Business Operations and Systems 6LO500 Spring Term 2017 University of Derby

Part 1

Essential components for effective business operations management

The research is focused on NTUC FairPrice which is one of the retail in Singapore. Cited firm aims at understanding the requirements and to take up appropriate steps so that they are able to attain their set goals and objectives. Further, the brand value that developed by this firm is high and so that they have developed a strong customer base (Turban, Sharda and Delen, 2011). In order to make individuals satisfied, they focus on making understanding the need and requirements with the help of which the rate of satisfaction can be raised. Further, there are various type of business operations that are required to be considered by cited firm and they are as follows:

Quality control and assurance:

Steps that are included in operational process are considered to be highly important. With this respect, it requires to access work at the end of process. In this context, it is the responsibility for management for quality control so as to examine final product and to eliminate goods that are defected. Further, steps are taken so that they are able to overcome them (Choi, Chan and Yue, 2017). One of the effective way to improve performance of business applied NTUC FairPrice is with the help of reducing waste. In conditions when the rate of defects are low, then it becomes favorable enough to satisfy individuals. NTUC FairPrice at Singapore it enables to deliver high quality services and assurance control.

Capacity planning:

It is identified that frequent changes are made in relation with taste and preferences of service users. With this respect, time to time steps are taken up by cited firm that is NTUC FairPrice so that they are able to make changes within the firm in positive manner. With the help of operation management, they focus on developing plan so that optimum use of resources are done.

Maintaining and placement:

NTUC FairPrice is required to develop certain amount of unit so that they are able to meet the requirement of customers. With the help of operation management, cited firm is able to take up appropriate steps through which placement take place in appropriate manner (Demirkan and Delen, 2013). There are frequent analysis made through which sales that can be produced are identified and requirement of customers by NTUC FairPrice met.

Cost reduction and cost control:

Operation management is effective enough to reduce the cost and in controlling the cost that are incurred. This part is done by NTUC FairPrice efficiently and they are able to control and reduce cost. This way, optimum use of resources are done through which high quality maintaining standard place are included. NTUC FairPrice make sure that products are provided to customers at low price so that they are able to develop strong customer base.

Further, it can be stated that cited organization is able to maintain relationship with services users and they are highly focused on quality of work. In addition to this, to create value, feedbacks from customers are taken so as to solve the issues.

Comparison of different solutions

There are different types of steps that can be taken so as to implement the plan, cited firm should make use of new or updated technology. Apart from this, the rate of interaction with employees is required to be high (Reim, Parida and Örtqvist, 2015). When these aspects are focused, then it becomes favourable enough to deliver high quality services. Further, information to customers should be provided properly so that information in relation with the preferences of customers is determined. The rate of competition is high and there are many firms that deliver their customers with similar type of products and services. All the companies focus on gaining maximum profit. In order to do so, it can be done when the areas in which development is to be made are identified. There are other retails from which threat can be faced. Cited firm will make use of warehouse so as to store the products and in delivering it to customers at their home. In order to make the business operation effective discount offers need to be provided and quality is required to be maintained (Elbashir, Collier and Sutton, 2011).

Use soft system of methodology

There is different type of methodology that has been used by organisation for remove any kind of issue is to be created by online business. In this context, some effective strategies are to be applied for overcome such kind of conditions. This is to be help to improve the market performance and increase level of market (Shaw, Blanning and Whinston, 2012). In additions, seven stages are to be inculcated in system of methodology. The main aim is improving the execution and element the issue in such activity. NTUC FairPrice has purpose at introducing hybrid artefact to custom-made in which they can go on shopping in shop and can order corking online and have also conceived to deliver to the movable barrier to compete the activity place. The seven stages are accommodating enough to kind sure that the issues that are faced in order to instrumentality this alteration can be successful in effectual mode. This is help to remove any mistake and help to each and every customer to solve any problem. On the other side, update information and aim to be delivery any kind of new information is to be faced in the respect with the flow of communication (Jacobs, Chase and Lummus, 2014).

At the time of delivery the product to condition in which information will be provide in better way about the product to each and every customer. Another set of prospective issue that can be faced is in regard with flow of connection. In delivery of commodity, there are premise in which the substance is not sent to people and when this is there, then it gets difficult for the business to grow over (Morecroft, 2015). This is to be focus on to make the products to reach them to increase the level of performance in market. This is one of the most important part to and help to increase number of customer in market. On the main issue is faced by such techniques in this is aspect the flow of communication with each and every customer. There are many gaps is to be required for the consideration by the organisation. Nowadays, new technology or innovation is most important part and online services and proper system is to be reached them.

