Business Environment Factors and Management Accounting

The provided document is an assignment that discusses various aspects of business environment factors, including internal and external influences on organizations. It also touches on the role of management accounting in understanding these factors and their impact on organizational decision-making. The assignment appears to be from a academic or educational setting, possibly for a course in operations management, business strategy, or management accounting. It includes references to research papers and articles, suggesting that it is meant to promote critical thinking and analysis of the subject matter.

MANAGEMENT
AND
OPERATION

Table of Contents
INTRODCUTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Defining and comparing the roles and characteristics of leader and manager.................1
P2. Roles of a leader and functions of managers applied in various situations ....................3
P3 Apply different theories and approaches of leadership.....................................................4
TASK 3............................................................................................................................................6
P4 Key approaches to operation management........................................................................6
P5 Importance and Value of operation management in attaining business objectives ..........7
TASK 4............................................................................................................................................9
P6 Impact of business environment upon operational management......................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODCUTION
Operation Management is a part of business function that primarily focuses on redesign
or rebuilt the business operation and control the manufacturing process of goods & services in a
systematic and structured manner (Introduction to Operations Management, 2018). It ensures
that company is utilizing the resources in an efficient way and fulfilling the requirement of
customer effectively. It is basically concerned with transforming the input or raw material into
output or finished goods that further satisfies the different needs and wants of potential buyers. It
focuses on improving the productivity of employees that ultimately results in yielding higher
profitability and revenues for the firm. Operation management is often known as the central
functioning of every single business enterprise. The chosen organisation in this assignment is
Ella's Kitchen which is mainly deals in providing organic baby and toddler food in international
supermarket. They are currently holding the share of 30% of UK's baby food industry. This
report mainly talks about the role and contribution of manager and leader towards achieving
business objective. It also covers different approaches and styles of leadership and impact of
business environment.
TASK 1
P1. Defining and comparing the roles and characteristics of leader and manager
Managers and leaders are the key personnel of company. They both play an important
role in completing all tasks and achieve objectives of an organisation. There are various roles and
responsibilities which have to be performed by them for leading and managing several tasks or
people to attain company's goals and objectives (Parker, 2012). They help in improving the
employee’s skills and knowledge by providing training and development programs which
support in increasing work productivity. Managers and leaders encourage employees for
performing job in a better way and focus on goals of the organisation. The company can avoid
any failures with helps of proper management as well as effective leadership styles that they can
adopt. Their roles and duties are different which they perform within firm for achieving
particular targets and objectives.
Managers: In this defines as, an individual who design as well as manage the workforce
in effective manner for the purpose of achieving company's pre-determined goals. Managers play
various roles but their major task is to develop and make the best strategies as well as policies
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and adopt the same for gaining organisational success. Some other important roles are to assign
particular task among workers and provide directions as per the goals. They generally manage
the performance of employees so that they can obtain their targets in an effective manner.
Managers are divided or distributed in various departments for managing all tasks within
organisation. They measure the worker's performance and analyse training needs through
appraisal which helps in improving their performance level for better workforce. Ella's kitchen is
a small scale organisation so they also support to the effective management for managing their
working environment.
Leaders: This is the person who has quality to influence human behaviour in getting
work done and attain company's goals. In every organisation, leaders play a vital role for
improving employee’s performance as well as motivate them for completing any task or
performance (Qian, Burritt and Monroe, 2011). They use their knowledge and skills for
inspiring people to perform better that helps in getting the best outcomes. Their major role is to
motivate employees by using leadership as well as communication skills to achieve vision and
mission of Ella's kitchen. They support to the workers in providing training so that they
understand that how to treat with customers and convince them for purchase the goods and
services. So leaders can increase efficiency and productivity within the organisation.
Roles and responsibilities can be understood by examining differences between managers
and leaders so that company can achieve their tasks and objectives. These are as follows:
Managers Leaders
Managers are the persons who set objectives of
an organisation.
They persuade those objectives which are set
or developed by the managers.
Their roles are to communicate all information
and policies to the leaders regarding firm.
Leaders communicate policies and information
to the employees.
Managers provide proper directions to the team
members and leaders.
They provide guidelines and directions to the
workers as well as members for achieving task.
They create ideas and bring innovation within
firm.
Leaders perform their tasks to implement those
ideas and plan into reality in an effective
manner.
They focus on various organisational things. Leaders concentrate on people development.
