Unit: Strategic Operations Management Assignment title: An Evaluation of Lidl June Marking Scheme

Transcription

1 Unit: Strategic Operations Management Assignment title: An Evaluation of Lidl June 2016 Marking Scheme Markers are advised that, unless a task specifies that an answer be provided in a particular form, then an answer that is correct (factually or in practical terms) must be given the available marks. If there is doubt as to the correctness of an answer, the relevant NCC Education materials should be the first authority. This marking scheme has been prepared as a guide only to markers and there will frequently be many alternative responses which will provide a valid answer. Each candidate s script must be fully annotated with the marker s comments (where applicable) and the marks allocated for each part of the tasks. Throughout the marking, please credit any valid alternative point. Where markers award half marks in any part of a task, they should ensure that the total mark recorded for the task is rounded up to a whole mark. Marker's comments: Moderator's comments: Mark: Moderated mark: Final mark: Penalties applied for academic malpractice:

2 a Critically assess the actions of Lidl s operations management which allows it to support the achievement of its corporate strategy. Award up to 4 marks for describing the linkages between corporate strategy, business strategy and operations (functional) strategy. An organisation s top-level strategy is corporate strategy, from which is derived business strategy. Business strategy gives rise to a range of functional strategies, including operations strategy. Operations Strategy is used to establish the systems and processes to enact a transformation, managed by operations management. Thus, operations Management is a direct derivative of corporate strategy. Award up to 2 marks for specifying Lidl s Corporate Strategy. Identification of Lidl s corporate strategy as being primarily expansion, creating a new presence in European Countries and opening additional stores in those where it already has a presence. The use of a model such as Hayes and Wheelwright s is appropriate. Award up to 5 marks for a description of the model with an extra 1 mark for identifying the stage assessed to align with Lidl (typically, Externally Neutral or Internally Supportive). An additional 4 marks can be given for the accompanying explanation plus 2 extra marks for supportive evidence. Hayes and Wheelwright s four stages of operations contribution Internal neutrality: operations contributes minimally towards the development of the company. It is inward-looking, reactive and potentially holding the company back from competing effectively. External neutrality: operations is measuring its performance against those of its competitors and trying to implement best practice. Internally supportive: operations are operating among the best in their market. They are proactively trying to support the company s strategic goals by developing appropriate operational resource. Externally supportive: the operational function is a fundamental part of the company's success. It looks long-term, forecasting changes in the market and supply and aims to be ahead of its competitors. Page 2 of 7

3 Award 1 mark for providing examples that Lidl s Operations could undertake in support of its corporate strategy and 1 mark for an accompany explanation (to a maximum of 8 marks). Identification of actions which Lidl s Operations could be undertaking in support of its corporate strategy. Examples could include: Leveraging existing supplier chain relationships - to exploit economies of scale, Utilising standardised store designs, layouts, communications infrastructure etc. to minimise expansion costs Using single contractors for all work to minimise costs and supervision and de-risk new developments Centralised recruitment to utilise existing infrastructure and knowledge Centralised training - to ensure standardisation and consistent quality Assessing costs arising from economies of scale, food miles and quality against those of locally sourced food to ensure best value for money. 26 Discuss the approach Lidl is taking/could Lidl take to assess the effectiveness of their actions in achieving the corporate strategy. Provide at least 3 examples. Award 1 mark for the identification and explanation of the use of KPIs or equivalent and up to 2 marks for the associated discussion, to a maximum of 3 marks. The use of Key Performance Indicators (KPIs) (or equivalent) is a suitable measure which allows an organisation to establish how effectively its operations are meeting its business objectives. 1 mark for each of the KPI examples identified and 1 mark for the accompanying explanation, crediting any other valid points to a maximum of 6 marks Examples include: The ration of spend against time a customer spends in a store. Value of spoilt goods Value of out of date food items Store profitability against running costs Level of out of stock items Staff turnover Goods lost through shoplifting Number of complaints 9 35 Page 3 of 7

4 b Critically appraise Lidl s approach to job design, identifying 4 different approaches that could be used to improve employee performance and job satisfaction. Award 1 mark for each job related issue identified and 1 mark for the accompanying discussion, to a total of 10 marks. The following are widely reported (although not all the issues below are applicable in all countries): employees work long hours (they are made to opt out of the European working time directive) employees are required to scan an average of between items per minute employees are spied upon, employees are prevented from joining trade unions employees must only take toilet breaks in their own time, except in exceptional circumstances. there is a high turnover of staff 1 mark for each of the current job Design approaches likely to be used and 3 marks each for the accompanying explanation, to a total of 8 marks. This implies a high level of managerial control and consequently a division of labour or scientific management approach being employed. The division of labour is the dividing of tasks into a number of subtasks. The greater the break-back of tasks, the more focused and simple a task becomes, until at their basic level, sub-tasks will only require a range of simple focused skills. Scientific management comprises method study and/or Benchmarking. Method study: a critical examination and improvement of an existing way of doing work. Benchmarking (work measurement): the identification of the method and time a worker should be able carry out a role to an appropriate standard. Flexible working, behavioural approaches and team working, provide employees with a greater level of control and will address Page 4 of 7

