Operations Management: Theories & Applications

This assignment delves into the core concepts of operations management, examining its role in planning, implementing, and controlling business processes. It explores various theories and models used in operations management, highlighting their applications in different organizational contexts. The document emphasizes the significance of efficient resource allocation, quality control, and process optimization for achieving business objectives.

MANAGEMENT AND
OPERATION

Table of Contents
INTRODUCTION ..........................................................................................................................4
PROJECT 1......................................................................................................................................4
1.1 Role and features of manager and leader .............................................................................4
Task 2...............................................................................................................................................6
1.2 Role and feature of manager and leader in different situational context..............................6
1.3 Different theories and approaches.........................................................................................8
Conclusion...................................................................................................................................9
Project 2...........................................................................................................................................9
TASK 1............................................................................................................................................9
2.1 Key approaches to operations management .........................................................................9
2.2 Importance and values of operation management...............................................................11
TASK 2..........................................................................................................................................13
2.3 Factors of business environment that impact upon operational management.....................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
Online.............................................................................................................................................17

INTRODUCTION
Management and operation is a process which help the organisation in reducing wastage
and cost as well by effectively using the available resources which can make company to earn
profit at large scale. Operation department is that which help industry to satisfy large customers
with their product and services in perfect manner. The consumers are rationale in market as they
need those services and goods which are of great quality as thus, this make them to become
existing customer for longer period, with all such firm try to create a positive image in the eyes
and mind of customers. The report is based on STARBUCKS, which is the largest coffee chain
and serve their services in around 23,768 locations worldwide. Assignment will discuss about
role and feature manager/Leader are having. Different theories and how leaders/managers behave
in different situation context. Apart from this key approaches to operation management and how
OM help in achieving goal and objective and various factors which is affecting internal
environment.
PROJECT 1
(Covered in PPT)
INTRODUCTION
Management and operation is a process which help company to earn higher profits by
reducing cost of production and minimising wastage of resources so that quality products can be
produced in better manner.
TASK 1
1.1 Role and features of manager and leader
Manager and leader are the base of company as they are responsible for various task
which has to be completed on time to achieve goal and objective. Both manages, influences and
motivate the whole organisation as one so that they can work effectively and efficiently in
company. The role and feature of manager and leaders are as follows:
MANAGER:
Manager are those people who is responsible for controlling and administrating in
STARBUCKS. They divide the task according to specification and department so that effective
working can be there and managers do make policies and strategies for firm as every member of

company can work in right direction and in proper manner thus somewhere this thing help
industry to attain their goal and objective in efficient manner.
Roles
Policies: The manager is that who make and create various policies for industry as such
policies has to be followed by every member in organisation so that they can work in right
direction. It is made to motivate employees so that they can increase their performance in great
way. If Policies and procedure are followed by everyone in correct way then STARBUCKS can
easily attain their goal and objective.
Act as pool: Manager plays various role in company as playing the role of pool is one of
them as they are mediator in between the other level and senior level or executives. Manager
receives strategies and decision for employees and communicate it to every department so that
everyone can bring effectiveness in their working.
Features
Commitment: Normally the manager are committed towards their working criteria so that
they can complete their task on time. Focus and attention towards task and work bring
effectiveness and commitment in their working criteria. Such thing help manager to know their
ability to complete everything on time. It is required to be committed towards the work bring
quality and timely can be completed.
Knowledge: The manager has all knowledge about their working and with such they are
able to manage everything in organisation. Skill and knowledge make manager different from
others as this make manager to perform in great manner. Their knowledge in specific field help
them to create and innovate various things which is useful for them.
LEADERS:
Leaders are those who are responsible for influencing and motivating their employees in
such a way which help them to work effectively and efficiently. Leaders are the part of manager
and they both together as such thing help company to earn higher profits in market. Effective and
efficient working can be seen in leaders as they provide direction to employees so that they can
work in correct format.
Role
Provide feedback: The leaders are responsible for motivating the employees so that
effective working can be seen from them. Although leaders provide regular feedback of

