Operations management simply means managing the routine activities of an organisation e.g. managing production of goods and services (conditions of machinery, developing safe working environment), ensuring the efficiency of all other department like: Finance, IT, HR etc. And the planning for implementing these management procedures are the strategies. Operational strategies are developed keeping in mind the competitors. After all, businesses compete for earning customers. To earn customers business need to have unique selling point. Thus it is important for an organisation to know its customer better and deliver expected goods/services. Customers are driven by various factors like: affordability, quality, durability, services, availability etc. Measuring customers satisfaction helps business come up with new innovations/ideas that helps in gaining loyal customers.
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Departments And Activities In Primark
If it is a store like Primark the routine activities would be shelf filling, guiding customers, ensuring the safety security and cleanliness of store, displaying fresh fashion (visual merchandising) , availability of stocks etc. Primark is the UK’s one of the most flourished business. At this point of time when all other businesses have been victimised by the recession, Primark is one of the few companies that is being able to stand. To carry out the functions of the stores for easy access to customers and efficient operations it has been divided in various numbered sections. They are:
*1- Accessories
*2- Hosiery
*4- Underwear and Nightwear (lingerie)
*5- Children wear
*6- Men’s wear
*7- Footwear
*8- Womenswear
*11- Home ware
*16- Men’s accessories
*23- Health and Beauty (cosmetics)
*24- Christmas products and Gift wear
*26- Sportswear (Dunlop, Wilson and Umbro)
Primark Getting Better
To enhance the operations, increase the productivity and to adopt itself as per the technology, demography and demands the company changes its policies or strategies. Furthermore, Primark believes in the betterment of customer service and its business. That is why Primark corporation, Waltham, Massachusetts have come up with new organizational structures which are all customer focused. All its business operations are integrated into three divisions led by new presidents and CEO’s.
Primark financial department: This department deals with the activities like investment management, corporate network management (primark.net.), data/icv, disclosure and world scope. Department led by Steven L. Schneider will be responsible for all real-time and transactional products, investment accounting, and the reference and consumer markets.
Primark financial analytics division: The division led by Joseph Riccobono will be dealing with the development and marketing a wide variety of analytical products for money managers, fund sponsors and other investors. It will include I/B/E/s, Baseline and Vestek. The analytical products will combine database, advanced software, analytical techniques and forecasts for all phase of the investment process.
Primark decision and information division: The third department will concentrate on other than financial sectors. It contains of WEFA, Yankee group and the joint venture with economist Dr. Allen Sinai. Patrick G. Richmond has been appointed the president and CEO of this department.
In addition, Primark is using software called ‘Entropy’ since Friday 13th march, 2009. It helps in monitoring and improving the working conditions not only in the UK but also hundreds of other suppliers in china and south Asia. Though it joined Ethical Trading Initiative (ETI) in 2006 there had been workers exploitation and bad working conditions for them.
Ever since, Entropy has been in use Primark is directly being able to monitor activities of its suppliers to improve efficiency and standard of work and reduce the possible risks.
Valuing Employees
The success of an organisation depends on its management. And the management activities are all carried out by the employees. Thus the success of an organisation is directly related to the employee’s performance, dedication and loyalty. Total 27,500 employees are working for the Primark at this time. The credibility to the greater percentage of achievement belongs to the employees. Upgrading employees skills automatically upgrades companies output (productivity, profit). That is why it offers various reward and benefits like: competitive salaries, bonus schemes, career development trainnings, pension schemes etc to its staffs. Making them happy is being you happy. As long as an organisation values its employees they will stay with them.
If he/she is in the store management team they will get benefits like:
23 days holiday (increasing to 25 days after 3 years service)
Health insurance (assistant manager/assistant buyer level and above)
Bonus scheme (deputy manager/buyer level and above)
In addition Primark conducts NVQ programmes to boost up their employees potential in the areas such as: retail customer service, administration, team leading and management. Primark’s value for its employees shows from the following example:
One employee joined Primark as a weekend retail assistant aged 16 years. And promoted to full time position to senior store manager and now area manager responsible for 12 stores.
There are three positions in the Primark’s retail stores: retail assistants, sales floor supervisor and stock room supervisor.
Threats In The Market
On the other hand, talking about the Primark’s biggest competitors like marks and Spencer seems to be taking the holistic approach towards sustainability. They have set a target to become most sustainable retailer by 2015. Having a business is not only huge selling and earning huge profit. People and environment cannot be taken for granted. Primark’s competitors are adopting more realistic approach by selling durable, environmental friendly goods. They are more concerned about environment rather than profit only.
Primark’s concern are also growing towards global issues, in other word it is going green. Until and unless these issues are taken into account sustainability will be a question mark. After all, businesses are established to go on and on, it is an ongoing process. No on opens a business for defined period of time.
Another biggest competitor of Primark is MATALAN who is giving it a tough time by selling products as cheap as Primark. There was a dispute between Primark and Matalan for ‘chav Britain’ which even was taken to the high court. Primark accused Matalan for confusing its customers by selling hoodies with words ‘rebel attitude’. Which according to Primark, it only had the right to use the word rebel for its boys range. Using the same name confusing customers Matalan won the customers but Primark later demanded for the compensation.
Primark also had court issues with monsoon and H&M which later settled out of court.
Conclusion
In a nutshell, Primark is the leading fashion store of United Kingdom. Selling cheap and attracting large number of customers has been the motto of Primark. Despite of various controversies still it is the most popular shopping spot. It has been able to overcome issues by changing its strategies at the different stages of its life. To be more affective, Primark is seen to be more active towards detecting and eradicating its weaknesses as soon as they arise i.e. joining Ethical Trading Initiative (ETI), using different software like Entropy and ICON.
Primark’s operational side seems to be the strongest side e.g. different restructuring programmes, various training and development programme for its employees. It understands that having strong employees is having strong business and heavy profit as well.
Moreover, pricing strategy has made Primark stand out among numbers of competitors like marks and Spencer, BHS, Debenhams, new look, gap, Matalan etc.
Bibliography
www.managementtoday.co.uk (07/03/2010)
www.gurdain.co.uk (07/03/2010)
www.tax-news.com/news/primark- (07/03/2010)
www.prnewswire.co.uk (07/03/2010)
http://en.wikipedia.org/wiki/operations (07/03/2010)
www.thisis.london.co.uk (07/03/2010)
http://corporate.markandspencer.com/documents/publications/2010/planAcommitments2010 (07/03/2010)
http://en.wikipedia.org/wiki/customersatisfaction (07/03/2010)
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