The study describes the operation direction of PRIMARK and the ATLAS HONDA LIMITED PAKISTAN which are two different companies in two different industries.
PRIMARK in garment industry is a large retail merchant in the high streets for the readymade fabrics which is fundamentally belongs to tertiary sector ( service ) in which it distribute/sell the manufactured goods ( fabrics ) in his retail shops and the ATLAS HONDA is a joint venture which industry and sell cars which is in fabricating industry.
This study is structured in a manner that describe both companies
1: Competitive precedence
2: Selling scheme
and besides comparison and contrast their operations in their industries and study besides include the analysis of their internal factors as capacity planning, stock list direction, quality control and the external factors as environment, invention.
After the study we will be able to understand the operating direction of the two different industries which help us to derive cognition to plan one best operating theoretical account which help us in both industries.
Before send oning to the study construction as discuss above we need to cognize about both companies to be familiar with their operations.
PRIMARK is the subordinate company within the ASSOCIATED BRITISH FOODS and one of the biggest retail merchant in UK who sell readymade apparels with fashionable manner, design and assortment at low-cost monetary values. It focus on womenwear, menwear, childrenwear and place merchandises. In 1969 the first shop opened in DUBLIN ( IRELAND ) in the name of first Penny ‘s shop and boulder clay 1973 the figure of shops reached at18 in all around the IRELAND, in the undermentioned twelvemonth it expanded to GREAT BRITAIN and opened his first shops in DERBY and BRISTOL and in within following 10 old ages the figure of shops become 22 in each.
After enlargement to GREAT BRITAIN, in 1995 PRIMAK applies the acquisition policy in his enlargement and get first BHS ONE-UP price reduction concatenation in UK 16 shops, so CO-OP with 11 shops, 11stores from retreat ion of A & A ; C.
After 2005 PIMARK moved to Europe for more enlargement and opened shops in SPAIN, PORTUGAL, HOLLAND, GERMANY, BELGIUM. Till September 2010 it has 150 shops in UK. Its rivals are NEXT, ZARA, GAP, RIVER ISLAND etc which compete in different bases of competitory advantage.
We take merely UK market for the Primark concern operation.
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ATLAS HONDA LIMITED ( AHL ) PAKISTAN
ATLAS HONDA LIMITED PAKISTAN is a joint venture of ATLAS GROUP and HONDA MOTOR CO.LTD which industry and sell bikes. The company was created by the amalgamation of Panjdayar LTD and Atlas Autos LTD, in 1988. AHL industries and markets Honda bikes in coaction with Honda Motor Company. The Company besides manufactures assorted high-tech constituents in-house in coaction with prima parts makers like Showa Atsumitech, Nippon Denso and Toyo Denso. Honda bikes are by far the largest merchandising bikes in the state with an odd repute for high quality, dependability and after-sales-service.
ATLAS HONDA manufactures four theoretical accounts of bikes
1: Cadmium 70
2: Cadmium 100
3: CG 125
4: CG 125 DELUXE
Company has two large inhouse fabrication capableness at Karachi ( Sindh ) which manufactures 300 units of Cadmium 70 merely and Sheikupura ( Punjab ) workss which manufactures all four theoretical accounts. A huge and turning web of over 1600 gross revenues service and trim parts traders has been established in all over the state.
Company has more than 60 % of market portion in Pakistan minibike industry, it exports the merchandises to Bangladesh and Afghanistan.
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Operations IN BOTH ENTITIES
In any organisation the operation map is the portion of organisation which produces the merchandises and services for that entity, it is non called with same name all the clip but it is concerned with pull offing the nucleus intent of organisation which produce some mix of merchandises and services.
nigel slack, Stuart Chamberss, robert Johnston, alan betts ( 2009 ) .operations and procedure direction. 2nd erectile dysfunction. England: pearson instruction limited. 1-1.
In another words the operation is defined as the systematic design, way and control of procedure that transform input into services and merchandises for internal, every bit good as external.
Primark and Atlas Honda are two different companies in two different industries, one is a retail merchant in service industry and 2nd is in fabricating industry. the service sector create value or add value to the merchandise and industry industry produce the touchable merchandise so some similarities and contrast appeared in their operations which can be analyzed and knock on the footing of their selling scheme and their competitory precedence.
Market scheme is developed by the entities to make full the spread between current public presentation and the forecasted public presentation which is the objective/targets of the entity to accomplish, so the company develop the selling scheme for its merchandise in mark market for targeted clients to do them cognizant to the merchandises and service it provides.
Cim, bpp, 76-77 2008
We can utilize the Ansoff ‘s growing theoretical account which is used to analyse the merchandise and market of the company in its selling scheme.
Central Intelligence Machinery ( 2007 ) .A professional sheepskin in selling. 3rd erectile dysfunction. London: BPP. 76-78.http: //franteractive.net/resources/Ansoff-Matrix.GIF
We will utilize this theoretical account to specify and knock the selling scheme of the Primark and Atlas Honda.
