students, aged people. But H & M is devoid of this type of strategy.
H & M will not provide the self-checkouts like Tesco.
H & M provides the advantages to its staff in form of special discounts, holidays, retirement plans, medical coverage, life insurance. Whereas Tesco supply the benefits however in the form of share save plan, all-employee talk about scheme, employee relationship structure where employees can purchase the shares that happen to be free from duty.
Mix of handling operational concepts utilized by each of organisation is really as follows:-
Operation management manages the resources that are used by production and delivery of product and services (Ashwathappa k, Shridhara K). it includes the major activities as product developing, development, creation and syndication. Whatever is happening around us is an operation. Following are the activities that are used by each one of the organisation:-
It is a concept of supply chain management. It broadly discounts in procurement of uncooked material, changing it into finished goods and then distributing it to customer. Tesco and H&m both have their proper supply chains.
Supply string management is network which includes the actions to bring the organic material to manufacturing places and then finally to the stores where they will be ready to be consumed by customers.
Supply string management includes the next decisions that have impact on the price and revenues on both of the organisations:-
Location decision:-Best possible locations are chosen for the creation points, stocking things and sourcing points because it stand for the basic technique for accessing the prospective market of customers and also have a impact on the expenses and income. Both organisations have chosen best appropriate locations for his or her plants.
Production decision:-Here management of each organisation takes the decision of what products to create and which production manufacturer will produce which product, allocation of plant life to distribution stations and then finally to the client market. This decision instructs about the exact path of the product.
Inventory decision:-Inventory is another activity in string management where inventory is to be handled at every stage of supply string as raw material or completed goods. Inventory level is were able to manage the uncertainties at any level of supply chain such as lack of raw materials at very first level. Both companies have handled their own levels of inventories in line with the customer service level.
Transportation Decisions:-This decision is also very critical from strategic perspective for both companies. They are closely linked to inventory decision, as it brings a indirect cost to inventory. For instance, air shipment is fast, reliable as there are less opportunity for the jerks. But they are expensive. On the other hand, shipping via trains is cheaper but it takes very long time and less reliable. So, what things to use as a transport system is vital for both managements.
Management control and coordinating functions
It includes the activities that ensure the whole organisational activities are completed according to the defined measures and goals in a powerful and effective way. Both people perform the next control and coordinating functions to get their companies to survive:-
Control and coordinating
Now the companies are moving towards toned forms where employees or band of employees are said to be self-managed. Nobody wants now the bureaucratic approach. Both companies are following this modern theory and using the 'empowerment' strategy.
Delegation:- jobs are designated to each of the employee according with their skills and talents.
It includes supply the authority to staff to use resources and enabling him/her to do tasks according with their own wish.
Performance evaluation:- performance analysis is another obligation of both company. Both companies uses praise system but in several ways. This performance evaluation method acts as a motivator for employees.
Risk Management:-it will involve the security of materials as well by employees.
Policies and Steps:-both organisations are experiencing their code of conduct document. Where the acceptable behavior of employees is mentioned.
Product and service management
Managing products and services is a key operational concept in any organisation. It offers the next activities and both organisations use these activities:-
Product analysis:- this means if the new notion of product is possible one or not?
Product development:- building of new product following the evaluation.
Product development:- actual start of manufacturing procedure for product by having the raw materials to the company's plant.
Product distribution:- it is performed through the advertisings, marketing promotions, sales and services. Both companies uses these procedures but at different scales.
It is a concept which has turn into a very important functional activity in any organisation especially for Tesco and H & M like brands which are recognized for their quality products. It is achieved through the techniques like benchmarking, total quality management, ongoing improvement.
Benchmarking techniques uses the pre-defined criteria of quality and check the performance of procedures against these criteria.
In continuous improvement, small incremental steps are being used to improve the quality by eliminating non-value adding activities.
Total quality management ensures that company is getting together with or exceeding the client needs. It mainly bargains in process management.
To keep up with the inventory in the form of storing the material and moving it from one place to another causes an expense for the company. So, decision to keep perfect inventory level is more critical for both organisations. Both organisations use computerised inventory control system where track of product is stored.
Any inventory control system entails in minimizing the expense of inventory. Cost of keeping the material, cost of positioning an order and cost of lack i. e. exactly what will happen if stock will never be enough to meet the requirements? These questions help in inventory control decision system. Both companies are using the trim management method of minimise the misuse so that inventory level can be retained at optimum level.
Logistics and transport system
Logistics represents the movement of material from starting to the end point i. e. from suppliers to company and then finally to customers however in a productive and cost effective way. Transportation system is very much related to inventory management as it brings the indirect cost to it. As the both companies business is extended over depends upon so deciding after transportation system, is very vital job for both companies. Both companies are employing the better way or in other term the slim management. In order that done product can be come to at vacation spot in a productive and cost effective way.
It is necessary to keep different types of products and services for future sources so both companies are keeping the files of different products.
Management of facilities like building, personal computers, light etc are one of the concepts in procedure management of an organisation. It is monitored in Tesco and H & M by keeping the stores and showrooms respectively clean and tidy. Proper checking's of self-check out machines in Tesco. Well managed Music systems in H & M showrooms.
After the product is preparing to come into the marketplace, what solution to decide for its distribution is very much indeed depends upon the merchandise and service itself. You can find two types of distributions can be found. One is immediate and another is indirect. Direct mail, retail and shopping over internet are example of direct syndication whereas when there's a middleman such as wholesalers, marketers and vendors are types of indirect distribution.
H & M and Tesco uses the immediate way of circulation as it offers its own top quality products in their own showrooms and stores resp.
Enterprise resource planning
One of the major activities of operation management is to control the sources of enterprise. In order that different business units such as Human resource, financing marketing and creation can connect to each other. It is done through software applications. Businesses like Tesco and H & M are having their brand in virtually all around the world. So that it is extremely hard to collect the info by going literally at different places. So both organisations use energy software to control the venture resources.
Both organisations are world's leading vendors. Both are serving the customers but in several industries. Tesco is offering mainly in food. H & M is providing mainly in clothes. Both are experiencing their own principles and strategies but ultimate goal is to fulfil the needs with their customers. The operational activities and ideas are same. However the way to perform those activities differs.
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