Assessing The Systems For Operations Management Commerce Essay

Azam Super market is a freshly opened household concern owned by siblings Jaswindher singh, Pervindher and Hardeep Kaur based in UK. Azam Super market is chiefly focal points on food market, offering a broad assortment of Indian nutrient and dairy merchandises. The administration has got 5 full clip employees and 2 portion clip employees under the disposal of Hardeep Kaur, as she looks after administrated related activities. At the average clip Jaswindher singh support the concern related activities like selling and advertisement and Pervindher singh responsible for buying or of goods and services needed by the administration. Within short span of clip Azam super market gained the trust and value of the community around the country and go a strong SME in that peculiar country. Now concern is traveling up to following degree with a changeless addition in figure of clients. The proprietors are truly busy with concern publicity and the increasing figure of client becomes a hard undertaking for them to fulfill each and every client ‘s demand and to run in their traditional manner. This study overlooked the construct of new economic system and old economic system in context of operations direction based on Azam ace market.

The Internet is a really of import new engineering, non surprisingly, has received much attending from enterprisers, executives, investors and concern perceivers ( Porter, 2001 ) . The New Economy construct has been associated with an tremendously broad assortment of significances. Harmonizing to Shepard S, “ By the New Economy, we mean two wide tendencies that have been underway for several old ages. The first is the globalization of concern. Simply put, capitalist economy is distributing around the universe – if non matured capitalist economy, at least the debut of market forces, freer trade, and widespread deregulating… The 2nd tendency is the revolution in information engineering. These two wide trendsaˆ¦ are sabotaging the old order, coercing concern to restructureaˆ¦ . “ ( PAULRE B, online ) . The combination of rapid growing and the enthusiasm associated with advanced engineerings has made New Economy companies magnets for endowment direction and peculiarly for ambitious immature ( Hayes, 2002 ) .

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Old and New economic system

New Economy concern theoretical account brought a new attack to plan concern ( Walters D, 2004 ) , some research workers understands that the new economic system as a beginning of value creative activity ( Fuentelsaz L, et al 2002 online ) . Meantime some surveies based on macroeconomic shows that there is no such thing as new economic system in comparing 20 – 30 old ages ago with present system of making concern has resulted the globalization and unpredictable environment. ( Barton J et Al, 2002 online ) . All these surveies prove that the new economic system has played a critical function in altering the face of concern universe. Literally, the significance of new economic system differs, but the cardinal end product of this construct is strictly based on the combination of information engineering and the globalization.

Contrary, the construct of old economic system started in the beginning of industrial revolution and it is really first-class at the immense production and use of physical objects ( Plisch S & A ; Glick B online 2004 ) . “ AA termA forA the old bluish bit industries that enjoyed fabulous growing during the early parts of the century as industrializationA around the Earth, A and peculiarly in the United States, A expanded.A Since the new economic system has arrived, old economic system companiesA haveA still experienced growing, but at a worsening rate ” . ( Anon, Online )

The chief aims of new economic system in operations direction

Discover cardinal strengths driving the new economic system

To happen out how selling and concern environment has been altering as a consequence of the new economic system.

Investigate how the engineering has changed the attack sellers use client databases.

Identify with how concern people pattern consumer relationship direction

To reenforce competitory advantage linked with being early to market by happening methods to hike its clients cost of exchanging to a rival.

To go more flexible to run into clients need in existent clip

Beginning: James K E ( 2003 ) and Hayes R H ( 2002 )

The chief drivers of the new economic system

Globalization: Today concern is faster and permeant because of the globalization. Distance is no more an issue for companies and most of the administrations net income comes from outside of the central offices.

Knowledge Management: Knowledge direction is playing an of import portion in operations direction. In current scenario, the cognition constituent of services and merchandises has increased dramatically and go the dominant figure of client value.

Change: Companies are confronting huge competition from their challengers. Drastic addition in competition coercing administration to seek for new and more human ways to increase productiveness and fight.

Digitalization or information engineering: The power of cyberspace made radical changed full construct of making concern or operations direction in administrations. Internet emerged as a new ways of edifice and delivering merchandises and services.

Beginning: James K E ( 2003 ) & A ; Kotelnikov V ( 2010 )

New Economy Vs Old Economy

Given below issues merely shows the monolithic difference between old and new economic system


Old economic system

New economic system


Visit the book shop

Visit the web site

Students instruction

Walk around the campus to sections, registrar ‘s office to register faculties

Access via campus web site to register for instruction


Buy movie, usage camera, take image, take it to treating

Digital cameras

Transportation system

Visit the ticket office, pay hard currency

Metro cards, electronic cards, online booking

Supermarket shopping

Visit shop, wage, travel

Use self service booths


Visit bank, waiting line, withdraw money, sedimentation money etc..

