Build a bear Analysis FINAL!_企业管理_经管营销_专业资料.docx

GROUP WORKSURNAME:FORENAME:STUDENT NUMBER:LongDawei10443999NthChristoph10486948SchmidtRaisa10486959WangXiang10440406By submitting this piece of group work we confirm that the work is entirely our own and has been completed in accordance with University and Programme Regulations regarding Examination and Assessment Offences.Title pageTitle:Analysis of the 4 Vs and the 5 performance objectives of the Build-A-Bear Workshop in Plymouth Name & student number:Dawei, Long (10443999)Nth, Christoph (10486948)Schmidt, Raisa (10486959)Wang; Xiang (10440406)Group:14Module:PGBS0123 Operations & StrategyUniversity Supervisors:Mel Hudson-SmithInstitute:University of PlymouthCourse of study:Master of Business and ManagementStudy phase:2nd Trimester Academic year:2013/2014Orthography:British English Date of Completion: 14 February 2013Place: Plymouth, UKTable of ContentsTitle Page.II1 Introduction12 4 Vs of Build-A-Bear12.1 Volume12.2 Variety12.3 Variation12.4 Visibility23 5 performance objectives23.1 Dependency23.2 Quality23.3 Flexibility33.4 Cost33.5 Speed34 Conclusion45 References5III1 IntroductionThe paper at hand analyses the operations of the BBW (BBW) that is located outside the Drake Circus Shopping centre in Plymouth. Therefore, the report consists of two different analyses. To begin with, the four Vs of BBWare considered as well as the influence of the service and production processes. Then, it will be explained how the 5 performance objectives are applied in the business. Finally, a conclusion of the two analyses is stated.Currently BBW Company owned 323 stores with 86 franchise stores across 18 countries in the world. Due to the world-wide expansion, certain level of standardisation within operation processes is vital to keep consistent delivery of the high-quality products and services. However, from the companys profile (2014), BBW Company demonstrates his core competencies as engaging process and customisable product offering.2 4 Vs of Build-A-Bear2.1 VolumeAccording to Build-A-Bears annual report 2012, approximately 80% of its products are produced in China. Hence, a mass production of the basic parts with a high work systemisation can be assumed. As this production process implies repeatable tasks accomplished by non-specialised employees, the Volume of BBWis high. Furthermore, next to the product itself BBWalso offers the service to build a customised stuffed animal. This is also a customised process which involves low volume, the process is a repeatable task that is highly systemised. Thus, the volume of the service is also high. 2.2 VarietyThe variety of BBWis very high. In comparison to other toy stores, it offers a wide range of special products, stuffed animals with different clothing, shoes and accessories, as well as other brand appropriate toys and novelty items. However, the range of main body of bears is not wide, because they are specialised on stuffed animals and therefore do not offer any other toys. Nevertheless, the combination of different parts makes each toy unique to every customer and satisfy the individual and personalised needs (Slack et al., 2013).2.3 VariationBBWis located at Drake Circus Shopping centre, which is the main shopping place in Plymouth. Thus, it can be anticipated that the demand changes with the rise of shopping population during holidays and weekends. Therefore, the demand is seasonal fluctuating but stable. In addition, table 1 shows that 33% of BBWcustomers visit the shop as a birthday present. Those visits are steady during the year due to different date of birth. Furthermore, nearly half of the customers are traditional visitors who visit the shop at any time of the year (John, 2014). Hence, the demand of BBWproducts is stable during the year and predictable. Therefore, BBWhas a low variation.2.4 VisibilityBBWhas both high- and low-visibility processes in its operations. The production process of the main components in China is not visible for the customer while the stuffing process in the shop is highly visible for the customers. In comparison to other toy stores where the whole production process is not visible for the customer, the visibility of BBWis very high. By maintaining the high self-experienced processes in the shop, BBW Plymouth is able to reduce its staff numbers. Even though the visibility is high, the labour cost of operations is relatively low.3 5 performance objectives3.1 DependencyThe dependency of BBWis high, because they keep their delivery promises. The customer gets its product immediately after the purchase so there are no waiting times at all. In order to gain this aim BBWbuilt up a MPLS-based virtual private network which helps transmitting point-of-sale transactions, connecting stores to the warehouse for real-time inventory status and facilitating inter-store communication (AT&T, 2010). In addition, the overall good quality of the products and services increases the dependability of Build-A-Bear.3.2 QualityBy looking at various consumer portals and blogs online the satisfaction concerning the quality varies. However, most byers -which are mostly mothers of small children- consider the quality as regular or good quality in comparison to other stuffed animals. Next to the product itself the process of creating the stuffed animal by the consumer is considered as a high quality service which is a unique service on this market (A Moms balancing Act, 2012). Moreover, the satisfaction guarantee of BBWproducts gives an indication of good quality. Nevertheless, there was a product recall in 2011 because of safety issues (Build-A-Bear, 2011). Apart from this special case BBWprovides error free products and processes and therefore provides high quality.3.3 FlexibilityBBWis very flexible in comparison to other companies that produce stuffed animals. Especially the product flexibility is high. There are a lot of modified products. Nowadays the consumer can choose among a wide range of stuffed animals, not just bears as it used to be. Additionally, there are a lot of seasonal products like Christmas accessories or cocker tricots. The flexibility is high in terms of the wide range of stuffed animals, but low in terms of a variation of other products. A common toy store for example offers a higher mix of products than a BBWstore.3.4 CostAs already mentioned, almost all products offered in the BBW are produced and imported from China. This means lower costs in materials and labour on the one hand but also increasing dependence on outside sources for merchandising on the other hand. As the contracts with the suppliers are on a purchase order basis there is no obligation for the company to purchase a contracted amount what keeps the storage costs low. Furthermore, BBWtries to keep the labour costs low by employing 3,400 of the total 4,400 employees as part-time staff (Build-A-Bear, 2013). In addition, the above mentioned performance objectives high dependency, high quality and high flexibility- lower the costs of BBWas well as the low unit costs because of the high volume and low variation. Nevertheless, the facility costs of the BBWshop in Plymouth are high in comparison to other toy shops in Plymouth because of the very good location of the shop in the city centre (Visit Plymouth, 2013). 3.5 SpeedCompared to other retailers in the Toy Industry, BBWhas a longer time between the order and the receipt of the goods due to the customised process of the goods. The company accepts the lack of speed in order to obtain their competitive advantage. However, it is also possible to skip the personalization process and buy a standard product what can be purchased and taken home immediately. The online shop, which only offers the standard products, delivers in 3-5 workdays, a normal amount of time compared to other online toy shops.4 ConclusionThe analysis of the four Vs and the five performance objectives above indicates well applied operations processes at Build-A-Bear. It clearly has its advantages in its core competences, the customisation of teddy bears. This results in high visibility and high variety which are the two main factors for BBWto create a competitive advantage but then again also means low speed. The high quality, high dependency and the high flexibility contribute to the fact that the costs of operations are low as well as the high volume and the low variation which reduce the unit costs. However, the concept of creating your own bear is a competitive advantage and the required adjustments in operations due to the concept are, as already mentioned, well applied and can outweigh the weakness of low speed. The location of the store at Drake Circus clearly is a further advantage according to the variation on the one hand but also produces higher costs on the other hand.5 ReferencesA Moms balancing Act (2012) Build-A-Bear Workshop Review. Available at: /2012/04/build-bear-workshop-review.html (Accessed: 25 January 2014).AT&T (2010) Its All About Relationships at Build-A-Bear Workshop. Available at: /content/customertestimonial/Case_Study-_Build-A-Bear_Workshop_7.2.10.pdf (Accessed: 25 Jan