Parcelforce And BG Group Are Analysed Commerce Essay

A critical analysis on organisations i.e. Parcel force and BG group is presented in conformity to the appropriate operational model in direction of undertakings. Analysiss are established under the acute facets of operations direction in which facts like client orientation and demands and the organisations ‘ reactivity to those demands are highlighted.

Parcelforce and BG group are analysed on the footing of assorted constructs and models including Supply concatenation direction, Total Quality Management ( TQM ) , Six sigma, Statistical attack, Process design, Job design, Process function, Layout planning, Systems thought and Capacity planning. A critical analysis on the construction of both the organisations is provided which chiefly entails the similarities and differences on their several procedures and operations.


Part ( a )

Introduction to Parcelforce


Parcelforce Worldwide is a trading name of Royal Mail Group Ltd. It is a British company supplying a steadfast nexus between concerns and the international markets for over 14 old ages. Its services include messengers and logistics. For the efficient aggregation and bringing system, the company has two operational hubs in Coventry. One handles the operations in the UK and the other grips packages for international bringings.

Merchandises and services

Merchandises and services of Parcelforce include the chief streamline mail within the UK every bit good as in the remainder of the universe. Second, it offers an drawn-out package bringing system in the Europe with the name of GLS ( General Logistic System ) and it is estimated that it delivers around 1 million packages across 34 states in Europe. Furthermore, its world-wide operations are carried out at a huge coaction with its spouses. ( Parcelforce, About us, 2010 )


Parcelforce strives to supply its clients with hassle free bringing of their goods and mail. The chief clients of Parcelforce are general populace for their twenty-four hours to twenty-four hours postal and mail demands every bit good as concern to concern clients. It maintains a web of station offices which generate immense volumes of mail and packages to be delivered in the mainland UK and worldwide. Account clients, running big, medium and little endeavors besides form a major client base of Parcelforce, for case ASDA shops signed a contract for their George trade name to utilize Parcelforce service for logistics likewise, British Gas besides maintains running contracts with Parcelforce.

Introduction to British Gas


British Gas is Britain ‘s domestic and industrial energy provider. Apart from supplying gas and electricity to families and industry, the company besides install and keep cardinal warming and gas contraptions to places throughout the state. BG Group is a turning concern with apparatuss in more than 25 states over five continents. It is a publicly listed company in the London Stock Exchange and is a constituent of the FTSE 100 index. ( Profile, 2010 )

Merchandises and services

Bing an built-in portion of the energy sector, BG group focuses on geographic expedition and production of Natural gas and oil for domestic and industrial usage. Production of Liquefied Natural Gas to ease the supply of energy to where there is a deficiency of energy resource handiness. Transmission, distribution and coevals of power in order to run into and transcend the day-to-day family demands every bit good as regular industry use.


The BG group sells its merchandises to assorted constructions. These comprise of families, retail gas providers and electricity bring forthing corporations. Furthermore, it ‘s besides looking frontward to get down its ain electricity bring forthing undertakings. BG group has a planetary presence with around 60 % of its undertakings outside UK. It is presently working in 27 states. The chief clients are household, electricity, gas and bi-fuel that is, both electricity and gas clients. However, BG besides deals with concern to concern clients. These chiefly comprise big, medium and little industries. There ‘s a reasonably slender client base for boiler supply and energy efficiency advice.

Selling Schemes

In the British market, Parcelforce is the market leader in footings of market laterality but while sing the international market, it lies among the market rivals. Its world-wide rivals include FedEx and DHL etc. its worldwide networking and outreach is worsening due to the greater stretch of competition distributing to assorted geographic parts

Contrary to that, BG group is entirely a rival if the whole European market is taken into history. Though it has stolen a all right figure of clients from rivals through promotional activities and market presence, it still needs to turn more to go the market leader.

Under the invention schemes head, new merchandise development and current concern invention plays portion. Both the organisations are close followings of its rivals. Parcelforce is a subordinate of Royal Mail-which is the existent innovator, but it purely is a follower of its rivals.