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Therefore, Ella's kitchen should consider effective management and encourage managers
to make the best strategies and policies for avoiding such circumstances as well critical
conditions of the firm. Leaders are also required to adopt suitable styles and use their skills for
leading people. Managers manages all employees and organization. He
plans,organize,staff,directs and controls the activities,workers so that they can perform
efficiently and effectively through optimum utilization of resources. Leader leads the
organization and innovates new ideas and methods to supervise and control the members. They
had a passion to achieve a particular goal with no emotional attachments and tries to influence
people through his values and ethics.
P2. Roles of a leader and functions of managers applied in various situations
Managers and leaders play various roles and responsibilities for achieving particular
goals and objectives of an organisation (Taipaleenmäki and Ikäheimo, 2013). So, they are
important personalities for any organisation. Ella's kitchen which is small scale enterprise and its
CEO is confused regarding the future because any situations can be occur while running an
organisation and company required to adopt some effective strategies to survive from such
circumstances. Managers and leaders can manage these kinds of situations by applying their
skills and knowledge so they should consider these things for handling the various problems and
make corrective decisions in the favour of company. There are some duties and responsibilities
as well as functions of leaders and managers which they can apply for dealing with certain issues
that are given as below:
Effective decision-making: They have talent to make effective decision in the favour of
organisation. So company require to take decision regarding strategies adoption for dealing with
any issues or risk as well as uncertainty (Weißenberger and Angelkort, 2011). Favourable
decisions is helpful in handling problems by providing better solutions by using their skills and
knowledge for achieving particular task and objectives.
Problem solving: Situations can be face or control through better solutions so managers
and leaders try to solve defining problems by taking corrective actions (Vaivio and Sirén, 2010).
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Problems and issues can be arise during business operations so it is the responsibility of the
leaders and managers to ensure about favourable decisions for every members.
Conflicts resolutions: It is another responsibility of leaders to consider the any of
conflicts as well as disputes among team members or employees that can affect on the working
conditions and performance can be decrease due to this factor. So Ella's kitchen company should
focus on resolving these conflicts and treat every employees fairly without any partiality.
Effective environment required to increase the productivity and managers should motivate to
employees for performing task in effective manner.
Motivation: It is the key elements for increasing work productivity as to motivate and
support to the employees for performing work in better way so that company can achieve its
goals and objectives (Van Helden and Northcott, 2010). Motivation help to encourage and
enhance workers performance for achieving best outcomes or results. Leaders sets vision,mission
and goal of a firm so that it can move in right direction. He supervises, guides, motivates and
solve all problems of employees to increase their energy, zeal and enthusiasm level to perform
better in the organization. Thus it helps firm in achieving their objectives and can improve its
performance.
Provide better directions: They helps to make employees understand or clear regarding
their roles and responsibilities within the organisation, if they are not clear then it is difficult to
get success and achieve competitive advantages. Managers and leader support in provide better
path towards goals achievement. So it will help to Ella's kitchen firm in avoiding confusions as
well as any misconducts of rules and regulations. Employees can complete their task in effective
manner.
Controlling power: They both have super power of proper controlling over the situations
and they can handle any risks or uncertainty by making better decisions (Van Helden, and et. al.,
2010). Leaders and managers control various business operations which helps in getting best
results as they make strategies regarding proper uses of resources through adoptions of
technology. Company can maintain their performance standards by increasing work productivity.
In every successful organisation, it is require to maintain the harmony system so managers and
leaders always try to build better relations among workers.
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P3 Apply different theories and approaches of leadership
Leadership is a very essential criteria for making successful organisation by maximizing
efficiency ,it has the essentials in motivating people and influence them to achieve alliance and
collaborative desired goals and objectives in efficient manner. The vital role played by leader is
to bind and maintain the workforce and carve out maximum output in an effective way
maintaining A positive environment (Chenhall and Smith, 2011). A team leader must take the
initiative to complete the task as well as have the positive attitude which is to be transferred to
workforce as well. The team building activity can also be considered as an ess3ential part of
leadership quality .
Situational theory – it is also known as life cycle theory founded by ken Blanched and
Paul Haresy .It states than an effective leadership approach are able to handle any kind of
situations by adopting own specific style and move in analysis the nature and factors and
accordingly and effectively in dealing with that situation .It need a good deal of knowledge and
skill which are obligatory to deal with different situations in working environment for having a
good situational leadership one should have a good supportive and managerial behaviour . In
managerial behaviour leadership the leadership style focus on activities and need in
organisational environment and supportive behaviour deals with factors like development in
skills and adaptability of managers and motivating them .
