Critically Evaluating Operations Management Influencing Factors

The assignment content discusses the importance of leadership, management, and operations in the food processing industry, particularly for Baxters company. It highlights how technology can lead to enhanced product quality and sales, while also affecting profitability due to taxation policies and political conditions. The analysis emphasizes that operation management is a critical factor for producing goods and services with available resources, which helps increase customer base and financial performance. Additionally, the report notes that various micro, macro, internal, and external factors influence business decisions and achieving objectives.

MANAGEMENT AND
OPERATION : FOOD
INDUSTRY

INTRODUCTION
Management as well as operation both are significant element for each and every
business organisation whether it operates in the food industry or another segment. Management
is a process which helps the firm to deal and control different business functions and run overall
organisation in a smooth manner. Further, operation is a process by which the manger will be
able to convert raw material into finished goods and satisfy customers. In the present research
report, there is a Baxters company is chosen which is the UK based firm and operates in the food
processing sector. It offers food items such as meat, condiments, soup, fruits etc. to the
consumers across the world. The report describes about leadership as well as management
theories and their roles and functions in the Baxters firm. Further, it emphasizes on different
techniques of operations management which helps to make the firm more efficient and
productive in the food industry.
TASK 1
1.1 Comparison of roles and characteristics of manager and leader
In Baxters manager and leaders is the key person who helps to run the company in a
smooth way and generate sales and profit. There are different types of characteristics as well as
roles which are played by both leader and manager in the company which are compared below:
Leader Manager
Leader is a person who led the team of people
and aids in achieving the goals and objectives.
Manager is a person who manage overall
business organisation to generate higher sales
as well as meet the targets and objectives.
Leader has proactive action in his workplace
such as Baxters.
Further, manager has reactive attitude and
action within the working environment.
In terms of the risk, leader always take risk to Manager has risk but he not takes such things
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carry out things and lead people (Miyanabe
and et.al., 2015).
rather than try to eliminate as well as minimize
at the workplace.
Objectives and vision of the leader is for long
term.
While manager develops vision and objectives
for very short term.
Leader always focuses on group of people to
give proper guidance as well as lead them in an
effective way.
Manager is a person who focuses and relies on
the structure, formats as well as systems which
appropriate for Baxters (9 Differences Between
Managers and Leaders. 2016).
At the workplace, leader takes responsibilities
for making and formulating groups as well as
convince and understand the individuals
towards achieving goals.
On the other side, manager is a credit taker in
the working environment because he thinks
that due to his efforts objectives can be
achieved.
Leader is a person who tries to do make the
things clear and do the right things in the firm
such as Baxters (Shi and et.al., 2015).
In the respective food processing company,
manager tries to do things and activities in the
right manner for achieving objectives.
1.2 In different situation role of leader and function of manager within Baxters firm
In the company, there are various types of situations arises which are helpful for the firm
and influence overall smooth functioning. In order to reduce or overcome those factors and
situations which lead to hamper Baxters's sales and profitability manager and leader plays very
important role. In the food processing, various types of equipments are used to produce tasty and
hygienic food items. For that, skilled and talented employee are required which helps to cook
nutritional dishes and satisfy consumers. In this context, if the labour and chefs are not skilled
then it leads to hamper quality of goods and services. Here the manager and leader play a
significant role to provide effective training and development programs. For this fund is
supposed to require which is provided by manager and financial function of the Baxters company
(Torres and et.al., 2014). Apart from this for instance, a particular group which is not able to
perform better and not provides expected return to the company, at that time leader plays vital
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role. Here, the leader gives proper guidelines to the team by which they become highly efficient
and meet the objectives of Baxters in the proper way.
Moreover, in the business different conflicts arise which lead to reduce productivity of
company in overall food industry. Disputes arise due to various situations as well as reasons such
as wages, employee relations, working hours, environment of the workplace etc. In context to
this, manager plays a vital role for resolving such disputes in the company such as Baxters.
Above mentioned conflicts can be resolved by using collective bargaining as well as negotiation
procedures and the respective process is applied in the firm after permission of the manager.
