DAVID JONES OPERATIONAL INFLUENCES REPORT
David Jones was established in Sydney in 1838 as a prestigious goods business. Today it is a publicly listed company on the Australian Securities Exchange. The company has 36 retail outlets Australia wide including an online shopping platform. It is the second oldest store in the world that has traded under its original name behind Hudson's Bay.
David Jones Ltd encompasses a huge range of activities, it sells over 1000’s of brands and tens of thousands of products and resources, including fashion, beauty, home, electrical and fine food and wine.
For a number of years, prior to launching its online platform in 2013, David Jones experienced numerous challenges incorporating online shopping into its business. Myer is its biggest Australian competitor and had a better handle on launching its online shopping platform prior to David Jones. David Jones has been a very profitable business to date though has experienced weakness in its profits, including downgrade in profits, over the last 5 years.
The company’s performance is influenced by the performance of its operations.
This report was commissioned by David Jones. The purpose of this report is to assess the influences on the companies operations, including: globalisation; technology; quality expectations; environmental sustainability; cost based competition; government policies; and legal regulation.
ROLE AND INFLUENCES OF OPERATIONS AT DAVID JONES
The operations role, processes and strategies at David Jones Ltd encompass a huge range of activities. David Jones is primarily a retailer of high quality goods and thus needs to source such goods and have them available for sale in stores throughout the nation as well as online.
Globalisation is the process of international integration that arises from the interchange of world views, products, ideas and other aspects of culture.
David Jones has a great reputation and history for sourcing quality and reputable global brands for Australian consumers. Globalisation has only increased David Jone’s ability to access and purchase products from anywhere in the world. This factor has been of great benefit to David Jone’s business, market share and profits. The range of global products sold by David Jones has increased over the years due to increased accessibility through globalisation. It also means that it can have a seasonal approach to the retail cycle.
Increased globalisation has also meant consumers can directly access products from overseas. This is presenting challenges for David Jone’s in meeting cost- price challenges and competition.
Technology has dramatically changed the way in which business is carried out in our world today. Companies can now develop software and systems that can all be integrated to run a business from a desktop or laptop. The internet has completely changed the world of both wholesale and retail shopping. In its essence, technology is the application of scientific knowledge for practical purposes. It is the collection of tools, including machinery, modifications, arrangements and procedures.
In the past, David Jones didn't really understand the importance or power of harnessing technology through its supply chain and also in the retail aspects of the business. This meant that it was slow to take advantage of this influence, and indeed it actually has lost business as a result. Nevertheless a renewed focus and investment in technology means that David Jones can now reach the market through its omni-channel use of technology.
Omni Channel - This has been a great investment which benefits David Jones, it includes: an on-line store that allows people across all platforms and devices to view and purchase products; live streaming of events and promotions; engaging in the use of social media; and the integration of on-line orders with supply chain management, fulfilment of orders…