System theory- The theory contains different policies and and system in the internal
environment and dealing with different situations (Nandan, 2010). It provides set of guidelines
and rules related to disciplines and management principals ensure the correct and effective
understanding of the system which helps in maintaining enhanced coordination and harmony
among the employee with efficacious communication . It leads to generate an ethical working
environment , through guidelines , rules ,regulations and norms in organisation . It clarifies the
thought process on complex and dynamic environment and provides a structured framework for
building innovative ideas and theories.
Contingency theory- it expound the leadership quality for administrating and gripping
issues related to person's behaviour nature and responses
 In organisation like Ella's kitchen it is very important to maintain there relationship
between the leaders and managers . A proper relationship management is important
among team members for increasing positivity and altitude of efficiency .
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 The construction of specific task is another ascribe where the leader impart proper
direction guidelines and protocols to people for safeguard their job roles and tasks that
are to be performed.
 Positional power is also an important factor which focus on measurement of power level
in increasing and maintaining productivity in different tasks (Cinquini and Tenucci,
2010). It involves the power of authority which are authorised for giving rewards and
imposing penalty to members to increase their presentation and performance.
The above mentioned are some of the theory model stated which is very useful for
leaders of Ella's kitchen. They will help to support and enhance profits by achieving goals and
objectives. They will also encourage the employees for having positive environment and
performing task efficiently. In this way the company can enhance the productivity having right
approaches and ethics with positive environment.
TASK 3
P4 Key approaches to operation management
Operation management is basically concerned with controlling and designing production
process and redesign business activities related to the manufacturing of products and services. It
mainly emphasize on converting raw material into final output in an effective way. In simple
words, it means maximising the efficiency of all business practices that yields higher profitability
and revenues for business concern. It generally revolve around various approaches which are
discussed below:
Just-In-Time Approach: It is an inventory strategy used by business organization to
maximise its efficiency and reduce the waste of product by obtaining goods only when required
(Contrafatto and Burns, 2013). This means when products are highly demanded, company start
its production. With the help of this approach, firm can maintain minimum stock level which
reduces the chances of carrying or storing extra inventory for future purpose. This is mainly rely
on the concept of no demand no production. Manager of Ella's Kitchen is require to follow and
apply this concept in their business operation so to maintain their inventory level in an
systematic manner.
Total Quality Management: This approach provides long term success to every
business entity via high customer satisfaction. Basically it focuses on improving the performance
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and quality of goods and services that meet customer expectation constructively (Lukka and
Modell, 2010). Ella's Kitchen mainly deals in providing organic baby & toddler food to its target
audience. This makes them liable to serve quality product as they are making baby food.
Normally buyers of such products prefer best quality food for their children. Thus their leaders
are required to motivate the staff so that they can work effectively and their managers are liable
to identify the needs of potential buyers so that they can make product as per their expectation.
Lean Production: This approach focuses on eliminating the waste within production
department without compromising productivity. Waste often generated through overburden and
uneven work load. Managers of Ella's Kitchen requires to establish strong communication
channel within their department so that they can effectively forecast the future needs and
communicate with each other regarding the production of goods. Also, leaders are required to
guide employees in proper way and motivate them so as to increase their productivity.
Continuous Improvement: This is also known as Kaizen Approach which emphasize on
continuous efforts made by company in order to enhance their product, processes or services
which stimulate the interest of large number of customer that contributes in their revenue or
profitability (Figge and Hahn, 2013). Application of this approach enables the manager of Ella's
Kitchen to seek continual improvement in the changing needs and wants of target audience and
then modify or manufacture the product accordingly. Buyers of such products are mostly choosy
and specific, therefore managers are required to identify and research about their choices and
they are also require to research about health of particular age group of children.
Six Sigma: This approach focuses on increasing the capability business process. Variation in the
performance & process of company may affects its profits, quality and morale of employee (Luft
and Shields, 2010). This is mainly used by the company to eliminate the waste and reduce the
chances of variation or defect related to manufacturing process. Managers and Leaders are
required to adopt this approach so to improve its product or service quality which results in
yielding higher customer satisfaction, maximisation of profits and decrease additional or extra
cost related to production process.
