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TABLE OF CONTENTS P4 Key approaches to operations management.....................................................................1 P4 Role that leaders and managers play with regard to Amazon operations management....2 P5 Importance and values of operations management in achieving business objectives.......3 P6 Factors within business environment that impact upon operational management and decision making by leaders and managers.............................................................................4 REFERENCES................................................................................................................................6
P4 Key approaches to operations management Operations management is analysed as an important process to utilise the resources of business enterprise in effective manner. It is a part of business in order to administer the activities of the business enterprise and improvement of production quality. It is critical to make surethatstrategic direction of businessismaintained by executing tactical decisions of utilisation of resources in order to ensure that the competitive advantage is maintained. Amazon Inc. is an American electronic and cloud computing organisation which has now become the world’s largest online retailer (Jacobs, Chase and Lummus, 2014). The organisation has created its individual websites, software development, customer service and fulfilment centres in various locations around the world. Managers and leaders in organisation are highly responsible for effective accomplishment and regulation of business operations. Further, for management of operations, they implement various approaches which are mentioned above: Six Sigma approach: It simply refers to measurement of quality which strives for near business perfection. Six-sigma is the major approach which has enabled the manager and leaders of Amazon to effectively manage and control their products and service quality (Heizer, 2016). It is also considered as data driven methodology used for elimination of defects and problems in business operations. Amazon is widely established online retail and cloud computing service provider organisation which has provided more emphasis on improvement of quality. Total Quality Management: As the analysis, managers in Amazon are responsible to control the quality of work and delivery of customer satisfaction. The role of managers is to manage the performance and improvements in the products and services towards the customers (Total Quality Management (TQM) And Quality Improvement, 2017). They also made improvement within culture to analyse the customer requirements and current trends in market. It is also the job of the managers in Amazon to support the total quality management in organisation. Managers of Amazon have alsoplay the role to optimise the use of resources to match overall business objectives of quality within service. Just In Time (JIT) approach: Management of Amazon always use JIT approach in production department in order to reduce the waste and appraising the efficiency in management of inventory as goods and services adequately ordered to keep in inventory in demand (Kato and NEC Corp, 2012). Further, cost of managing inventory can also be 1
reducedwiththisJITapproach.Wastecanalsobereducedwithanappropriate forecasting of demand and consumptions of operations. Moreover, manager utilises these approaches in order recycle and re utilises the product for decreasing the overall wastage fromtheoperations.Inadditiontothis,productsarecompletelyrefurbishedfor improving the quality and minimising the waste within enterprise. P4 Role that leaders and managers play with regard to Amazon operations management There are various important roles and responsibilities have been accomplished by managers and leaders of Amazon Inc. in order to improve and increase the quality of operations. Below given points will determine the important roles which have been continuously performed by them such as: Planning: It is important for the manager of Amazon to plan and establish key objectives of company which complies to increase the profits and sales of products. Strategies which are prepared by Amazon related to goals of enterprise involve Kaizen which also provides contribution in continuous improvement in the process of marketing to increase brand recognition and publicity in market (Slack, Brandon-Jones and Johnston, 2013). The role of leaders in Amazon is to communicate these important roles developed managers to staff and concentrate on the efforts of workers within accomplishment of these common goals and objectives. Organizing: Amazon managers focus on organising and utilising resources of business enterprise in effective direction to accomplish company’s goals and objectives. Further, roleofleadersistoefficientlyallocatetheresourcesandprovidemotivationto employees in the completion of goals and ambitions (Walker and Walker, 2016). Directing: Managers tend to direct the task that needs to be performed by employees and workers of Amazon Inc. but leaders plays roles in developing a team and directing how the work needs to be accomplished effectively. Staffing:It is the important responsibility of operations manager and leaders to put right person on right job in Amazon to ensure effective management and completion of tasks (Prahlad, Pawar and CommVault Systems Inc, 2013). Leaders keep motivating the staff and allocate jobs according to their competencies and communicate with them to resolve various problems with the evaluation of their business performance. 2
