Bebe Stores have been struggling to survive online competition they did not expect nor see it coming. Decline in sales have made them realized that there is more that needs to be done(“Bebe Stores are closing down. Here’s the list”, 2018).
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Introduction
Also known as operations management
Improves the value chain
Creates effective client operations
Creates functional business processes
Operations consulting is also known as operations management refers to the advisory services that an organization uses to improve its value chain. Businesses that employ the services of operations consulting are able too create more effective client operations. This is done by advising and supporting how changes are implemented in the organization, as well as “creating business processes that are functional” (O’Mahoney, Markham and O’Mahoney, 2013).
In addition, business that employ operations consulting are also able to improve the systems used in management and the organizational culture, which results in improvement of all other elements of the values chain.
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Company Struggling in Operations
Bebe Stores Stores
Decline in sales
Competition from well known competing stores
Has resulted in closure of some stores
Customers not able to shop online
An example of a company that is struggling in its model of operation is Bebe Stores Stores.
This company is making an attempt to shift from brick-and-mortar chain to have its products retailed online. Over the past years, several of the company’s stores have been closed down with an aim of reducing the drag that the company is experiencing in its earnings. For instance, in the last year, Bebe Stores Stores announced that it will close more that its 160 stores, as a result from online competition like amazon (Li, 2018).
Bebe Stores Stores faces huge competition from large online retailers such as Amazon.com and they still have not been in a position to keep up with them. Yes, the Columbus-based discount and closeout retailer has a website, but people haven’t been able to buy anything from the company online.
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Operations Planning Toolkit
Problem definition
Data gathering
Data analysis
In order to clearly understand the problem that the company is going through and to have it back on track, there are several measures that can be put in place which would enable the business minimize the problems it has and increase the sales. The first step should be to identify the causes of the failure or to identify the problematic areas in the organization. After identification of the problem, the relevant data should then be gathered from all the people involved, this being the first step in trying to come up with a solution to the problem identified. After collection of data, it should be then be classified and analyzed, for instance, the problems with similar cause can be grouped together.
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Operations Planning Toolkit
Solution development
Cost impact
Payoff analysis
After all the potential problems have been identified, this should then be followed by coming up with solution (s) to the problem. Solutions vary in strength and this should be upon the team involved should decide on what should be implemented first and what should come last. Before implementing any of the solutions, the cost implication should be considered so as not to create more losses for the business.
In addition to analyzing the cost implication, an analysis should be done so as to determine whether the solutions to the problems are worth investing in. the solutions should only be implemented if the have a positive impact.
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Operations Planning Toolkit
Testing
Implementation
Evaluation of the implemented solutions
Solutions implementation comes with a cost, therefore, the team involved should first test the identified solutions on a smaller section of the business so as to find out how effective they are. once they are found to be of use in achieving the desired results, the solutions can then be implemented fully in all the departments and sections with problems. This should go on for a period of time, then the management or the team involved in solving the problems should evaluate the effectiveness of each solutions.
This can be done by “making a comparison of the previous situation with the achieved results” (Molinuevo, 2014). This is important in determining whether the implemented solutions should be carried on or whether some changes should be made.
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Resources and Data for Deployment
Communication with customers
Outsourcing of information technology
Motivating employees
Give Employees a Purpose
Motivate Individuals not a Team
Create Recognition
Have an Open-Door Policy
There are various resources, data as well as initiatives that can be taken while engaging in operations consulting within the business. To start with, all the employees should be well informed of the problems that the business is experiencing, and they should also be informed on the solutions to be implemented. This can be done through constant communication with every stakeholder.
In addition, the services of Information Technology should be outsourced, which would enable the business to run online and be in a position to compete effectively. Additionally, employees should be motivated, for instance, by giving employees a purpose, radiating positivity, motivate individuals rather than a team, learn who the employee is/what makes them tick, have an open-door policy, let them lead, create recognition rituals, etc.
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Resources and Data for Deployment
Go mobile
Cut down costs
Foster collaboration
In addition, operations in the business can be improved by going mobile. This would assist the employees to have access to the business even when one is not physically present in the organization, which is important since it keeps one informed on what is going on in the business at all times.
