Operational Strategies of Sainsbury’s Essay
Sainsbury’s quite often faces the problem of lacking in stock which causes discomfort to customers, because the wanted item is missing and therefore they wasted their journey.
This problem reaches its peak in holiday season when the demand is much higher of certain goods. Solution to that would be pre-stocking and preparing for those scenarios through doing risk analysis for the operations.
According to the article of Askew (2013) Sainsbury’s is about to open their first online fulfilment store or a dark store which will create 375 new jobs. Furthermore the article states that Sainsbury’s delivers to over 190,000 customers every week and therefore sales are growing rapidly 15% a year. The purpose of this is, to have …show more content…
According to Hill and Hill (2011) operations management is the transformation of inputs into output using activities, responsibilities and decision that are made in the core operation.
The transformed inputs are materials, energy and information whereas the transforming inputs are people of the operation. “How to meet the requirements for the significant markets by prioritising where and how to spend the resources of time and money” (Hill and Hill, 2011) is vital in the strategy of an operation. Operations strategy is defined as the “concerns developing the capabilities of an organisation to reflect the competitive needs of its customers and market” by Hill and Hill, (2011).
Overview of Sainsbury’s & Iceland
In 1869 Sainsbury’s was founded by John James Sainsbury and his wife Mary Ann Sainsbury.
In 1950 they pioneered by opening the first self-service stores in the UK and replaced all counter service store with modern supermarkets (Reuters, 2007).
On the other hand Iceland, who sells mostly frozen food adapted as well to sell some fresh food, general merchandise and online shopping for very cheap. The customer who will shop in Iceland is lower middleclass mostly because of the different strategy focus. However the sales of Iceland grew to