The gap that is featured from the side of custom-made should be known and this can be through by devising use of work gap theoretical account. In accord with this worthy, there are five gaps that are needed to be reasoned by the organization and they are as follows:

  • Step 1 : Thee to be focus on the distance customer and expect the perception of managing director. The level of expectation of customer has been different in each and every level. In this way, gap between manager and customer is covered (Yager and Zadeh, 2012).
  • Step 2 : In this context, perception of management and actual specification of customer experiences. On the other hand, responsibility of manager is to concentration on antithetical level of facility they are to be necessitate. The management is to be focus on some spacious plan for each and every activity.
  • Step 3 : It is the gap identified from the side of customer’s education. For this facet, it is essential for the managing director to audit experience of grouping in which all their necessitate are contented.
  • Step 4: It is the spread betwixt experience of custom-made and the message that is delivered to them. The education of custom-made can be made optimistic when direction have becoming perceptive of aspects that they should be beaded (Asif, Searcy and Fisscher, 2013).
  • Step 5 : In this context, customer experience and perception is help to improve the services and increase the level of overall performance in market.

The mixture dimension: This is the opposition between all the employment that are delivered, Cited retails is preparation to deliver their customised within employment in which they will get performance with online employment and location delivery.

Fluctuation magnitude: The kind of services that is conceived by the steady is not fresh. There are galore other form that verbalise their custom-made with akin type of merchandise and employment (Yager and Zadeh, 2012). These employments are used so that customized can be reached out amended.

Comparison and contrast of different models

To be making the comparison among all the models to improve customer performance. It is proper step to be taken, so the step will be taken in the right place. There are antithetic plans that are ready-made and each of them it definite quantity to have befitting part of outgo to be done. Further, it is also essential to hire person who will be effectual enough to activity the activeness in grade-appropriate way. The gap of the experience is help to increase the overall on the job state of affairs and indefinite quantity amount of customer in market place. This is to be solve any such kind of issue that are to be faced the side of the consumer (Morecroft, 2015). All the models utilized have their aim set of plus and disadvantage. The steadfast should follow 4 Vs of Business activity Administration as it will change to concentration on the content in effective. With the help of such kind of activity is help to improve overall management inside as well as outside governing body. The planning is to be focus with the help of finance activity and work is to be managed in financial carrying into action. It is main aspect of each and every business organisation or activity to start and pull off number of client in securities industry.

As per the recommended solution for the issue that is faced, it can be stated that delivering products online is effective enough to meet the need and requirement of customers in appropriate manner. This way, it becomes helpful for NTUC FairPrice to raise their sales and profitability.

The organisation can design their website in order to make organisation online. Thus, it is recommended to the management of NTUC to implement online shopping model in their business framework in order to enhance productivity and profitability.

Part 2

Rich picture


Figure 1: Rich picture

Root definition

The only problem identified in the whole operation process is the communication error that could be occurred during order receive and order processing process. If employee communicated incorrect order to processing department than it can cause degradation of organisational image. As per the above rich picture made, it can be stated that there are two of the main issues that are faced. In this context, it includes problems related with communication error that is caused at the time when order is processed. With this respect, it is required to taken up appropriate steps in which interaction with all the people involved are strong so that these issues can be eliminated. In order to words, it can be stated that main cause of issue was caused with communication error. When proper consideration is made towards resolving the issue, then it will help to develop an effective supply of goods.



The type of system that is to be implement consists of customers at the end. People generally have to visit the physical store and then they need to select the product and taken up decision making so that they are able to satisfy themselves (Jacobs, Chase and Lummus, 2014). However, the system used by the firm enables customers to sit at their home and to select the most appropriate product that they are willing to purchase. Further, it also makes the purchases made more convenient in which individuals can make comparison among different products that are delivered by other firms. Further, it is also convenient for users to select the most appropriate way for making payment.


NTUC FairPrice have focused on making employees to perform their set of roles in appropriate manner. One of the issue that can be faced in this process is related with communication. In order to overcome them, proper training should be delivered by the firm so that the issues that are faced can be eliminated (Shaw, Blanning and Whinston, 2012). Further, there are certain set of roles that has to be played by them. When they do not have proper understanding for the same, then it has negative impact on the satisfaction level of customers. When the rate of support from the side of employees is high, then the activities that are developed are attained in effective manner.


The process for transformation will start when customers log in the website and at the time when selection is made for ta product. Then there are different are aspects that are also included and these enable to make sure that customers are able to reach the required targets and fulfil their requirements. When payment procedure is done by customers, then immediately the order is identified by the firm (Elbashir, Collier and Sutton, 2011). However, it is identified that this process require certain time and for that process they have to wait. However, it is important to make sure that considerations is made in which they deliver appropriate information so that they can fulfil their requirements.


There are certain set of goals and objectives that are set by them business. In online services, firm is able to reach out requirement of customers. Further, it enables to make the service users to meet their set of needs and make them satisfied and in creating value towards the products and services (Reim, Parida and Örtqvist, 2015). When firm is able to reach out customers more effectively, then it also boosts up the market share. The rate of competition is high and when these type of services are used in which people are able to get their services online, then it positively affects the business and its growth.


In order to make sure that all the operations that are included in the online system is performed in appropriate manner, the management will develop a new system with different department and it will work differently when compared with physical store. This way, it will be favourable enough to determine the performance that is shown by each one. Apart from when all the workers will perform their set of roles in appropriate manner, then this can have positive impact over the business. Other than this, it also provides the opportunity to employees to have direct interaction with customers and this helps them to determine the issues that are faced by them and accordingly sets can be taken to overcome them.

