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Report for TESCO AND OCADO: Competing Online Models, things can be analyzed in an effective manner.

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TESCO AND OCADO: Competing Online Models

Introduction:

Tesco and Ocado a competing online model is being discussed. Through the analysis of the two-business model Tesco and Ocado various things can be analyzed in an effective manner. It provides the deep analysis about the different stages of the product production and marketing. This dependent upon the different factors and operation management plays the key roles through which the featuring of the product can be managed in an effective way. As it provides the long term and operations are being settled through the effectiveness of the organization can be achieved and performance level can be maintained (Greenley, 1989).

Different problems are being analyzed through which the solutions are being prepared that increase the productivity of the system. Operational manager sets the tasks and working is being evaluated through the report. This evaluation process helps to upgrade the system through which the effective performance can be achieved.

Set of the activities are designed and this depends upon the different factors that include the functional tasks, operational tasks. Working environment, planning and resources available to achieve the required goals. External and internal factors are being analyzed so that results can be produced in an effective manner. Different conflicts are being resolved and problems are being identified so that performance is to be moderate at the maximum level.

Through the analysis of the given case studies about the Tesco and Ocado operational management can recognized in an effective manner. It helps to produce the output where the customer satisfactory can achieved. It includes the time and effort. With the passage of time upgradation process is being occurred in the business. For the critical operations decision different things are being concerned that include services, goods, quality management, process and capacity design, location, layout design and strategy, human resource.

Literature Review:

The two business models Tesco and Ocado, analysis is being made through the traditional system. In 1919 Tesco was founded in London, it is a small grocer stall but after the long struggle of 10 years its made its way with the open doors. In 1995 it is one of the largest company and the growth rate of this organization is increasing steadily. After that they opened their first store. Tesco raised from 12% to 33% UK marketplace segment, from 1 nation to 14 states, and from £50 million to £4 billion revenue. Tesco testified seven conventional years of dwindling UK jumble sale pending it recorded evolution in 2017. By 2017, Tesco was the major seller in the UK and the corporation hired 460,000 people with 6,809 supplies in 13 states around the ecosphere. Ocado was a UK-first grocer with no physical location. It presented home delivery of orders. The business was originated by three former Goldman Sachs speculation bankers and started processes in 2001. It had 580,000 energetic clients and 12,000 workers in 2016. Ocado was communicable in relations of product diversity, with a progressively rising amount of 50,000 SKUs.

 

1.            4V’s of Operations Management and its characteristics

Analyzing the case study, the 4V’s of the operation management are focused in which the different variables are taken as the input that include the raw material, equipment, requirement of the customer and demand in the market. All this settled in way where the production is being produced to transform the input in an effective manner. Where the output is produced by maximizing the revenue of the organization. The main 4 V’s are analyzed as follows: Volume, Variety, Variation and Visibility.

1.            The Volume Dimension:

Analyzing the case study, the volume dimension can be analyzed critically in which the high-volume food is produced at the low cost. Volume is the main element in which the business is being organized. Standards and procedures are being used to maintain the integrity in the organization where the profit can be maximized in the best possible manner. Producing the volume while maintain the cost in such manner that provide the advantage both to the customer and organization.

This also helps to maximize the profit in the best possible manner. Different polices and producers are being used that helps to update the system authority in the best possible manner. Business models are designed in which the Tesco generates the polices and do the enhancement in the model where the best efficiencies can be achieved, and goals are settled in such a way where the organization growth can be upgraded each time.

2.            The Variety Dimension:

Variety dimension is being produced where the flexibility and variety of the services are provided to the customers. This helps to maintain the organization reputation and customers requirements are provided accordingly and efficiently. Verities of the services and products are being offered to the customers (Krantz, 2007). In the Tesco business model, the food is being supplied in the manner where the customers satisfaction is being achieved and profit can be maximized in the best possible manner. Ocado also provide the variety of the service that helps for the steady growing of the organization.

