Operations Management running a business - WH Smith Analysis

WH Smith Introduction

WH Smith was first created by Smith Family in 1792 as a newsagent, in then became the company with the name "WH Smith" in 1828 and launched the web site WHSmith. co. uk in 1999. This success fully growing company opened up many stores in Rails stations, High Streets, SHOPPING MALLS and steadily lost its income of £135m. The entrance of Kate Swann made WH Smith to run as the profitable company in a decade. The success of her achievements is based about how she prepared and worked towards her goal. Throughout this record there are extensive explanations related to WH Smith's success using operation management skills by Kate Swann.

Task 1

Operation is the key part of the business which produces goods and services. It entails in planning organizing, managing an organization operations. Organization without a planning won't have the ability to success in its business. Based on the scenario, the success of income is dependant on the Procedure Management, which involves a complex set of management activities involved in planning how they wanted to enhance their sales managing leading, by trimming the costs. Kate Swann were able to achieve the mark of turning WH Smith into a profitable company by taking into account of the operational management. Following the principles of procedure management in an organization will help the company to reduce the price tag on products and services and also in the mean time it will help to increase the customer's satisfaction towards the merchandise quality and the services. As the procedures function is sensible in goods and services, it's important to aid the input and result to be sent on time scale. Various insight such as capital, labor, and information should be measured in order to obtain desired outputs. The role of procedure management is to boost productivity which will help to increase the organizations financial and also to meet customer's competitive priorities. Inside the scenario it shows that Swann has targeted the teens and the as young women for stationeries this make the targeted users to be satisfied as well boost the sales in WH Smith.

The important elements of Operation managements are known as Business logic, System theory. Kate Swann has understood the business reasoning in how to increase the income for WH Smith. She grasped how to focus on the customers and improve the profitable margin. In her success we can see that she's cut the cost persistently which is one of the component in business logic. Making use of system theory to an enterprise helps to find out the way the environment impacts business process.

According to the report of "Our Quality Commitments to your Customers" in WH Smith website it obviously says that WH Smith is liable to fulfill the minimum standards required by regulations. If WH Smith reduces the specifications and quality towards their customers due the cost effective they could not have the ability to success inside our goal. For instance Funky Pigeon greeting greeting card shop which was open up online is a best known website because customers get best services. Though it was created to the market 2 years ago it has been famous. The real reason for this is their quality and services that they have been giving with their customers so far. The customers obtain the chance to choose their credit cards with uploading their own pictures as well as the cards purchased by the clients are sent very following day with their required address. This will likely impress the customers and make them keep coming back.

The online strategy objective of WH Smith is to establish the Funky Pigeon which offers greeting cards, customized gifts and cards based on the customers need. The products that can be purchased in this excellent website are incredibly quality as well as affordable. The services given to the customers are extremely dependability as funky pigeon is a fastest delivery service. It has the following day delivery services for their customers. More customers may choose to visit their website as they are not tied to options in credit cards. The customers got the verity of option in choosing credit cards. As funky pigeon allows the choice of personalizing the items or cards the clients may be satisfied in choosing the products from them.

System is recognized as the assortment of parts which can function separately for the success of the normal purpose. For example, System contains the Input - Process- Result in an firm. It is vital that the collection part in a system work collaborate for a business to reach your goals. WH Smith should follow each parts as Insight and Process and result to make their company to run in organize planning and control and be on right keep track of Sub-system is recognized as the complex series of many Systems in order to attain the common purpose. In other words it includes many Input many process and many result to achieve the goal of the business. WH Smith may contain many system and sub-system diagram for the organization. Following diagram shows the system function in WH Smith.


Task 2

Strategic planning is an organizational management activity which really helps to set priorities, strengthen operations, and ensure that employees work towards the goals to have success. An effective strategic planning articulates not only where and what activities needed to make improvement, but also how it will know if it successful. In order to implement success tactical planning need to follow the performance of functional management. Operational management is vital for many organizations. The proper planning mostly handles activities of any business organizations such as procedures, sales, finance concerned with different level managers. Operational management is targeted with the production / services company degree of organizations. There are three stages of strategic planning. They are really known as Economy, Efficiency and Efficiency. To achieve the profit percentage Swann has launched the stationeries targeting the teens and young women. WH Smith started to sell stationeries and sweets at the checkouts. This is a good example that Swann has used one of the proper planning elements known as Economy. As it is vital assign that right resources has been used at the right time at the right place and right cost which a management should consider in business targets. In other hands WH Smith has the big online strategy Funky Pigeon where they work in very cost effective. "Swann declared she was taking out of offering music and DVDs", she's compared the marketplace and in order to raise the profit margins. And the comparability stores such as HMV considers that it's brave. As she consider the Efficiency, she has compared the performance target she placed to raise the earnings of WH Smith. Despite the fact that WH Smith has its traditional retail it has target the online retailers by producing Funky Pigeon credit card site. Effectiveness is determined by examining the objectives and achievement of a company. WH Smith was been getting rid of by 135m credited to Swann's strong operational management the business has become revenue of £106m.

