1. Operations strategy refers to a plan specifying how an organization will allocate resources in order to support infrastructure and production. Operation strategy is typically driven by the overall business strategy on the organization and is designed to maximize the effectiveness of production and support elements while minimizing cost. Giordano’s operation strategies are corporate strategy which refers to cross-functional interaction. Next is customer-driven strategies whereby doing something to meet the needs of a target market by create something innovative to attract customers. Third is developing core competencies. Developing core competencies refers to well trained staff, optimal business locations and also expertise in an organizations. The last one is competitive priorities whereby priorities given mainly to customers satisfaction.
Internal consistency refers to the methods companies use to reach their objectives ny developing operational strategies. The methods that company used are financial resources, physical resources which refers to the labours, access to natural resources, patents, copyrights and trademarks and also current processes like employee programs, software systems and department hierarchies.
These internal consistency contributes to the company’s competitive success by the internal factors. For an example the physical resources, labours work in consistent to produce goods. Labours works in a consistency phase to get a consistent production. Besides, the consistency can give impact on customer’s perception on the uniqueness innovations.
2. Consistency of Giordano’s operation strategy gives some impact to marketing strategy. The first strategy of the operation strategy is corporate strategy, refers to the identifying the competitive advantage. By the identification, cross-functionall interaction is important among the employees to make the business grow bigger. Cross-functional interaction refers to the team consists of people from different department and also from all level of organization. This mixture of a complete organization will make them to think creatively and the results are Giordano introduce another brand Giordano Ladies and Giordano Junior. This proved that cross-functional interaction give a huge impact in a business.
Next is customer-driven strategies. This strategy refers to the meet the need of a target market. Company must develop strategies that evaluate and adapt to changing environments, continuously enhance core competencies and develop new strengths on an ongoing basis. The company should do something innovative to attract customers. Based on the case study, Giordano willing to try new ways of doing things and learn from past errors. By taking advantage on new oppurtunities, Giordano unintensionly expending their marketing skill by promoting all new things and attract customers because customers need variation. Sustaining innovation and quality until today Giordano They also provide great customer value that non of its competitors have been able to match. This would be a positive impact for Giordano to expand its business.
Developing core competencies is one of Giordano’s operations strategy. Developing core competencies refers to strengths and resources within a company. While core competencies can vary by industry and business, they can include having well-trained staff, optimal business locations and marketing and financial expertise. Giordano maintain its marketing because of those factors. Giordano Ladies offers a highly personalized service with, for example, staff being trained to memorize names of regular customers and recall past purchase. As part of its globalization process, Giordano already has outlets in Australia, Melbourne and Sydney. It plans to add new outlets to existing stores in Germany and Japan. This shows how Giordano has its optimal business locations to expand their business.
The development of competitive priorities comes from the creation of a corporate strategy, market analysis, defining core processes and conducting a needs analysis. To create competitive priorities, an organization evaluates operational costs, the quality of a product or service, the time it takes to develop and deliver a good or service and the flexibility of a good or service with regard to variety, volume and customization. Giordano had customized their business to Giordano Ladies and also Giodano Juniors where this gives Giordano a huge impact in their business. Customers satisfaction level will increase because they can purchase their clothings even for ladies and also juniors. Competitive priorities should include being able to provide a quality product or service at a fair cost that consistently meets the needs of a customer. Customers satisfaction makes Giordano expand their business. Customers satisfactions in term of price. Reasonable prices will attract the customers because their purchasing power contributes every business expension.
The company maintained a flat organizational structure. The company’s decentralizedmanagement style empowered line managers and at the same time encouraged fast and close communication and coordination. Effective communication leads to efficient project management and speedy decision making. This kept Giordano’s product development cycle short.
Customers are learning a lot better about what is value-for-money all a about. It is very important to sell products at cheaper rate.
Giordano had stringent selection procedures to ensure that selected candidates match the desired employee profile. Service orientation and capability check was an integral part of these selection procedures. It had invested heavily in employee training and had been recognized for training and developing its staff from various prestigious institutions. It considered its front-line workers to be its customer service heroes. The emphasis on training was with a view to hone the skills of the employees and enables them to provide best customer services and satisfaction.
3. The biggest operations managements challenges for Giodano as it expands into new market segments are understanding market, consumer tastes, preference of fabrics, and advertisement. Giordano has been the first in the value-for-money apparel segment in Asia. Because of this value-of-money, there are many who challenged Giodano’s position and are competing against the brand. For an example Bossini, Hang Ten, Esprit, G2000 and Gap are some of well known competitors. Bosini and Hang Ten are the direct competitors for the Giordano brand. These two competitors have similar position and product outcomes and also have a similar target which is customers. But Giordano with its highly personalized service, it has friendly service and higher quality of their product has been able to maintain their outcomes. Giordano’s friendly service in terms of train their staffs to memorize their regular customers names and also recall their past purchase.
4. Recommendation or suggestions to Giordano regarding its operations strategy in the future is inplying more emphasis on factors like dedicated workforce and quality of service by means of improved training and more refined recruitment and selection producers. Besides, Giordano should not reposition itself in the existing market, they should adopt different positioning strategies for entering new market. For an example, they should be consistent in their service. Giordano also should identify latest fashion trends, current style of the country and the cultural differences and similarities that exist in the particular country. In order to identify those differences and similarities, Giordano should gather information about the economic conditions in the particular country to be able to judge the purchasing power of the buyers.
Besides, Giordano should involve in provide customized products to their customers. Customers more preferable customized product rather than non-customized product because they wants the things to be as what they like and as w