Market Cleavage

Before sectioning the market, one must place its trade name in the market. After positioning, an organisation must choose the mark market it wants to provide to specifically. Parcelforce, dispatches mail and sends parcel all over the universe but it has segmented its market to C2C. This represents clients directing gifts to clients. Other countries include despatching of educational and confidential paperss all over the universe. It besides caters to some lasting B2B clients like ASDA and TESCO. BG group focuses mostly on B2B clients. This means that it chiefly supplies its merchandise to the concerns. But it besides provides services to the domestic degree.

Merchandise Differentiation

Product Differentiation is making merchandises so that clients perceive them as different from viing merchandise. It is of critical importance in merchandise direction and has importance in merchandise direction and has great possible in inventing successful selling schemes. Parcelforce differentiates through lead in pricing competition and assorted properties of merchandises and client friendly services it offers. BG group differentiates itself through supply of assorted types of energy resources to concerns every bit good as places. These include Natural Gas and Electricity chiefly.

Cost Leadership

Cost leading represents that the organisation is taking the industry due to the lowest cost of production. This represents either the production of a merchandise or a service. Parcelforce is a cost leader in the industry by agencies of efficiency, size of the organisation and graduated table of service production. BG group on the other manus, maintain its costs by the usage of it dickering power as a supplier/producer. There is an oligopoly in the energy sector so the monetary values are reasonably much already set but they diversify by maintaining their production costs low.

Competitive Precedences

Organizations compete in the market with one or more of the undermentioned competitory precedences:

Cost Value

Predominantly, most makers are concerned with the cost of production or running the concern. Main classs comprise of production cost, rewards, capacity use and stock list control. BG group has adopted many ways to cut its production costs such as promotion in engineering and betterment in supply concatenation direction. Parcelforce has activated many regional aggregation Centres and hubs to minimise the costs of aggregation and dispatching.

Quality Value

Different organisations have different definitions of quality. Like service sector focuses on the quality of service and fabrication sector focuses on merchandise quality. Parcelforce believes in transporting the packages and gifts in the same status they were received and returning them back if non delivered. BG group concentrates on the quality of fuel it provides to its clients through following proper steps in bring forthing value.

Delivery Time value

On clip bringing and the ability to present goods and/or services in the promised agenda is an of import portion of any organisations unity and image. BG group has a huge bringing system. It has ever provided its clients with the promised value and has ne’er shed its burden to do the clients suffer. Parcelforce ‘s primary focal point relies on presenting the goods and packages in clip and to the right receiving system. And for this intent it has proper work force and vehicles.

Part ( B )

Approach to Operations Management

Operations direction encompasses a figure of nucleus constructs and models. The range of operations direction starts at production and fabrication and goes good beyond into service industries such as IT, banking and touristry etc. It addresses capacity planning, occupation designing, systems believing, layout planning, supply concatenation direction and assorted other facets including, environmental and ethical constructs.

Procedure Design

Procedure planing involves understanding the two terminals that is where to get down and where to complete maintaining in position the assorted demands and restrictions during the method performed. The method involves a many to one attack where many natural stuffs enter into one terminal of a value concatenation and stop up on the other terminal of value concatenation being client oriented value added merchandises. Both Parcelforce and BG have well-designed procedures that contribute positively to the concern. Parcelforce maintains fleets of Lorries and a web of offices state broad that integrate to reassign mail and packages expeditiously and be efficaciously. BG, likewise has a huge web of Corgi registered applied scientists and technicians for go toing to assorted concern demands.

Layout Planing

The end of layout planning is to let workers, equipment ( and where applicable, clients ) to run at extremum effectivity, efficiency and involves finding the most executable locations of the installations in order to increase efficiency and minimise cost of operations. The chief distribution Centres of Parcelforce are located in the Midlands of mainland UK therefore supplying easy entree from all expresswaies and train paths to garner and dispatch all the mail and packages state broad. The distribution Centres besides have direct entree to Luton airdrome and London ‘s airdromes for airmail. The layout within the Centres is besides managed in the most efficient manner by delegating incoming docks on one side and surpassing docks on the other side of the edifice with processing zones in the center. BG likewise is located near coal militias and coastal countries for power coevals nevertheless, its distribution grids are networked all over the UK.

