STRATEGIC OPERATIONS MANAGEMENT

Delonghi Strategic Operations Management

Table Of Contents

Introduction2

Business Strategy and Operations Strategy3

Manafacturing Process, Flow and Technology6

Value Chain And Quality9

Conclusion11

References12

Introduction

DeLonghi United Kingdom is a leading brand in home appliances since 1974. Delonghi was found in the year 1902. The range of its products includes coffee makers, kitchen appliances, ironing, floor care, air-conditioning, air-treatment, portable heating and breakfast collection. The group has a business line catering to household and professionals. The company relies on its strong and persistent branding with user friendly products. The brand has an Italian heritage and reflects it in its products with continuous technological improvement. The Group is recognised in more than 50 countries due to its strategic distribution network. Exclusive distribution agents, direct offices and franchises have enabled to group to expand across the globe with the presence in key markets such as Japan, Australia and the United States. The wide of range of products is because of production, technology and sales strategies. The continuous cycle of innovation possible because of valuable investments in marketing, product line developments and in-depth market analysis. The Research and Development department has played a significant role in generating ideas and converting them into profitable products. The company was ranked 15th in the year 2010, jumping 3 places from 18th rank in 2005.

Business Strategy and Operations Strategy

The business model of the company stands on the pillars of research and development, procurement, production, product offering, distribution and After Sales and Service. The De'Longhi Group has a strong tendency to improve technology of separate production unit and efficient management of decisive stages of the production process. This leads to optimisation of productivity and distinct products besides driving the “time-to market”. The state-of -the art production plants enables the achievement of cost reduction and high quality products (Delonghi, 2012). The product offering is to have innovative home appliances with a unique combination of style and performance. Products are made in such a way that it is in accordance with the people's cultures and lifestyles. Globalisation has helped in standardising some of the trends followed around the world

When it comes to its coffee makers it wants to convert the potential market of tea drinkers to coffee drinkers. The poor quality coffee drinkers are also to be converted to this market that offers customised high quality coffee. In the USA the sale of coffee makers were up by 14 % in the 2011, driving factors were single serve and espressos. The strategy is always to induce new ways of making a customer think of the possibilities that can be making their living more comfortable. Consumer needs and wants are evolving as time passes the company effectively and efficiently identifies the areas where improvements can be made.

An assumption made here is the reason for the sales that this brand has been able to achieve. This is due to their informative website and great customer service that is available round the clock. The company offers competitive prices and markets the benefit of having a coffee machine in your home rather ...