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The Business and Operation Strategies Adopted by Morrisons

Satisfactory Essays

INTRODUCTION
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 …show more content…

Flexibility can also be found in staff fluctuation for busiest time and sale or promotion products in seasonal days.
COST
The final performance objective is cost. Cost is expenditure that business pays for its input such as labours, materials, and facilities. Cost can be affect by many factors such as volume, variety, visibility, value and also determine how good the operation is depend on the internal of other four performance objectives (quality, speed, dependability and flexibility) (Fisher et al, 2000). Morrisons tries to find the ways to drive cost out of the business by cutting down the middle man from their supply chain, buying large quantity to earn benefit of discount rate.
MOST IMPORTANT OF FIVE PERFORMANCE OBJECTIVES
In recent years, the need for flexibility is more concerning by many organizations because it helps maintain dependability, saves time thus saves money and speeds up response (Slack et al, 2003). However, Morrisons offers standardize products lines thus flexibility is less important than other objectives. Speed support dependability to keep plans is done on time. It will add more value to the organization. Quality plays a priority role to Morrisons because its special product is “fresh”. Becoming fresh producer, Morrisons has to be partnership with their sources, strong speed and strong dependability will reduce time to delivery products direct to stores.

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