To add to that, the company should focus on cutting down costs. For instance, once the company starts operating online, it may not require a large number of employees, which is a great step in cutting down the cost of running its operations. Collaboration should also be fostered among the employees and between the employees and management so as to ensure that they are working towards the achievement of the set goals.
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Benefits of Operations Consulting
Improved efficiency
Expert help
Flexibility
In order to fully achieve its targets and improve the performance, Bebe Stores Stores will need to fully rely on operations consulting. There are various benefits the business would accrue from the same. To start with, the business would experience improved efficiency since a systematic way of carrying out all the operations will be in place.
In addition, the business would be in a position to get expert help. When running a business, expert advise is necessary so as to ensure that the business runs towards the right direction. The business would also experience flexibility, especially when the operations start to run on an online platform.
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Benefits of Operations Consulting
Cost savings
Competitive advantage
Wide reach
By employing operations consulting, Bebe Stores Stores would also be in a position to save costs. For instance, running the business on an online platform would make the business cut down on the number of employees, meaning that there would be savings on the amount paid to employees previously. The business would also be in a position to gain competitive advantage in the market over its competitors.
Competitive advantage, for instance, can result from the ability to cut down on costs. The business would also increase its reach since by operating, “it would be accessible by customers all over the world” (Chase and Jacobs, 2006). This is an added advantage for the business.
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Benefits of Operations Consulting
Improved customer service
Decreased time cycles
Reduction of risks
Expert advise is a very powerful tool in every business. The next benefit that the business would accrue from consultation is improvement in the customer service. The experts would be in a position to advise accordingly on how to best serve the customers. In addition, the time taken to carry out major tasks in the organization would also reduce. This can be brought by automation of the major activities, which takes less time while performing as compared to manual labor. The risks that the business experiences would also reduce. Online businesses have minimal risks since not many people are involved in running the major activities.
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Considerations in Operations Consulting
How to get started
The possible drawbacks
Expertise of the consultant
Active or passive involvement of consultants
Before going ahead with the decision to employ the services of operations consulting, there are various considerations that should be made. It should be considered how to get started and whether all the necessary requirements are available.
In additional, the possible drawbacks that are likely to occur in the process of implementation of changes should also be considered so as to put the necessary preventive measures in place. In addition, the “expertise and specialization of the consultant should also be considered so as to ensure the person being considered is relevant to the business” (Svensson, 2000). A decision should also be made on whether to have the consultant involved actively or passively.
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Conclusion
Focus on business outcomes
Incorporate comprehensive projects
Support a robust business case for change
In order to realize the full benefits of operations consulting, focus should be directed towards the outcomes that the business looks forward to achieving. This includes the management as well as the employees, each group being well informed of the part they should play and being guided on how to do it. The business should ensure that all projects necessary for implementation of changes are implemented comprehensively, so as not to leave any loopholes for more failures. In addition, every person involved in the business should be put on board to support a robust business case for change, which is crucial in realizing the desired results.
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References
Bebe Stores are closing down. Here’s the list. (2018). USA TODAY. Retrieved 24 March 2018, from https://www.usatoday.com/story/money/2017/04/21/list-of-bebe-stores–closing/100737254/
Chase, R. B., & Jacobs, F. R. (2006). Operations management for competitive advantage. Boston: McGraw-Hill/Irwin.
Li, S. (2018). Bebe is closing all its stores and focusing online, report says. latimes.com. Retrieved 24 March 2018, from http://www.latimes.com/business/la-fi-bebe-stores-closing-20170322-story.html
Molinuevo, M. (2014). Regulatory Assessment Toolkit: A Practical Methodology For Assessing Regulation on Trade and Investment in Services. World Bank Publications.
O’Mahoney, J., Markham, C., & O’Mahoney, J. (2013). Management consultancy.
Svensson, R. (2000). Success Strategies and Knowledge Transfer in Cross-Border Consulting Operations. Boston, MA: Springer US.
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