Primark has its aim of ‘DELIVERING VALUES AND TRADE ETHICALLY ‘
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Primark use the cusps bead, ads on coach shelters, the London Underground and wireless ads. university of Waless, selling, database beginning complete
Above selling scheme used by Primark for his new shops in BRITAIN and it opened six more new shops one of which is in the Oxford circus.
Harmonizing to Ansoff theoretical account we can explicate the selling scheme of Primark as follows
Market development scheme which is in new market in bing merchandise so the entry from Ireland and to Britain and other European states is the illustration of entry in new market.
Merchandise development is in new merchandise in new market, so Primark merchandises are adult females, work forces, kid wears but it include homemade garments as good, merchandise development scheme fundamentally elicited the clients to come in the shop for all his garment demands.
But the job in market development scheme is the high distribution cost which Primark used to administer his ware which it acquire form Asiatic states and administer them to his different shops which cost him high and cut down his net income.
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Market incursion is to come in in the market with the low monetary value to vie in the market as the GILLETTE company sell his MACH 3 new merchandise in the market on 60 % of cost which is the best illustration of market incursion to come in in the market with low monetary value, so the entryway of Primark in the BRITAIN garment industry is the market incursion in the presence of GAP, NEXT etc, with low cost scheme, but market incursion scheme has the chief criticize is that it starts the monetary value war in the market and through the little entities out of concern
Diversification is to diversify from the industry to another industry which comes into unrelated variegation so the parent company of Primark ASSOCIATED BRITISH FOOD, who diversify from nutrient to garment is the unrelated variegation. But Primark has it self non any diversified activity in any other industries.
ATLAS HONDA usage largely the electronic media for his merchandises selling as cyberspace, telecasting ads, salesmen etc.
For CD 70 and CD 100 Atlas Honda mark in-between income households and largely these motorcycles used in small towns due to the trade name trueness and lastingness.
CG 125 and CG125 DELUXE these both motorcycles target the particular section of market with the clients who want to pay more for high velocity and beauty of the merchandises.
DIVERSIFIATION is the Honda articulations venture in Pakistan as Atlas Honda is his related variegation in minibike industry. The job with Atlas Honda in his joint venture is that it fabricating units in Pakistan and the altering political parties and insecurity impacting its this diversified merchandise doing units which affect the minibike production and the concern every bit good.
Merchandise Development is the four type of merchandise Cadmium 70, Cadmium 100, CG125, CG125 DELUXE are the illustration in market for merchandise development, the Atlas Honda believe in quality in return of high monetary values which opened the ways for his rivals with low cost and low monetary value scheme like Chinese company STAR, SOHRAB, LIFAN etc. which affect the market portion ( 63 % in Pakistan ) and the net income of the company.
Market Development scheme of ATLAS HONDA is it exporting the merchandises to Bangladesh and Afghanistan is its market development in other states, this means the distribution cost will be high for Atlas Honda and impact his sale and net income in the market.
Competitive precedence include low cost operations, top quality, consistent quality, bringing velocity, on clip bringing, development velocity, customization, assortment and volume flexibleness, these are the competitory precedences which set a company aside and superior to the remainder of the companies in the industries by the consequence of his operations, it is non necessary that a company get all of them to vie but it can acquire any mixture of them to execute good.
Under we show the similarity and contrast in the competitory precedence of the PRIMAK and ATLAS HONDA LIMITED. It is need to be cleared that under the tabular array the component of competitory precedence is categorized in four wide constructs.
ATLAS HONDA LTD
Low COST OPERATIONS
Quality is different for different clients, quality is merely defined as the completeness of characteristics, value for money, conformity of specification, repute.
Consistent quality In the instance of Primark and the AHL both companies merchandises have the similar characteristic of consistent quality as in the Primark in garment industry sell manner fabrics for work forces, adult females, kids and homemade merchandises and AHL in minibike industry both meet their design and specifications on the uninterrupted footing to keep the consistent quality of their merchandises
Top quality on the other manus the AHL is fabricating and selling the top quality minibikes in the minibike industry of Pakistan that ‘s why AHL has 63 % market portion in the market but the Primark is selling low quality merchandises in the garment industry of Britain against his major rivals GAP, NEXT, ZARA which is the major difference in both of companies.
Cost characteristic include fabricating cost, value added cost, running cost, service cost and merchandising monetary value is included
Low cost operations: Primark is the scheme of low cost on which it sell its outsourced garment merchandises to the clients by adding its services with its expeditiously designed and operation procedure ( appendix 2 ) .so this scheme in the minibike industry of AHL in Pakistan is applied by Star company and Titan company is the illustration of low cost operations. So in the Primark concern the low cost operations recognition goes to its supplies from its providers who runing their activities in low pay and other low production cost states like Bangladesh.