3.            The Variation Dimension:

This helps to provide the variation the services up to the requirement of the customers and market. As the demand changes time to time so the upgradation in the existing system helps to produce the effective results that maximize the profit as well. The changing is made due to different factors that include the external and internal factors (Andreas Glöckner, 2011). Both in Tesco and Ocado the changing of the business model is being settled up to the need of the current requirement that help to improves the current system as well. This helps to improve the standard and versatility in the organization.

4.            The Visibility Dimension:

This dimension helps satisfy the customer in the best possible manner where the customer can maintain the healthy relationship with the organization. This helps to maintain the long-term relationship with the customer. Customer is able to see the order through the operational process. As for the case study is concerned both the online companies provide the service to track their order in the best possible manner. Services provided to the customer is the main thing to main the future scope of the organization.

2.            Services and Location as critical operations decision

In the given case study, the services are managed in an effective manner as with the passage of time things are getting improved and area of location with the different things provide quality to the customers. The improvements are being made where the customer can enjoy the facility provided by the organization and on the organization end the profit can be maximize.

As the requirements are concerned it vary from the customer to customer. As in the both business models of Tesco and Ocado. For the critical operations decision different things are being concerned that include services, goods, quality management, process and capacity design, location, layout design and strategy, human resource and management, supply chain management, inventory, scheduling and maintenance.

As for the location for the Tesco stores they have completely develop the strategy in which the services are provided to the customers. Step by step procedures are being settled in which the steady growth of the organization is being achieved. Goals are being settled in which the organization can achieved in an effective manner (Maryam, et al., 2012). 

For the services are provided in a manner where the customer can enjoy the freedom in the best possible manner. Ocado and Tesco both provide the services by using the different techniques that influence the customer in a manner where they encourage to enjoy the more shopping (Roberts, 1993). Quality Management can provide the best results where the organization goals can be achieved with the customer satisfaction. Meeting the customer expectation with the right requirement helps to maintain the integrity and steady flow to achieve the success.

Analyzing the different market challenges and providing the solution services with in an effective cost can help the customer to get the access. The organization can grow in an effective manner where the new things can be planned (Tianhua & Yihong, 2015). This all requires the planning with the complete structure and layout. Service design depends upon the different factors that include quality, cost and human resources.

 For the given case study, it is analyzed that the operational manager has settled the services in a manner the customer can enjoy the freedom and service design strategy is fell structured where the firm can achieve its goals (Wang, et al., 2006 ). Levels are settled that are divided in to the three steps that include formation of the attractive idea to gain the attention then processes are being held to gain the desired output. The next level is to provide the service in a manner where the customer expectation is meted up to mark.

3.            Business model and Operations Strategy

Online business model maintains the integrity and flexibility in the organization. The operations are being made in the manner where the process is being occurred to produce the quality of the product. That helps to maintain the cost and meet the expectation of the customer.

The business models are aligned in a manner where the cost is decreased in a manner that helps t increase the sales and provide the flexible environment in the organization where the customer can interact with organization. Feedback is to collect for the updating process to increase the flexibility in the organization (Al-Tarawneh, 2012). The business model of the Tesco and Ocado include the different processes in which the processes are maintained, and business strategy is being used.

Operation strategy is being used in the Tesco and Ocado where the plans are being prepared and resources are being allocated that helps to support the infrastructure and production in the organization. Cost are minimizing in a manner where the production level can be increased with the maximization in the quality of the product.

Different operational strategies are being used at the different business level model that helps to improve the external and internal activity of the organization. Cooperate strategy is used in a manner where the operation manger connected the different part of the organization and each area is being observed with the attention and conflicts are being resolved that increase the performance level.

Tesco uses the step by step aligned planed in which the action is taken according to the assets and production level is increased with the proper calculation of the cost. This helps the organization to grow while fulfilling the expectations of the customers. Cross functional interactions are being made to cover the negative external factors.

Ocado used the customer driven approach so the influence market can be target in an effective manner and exact needs of the customer can be fulfilled. Enhancing the core strength of the organization by providing the different resource increase the flexibility of the. Evaluating the trends of the market helps to discover the new ideas where the goals are settled to increase flexibility in the organization.  Through the market analysis the core process is being analyzed in a manner that remark the competitive priorities (Nooraie, 2012).

