Operational part for Business plan Case Study Example | Topics and Well Written Essays - 1500 words

Operational part for Business plan - Case Study Example It is necessary that the operational business plan needs to consider the following aspects before considering the various ramifications of the product line and how it could genuinely benefit the manufacturers, sellers and buying consumers or users. The supply chain needs to consider the following steps in terms of ensuring not only complete customer satisfaction but also building of loyalty and wider growing acceptability, among the customers who make up the clientele base of this product/service to consumers. It is seen that in the case of loyalty cards, the range of products/services that could be benefited by loyalty cards would be high since booksellers, DVD stores, supermarkets, etc., and almost all consumer products shopping centres in malls, or local stores could benefit from the use of loyalty cards. Next, in terms of variety, it could cater to wider coverage in terms of a wide range of product lines as "Smart cards enhance the productivity of transactions and nourish increased purchasing." (Benefits of Smart Card-based Customer Loyalty Solutions. 2008). The variation with respect to loyalty cards would depend upon the demand generated for each variety of cards, depending upon customer preferences for them. . Again, the visibility aspect would also be need to be build since high visibility is a must in order to attract and retain customers to collect percentage points, or get discounts. The company must develop the ability to manage the results of the customers' perception, about the benefits achieved from continuous usage of loyalty cards and the virtues of holding and utilising this card must be extolled to the customers.V's Type HighLow 1st V Volume 2st V Variety 3rd V Variation 4th V Visibility (Operations Management Study Guide. 2008). Manufacturing the product or outsourcing it This is an important question from point of view of the marketing of loyalty cards since the use of this card would significantly reduce the profits margins between 5% to 20%, by most conservative estimates. However, it is estimated that there would be definitely be enhanced turnover, due to use of cards over a period of time that could yield higher profits due to induction of new customers through loyalty cards scheme. It has been found that this scheme is more attractive to new customer than to existing ones . Therefore, it is necessary to keep the manufacturing aspects of this card at the lowest in order that maximum profits are