Morrisons Plc annual report and financial statement (2011) stated that Morrisons is one of the fourth largest food retailers by sales with an annual turnover in excess of £16 billion and account for 12.8% in the grocery industry (See appendix 1). However, the UK supermarket industry is intense competition so it required more new and effective tools to compete with rivals (Urbonavičius and Ivanauskas, 2005). Hence, for retaining and developing, Morrisons is not only needed to have excellent strategic operation management but also diversified itself in to the new market. This essay will analyze Morrisons’s operations management, its value chain and other aspects relate to quality which leads Morrisons difference from other supermarket.
FIVE PERFORMANCE OBJECTIVES
Morrisons business is focused almost entirely on food. Their vision is “different and better than ever” and their objectives build on their history strengths that make Morrisons unique in the UK grocery industry (Morrision 2011, p.5). Thus five performance objectives play a key role in achieving the main performance objective of Morrisons operations management (See Figure 1).
Slack et al (2003) was defined quality as “quality is consistent conformance to customers’ expectation”. It basically means the organization should do things right by offering error- free goods or services to satisfy customers. As a performance objective, there are external and internal affect to quality depend on level of customer satisfaction. Cleanliness and tidiness place, attractive decoration and convenience layout with wide choice of products and services are external benefit quality at Morrisons supermarket. It will give the shopper a sense of comfortable and attract them for returning. Internal benefit such as fresh foods, good conditional products, friendly and helpful staff will satisfy consumers. Quality can also split into level of customer service as lower with part time staff student and higher with full time adult staff or balancing flexibility and cost as food with nearing expiring date and damaged package products available at reduced section with lower price. A good control quality will help the organization to reduce their cost, increase their speed and dependability. It is also prevent unexpected complaints from consumers and add more value to the company brand name. SPEED
Another performance objective is speed. Speed means fast response and reply to customers requesting a product or service (Slack et al, 2003). The more minimize the time between receive and solve the orders, the more satisfaction customers is because it gives the customer a speed advantages. Morrisons reduces queuing times by having more checkout tills and effective layout which helps the customer easily and quickly reach their needs. Internally, the speed of the suppliers can bring benefit to the organization (Burt, 1989). It is possible to be on time, reduce cost and also reduce the organization risk. DEPENDABILITY
The third performance objective is dependability. A simple definition of dependability is being on time (Slack et al, 2003). Morrisons has stored inventory in the back office which allows the supermarket promptly meet customer demand. Externally dependability is also the constant availability of parking on shelved goods and clearly opening time announced to customers. It will increase returning customers to the business. Morrisons has their own modern distribution and packaging so they can better control time of delivery (Morrisons, 2011). A good control of dependability can increase speed by save time and decrease cost by saving money directly. FLEXIBILITY
“Being able to change the operation in some way” is known as flexibility (Slack et al, 2003). Morrisons announced to increase opening hours in UK stores from third of May 2011 (Morrisons cooperate, 2011), this flexible time will give customer more choice to shop. It also offer customize foods at “market...