Systems Thinking

Systems believing relates to the fact that the topic under consideration or under survey interact with other built-in components of the system. It deals with larger parts of a system as a ball and non by disintegrating them into smaller parts. In other words, it monitors the influence of single entities on the whole. ( Flood, 2010 )

Key benefit of systems believing is its ability to provide to the jobs originating in an organisation to the degree where conventional job work outing fails. Issues include the greater denseness of jobs, their complexness and the absence of instant feasible solutions. At both BG and Parcelforce, modular systems believing is adopted therefore operations are divided into faculties or entities which perform their maps independently and so incorporate to organize a common operation.

Supply Chain Management

Supply concatenation direction is a comprehensive synchronism from the storage, motion and use of natural resource to the unfinished work in procedure and finally the refined and reinforced finished merchandise. In laic adult male footings, a supply concatenation is the pool of phases that an organisation takes to change over natural components into the concluding merchandise. ( Hezarkhani, 2010 ) Characteristically, supply concatenation direction consists of five stages viz. , program, develop, do, present, and return.

Supply concatenation is at the really nucleus of Parcelforce operations since it is a supply a logistics company. Each phase of the supply concatenation is good addressed and a coherent system is formed where supply concatenation is upgraded into value concatenation where value is added at every nexus of the concatenation ( Brock, 2010 ) . There is a precedence system for presenting assorted goods into 1st, 2nd and 3rd category with 1st being the highest precedence. Collection and bringing are based on timelines farther by presenting 1st category guaranteed by 9am and 1pm services. BG on the other manus maintains uninterrupted electric and gas supplies which is an wholly a different sort of runtime supply concatenation. It runs an efficient supply concatenation direction system that acts as a anchor to its twenty-four hours to twenty-four hours and long term operations.

Thin Management

The implicit in constructs of thin direction are cost decrease, quality betterment, reacting dynamically to client demands and employee authorization. It is a procedure by which value is added into client experience on a uninterrupted footing. In a production environment it is reasonably easy to mensurate wastes and therefore the costs attached to them by placing defective objects produced against the entire figure of objects produced. It is easier because the points are touchable. On the contrary, service is reasonably intangible and hence is non easy to mensurate. For mensurating wastes in a service environment, to call a few, factors such as clip direction, hierarchal managerial processs and resource direction etc. are of import. ( Radnor, 2008 )

BG has adopted thin direction partly such that it has identified the client perceived value and is keeping streamlined flow throughout all operations. BG employees are empowered to take on new enterprises responsibly. This has resulted in a thin organisational construction through which it has been able to cut down costs and heighten efficiency. Parcelforce, nevertheless, maintains a more hierarchal construction and is non wholly following thin direction patterns. But it does emphasize on stipulating value and how value is perceived by the client, acknowledging the full bringing concatenation and maintaining streamlined flow of bringings throughout all parts.

Six Sigma

Six sigma is a methodical and logical model for accomplishing higher quality of operations and productions. It was foremost incorporated by the Motorola Corporation in the early 1980 ‘s. The term is originated from a vocabulary associated with fabrication. It stresses on mistake determination and isolation of job for rectification, hence, cut downing chance of happening of any error during the production procedure of goods or services and implies that how far the adoptive procedure perverts from preciseness. It makes usage of many quality confidence and statistical methods to guarantee defect free production ( McAdam, 2005 ) .