employees for their work to upper level so that senior executive can bring new policies through
which employees can get motivated and influenced with such they can increase effectiveness in
their working.
Monitoring: Leaders are also responsible for monitoring everything which is going at
lower level. If employees are not working in right path then the leaders can work in effective
way and in right direction as well. Monitoring members and employees help STARBUCKS to
attain their goal and objective in effective way.
Features
Confidence: The leaders are having confidence in him/herself which make them to
perform in better way. Confidence is such which help employee to overcome any situation in
organisation, which help company to receive better working at particular time. Leaders also help
employees to bring confidence in themselves so that they can work in efficient way.
Motivator: Leaders do motivate their employees in such a way which bring effectiveness
in their working, influencing and motivating employees always help company to achieve their
targets and aim on time. Motivated employee get ready to adapt any change in environment
which make them to perform in better manner then before as well.
Therefore the manager and leader are those which make STARBUCK to be stable in
market for longer period and attain profits and their goal and objective.
Task 2
1.2 Role and feature of manager and leader in different situational context.
Manager and leader both are the main pillars of STARBUCKS as they are responsible for
receiving effective working by the whole organisation as one. In company various situation
occur which affect the function of firm in great manner as for such the manager and leader plays
their role and feature in effective way which help organisation to face them efficiently. Different
situation are related to stable, slow to moderate and fast changing which create hurdle for many
companies, which has to be maintained in careful manner so that not much level harm can affect
the STARBUCKS. Such situation are as follows:
Stable situation: This is that situation in which company is being stable in market and try
their level best to be at this situation so that company can earn higher profits for the longer
period. Stable situation is that when the product and service of company is selling on regular

basis and customer are having positive side for such goods and services. STARBUCKS works
hard to be in such situation for longer decades and serve million of people with quality products
so that consumer can get satisfy with this. Regular feedbacks and recommendation from
customer help firm to bring innovation and creativity in their product so that attract the many
other prospect as well. STARBUCKS with their coffee, sandwiches and baked goods attract the
customer to have some and become existing consumer for longer period.
Not only STARBUCKS many other companies are there who wants to be at such
situation and earn higher income as well. It is not easy to handle the stable situation in effective
way, such situation also needs time to time innovation and feedback from customer to make their
consumer happy for longer period. At this stage the hard work gets double and effective working
by whole organisation is required so that firm can think to expand. The manager and leader is
that which help entity to bring effectiveness and efficient policies for employees so that they can
get motivated for longer period. Leader and manager are responsible to being innovation and
creativity to keep their customer happy and existing.
Slow to moderate situation: In such situation company works hard to make their product
stable in market. In initial point of company STARBUCK they also seen such situation and to
overcome such they worked hard. Slow to moderate is the growth stage in which company come
in the eyes of lot many people and they are satisfied with their product and services. In this
competitive world the market does changing on regular intervals and customers needs and wants
are also changing with it in effective manner which has to be met by organisation. Providing
quality products every time make customer happy and give positive feedbacks to firm which help
them to attract many more people to taste their product and services.
In such situation the leader and manager do help company to have effective working so
that demand of customer can be met in easy way. The role ad feature of manager and leader help
company to attain their goal and objective in proper way. Slow to moderate is the initial stage of
every company and they always go through it. In such situation company with leader and
manager make effective decision which will help organisation to work effectively and efficiently
and with this they can bring their firm to moderate situation in early way from slow start.
Fast changing: In this competitive world the time is running in speed and many
companies are starting their business and winding up. In such fast changing environment the
company STARBUCKS is still stable in market as because firm is changing their policy and