P5 Importance and Value of operation management in attaining business objectives
Operation management considered as an integral part of every business enterprise as they
laid stress on designing, organizing and controlling business operation and process in an
effective way. It is mainly important for two reasons which includes increasing productivity and
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gain higher customer satisfaction. Following are the detailed description of importance of
operation management:
1. Profit Maximisation: This can only be possible when company utilise the resources of
an organisation in an effective and efficient way. The ratio of final output to input
determines the productivity of business enterprise (Fullerton, Kennedy and Widener,
2013). The main objective or goal of firm is to earn maximum profit and sales. This can
only be attain when employees of Ella's Kitchen provides best quality products and
services to its target audience in a systematic manner.
2. Customer Satisfaction: Company's make product in order to earn profit and this can
only be possible when they make such product or services that satisfies the unlimited
needs and wants of potential buyers (Lee, 2011). Thus, manager of Ella's Kitchen are
require to assess the preferences of their customer and then make product. They can also
attain client satisfaction via better after sales services. This also increase the retention rate
of customer.
3. Long-Term Benefits: The core function of operation management is to support manager
in terms of improving the quality of goods & services and business process in a
structured and thorough manner (Fullerton, Kennedy and Widener, 2014). Satisfied
customer refer product to their peers, friends, family that indirectly increase the sales
figure of a company. Thus, it become prime responsibility of every manager to motivate
their employees in such a way that leads to retain the customer for a longer period.
4. A Total Quality Approach to Operations Improvement: Approaches related to
continual improvement and redesign of business process directly influence the efficiency
and productivity of business enterprise. For instance Ella's Kitchen can start selling their
product online which ultimately increase its market share as 25 % of the population
prefer to buy online rather than going on a store. Mother of small kid comparatively
prefer to buy products for their baby via online as this will save their time. Also in today's
world customer search about the company first and then buy product when they are
purchasing from new firms. Thus, managers of referred firm are require to redesign their
business process as it results in higher customer satisfaction and increased sales & profit
figures.
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TASK 4
P6 Impact of business environment upon operational management
Different factors present in the market that adversely affect the performance and
operations of business enterprise (Internal and External factor, 2018.) It mainly categorise into
two parts one is Internal and other is External.
Illustration 1: Business Environment Factors
(Source: Factor effects on decision and operational management)
Internal Factors: These factors normally present within the organisation and had an impact on
its success and growth. It mainly includes:
Employees: Employees are considered as an important asset of the firm that generates profits for
them and establish strong relation with target customer. Ella's Kitchen can provide training to
their worker that promotes motivation among them and as a result they deal with potential buyers
in an effective and efficient way.
Customers: Consumer often increase the sales and profit figure of the company. Manager of
referred firm are require to produce those product and services that meet the requirement of
potential buyer in an effective way (Giovannoni, Maraghini and Riccaboni, 2011). .
External Factors: These factors normally present outside the business organisation that
indirectly affects its operation and performance. It includes:
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 Political: These factors related with the regulation and laws of government bodies of a
particular country (Haiza Muhammad Zawawi and Hoque, 2010). For instance, export
rate of the country is determined by government which has an influence on the selling
power of referred firm in international countries.
 Economic: It includes factors such inflation, recession that affects the purchasing power
of an individual. Thus, entities are required to take strategic decision according to that
and further assist in generating higher profitability and revenues for the firm.
 Technological: It is importance for a firm to adapt technological advancement and
innovation in their business operation (Lambert and Sponem, 2012). For instance, Ella's
Kitchen can take the help of online platform for selling its goods and services. They can
also use social media tools where multiple number of people spend their maximum time.
It enables them to establish better relation with their customer.
CONCLUSION
From above the report, it has been concluded that management and operations are the
key elements of successful organisation as they important role in business field for achieving
their goals and objectives. In this defined as this is supportive tools in better designing as well as
managing entire business operations that contributes in achieving competitive advantages and
maintain efficiency. This report based on Ella's kitchen company which is small start up and
deals baby's food products. So it explained various roles and responsibilities of leaders and
managers for surviving from any circumstances. This project is also considered several
leadership styles, theories and models that must apply by the leader for the purpose of leading
staff as well as team members in appropriate manner. Company can maximise its profits by
minimising cost and wastage. Environmental factors can affects on the decision-making process
for successful organisation.
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