Six sigma is non a reasonably adopted model at both BG and Parcelforce due to its evident complexness of being a nucleus statistical procedure. Although, mistake decrease is being implemented at Parcelforce and BG nevertheless, it is non as illustrated harmonizing to the six sigma model. At Parcelforce, Six Sigma is an of import component in bettering the information quality, giving the enterprise a focal point on process-performance informations as opposed to treat volumes – that is to state, making it right, first clip. BG on the other manus, can better its oil and gas geographic expedition and transit by following the DMIAC ( Define, Measure, Analyse, Improve and Control ) attack of Six sigma.

Entire Quality Management

Entire quality direction or TQM for short is one of the widest used and most familiar footings in the operations direction models. It is a model that integrates and is applicable to each and every organisational procedure irrespective of the organisation being service based or merchandise based. It encompasses top direction enterprise, employee committedness and engagement, client focal point, strategic planning, direction systems attack, employee preparation, teamwork, uninterrupted betterment, employee authorization, statistical attack, do it compensate the first clip, purchaser provider dealingss, public presentation measuring, benchmarking and developing partnerships ( Ozen, 2007 ) .

Some of the major enterprises are discussed below in foregrounding operations under the kernel of both the organisations:


While sing the service every bit good as fabricating industrial deductions, preparation of an organisation ‘s human resource is an built-in portion ( Martinez-Costa, 2009 ) . Parcelforce lays huge emphasis on employee preparation. That includes both on occupation preparation every bit good as scheduled preparation Sessionss. As a consequence of these, Parcelforce has been able to win Health and Safety award. BG besides takes preparation earnestly. It runs an Energy Academy and ensures its full field staff runing as technicians and applied scientists are good versed with the latest engineerings ; Corgi licensed and is confident in what they are making.

Continuous Improvement

The uninterrupted betterment shapes an organisation ‘s operations in favor of client demands and wants maintaining in position the fiscal place. Research and development normally plays a cardinal function in the development of this enterprise. Furthermore, it encompasses benchmarking and public presentation measuring for an insight in front. Besides does it underscore a sense of competitory advantage for the organisation. Competition in both Parcelforce and BG is driving uninterrupted betterment procedure and they are invariably upgrading the cognition base every bit good as advanced engineerings.

Capacity Planing

Capacity planning is an built-in portion of operations framework. It refers to the sum required capacity needed to response back the of all time altering consumer and industry demands for the goods and/or services. The purpose is to minimise the divergency of insufficiency in the production procedure or in the un-fulfilment of clients ‘ wants.

Outstanding features take history in the debut of better natural stuff and stock list maintaining, advanced and/or technologically advanced techniques for production and concern, flexible and increased working displacements and enlargement through acquisition of more production installations and/or human resource. ( Tu, 2010 )

Capacity planning is conducted in item at BG. It follows a bi-pronged attack when making capacity planning. On one terminal it is pull offing the natural stuffs required for energy coevals and on the other terminal it is actively involved in measuring the per unit energy demand of its consumers either domestic or industrial. Similarly Parcelforce has appraisals for its volume of operations. It has planned a seasonal work load and capacity consequently. For case, during Christmas season, it deploys excess Lorries and work force to run into the inordinate volumes of mail and packages. This is all portion of the capacity be aftering done at Parcelforce.

Organizational Difference on Operationss Basis


Parcelforce is a service based organisation and it pursues schemes that characteristic more towards client orientation. And for the execution of these policies and attacks, service houses recognize the demand to concentrate their energies more on client oriented behavior and penchants. Bing a service sector industry, Parcelforce emphasises on two factors i.e. Quality and efficiency. If any of these go down, effects may include loss of fiscal well-being and decrease in client base. ( Schuler, 1992 )

Besides, a better employee communicating helps Parcelforce cognize where to concentrate more in footings of client satisfaction and service improvement. One of the basic rules of operations direction is the thought of uninterrupted betterment. Without the betterment in the service, Parcelforce might confront unexpected effects. This might even ensue in superannuation. The worth of a service greatly depends upon the procedure. Mistakes that reach the client consequence from errors someplace along the procedure sequence.