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Coordinating: Study has determined that operation's manager of Amazon coordinate the functions of company for achievement of better outcomes (Brown and Bessant, 2013). Role of leaders in these functions is to coordinate the business activities in orderto implement best practices. This develops coordination between employeeswith help of communication and effective leadership skills. Controlling: In this, strategies have been made and implementedbymanagersin organizationcontrolbusinessoperations.LeadersinAmazonarecontrolledand monitored by managers of company. They will verify results of employee’s performance in comparison with established standards. Theyalso provide guidance to employeesto improve their performance after analysis of results. P5 Importance and values of operations management in achieving business objectives Role of operations management is very essential for products and services of Amazon to be effective and efficient. It can significantly influence the profitability of retail organisation. This has become an important factor to maximise profits and values. In this context, operations management tends to increase opportunities of growth and development of company’s position in market (Schniederjans, Cao and Triche, 2013).Further, managers in operations department of organisation provide more importance to application of digital technologies and promotion of communication with clients and customers digital media in order to make company more viable across the world. With effective operation's management, Amazon will get support in increasing innovation and transformation of business processes to increase customer satisfaction and resolving redundancies. Inadditiontothis,operationsmanagementalsoaddsvaluestowardssuccessof organisations by increasing brand loyalty among customers and reducing cost of products and service in market. Increase in employee’s efficiency will add values and create competitive edge rivals like Flipkart etc. Presently, Amazon has faced various problems in supply chain management due to some redundancies created by employees in supply of products to customers.Providingimproper service and ineffective products haveinfluenced its brand image. In order to remove these redundancies,managershavedecidedtoimproveitshierarchyandtochangebusiness procedures. Effective leadership styles are applied by managers to motivate employees of operations department in organisation (Mahadevan, 2015). Proper management of functions will 3
enable company to excel its progress in market. Further, issues related to data security have been faced by organisation and for this, they have taken various steps to improve data security software at workplace. Rather, leader also tries to make effective allocation of resources in order to remove wastage. In this, operational efficienciesof Amazon can be improved to meet the objectives. Business aim at increasing profitability and sustain in competitive market. P6 Factors within business environment that impact upon operational management and decision making by leaders and managers Business of Amazon has been highly influenced by external factors which exist in business environment. Managers and leaders will make their decisions after analysing these factors so that redundancies can be resolved effectively (Barton and Court, 2012). External factors involve those elements which are not in control of organisation. In this context, there are some factors have been identified which can provide impact on operation's management of Amazon. These are as follows:Corporate social responsibility: It implies roles and responsibilities that need to be performed by Amazon to provide support to local communities and societies in UK. Policies of government of UK have also bound corporate organisations like Amazon to contributetowardsdevelopmentoflocalcommunitiesbyprovidingemployment opportunities and financial support. Further, this has increased cost of operations of Amazon (Laudon and Laudon, 2016). Further, it has also provided positive impact on perception of customers towards company and tends to raise growth of sales in market. Business Ethics: Ethical operations are required to be carried out by organisation in order to remove any discrepancies onbusiness (Bugiotti and et.al. 2012).In past several years, Amazon has faced issues and penalties due to unethical practices of its employees which have influenced its profitability and ability to meet customer requirements. It implies that Amazon needs to carry out its operations by following regulation such as consumer law, common law, employment act, health and safety act and quality management etc. Stakeholders: These are analysed as parties which are directly related business such as consumers, employees, suppliers, clients, agents, competitors and government (Brown and Bessant, 2013). Among these, competitor’s strategies and decision also affects business operations etc. technology has also provided power to consumers for selection of appropriate products and services which has also raised competitor’s rivalry among 4
customers. Change in customer’s perception towards products will also influence sales and revenues of enterprise. However, manager will plan to ensure that cost of operations of Amazon will tend to decline to increase profitability. They will also put emphasis on customer requirements and apply innovation in products and services to meet quality and requirements of product. 5
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REFERENCES Books and Journals: Barton, D. and Court, D., 2012. Making advanced analytics work for you.Harvard business review.90(10). pp.78-83. Brown, S. and Bessant, J., 2013.Strategic operations management. Routledge. Bugiotti, F. and et.al., 2012, March. RDF data management in the Amazon cloud. InProceedings of the 2012 Joint EDBT/ICDT Workshops(pp. 61-72). ACM. Heizer, J., 2016.Operations Management, 11/e. Pearson Education India. Jacobs,F.R.,Chase,R.B.andLummus,R.R.,2014.Operationsandsupplychain management(pp. 533-535). New York, NY: McGraw-Hill/Irwin. Kato, K., NEC Corp, 2012.Operations management apparatus, operations management system, data processing method, and operations management program. U.S. Patent 8,225,144. Laudon, K.C. and Laudon, J.P., 2016.Management information system. Pearson Education India. Mahadevan, B., 2015.Operations management: Theory and practice. Pearson Education India. Prahlad,A.andPawar,R.S.,CommVaultSystemsInc,2013.Systemsandmethodsfor performing data management operations using snapshots. U.S. Patent 8,595,191. Schniederjans, M.J., Cao, Q. and Triche, J.H., 2013.E-commerce operations management. World Scientific Publishing Company. Slack, N., Brandon-Jones, A. and Johnston, R., 2013.Operations management. Pearson. Walker, J.R. and Walker, J.T., 2016.Introduction to hospitality management. Prentice Hall. Online TotalQualityManagement(TQM)AndQualityImprovement,2017.[Online].Available through:<https://www.thebalancesmb.com/total-quality-management-tqm-2221200> 6