working environment according to requirement of market. The companies who are accepting the
changing environment on regular basis those companies are standing their from past so many
years. STARBUCKS manager and leader works so hard and motivate and influence in such a
way as employees and other member of company gets ready to adapt the changes when required.
Fast changing environment also changes the demands and needs, wants of customer in great
manner as to satisfy such firm is also bringing their product and service according to their
satisfaction level. As if companies want to be stable in market then they have to change their
working criteria according to market which can help entity to earn higher profits in effective
way.
1.3 Different theories and approaches.
There are various leadership style which help the company to have an effective working
as leaders uses their leadership style in various situation when the employees get in stuck
somewhere in the organisation. Leaders plays and effective role in the development of company
and such help in attaining goal and objective of the company in effective way. Various theories
and leadership styles are available with leaders which make them unique and different from
others. Various theories and style is applicable in many situation in companies which motivate
and influence employees to work hard in right direction which increase their performance and
productivity of STARBUCKS. The various leadership styles are as follows:
Situational leadership: In such situation leaders first of all predict what kind of situation
it is and then they take action over such. Such type of leadership style is very effective in
working as such help leader to analyse the situation and then take corrective step for such to
improve in proper manner. Various situation are such which affect the working of firm in great
way and this has to be solved by them in effective manner. The employees get stuck out there as
what to do with such situation, as situational leadership is effective which help the leaders to
overcome such situation and work in efficient manner as they were doing earlier. In every
situation such leadership style can be effective which help the organisation to attain their goal
and objective.
System leadership: Although this leadership style says that leaders are nothing without
its followers. Leaders are influencer and motivator of employees and the organisation as whole.
If the followers were not there then to who they motivate and influence in proper manner. In
STARBUCKS leader work effectively and the company is among various locations is just

because they all are as one working in efficient way which is making unique from other
companies as well. The employees listen to their leader and work according to their direction
which bring effectiveness in their performance and productivity is thus increases in perfect way.
System leadership should be there in every company so that each organisation can attain their
goal and objective in efficient way. STARBUCKS is standing in market from last so many years
as they started and making many customers happy with their product and services as because
effective working is seen at lower level of firm.
Contingency leadership: Contingency leading style is similar to situational theory as in
this theory or model the company wait and see that how the leader is behaving and handling such
situation, which makes firm to attain their goal and objective in effective way. In this leadership
style there is a measuring scale which makes firm to know that whether their leaders are task
oriented and relationship oriented. In firm the measuring scale is having two sides one is high
scale and other is low. If the leader come on the side of high scale then he/she is relationship
oriented kind of people and if he/she made on the low side then leader is task oriented kind of
people who complete their work in proper manner.
Conclusion
The role and feature of manager and leaders is that which help the firm to attain their goal
and objective in effective manner. The various leadership styles are there which help leaders to
solve many situation in company and manager / leaders play their effective role in different
situation in organisation context.
Project 2
TASK 1
2.1 Key approaches to operations management
Operation management is a functional activity which is used to manage the process of
creating goods and services in appropriate manner. It is very important for Starbucks because
this is used to provide effectiveness in the organisation through various process such as planning,
organising, coordinating, monitoring and controlling. This is the central core function of each
and every organisation which helps to provide efficiency in the operational and functional
process to the company. Without operational management, there would be no products to sell to

the customers (Baboli, 2014). For this there are various theories which determines different ideas
to improve procedures of Starbucks such as-
Just in time- This theory is basically used to increase efficiency and decrease wastage by
receiving good only when they are needed. It is a inventory based strategy which is used by
various organisations. The method is determine that products and services should have to be
produce when they are needed and have to be in the limited quantity (Brennan and et. al.,2011).
Through this process organisation is reduce wastage from the production and manufacturing to
provide effective price to their customers. Just in time strategy helps a company to increase their
employees efficiency and decrease wastage and extra costing that can negatively affect on the
origination's procedure. This is requires procedure to forecast demand properly.
Lean manufacturing- This process is most commonly used by each and every
organisation to eliminate wastage from the production and manufacturing process. Waste is not
only related to scrap value in the organisation but also relate to the activity that does not add
value from the customer's perspectives. This is a simple process and provides core idea to the
organisation for utilize resources in the effective manner. For Starbucks it is very important to
minimise wastage that consume extra cost and production services. Through this process
customers can be easily attract on their services ad get higher satisfaction which another cafe
does not provides easily (Casolino, 2012).
Six Sigma – This is quality control process which is used to improve manufacturing
defects. This is increase the performance and decrease in process variation for lead on defect
reduction and improvement in profit easily. This term is only used for the well defined projects
that have direct impact on the organisation's bottom line. This is the most common theory of
operation management which was established in the 19th century by Fredrick Grauss. This
theory is the most effective as well as expensive too that's why this is only used by large scale
organisations. Six sigma theory is use by Starbucks to get effective outcomes and cost reduction
process easily. This is helps to provide higher satisfaction to the customers thorough their quality
products easily. In this process organisation need to understand that they do not reduce quality of
the product to provide attractive cost to the customer because cheap quality product can be
harmful for the customers health (Chen, 2011).
Total quality management – This process is defines a continuous efforts by the
employees and management to the organisation's to ensure long term customers loyalty and their