Use debit or recognition card, on-line minutess etc…

Contrasting Old and New Economy Operations Management

Old Economy

Based on merchandises and services

Success was calculated by portion of market

The high spot of typical endeavor was on graduated table and competency

Independent Administrations

Face clip

Individual Merchandises

Control changeless flows through internal procedures

Procedure betterment

“ Direct ” control

Different Ways to Compete

New Economy

Based on information ‘s

Success was calculated by clip to market & A ; site trial

The high spot of typical endeavor was on linking engineering

Network of confederates

Consequences orientation

Packages of compatible merchandises & A ; services

Manage kineticss of highly flexible and embryologic merchandises within webs

Undertaking betterment

“ Indirect ” control ( trust, inducements, etc. )

Get to high volume

Beginning: ( Anon, Online )

Challenges posed to new economic system in context of operations direction

Apparently, development of new information engineering systems has made new economic system companies a cutting border in the industry and peculiarly can pull immature endowment pool in to their direction Hayes R H ( 2002 ) . But it is evidently clear that deficiency of proper planning and invention on these, allow the companies to handle them by acquiring bad determinations that have wrinkled the attraction of their industries and undermined their ain competitory advantages ( Porter, 2001 ) .

Harmonizing Hayes R H ( 2002 ) there are 5 challenges posed to operations direction by the new economic system.

Analysis of organizational unit in a company

Operations direction is concerned with inputs like changeless services and merchandises

Operationss directors intervention to command the all procedure should impact administrations activities

Budget controlling has a critical function and a major concern for all operation troughs

Identifying rival ‘s strength throughout the procedure and set superior public presentation against them to acquire into the market.

Evaluation and design of operating and direction information systems

Management information systems are defined as a survey of computing machine based systems in direction and concern ( Laudon, J P & A ; Laudon, K C, 2007 ) . OCC defined MIS as a system of procedure that gives the information indispensable to command a company successfully and it besides generates of import constituents of prudent and sensible concern determinations. ( OCC, 1995 p-1 ) .

Role of MIS

MIS has a cardinal function in the successful direction because of the undermentioned ground: –

Information is the familiar denominator underlying the direction operations of organising, directing, planning and controlling.

MIS are closely associated to the basic system aims, schemes and constabularies introduced by the direction.

MIS gives information to the direction in the administration as per the degree.

MIS brings different type of systems like analysis systems, query systems, determination support system and patterning systems to the cater of the assorted demands of the administration.

MIS improves administrations efficiency and it affects the public presentation and productiveness.

( Bagad, V S 2009 p-2-2 )

MIS should be design to accomplish following ends

For effectual planning and commanding

Problem work outing

Policy and determination devising

Planing and scheduling

Improve interactions among the employees

Reduce production cost of administration

Beginning: ( Bagad, V S 2009 p-1 & A ; OCC, 1995 p-1 )

Cardinal Role of MIS

MIS performs 3 cardinal maps in an administration

Support of concern operations

Support of managerial determination devising

Support of strategic competitory advantage

Strategic Advantage

Managerial Decision Making

Business Operationss

Fig 1 shows cardinal function of MIS in an administration

( Bagad, V S 2009 pp 1-3 )

Business operations: In concern operations MIS can be utile in different type of applications like entering client minutess, charge, hard currency direction, entire gross revenues computation, stock list etc ( Bagad, V S 2009 pp1-3 ) .

Managerial determination devising: Decision devising procedure is depends upon director ‘s determination whether to put in a peculiar merchandise based on the gross revenues history of the merchandise ( Bagad, V S 2009 pp 1-3 ) .

Strategic Advantages: Strategic advantages can be gained by the advanced usage of IT over rivals ( Bagad, V S 2009 pp1-3 ) .

Hazards Associated with MIS

Management ‘s determination based on unproductive. Inaccurate MIS might increase hazard in certain figure of countries like pricing, recognition quality, liquidness, foreign currency or involvement rates. An uneffective MIS may do operational hazard and can detrimentally impact an administrations scrutinizing of its fiducial, consumer, just loaning, Bank Secrecy Act or other ailment related activities ( OCC, 1995 p-3 ) .

Operationss Management for Azam super market

Operations direction is really of import because it can cut down costs, it can increase gross, it can cut down the demand for investing and it can besides increase invention. Operations direction is the activity of pull offing the resources which are devoted to the production and bringing of merchandises and services ( Slack, N, et al. , 2010 ) . All operations produce merchandises and services by altering inputs into end products.

The instance survey about Azam ace market reflects the importance of proper design, planning and control in the administration. Azam ace market is a SME, so in pattern pull offing a SME has the same as a pull offing a bigger administrations. Smaller companies may make n’t hold the resources to offer persons to specialise undertakings. So people may hold to make different occupations as the demand arises. Such an informal construction can let the company to respond quickly as chances or jobs present themselves. But determination devising can besides go baffled as persons functions overlap. Small companies may hold precisely the same operations direction issues as big 1s but they can be more hard to divide from the mass of other issues in the administration. ( Slack N, et Al, 2010 pp 8-10 )

Advantages of operations direction in SMEs

The chief advantages of operations direction in SMEs like Azam Super market are everybody in the administration has much broader occupations. It ‘s really expensive to hold the financess for the disbursals of holding professional in specialised countries. So they can keep their doctrine of quality amongst everybody in the company and it helps them to respond really rapidly when the market demands it. If an thought looks assuring they can make a little and informal squad together to look at it further.