But the AHL is differentiate scheme for its merchandise so its premium charges for his merchandises in the market and this illustration in the garment industry is the ZARA, NEXT, GAP etc in the garment industry of UK. AHL operations are in house system in which a efficient fabrication procedure is undertaken with all new production and direction techniques ( JIT, MRP, TQM ) and bear down the highest monetary value in the market. ( appendix 1show the procedure of operation in both companies )
Time included the bringing clip, fabricating lead clip, due day of the month, frequence of bringing, rate of production of the entity.
AHL has its two fabrication workss one is in Karachi and 2nd is in Shekhupura, AHL has Karachi works produce 300 units of bike per twenty-four hours. AHL has design its procedure expeditiously to minimise the fabricating lead clip and carry through the clients orders on clip but once more this internal efficiency depend on providers relation and efficient supply concatenation. The production illustration given 300 units for Karachi works is the best illustration of fabricating velocity which is short and good for the company and this in return aid on clip bringing system where demand occur.
The Primark outsourced its garment merchandises from ASIAN states chiefly from Bangladesh, so harmonizing to the nature of the concern in its industry the Primark has face fast development velocity in the merchandises because its merchandises become out of manner really fast so Primark has need the good relationship with its provider because of its fast changing industry nature so wants the uninterrupted bringings. AHL besides used the merchandise development in its fabrication workss in KARACHI and SHEHUPURA for debut of new merchandises.
Flexibility include the customization, assortment and the volume of the production.
The AHL production have all the customization, assortment and volume characteristics are included for illustration the four different merchandises it produce is one characteristic of customization, assortment and volume in production procedure is to back up larger volume production and rapidly pull off within fluctuating demand which is once more come in AHL production system in which it produce four type of customized minibikes for targeted clients market with the production capacity of 600000 per twelvemonth.
The assortment and volume flexibleness is besides seen in the Primark retail shops in which big sum of manner fabrics for all work forces, adult females and kids are on the shelf and in the warehouses but the customization is in the merchandise is non inside its procedure because it sell the merchandises TO general populace in the market.
1: CAPACITY MANAGEMENT
Capacity information is used by the companies to analyse and maximise their end product, understand the companies capacity shock absorber and utilize the information for long and short term determination for enlargement schemes.
Capacity planning is a systematic attack to three issues refering to capacity, gauging the sum of capacity required, measuring the alternate methods to augmenting the capacity and inventing methods to utilize capacity efficaciously.
b.mahadeven ( 2007 ) .A operations direction theory and pattern. new Delhi: dorling kindersley. 219-221.
The house go through the state of affairs of overcapacity, appropriate capacity and inappropriate capacity. The size, clip and capacity become the constrains in the organisations.
The company utilize the enlargement and see and delay policy to get by when they face the constrains for illustration the BRITISH AIRLINE use the seats as his capacity, PRIMARK floor infinite and the ATLAS HONDA utilize his machines or the procedure in the one constrain theory as a capacity which become the constrain at the clip of demand.
In short clip company usage to pull off itself within capacity but in long term it use to spread out by acquisition or investing in the operation procedure.
The capacity direction take long clip to pull off if it applied by enlargement policy with the big investing in operations to get by with demand but in short term lose the increased demand.
Capacity planning included the judgement with based on the experience and the capacity planning used to acquire the economic system of graduated table but after an specific point this benefit turns into the fringy increased unit cost which start to cut downing the net income.
b.mahadeven ( 2007 ) .A operations direction theory and pattern. new Delhi: dorling kindersley. 219-235.
Inventory direction can be defined as Systems and processes that identify stock list demands, set marks, provide refilling techniques and describe existent and projected stock list position.
The companies use the different stock list methods for pull offing stock lists
1: Merely in clip ( JIT ) In the JIT method the company utilize the pull scheme harmonizing to which it place orders when it requires for production or demand by client. CIMA P7, CIMA PUBLISHER,2005
2: Economic Order Quantity ( EOQ ) The EOQ system is a quantitative method for stock list direction, which minimize the stock list keeping cost and telling cost by usage of a expression:
3: SAFETY STOCK Is a Push POLICY, safety stock is usually used traditionally to get by with unforeseen demand so the big buffer stock is retained in the large warehouses to pull off with the unanticipated demand otherwise the company lose the gross revenues and there will emerge the danger to lose the client so company wage more to stock the stock list and pay more to stocking.
4: ABC INVENTORY is usage to cauterise the stock list harmonizing to their value in organisation.
The companies used to pull off their stock list because on norm, 56 cents out
of every dollar of gross ( i.e. 56 per centum of gross ) to cover the direct cost of
purchased goods, with this per centum figure being even higher for the typical
jobber or retail merchant ( Monczka et al. , 2002 ; Handfield, 2002 ) . Add to this figure the
indirect cost of holding to pull off stock list of purchased goods ( which has been
estimated to be 30-35 per centum of the value of purchased goods – see Chase et al. , 2004 ) and the entire cost of purchased goods stock list can be rather dismaying.