Environment constraints

When implementation of home delivery is done, then the emissions can get created to increase the business actions and for making the products reach customers, there are uses of vehicles done in which there is condition of emission in CO2 into the environment (Demirkan and Delen, 2013). In accordance with the climate change act, government make sure that proper control is done for reducing the rate of emission form harmful gases. Apart from this, there is Grocery Supply Code of Practice (GSCOP) that makes sure that all the companies do follow the regulation and harm caused by firms can be reduced.

 Business process plan (As is) 

Business process plan (To be)

To be: In the above, given graph, it demonstrates all the data in connection with the procedure that which customers will experience in order to make utilization of the framework in fitting way. At the point when contrasted and "As seems to be", in "To be" customers need to make their inquiry on the site that is created by the firm in which all data about the items are appeared. Customers need to choose the items that they will purchase and afterwards the progression of instalment happens in which individuals are given the alternative for instalment which should be possible on the web or when conveyance of products is done. At the point when this progression is finished, at that point the data related with the request put is promptly exchanged to administration of the firm that works (Choi, Chan and Yue, 2017). At the procedure of instalment it is essential for the customers to give finish insights with respect to the address and telephone numbers. These are essential to be given as it causes the specialists to make the picked items by the customers to contact them. At the point when these means are done, at that point the parts of customers are finished.

AS-IS the process that is currently going on within NTUC FairPrice. On the other hand, TO-BE is the process that will be followed in the future. There specific details added that firm is will be implemented and these changes will helpful the firm to grow in positive manner. AS-IS process is time consuming which consume time of both organisation and customers. As compared with AS-IS, TO-BE model is more advance which helps in saving time and cost of both customer and organisation.

Part 3

Key performance objectives

The NTUC FairPrice focuses on increases the online shopping market, therefore it can help in increasing customer's satisfaction and loyalty. Another objectives of NTUC FairPrice is to reduce operational cost. In all these activities, it is very important to consider cost involved in the online system. Further, it additionally incorporates to screen employees with the goal that they can decide the regions in which improvement should be made (Turban, Sharda and Delen, 2011). One of the contemplations that must be made is in connection with refreshing innovation. This will be sufficiently compelling to ensure that all prerequisites of customers are distinguished and satisfied and high quality is conveyed. Managers can be made utilization of TQM (Total quality administration approach) for keeping up astounding principles.





To obtain share for online grocery market.

Through statistics done with the help of online grocery market share

Through grocery market share


Increase in market share by 0.6%

Introducing online system

To increase turnover of share value and returns

Comparing net profit with previous annual reports

Raising the annual profit to be £55

Attaining growth by increasing sales generated with online system.

Table 1: Balance scorecard in perspective of finance

In order to raise the market share up to 0.6%, this is only when online delivery of products is effective and efficient. Furthermore, there are situations in which customers do not trust online shopping. One of the main reason could be negative comments made by customers. Further, it is also stated that focus is made on raising the annual profit to £55, all these can be done when all the need and requirement of customers are satisfied.





To raise loyalty

Determining number of repeated orders

Raising customers transaction in one week to 3.5 million

Benefits from repeated sales.

To maintain base of existing customers

Through market share statistics

Growth market share of 0.5%

Introducing online system or service

Table 2: Customers Perspective

Customers prefer to utilise services which are easy to access and effective. Organisation is capable of reaching to the customers and developing strong customer base. It also helps in creating customer loyalty.





To maintain low cost by reducing operational costs.

Making comparison with previous operating cost

Attaining 30% of operation costs

Operations management and efficient systems

To determine the packing system used is effective

Monitoring employees performance

In 60 minutes 2 orders should be made ready

Making customers know about convenience benefits.

Table 3: Internet business processes perspective

The time taken by the business in performing business activities can be minimised if the employees understand the working procedures and work effectively. When the time that is taken is decreased, then it becomes favorable enough for the steady to sort sure that all the commodity are made to reach group earlier the due date and this germinate trust and assurance





To decrease turnover of employees

Comparing previous employment statistics

Annual raise in employment for 40%

Introducing incentives.

Table 4: Learning and growth perspective

On the other hand, proper perceptive about the total time that is taken place in abstraction with underdeveloped the commodity and devising it at the ready for bringing. In additions, work become favourable to sort sure that the carrying into action of the business concern can be elevated in effectual way.


  • Asif, M., Searcy, C. and Fisscher, O. A., 2013. An integrated management systems approach to corporate social responsibility. Journal of cleaner production, 56, pp.7-17.
  • Choi, T. M., Chan, H. K. and Yue, X., 2017. Recent development in big data analytics for business operations and risk management. IEEE transactions on cybernetics, 47(1), pp.81-92.
  • Demirkan, H. and Delen, D., 2013. Leveraging the capabilities of service-oriented decision support systems: Putting analytics and big data in cloud. Decision Support Systems, 55(1), pp.412-421.
  • Elbashir, M. Z., Collier, P. A. and Sutton, S. G., 2011. The role of organizational absorptive capacity in strategic use of business intelligence to support integrated management control systems. The Accounting Review, 86(1), pp.155-184.


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