Group Members

Romesa khalid
Yahya khar
Rubab Shahzad khwaja
Ramisha Khan
Jamal Mustafa

Chapter 13
Operation Management; operational
dimensions

AL FATAH
BY
Aqdas Shah

Mr. Sohail Khakwani

General Manager Al-Fatah

History
Al-Fatah is the leading department store of the land of pure,
Pakistan.
In 1941, Al-Hamra Store was established in Tolington Market
at Mall Road Lahore. Later on, It was refurbished to Al-Fatah
Store, 1968.
In 1974, the second branch of Al-Fatah was established in
Liberty Market, Lahore.
In 1985-1998, to meet the compatibility of the modern era,
many significant changes were made in Al-Fatah Store like
departmentalization.
Mr. Irfan sheikh is the owner of Al- Fatah stores.

Mission Statement
We are committed to delivering sustainable value for our
shareholders and enhancing lives of our customers every day
through the high quality food, clothing and home products we offer
in our stores and online

Tagline

Where generation stop to shop everyday.

Branches
Lahore
Liberty
DHA
Faisalabad
Islamabad

Departments
Cosmetics
Jewellery
Crockery
Households
Electronics
Toys
Brands and garments

Customer Loyalty
Email Marketing
Thank you cards
Loyalty cards

Competitors
Metro Cash& Carry Pakistan Pvt. Ltd
Chenone stores Limited
Hyperstar
Banner store international
Canteen Stores department- CSD
Decent Department store
Jalal sons department store

Wheel Of Retailing

Shopping Mall

Department Store
Super Store

Operation Management
BY
Romesa Khalid

Operation Management
The efficient and effective
implementation of the policies
and tasks that satisfy the
retailers customers employees
and management.

Operating A Retail Business

Operations blueprints
Store formats and space allocation
Personnel utilization
Store maintenance, energy management and
renovations
Inventory management
Store security

 Insurance
Credit management
Computerization
Outsourcing
Crisis management

Operations Blueprint
An operations blueprint systematically lists all the
operating functions to be performed, their
characteristics, and their timing.
The retailer specifies, in detail, every operating
function from the stores opening to closing and those
responsible for them.

Prototype stores
Multiple outlets conform to relatively uniform
construction, layout and operation standards.
Starbucks, McDonalds.
Centralized management
Reduce construction cost
Standardized operations
Interchange of employees among outlets
Consistent chain image

Rationalized Retailing
Programs to combine a high degree of centralized
management control with strict operating procedures
for every phase of business.
Operations are performed in virtually identical
manner in all outlets.
Rigid control standardization
A firm can add significant number of stores in a short
time.
Starbucks

Space Allocation Approaches

Top down space Management approach
Bottom up space Management approach

Top down space Management

Approach
A retailer starts with its total available store space,
divides the space into categories and then works on
product layouts.
Al-Fatah

Bottom up space Management

Approach
A retailer begins planning at the individual product
level and then proceeds to the category total stores
and all company levels.

Tactics to improve store space

productivity
Vertical displays
Open doorways
Mirrored walls
Vaulted ceilings

Ramisha khan
BB-13-42

Personnel utilization
Hiring Process
Workload Forecasts
Job Standardization and CrossTraining
Employee Performance Standards
Compensation
Self-Service
Length of Employment

Store security
Uniformed security guards
Undercover personnel
Brighter lighting
TV cameras and other devices
Curfews
Limited access to backroom
facilities
Frequent bank deposits

Store Maintenance
Store management encompasses all the activities in
managing physical facilities.
Exterior parking lot, points of entry and exit, outside
signs and display windows, flooring, lightning.

Renovations
How often are renovations necessary?
What areas require renovations?
How extensive will renovation be at any one
time?
How much money must be set aside in
anticipation of future renovation?

Rubab Shahzad Khwaja

BB-13-12

Insurance

Rising premiums
Reduced scope of coverage by insurers
Fewer insurers servicing retailers
Greater need for insurance against environmental
risks

Inventory Management
How can handling of merchandise from different
suppliers be coordinated?
How much inventory should be on the sales floor
versus in a warehouse or storeroom?
How often should inventory be moved from
nonselling to selling areas of a store?
What inventory functions can be done during
nonstore hours?

Credit Management
What form of payment is acceptable?
Who administers the credit plan?
What are customer eligibility
requirements for a check or credit
purchase?
What credit terms will be used?
How are late payments or nonpayments
to be handled?

Crisis Management
There should be contingency plans for as many different
crisis situations as possible
Essential information should be communicated to all
affected parties as soon as the crisis occurs
Cooperation not conflict among the involved parties
is essential
Responses should be as swift as feasible
The chain of command should be clear and decision
makers given adequate authority

Energy Management
Use better insulation in constructing and
renovating stores.
Carefully adjust interior temperature levels
Substitute high efficiency bulbs
Install special AC systems that controls humidity
levels in specific store areas such as freezer
locations.

Computerization
BY
Jamal Mustafa

Computerization
Computerized checkout
Electronic point of sales system
Self Scanning

Computerized checkouts
Used by both large and small retailers so they can
efficiently process, transactions and monitor
inventory.
Computerized registers, UPC based systems, wireless
scanners
Al Fatah is having 100 plus checkout registers and
decided to upgrade their system from RMS to
Microsoft Dynamic AX2012 R3.

Electronic point of sales system

Performs all the tasks of computerized checkouts and
verifies check and charge transactions, provides
instantaneous sales reports, monitors and changes
prices, sends intra and inter store messages,
evaluates personnel and profitability and stores data

Self Scanning
Whereby a customer himself or herself scans items
being purchased at a checkout counter pays by
credit or debit card and bags items.

Outsourcing
Pays an outside party to undertake one or more
of its operating functions
To reduce cost and employee time devoted to
particular task.
K-Mart
Al- Fatah outsource vendors to shift their
inventory from warehouse to outlets. i-e Vintage
International

SWOT ANALYSIS
BY
Yahya Khar

Strengths
Secure, safe and well established area of Lahore
and other cities of Pakistan
Building wide parking area
Products of every class of people
High quality in products
Well furnished, air conditioned outlets.
High Quality services

Weakness
Lacking in the area of advertising
No proper scheduling of promotional activities.

Opportunities
Potential to increase market share
Regular and loyal customers
Easy expansion of business

Threats
Offering competitive discount to all customers
Import duties and taxes.

Recommendations
Al-Fatah should focus on the advertising and
promotion.
Al-Fatah should plan advertising and promotion
activities well before time.
Discount should be given to all customers.