5 Award 1 mark for each of the four different approaches to improvement and 4 marks for each of the accompany explanations, crediting any other valid points to a maximum of 20 marks: Behavioural approaches (Job commitment) Hackman & Oldman s model combining tasks forming natural work groups establishing client relationships vertical loading opening feedback channels Job rotation: rotating employees between roles Job enlargement: providing employees with more tasks of a similar type (physically challenging through quantity) Job enrichment: providing employees with more tasks of a different type (mentally challenging through increased responsibility, decision-making or increased autonomy) Empowerment: The ability of employees to influence job design Team working: working as part of a team to achieve Flexible working Skills flexibility: providing employees with a change of tasks, role or the way a role is performed Time flexibility: allowing an employee to work reduced or flexible hours to align with their personal commitments Location flexibility: allowing employees to work remotely from each other e.g. teleworking Ergonomics Comfort - temperature, lighting, noise, space etc. Health & Safety considerations 35 c Discuss 5 actions that Lidl could take to improve the perceptions of queuing customers.. Award 1 mark for each queueing perception and up to 2 mark for the associated explanation, crediting any other relevant points, to a maximum of 15marks Customer queueing perceptions are that: idle time is perceived as longer than the time being served it is important to distract the customer, such as notices of next week s special offers anxiety/uncertainty increases the perception that time spent waiting is long a notice indicating the length of queue justifying the opening of a new checkout Page 5 of 7

6 unknown waiting time is perceived as longer than known waiting time a notice indicating the average wait time the customer is willing to queue longer for higher value services signage to emphasise value for money, perhaps by comparison with other supermarkets. waiting in a group is less tedious than a person waiting on their own Guide Queues to line-up alongside each other to encourage within-queue conversations d Conclusion summarise the main points from your report and discuss the implications for the future operations of the company. Award 2 marks for summarising how Lidl s operations strategy is helping the company achieve its corporate objectives, 1 mark for the use of KPIs (part (a)), 2 marks for summarising the effectiveness of Lidl s job design (part (b)); 1 mark for summarising queueing proposals (part (c)) and 4 marks for discussing how these will impact Lidl in the future and/or what Lidl should do as a consequence. 15 e This requires a comprehensive, accurate and well prioritised summary of the main points made in the previous sections, together with a critical discussion of how this could influence the future of the company. To do this reference should be made to the global market and logistical factors. 10 References 5 marks for suitable referencing, format, presentation and grammar (references should be in the Harvard format), which includes a short reference in the main text, together with a full reference in the reference list. Award the full 5 marks if the candidate provides good supportive short and full references to all the tasks that support the arguments made in addition to using the correct format, presentation and grammar. 5 Page 6 of 7

7 Learning Outcomes matrix Task Learning Outcomes assessed a 1, 3 Yes b 2 Yes c 4 Yes d 1,2,3,4, 5 Yes e 1,2,3,4 Yes Grade descriptors Marker can differentiate between varying levels of achievement Learning Outcome Analyse the strategic role of operations within an organisation and its link to business strategy Assess the issues associated with operations design in an organisation Understand the role of monitoring and improving performance in operations management Evaluate the need to plan the use of organisational capacity Understand the challenges for operations management in the future Pass Merit Distinction Demonstrate adequate ability to analyse Demonstrate an adequate awareness of issues associated with the subject and make some appropriate judgements Demonstrate adequate level of Provide a reasonable assessment of the subject; Ideas are generally coherent Demonstrate adequate level of Demonstrate ability to provide detailed and coherent analysis Demonstrate a sound awareness of issues associated with the subject and make consistently appropriate judgements Demonstrate robust level of Provide a generally strong assessment with some wellreasoned assumptions; Ideas are consistently coherent Demonstrate robust level of Demonstrate ability to provide comprehensive, lucid analysis Demonstrate a detailed awareness of the complexity of issues associated with the subject and make highly appropriate judgements Demonstrate highly comprehensive level of Provide a consistently strong assessment with well-reasoned and original assumptions; All ideas are highly coherent Demonstrate highly comprehensive level of Page 7 of 7