satisfaction. This theory is based on a relationship that organisation build with their customers.
According to this model customers always expect something special and extra from the company
to make their loyalty in return for a long time. In this process organisation is make suer that they
provides effective quality product to their customers as well as attractive prices too. This think
will help them to connect with the organisation for the long time. For Starbucks it is very
important that they provide higher quality in their services as well as attend the customers in
appropriate manner.
As such all these theories this will be very useful for the Starbucks to improve their
quality in the services according to customers demand as well as manage their operational
activity to reduce extra costing. Through operational management theory this organisation will
effectively manage their all activities to get higher benefit and success in the future. Theses all
theories are provides effective ideas to get customers loyalty for a long time (Chen, 2010).
2.2 Importance and values of operation management
Operation management is the management to bring up the maximum profit for an
organisation in a most possible efficient way which includes the management of business
practices for the topmost level of efficiency in the organisation. It is more likely obsessed in
converting the raw material, energy, natural resources and labour into services and fine goods for
meeting the customers requirements. This can also be described as managing the change of
inputs like raw materials, labour into best outputs like services, goods and quality assets to
maximization profit of an organisation more likely in most time efficient way.
Companies like Starbucks works on the design of their goods and services and make
different strategies like companies generic strategy, Strategy of premium pricing of a product and
it also involves other manufacturer's goods like mug of the Starbucks. Starbucks offers high end
quality based products and services which attracts a customer to use the products again and
again.
Some important aspects that covers the Operations management:
Employee Motivation: Under this the energy level, commitment towards work and
company with creativity that a worker needs to bring under their jobs for the company. Whatever
the circumstances are if the the economical growth is increasing or decreasing. The concern of
the management is this only that how to give motivation to the employee. But it is hard for the
small business to motivate there employees where it is easy for big companies in terms of

motivating employee by giving them breaks in working hours, incentives and bonuses (Cruz and
Marques, 2011).
Attracts new customers: There are different strategies which can be used for attracting
new customers and that are.
 Social Media: In today's time commercials on TV are more likely to be attractive for the
customers most of the companies using this as marketing strategy. Others social media's
are Facebook, amazon, radio, display ads, you tube, etc where companies can attract the
customers for there goods and services.
 Rely on data: Most of the companies nowadays do relies on the collected analysing data.
This helps that where to invest and where not to.
 Feedbacks: A company always needs to listen to there customers to stay loyal and to
answer there queries with in a short time frame.
Provide Satisfaction to Customers: Fulfilment of the customers satisfaction is
necessary in marketing terms as this totally measures how the companies products or services
are. If they are meeting the customer's expectation or not. In a survey more than 200 senior
managers, 80 percent of them found that how useful and beneficiary the customers satisfaction
can be for the company. It also increases the life time value of the customer's as if a customer
thinks that the products or services that he or she used is satisfying for his or her need then the
customer will take or use the same service or good for a long time depending on the perspective
(Johnstone, 2016).
Build goodwill- When a organisation is provide best quality product in the market to
their customers as well as affordable price, this think will help them to build a effective goodwill
in the market. This management activity also helps to build strong competition in the market.
This think will improve their services and provide motivation to them for give their best to the
customers.
Proper use of resources – Through this process all the organisation's can easily
understand how to use their resources effectively. In this process the can utilize their sources and
reduce extra wastage that can affect on the cost quality products. It will provides higher
productivity to the Starbucks and profitability which as much as their expectation (Lindström,
2012).