Through the evaluation of the quality of the product, operational costs and services that are provided analyzed the different areas. This helps to maintain the fair cost. Tesco and Ocado uses the strategies behind the production of the products and they layout the design in which the requirement of the customers is deeply being organized. Innovative ideas are being used that helps to maintain the growth rate and influence the market through the different process.

Operation strategy in the business model of the Tesco and Ocado helps to improve the supply chain and quality of the product is being focused. Quality management is the most important aspect. In which the better statements are being generated on every step that evaluates the results and removes the bugs (Frisanco & Anglberger, 2008 ). Through the operational strategy polices are being settled in which the organization can achieve the goals. Through the use of business strategy, the long-term planning can made in an effective manner where the different resources can be used to achieve the goals.

4.            Launching a new product

For launching the new few things have to be considered in manner that helps to make the new product a successful. For example, we are going to launch the shoes for the ladies, genets and kids. The successful launching of the product contains the few things that should be acquire in the correct manner (Budi Rustandi Kartawinata, 2013). This include the activity table that contains the series of the steps that are to follow in the correct manner.

 As the product is to be selected but the analysis of the audience is the most important part. The audience should be targeted that is interest in the product. For this the correct need of the customer is to be analyzed. Effectively maintain the things in a flow where the customer’s requirements can be fulfilled, and organization goal can be achieved in an effective manner. 

Launching the new products meets the different challenges and the early struggle is very difficult to sustain. Polices and standards are to be made so this helps to ensure the validity of the product. Using the operational strategy plan and marketing strategy plan effective performance can be achieved. This also includes the identification of the problem and solution are being generated where the risks can also be evaluated, and security plans can be focused to avoid the violence.

For launching the new product, the understanding of the market strategy is the most important thing. As the shoes are being introduced and for this market latest trends are to be analyzed in an effective manner. This helps to increase the performance of the organization where the results are produce after making the roots strong. Marketing strategy depends upon the numerous different issues and a final plan is recommend to the association that is deeply examined. It contains all the efficient and operational standards. The common marketing influences are association strategies, ideas, desired goals, the current position of the association in the market. The central idea of the marketing is to encounter the requirements and essential of the buyer. Using the publicizing control procedure, the best consequences can be attained in an operative manner.

 Branding of the new product is the most important factor where the services are being provided to the customer to attract them in an effective manner. All this depends upon the market and the strategy used for the marketing of the new product. Market strategy include the series of the steps where the analysis is being made to recognize the functional activities of the market and evaluates the external, internal factor.

 This helps the business in the best possible manner to grow through the logical planning where the goals a be achieved. Through the segmentation course diverse groups can predictable. Through the segmentation the clienteles can be recognized, and their necessities can also be acknowledged in the best possible manner. This helps to take the decision in an identifiable way. Using this strategy of segmentation, it assistances to represent the diverse replication of different contextual of customers. Through the segmentation and targeting the obligatory audience, the relocation can be completed in a most well-organized manner.

Positioning is one of the most important factor that gives the identity to the new product. This helps to feature the product in the targeted audience and to achieve the desired goals. Conflicts can be resolve in an effective manner.

The position of the product should be taken in a manner where the perception of the customer should be reflected in the featuring of the new product. This ensure the customer that actual requirement can be filled in an effective manner. This can be achieved through the functional positional, experimental position and symbolic positioning.

Conclusion:

Analysis of the two-business model of Tesco and Ocado is being concerned through which the operational management is delivered in effective manner (Alireza Amini, 2012). This depends upon the different factors and different analysis are being made on the different to achieve the results. Analyzing the case study, the 4V’s of the operation management are focused in which the different variables are taken as the input that include the raw material, equipment, requirement of the customer and demand in the market.

Marketing strategy is being defined in an effective manner. Targeted audience is to mark where the featuring of the product can be made in an effective manner. Operation strategy is being used in the Tesco and Ocado where the plans are being prepared and resources are being allocated that helps to support the infrastructure (Sultan Alghamdi, 2014). Operational management provides the plan on the long-term base where the results can be produced with the complete evaluation and for the featuring of the new product different activity plan is to be concerned that include the targeted audience, segmentation and positioning of the new product.

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