Quality is vital for an organization. An example of good quality product with less cost is when a customer who uses the merchandise and services has nothing at all or less to complain about the product. In the circumstance it says "WH Smith now sells roughly £65 of goods for each and every £100 of custom" the success is they have got carefully reviews the aims. WH Smith has to review the existing products carefully in order to compare the function of the product required by the customer, who demands them in less expensive. Kate Swann has carefully examined and determined that selling of Music and DVD's aren't profitable and not worth of lowering cost. So she completely stopped offering DVD's and began introducing new ideas on reselling new products in WH Smith. They concentrate on certain generation to improve their sales. As we can easily see in the situation that this says the teenagers and the young girl have been directed for stationeries. What Kate Swann has done leads WH Smith for its success.

Following the performance target it helps to add value to the clients in delivering quality products or services. The Quality, swiftness, dependability, versatility and the price may defer as performance objectives. Quality services as known as error-free services. There could be no any complains about the product satisfaction. This is improved by getting customers feedbacks. For instance if we take WH Smith the product quality can defer as the store sanitation, a proper and attractive outlet and also very friendly and helpful personnel therefore the customer may like to visit the store often. It also includes the products conditions. Once we see WH Smith has a big online strategy Funky Pigeon greeting card site. If indeed they neglect to deliver their customers goods promptly, they may have bad point of view against their services and none of them of the customers like to continue doing shopping with them. Whenever we look at the WH Smith store it all depends on a customer asking for something or services and setting it up to them, in another phrase satisfactory of these shopping in WH Smith. As we see in the scenario it says that Swann packages to open up more shops that are filled with stock and screaming promotional banners. This is a job of operational management to accomplish as it's based on dependability. It increases the merchandise or service in the market. WH Smith has sold stationary targeting the young adults and young women and they also began to display sweets at the checkout make customers to acquire them. If they havent been adaptable in presenting new lines to their sales they'll not be able to become successful in their business. Swann also cuts down the cost to be able to improve her profit margins. These are the value five performance goals that underpin procedure managements.

Task 3

For a good operational planning is very important, this will lead the organizations to know very well what they need to do next, in order to provide best services to the customer's demand. Planning and controlling related to each other. It is vital to examine these methods in an business like WH Smith as they helps for the effective outcome. Planning helps how to proceed and when to do in other side controlling involves ensuring the programs are occurred. The look and controlling consists of cost estimation, work way of measuring, planning, daily habit concerns. Based on this circumstance we can easily see that WH Smith has designed how to satisfy the needs of their customers. Kate Swann for example recognized that young women and teens will purchase their stationeries and mean time the special has been display near the counter-top in order to market it to their clients. If Kate Swann didn't think of what customers normally demand, WH Smith might not exactly have the ability to gratify their customers.

Linear program is a mathematical technique made to help to plan and make decisions. This will maximize or reduce some volumes such as income or cost. Liner program requires action on what things to choose, where Kate Swann need to bring in displaying sweets near the checkout. Among the examples of WH Smith success in applying linear program in operational management is when Kate Swann stops retailing music and DVDs to increase the profit percentage.

For renovating WH Smith outlets there are certain tasks need to be planned. The following stand is the tasks outlined down for the shop restoration.





Structure repair









Electrical & Ability require



Main Shop area tidy



Exterior Surfaces repair



Paint outside



Check out area








  • D must follow A
  • G are required to follow A and F
  • H must follow A, C, D and F
  • I are required to follow A, C and E
  • J must follow A and D


The above network diagram can be an for an WH Smith renovation.

WH Smith was jogging with lose until Swann dominate to make it a profit. When we look into the operational outcomes we can see clearly that the WH Smith lose of £135m converted into revenue of £106m. Another example of operational end result is targeting of displaying sweets at the checkout and also providing stationery aiming teens and young women.

Quality can described by the process through which a small business seeks to make sure that the product quality is maintained or better meantime reduces the errors. It requires both management and employees make every work for efficiency. And in line with the Scenario it packages an example Kate Swann ceases providing music and DVDs and also the checkout assistants attempt to force-feed the chocolates exhibited at the checkout areas.

Without planning and controlling an organization will be hard to keep an eye on. It is vital to check out the principles of Operational management in order to achieve success in an group. Kate Swann's success is based about how she implemented the procedure management skills in order to bring the profit to an organization which was operating in loss. As Kate Swann practices these skill it expresses in the scenario that she has the capability to make a annoying shops to have income business.


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Available: http://www. theguardian. com/business/blog/2013/jan/23/wh-smith-kate-swann-profit

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Available: http://highered. mcgraw-hill. com/sites/dl/free/0070951675/436573/samplech01. pdf

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Available: http://www. asosai. org/journal1988/performance_auditing. htm

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Available: http://en. wikipedia. org/wiki/Operational_planning

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Available: http://wps. prenhall. com/wps/media/objects/2234/2288589/ModB. pdf

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Available: http://www. citeman. com/5031-operational-planning-and-control-decisions. html

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Available: http://en. wikipedia. org/wiki/Quality_management

  • WH Smith, About WH Smith, [Online],

http://www. whsmith. co. uk/fcp/content/Help-AboutUs-AboutWHSmith/content

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