TASK 2
2.3 Factors of business environment that impact upon operational management
Operational management is about a research of organisational activity that help to
improve their productivity and to achieve objectives easily. This process is includes various
activities such as planning, organising, coordination and implementing etc.. In this process
business environment is directly affect on the decision making system of the organisation. These
environmental factor is divide into two different parts and they are -
Internal factors- These are the inner strength and weakness of the organisation that can directly
affect on the decision making system of them. Internal factors can strongly affect on the
objectives of the organisation as well as on the planning and strategy that they made for them.
These factors are controllable if the organisation make effective strategy for them (Ming and et.
al., 2013).
Employees – They are the key strength of the organisation who provide their
contribution and services to achieve their goal and objectives in effective manner. For them
organisation need to organise various training and learning policy to improve their skills and
capacity. This thing will help them get success and objectives easily.
Customers- They are the last buyer of the products and organisation is made their policy
or objectives according to them to provide higher satisfaction and get effective feedback. They
provide their role in the company's success and goodwill in the market as well as provide higher
revenue to them.
Management- This is the most important department of the organisation who deals with
each and every aspect of them. They are provide their services into the operational and functional
activities of the company that they need to control or implement effectively. They also helps to
provide effective training and learning to the employees.
Investors – They provide their services in the money related terms as well as to protect
them from the external turnover. Theses factors are deal with the financial division of the
company. Through this organisation can easily introduce new products and services into the
market (Nakayama and Bucks, 2012).
External factor – These are the outside influence tat can directly impact on the business
organisation. They are impact on the ability of a business or investment to achieve its goal and

objectives. These factor consist as general factor that business can not control. These can easily
understand through PESTEL analysis as-
Political factors - This factor is related to the government and the political factors of a
economy. These factors directly affect on the organisation's objectives and their vision's. They
provide their different rules and policies that organisation need to follow otherwise they can not
allow to the organisation for provide their products and services to the customers.
Economical factors – this factors is all related to the economy related terms which can
be economics growth, taxation, inflation and national income that can directly affect on the
organisation's structure. To get higher success in future organisation need to recognise these
factor and have to provide their services according to them.
Social factors – This is all related to the trends, fashion and the culture which is followed
by the customers. For this company need to understand market and customers demand and their
necessary to fulfil them effectively. This will help them to stand in the competitive market easily.
Technological factors – Now a days technology is landscape their impact on the
products and customers effectively. These factors are directly impact on organisational activity
and their products or services. So for them, Starbucks need to stand with the new technology to
impress their customer's. They can use advance technology in their services and resources as
well (Neck and Manz, 2010).
Environmental factors – This factor is determine customers demand that can be changes
according to the environmental factors. For this Starbucks need too make their products and
services according to their choice and demand. Their products should have to be ecofriendly that
can not impact negatively on the environment and customers.
Legal factors – This factor is related to the government of the country who regulate
various rule and legislation for the different organisation to mange positive environment. They
are provide right and authority to the employees and employers of the organisation as well as
build a positive and working environment in this as well (Lisi, 2010).
CONCLUSION
From the above mentioned report it can be concluded that, management and operations
are main activities that contributes in achieving goals and objectives of company in effective
manner. This concept is related with managing quality and efficiency of operational activities of
business. There is important role played by managers and leaders in operating all the activities of

operational management. It is required to ensure growth and profitability in long term. It plays
vital role in achieving objectives of this organisation in appropriate time. Various techniques
such as six sigma, dynamic approach, just in time etc. helps in making production process more
effective by improving its quality and productivity. There are several internal and external
elements that affects decision making process related with management and operations.

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