Parcelforce ‘s Customer service and procedure direction, accepts the inevitableness of constrictions of any unexpected holds or defects and focal points on oversing them to pull off the work flow more expeditiously. It is the responsibility of a comprehensive operations direction to do certain that the clip agreement plants in understanding to the volume.

BG group

BG group is a multi-faceted organisation with ends making beyond conventional energy demands. It serves both under the service sector every bit wells as the production sector. This means that it has to pull off its operations in both contexts. While bring forthing, BG group manages natural stuff in the signifier of rough oil and natural gas. Then it goes to the processing and refinement where the proficient staff proctors the procedures and in instance of any issues, he reports the mistake to guarantee mistake free production.

Proper preparation is provided to the employees to cover with the machinery. With that, comes wellness and safety for employees. The company ‘s major accent is on daily direction. And by utilizing an effectual operations direction plan, oil and gas operations can maintain gait with the velocity and demand of today ‘s altering concern environment. BG group adopts Real-time Operations Management which is aimed unambiguously to complement the briskly progressing oil and gas industry by pull offing end product, energy, and returns.

It has strong roots into the service sector as good. The services it offers include the installing of equipment for the domestic users every bit good as industrial users. Proper pipelining and storage of oil and gas is besides offered to its clients to guarantee hassle free supply. Like Parcelforce, It besides focuses on quality and efficiency. It is influenced by the pull offing the procedure of taking the input like labor and stuffs and change overing it into end product in the signifier of goods and services in more efficient and effectual manner.

Part ( degree Celsius )


Both the organisations are service based and merely BG group is practising production direction. Critically, BG group and Parcelforce follow assorted cardinal constructs and models of pull offing operations. BG group has a leaner direction which means the concatenation of bid is followed more expeditiously and coverage is done harmonizing to the position while cut downing the costs and bettering the quality.

Parcelforce has horizontal integrating which offers a diverse scope of sections describing to one or two caputs doing it hard to pull off. Plus, they have non been able to react good to the altering client demands and wants.

BG group has adopted Entire Quality Management ( TQM ) at a full graduated table. They have successfully been able to pull off it work harmonizing to the altering technological promotions and direction enterprise while keeping its oligopolistic stance in the market. Besides, the attempts for employee authorization and client focal point are aligned to the aims. Possibly, Parcelforce follows a statistical attack but has non practically acknowledged any attempts sing employee committedness and engagement and client focal point. Both organisations besides lack public presentation measuring of employees.

Though partly, but as such no organisation under treatment uses the Six sigma attack perfectly. One ground to this could be the deficiency of consciousness among the industry as a whole. Second, there has been a common thought among the Oil and Gas sector that Six sigma has a high cost of execution. This is non wholly true as the benefits it provides can ne’er be nullified in comparing to the fiddling initial cost. Parcelforce can cut down its storage costs by utilizing Six sigma in a manner that retrieval of digitalized informations and machine-controlled version of papers control can be handle with an excess easiness.

Since gross revenues are an built-in portion of BG group, they focus more on supply concatenation direction as compared to Parcelforce. As the stoping point of this whole procedure is gross revenues, BG diversifies more on the merchandise and its bringing to the terminal user. Similarly, Parcelforce follows supply concatenation direction but in other ways i.e. the procedure involved in receiving of mail and packages to pull offing and screening it harmonizing to parts and so despatching them to the pronounced locations. All the procedure is acutely managed and has been made mistake free.

Parcelforce follows horizontal integrative form which incorporates a reasonably accessible concatenation of bid and procedure execution. There are single entities independently working and incorporating into a larger system, under the same umbrella. This solely refers to systems believing. The procedures are good designed at Parcelforce such that the upper limit and minimal bringing times and frequences are brought under rigorous quality criterions.

BG follows thin direction form through which it has been able to cut down costs and heighten efficiency. One more of import distinguishing characteristic embraced by BG group is Material Resource Planning. This involves the planning related to purchasing and use of stuffs from natural signifier till the finished stage. This phenomenon does n’t use to Parcelforce. They in fact use the Goods Management System to guarantee proper disposal.


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