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Sustainable operation management is a management approach that involves planning, implementation and control of business processes that translate available resources into required product or service. It is the management of business practices, traditions and operations to promote highest level of efficiency, workflow, and increase productivity in an organization. This management strategy mainly ensures that available labor force and materials are changed into products or services in a cost effective way to increase the company’s returns (Corbett, 2009). It also involves production waste management, reducing food waste, creating new opportunities, environment protection, and improving customer health. Sustainable operation management in retail business industry around the world has gained momentum especially in the recent years. They are particularly linked to the concepts of corporate social responsibility and global warming (Tesco and Society, 2013).
While a number of organization have not adopted sustainable operations management strategy, retail firms like Tesco, Wallmart, Mark and Spencer, have adopted this concept in their management strategies to sustain the competitive advantage. A number of firms are willing to promote sustainability in their markets because strategy attracts and retains customers, nevertheless, competition and operating within certain boundaries does not allow them from achieving this objective. Tesco is the largest and only retail supermarket in the United Kingdom and entire globe that makes highest profits in a given financial year that has integrated sustainable operation management in all its stores. The firm has put in place sustainability mechanisms such as sustainable designs, processes, operat...
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... and Hall, D., 2007. Large scale retails in United Kingdom. Retail and distribution management journal, vol. 22, 6, pp.15-28;
Miles, C., and Snow, A. 1978. Food and drinks retailing policies: a comparative analysis in the Europe. Journal of retailing and consumer services, vol. 9, 3, pp.144-168.
Porter, M., 1995. Cost effective differentiation. A journal review of retail and distribution, vol. 5, 3, pp.203-232;
Tesco and Society Report, 14 January, 2013.Tesco retail industry profile.
Tesco and Society Report, 21 October, 2012. Tesco profile: Tesco PLC Analysis.
Tesco and Society Report, 25 July, 2013. Business operations analysis.
Tesco and Society Report, 7, November, 2012. Company profile: Tesco PLC Analysis.
World Health Organization, 2012. Facts and figures about diabetes.
World Health Organization, 2012. Obesity and overweight fact sheet no 311.
Supplying eco-friendly products has been on the Walmart agenda since the early 1990s. After a failed first attempt and much criticism, the company decided to try again. In a speech made in October of 2005, CEO of Walmart, H. Lee Scott Jr., declared Walmart would devise a “business sustainable strategy” to reduce the environmental impact the company had. Walmart could not pull this off alone. If they only focused on the confines of themselves, rather than all that they were involved with, it was estimated that they’d only reduce their impact by about 10%. To reach that goal of 100%, Walmart had to involve stakeholders to make networks which achieve sustainability. These networks proved to be vital in not only Walmart’s goal in minimizing its environmental impact, but recovering their reputation, avoiding criticism, saving money, raising awareness, improving customer satisfaction, and creating incentive for other businesses to work towards sustainability.
Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.
Defined as the standardization, consolidation and centralization of business performance, sustainable business serves to encourage product development and distribution that is efficient, ecologically acceptable and profitable as a whole. Also, this model can be used a risk mitigation technique, for the forward thinking principle of sustainability, forces business to have a long term plan for their product. In the retail industry this can become an asset because retailers will be able to determine the predicted shelf life of a good and or service. Thus, they will then be able to estimate the level of money, labor etc that they have to inject to ensure the continuity of the business.
Peter Dumvoic. & Daniel T.Knowles. (2008). Market Analysis, Marketing Masterclass, Product differentiation for competitive advantage, 8(5-8). Doi:10.1057/palgrave.jmm.5050122.
The English retailer Marks and Spencer aims to be the most sustainable major global retailer in the world. To expedite this process, they have configured sustainability as one of their core strategies. Marks and Spencer have made a clear commitment: Plan A will measure milestones, timelines and employee accountabilities. The sustainability strategy that is being integrated into every business function and strategic business unit; will involve suppliers, employees and more increasingly customers. (Richardson, Page 98, 2015)
It has been said that retailers may no longer compete purely retail activity alone and must incorporate various factors relating to overall efficiency of the whole supply chain and in turn overcoming ever expanding management issues of which arise throughout business activities. (Fernie & Sparks. 2004)
The reason for me to decide to re-allocate Tesco’s shares is that in the existing portfolio it holds the highest shares of 150,000 and the company’s performance has not been good recently as their profits has been felt. On the other hand, the retailing sector has not recovered after the subprime crisis. It is estimated that this situation will last for several years.As the portfolios aim is to maximation of income so therefore I will have to invest shares which are performing well and has a high dividend yield. So therefore I would allocate 55,000 shares to Astrazeneca and sell off the remaining 95 000 shares.
For a retail manager determining location for an organisation, it must be decided whether the business holds ‘’competitive advantage’’ and whether there is opportunity to outperform competitors and capture a share an existing market. (Kim, W. C., Mauborgne. R. 2005) If a retail manager was to determine that little to no existing competitors in a location it could prove massively influential on where to base a business. (Kim, W. C., Mauborgne, R. 2005)
The demand for retail is driven by a number of factors including customer related aspects such as population size, population growth and existin...
Sustainability could be defined in many ways. It could be defined as the process to sustain a process or develop new technologies to reduce environment pollution. It also means a measurement how badly the environment is being polluted by other factors. I have to admit that sustainability is a great idea related to many fields such as healthy, economy, food, social, and etc. However, I still remember the first day of “Sustainable Business” class, Professor Laverty showed to my class an example of sustainable product with the idea of “produce more with less waste”. This example narrows me down to one idea of “Sustainable Business”, which is producing the product and services in an efficient and sustainable way without causing harms to environment. In this essay, I want to emphasize into impacts of businesses on environments, profitability of sustainable business, and responsibility of business.
Improving sustainability within the firms upgrades talented workers to be more proficient and profitable as a factor of their commitment to the organization. It is comprehended that organizations pay special mind to reasonable procedures as there can be an orderly way to deal with spotlight on business targets like decreasing expense of job,, expanding income, overall industry and benefit et cetera (Bob Willard 2012). Thus, firms can hope to produce better profits for their speculations for their partners and shareholders and enhance the organization’s advancement sustainability is
The industry maturity scale shows 2019 predictions, that five companies will be excelling in rewards, either monetary or non- monetary, which will be the biggest contributions to sustainability performance. In terms of fiscal implications, the study is predicating sustainable companies will have positive fiscal implications, where they will gain more money from their sustainable performance, due to the right decision making for their company (Retail Sustainability Management Report 2017
On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and operational expen...
Challenges in Today's U.S. Supermarket Industry. 2014. Challenges in Today's U.S. Supermarket Industry. [ONLINE] Available at:http://msdn.microsoft.com/en-us/library/aa479076.aspx. [Accessed 31 March 2014].
The extent of expense point of preference is conceivable when retailers can gain by economies of