Transformed resources

The transmutation procedure


Output resources

Transforming resources

Input resources

Fig 2 Input – Output transmutation theoretical account

Beginning: ( Slack N, et al 2010 p-11 )

If Azam super market wants to be a successful organisation they have to hold good organisation accomplishments and they can present quality services. It should hold done by its operations direction or directors. The activities or inputs are converted into all right end products in the signifier of client satisfaction. This can be doing it possible with the aid of efficient and effectual staff system and installations. Operational troughs should see all employees as, who are responsible for pull offing all resources of the organisation. They have similar set of duties and activities and are called by different names in different organisations.

Management information systems for Azam Super Market

MIS play a critical function in the organisation on the use of physical, human and fiscal resources of a productive system. In any concern all the managerial undertaking such as finance, functional, stuff, HR, fabrication and R & A ; D support all managerial undertakings becomes more effectual ( Bagad, V S 2009 p-2-3 ) . MIS offers applications like supply-chain and stock list direction, enterprise resource planning ( ERP ) , client relationship direction ( CRM ) , gross revenues and selling, merchandise lifecycle direction ( PLM ) , help desk package, gross revenues force mechanization, and human resource direction package.

Increasing demands in Indian nutrient in the UK require SME like Azam super market to implement above mentioned applications to better the efficiency and public presentation of the company to run into the demands of the clients. An effectual execution of these applications in Azam Supermarket, leads to systemization of the concern operations besides the watercourse liner of concern activities.

Fig 3 shows the support of MIS in the direction maps

Information Support

Management information systems



Business Environment



Get downing


Beginning: ( Bagad, V S 2009 p-2-26 )

Management information system helps to carry through ends of an administration efficaciously and expeditiously. Is besides helps to transport out all concern operations swimmingly.

Process Design in Azam Supermarket

“ To plan is to gestate the expressions, agreement and working of something before it is created. In that sense it is a conceptual exercising. Yet it is one which must present a solution that will work in pattern. Design is besides an activity that can be approached… … … … . ” ( Slack N et al p-87 2010 )

Fig 4 The design of products/services and procedure are interrelated and should be treated together

Beginning: ( Slack N et al p-88 2010 )

Process design and merchandise design are interrelated and it has a really critical function in Azam Supermarket. If the merchandise or procedure is non good designed the quality of the merchandise may endure. Further, the merchandise has to be manufactured utilizing stuffs, equipment, and labour accomplishments that are effectual and low-cost ; otherwise, the outgo will be excessively high for the market. The chief intent of the procedure design must run into or transcend client ‘s outlooks. Process design brings together selling analysts, gross revenues predictors, applied scientists, finance experts, and other members of a company to presume and be after strategically. It is electrifying and inventive, and it can convey success or failure for a company.

In add-on, Volume and assortment have a major affect on procedure design in any administration. The overall nature of any procedure is strongly influenced by the volume and assortment procedure.

The design of merchandise and services in Azam Supermarket

In any administration a client should first detect the quality of service and merchandises they are being delivered. If both quality and service are non good plenty to fulfill clients it should hold a negative impact on the whole concern procedure. In this instance survey Azam super market is truly focussed on presenting good services and merchandises to the clients. The operations direction squad in this administration is good cognizant about the importance of design. It besides helps their concern connect strongly with their clients by expecting their demands. It besides brings them to bring forth new thoughts and turn them into practical.

The location

In any administration location is one of the most of import factors that decide company ‘s hereafter. Location determinations will normally hold an consequence on administrations overall public presentation and one time location has taken it is really hard to undo the determination ( Slack N et al p-147 2010 ) . For Azam Supermarket Location is really important because of their merchandises, that chiefly focuses on a peculiar community. If Azam supermarket opened a retail shop where their mark market is minority they ca n’t execute good and it finally result in the loss of the administration. So it is of import that to happen a location where their administration can execute good. The chief aims of location determination are to accomplish an appropriate balance between 3 related ends:

The geographical location of the operation

The gross potency of the operation

The service the operation is able to supply to its clients

( Slack N et al p-148 2010 )


Internet information systems exist to function and back up the activities of the administration of which they are a portion. Hence, any alteration in information systems must seek to better the ability of the administration to carry through its ends. There different methods for placing and measuring the ends of the administration and of mensurating the part alternate systems designs may do to the accomplishment of the ends ( Land, 1976 ) .

Execution of successful information engineering along with the operational direction should convey Azam ace market in pole place in their peculiar mark industry. This study is an effort to happen out the importance of MIS in SMEs like Azam Supermarket. It would be chesty to claim that in peculiar at this premature phase of digital embrace, that the tough lessons learned in taking clients information merchandises online are straight applicable to specialist printing markets such as STM. The truth remains that tremendous transmutation is on the manner for information subscribers of all sorts, and we have barely begun to see the effects of it yet. We can non direct away the early facts of alterations in gross portfolios and chiefly in the manner that clients come up to information online.


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