The stock list direction need the investing and warehouse which used by PRIMARK who received the outsourced supplies and distribute to other shops in Europe which cost him high and cut down net income.
The stock list direction constabularies as JIT and ABC systems want the basic alterations in operation and the procedure and impact the emplyees every bit good to understand the them.
New stock list policy as JIT want provider committedness because it change the whole supply concatenation and want the amendment in providers system so it affect all supply concatenation system.
organisational direction and information system,2005, Oxford, c.i.m.a
The PRIMRK and the AHL need to make up one’s mind the stock list direction system before the determination of capacity direction because the JIT system non need high investing on enlargement policy.
Here we use two type of public presentation step
1: Multidimensional public presentation step
2: Qualitative public presentation step
1: BALANCE SCORECARD
The balanced scorecard translates mission and scheme into aims and step into four different positions provide a model, a linguistic communication, to pass on mission and scheme, it uses measuring to inform employees about the drivers of current and future success. By jointing the results the organisation desires and the drivers of those results, senior executives hope to impart the energies, the abilities, and the specific cognition of people throughout the organisation towards accomplishing long term end. It should be used as a communicating, ratting, and larning system non commanding. ( adopted, Kaplan and nortan, 1996, p.25 )
Balance scorecard does non take to a individual sum drumhead control for illustration if we use RETURN ON INVESTMENT ( ROI ) it handily show “ how things are traveling ” .
No clear relation between the BSC and stockholders ‘ value.
Measure may give conflicting signals and confuse direction. For illustration high client satisfaction lead to falling fiscal indexs.
BSC involves significant displacements in corporate civilization to implement.
So if the AHL and the PRIMARK use the balance scorecard for their public presentation step the above jobs besides occur in the system.
So the capacity direction and the stock list direction comes in the internal concern procedure portion of the balance scorecard.
Supply concatenation value
Normally porters value concatenation theoretical account used for analysing the operating procedure in fabrication industry but we can utilize it in service industries as good. These activities are linked with each other to make value for the client in the merchandise and service. ( appendix 1 shows the value concatenation of both companies ) . But the supply concatenation value add two more componenets in the value concatenation.
Supply value concatenation a†’ company value concatenation a†’ client value concatenation Harmonizing to a July 16 study inA The Wall Street Journal, Nissan Motor Co. halted production at four mills in Japan and at two car fabrication workss in the United States for three yearss in July due to a hold in the cargo of engine control units from provider Hitachi Ltd. Hitachi functionaries said the hold was caused by a deficit of semiconducting material french friess from its providers.
Nissan, which had adopted the Lean theoretical account about five old ages ago and dramatically reduced its stock list, said the production arrest will cut down the company ‘s end product by 15,000 vehicles.
However, Lean expert Matt Wrye, who writes the Beyond Lean web log ( beyondlean.wordpress.com ) , said that Nissan ‘s issues were the consequence of a misapplication of Lean techniques. “ If you had hiccups in procurance, Lean behaviour would inquire inquiries around what are the hiccoughs in procurance, ” he wrote. “ Then Nissan would work out [ these ] jobs, non randomly get down to add more providers ‘just in instance ‘ they have a similar hiccough in the hereafter. ”
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Entire Quality direction
TQM is a procedure and doctrine of accomplishing best possible results from the inputs, by utilizing them efficaciously and expeditiously in order to present best value for the client, while accomplishing long term aims of the organisation.
r.ashley.rawlins ( 2008 ) .A entire quality direction. London: authur house. 5-10.
TQM involves the three chief constituents
Customer satisfaction involve conformity to specification, value, fittingness for intent, support, psychological feeling
Employee engagement include cultural alteration, squads.
Continuous betterment is based on the doctrine of KAIZEN theory, to better in each facet of the entity.
Quality as four type of cost
Prevention illustration look into the inbound logistic
Appraisal illustration quality of inbounds
Internal failure include cost of failure before sell to clients
External failure illustration warrantee, warrant
TQM is the uninterrupted betterment in the merchandise and services which is non plenty because the quality is what the client so the AHL non merely uninterrupted better the procedure but besides make certain the clients demands in his merchandises.
TQM is non easy to use but it needs a long clip to internalise in the companies all aspect and it is besides expensive for any company for illustration if Primark want the quality in his services it need to implement in each activity.
TQM want the employee committedness so it is non easy to acquire the individual to make what you want.
TQM wants the cultural alteration in the organisation which is a challenge for the organisation and if non implemented successfully its become the danger for the company ‘s endurance.
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Cite this The operation management of Primark and Atlas Honda
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