Hence, it can be said that to eliminate and resolve conflicts which arises at the working
environment, manager plays a significant role. Apart from this, to make better and effective plan
as well as recruit the skilled employees, manager plays key function of staffing in the firm
(Eddy, Gooi and Chen, 2015). In the Baxters, there are various managers such as marketing, HR,
IT, finance etc. by which the company can recruit candidates, sell food items, control cost and
increase profit etc.
1.3 Theories and models of leadership approach
Leadership is an effective skill which helps the Baxters to make employee more
productive which lead to enhance sales and productivity of overall business entity. There are
different theories of leadership approach which are used by the leader for leading and guiding
team of members which are mentioned below:
Situational theory of leadership: According to the situational leadership, there are not any
type of parameter are settled out by the author who gives such theory. In this, the leader lead the
team on the basis of their skills, needs and wants. He fulfils his duty according to the situation
which arises at the workplace of Baxters. For instance, if the team members do not have effective
communication skills then leader will hold training program for enhancing their limitations
(Johnson, 2014). Apart from this, if the group enables to used and run updated technologies then
he will give guidance to employees to run new equipments in the company. Hence, as per the
theory leader acts in the Baxters according to the situation arises.
Contingency theory of leadership: The name of theory itself says that in unpredictable
and unconditional situations it is used by the leader at the workplace. It is the most widely used
theory by the leaders because with this business is able to resolve the conditions which suddenly
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occurs in the Baxters. For example: among the individuals conflicts arises due to some things in
which the leader resolve the disputes. In this it uses contingency leadership style for resolve such
unpredictable situations in the firm.
System leadership theory: Another type of leadership theory is system which is based on
different types of systems as well as structures of the business. Further, the leader who lead the
team of members according to his understanding and convenience which is known as system
theory (Lindström and et.al., 2015). Such type of approach is less used by the leaders because it
sometimes leads to reduce proactivity of the Baxters. In this when the leader takes decision as
per his understanding then all the tactics as well as strategies are prepared by the leader in order
to give guidance to the individuals.
1.4 Analysing difference among role and function of leader and manager respectively
Roles of leader Functions of manager
In the business of respective food industry
leader plays very important role that is lead
and provide better guidance to the individuals
of group. Apart from this he formulates the
team which is the most effective and helps to
the Baxters in order to achieve its targets and
objectives in a proper manner. In terms of
crisis the leader also helps to the team in order
to prevent and reduce crisis and enhance
efficiency of them at the workplace. Leader
always has innovative and creative ideas by
which it able to provide differentiate food
products and services to the consumers by
which sales enhance. Ultimately targets and
objective of Baxters achieve in easy way
(Stagl, H., 2011).
In each and every business entity manager has
wider functions by which management able to
run and operate in the food industry
effectively. Major functions of the manager in
Baxters are such as follows:
 Planning
 Organising
 Staffing
 coordinating
 Controlling
 Monitoring
In the company different plans and strategies
are made by the manager and then he recruits
or select candidates which helps to adopt the
strategies. Further, manager coordinates all the
team member who are working on the potential
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plan. Apart from this another function of the
manager in Baxters is to control and monitor
over the plan as well as strategies which is
made by him. If manager found that plan is not
implemented effectively and problems are
occurring then he takes corrective action for
achieving the potential targets and objectives
(Carela-Español and et.al., 2015).
1.5 Strengths and weaknesses of various approaches of leadership
S/W Situational theory Contingency theory System approach of
leadership
Strengths Very main strength of
the leadership theory
is that most of the
leaders uses the
approach for better
leading the team.
Further, it helps to
adopt and face various
new situations as well
as resolve them. With
this the leader become
more innovative and
efficient in order to
take quick business
decisions.
The respective theory
has broad
understanding of the
leadership as well as it
has proper empirical
evidence. Due to this
all the factors it is
beneficial for the
leaders of Baxters for
appropriately leading
the team and make the
individuals more
talented (Blomme,
Kodden and Beasley-
Suffolk, 2015).
Strength of the
approach is that it is
straight forward theory
of leadership and gives
clear picture of the
plan. Due to such
reasons most of the
leaders adopt this
theory at the
workplace. Apart from
this when the leader
provide guidance as
per his convenience
then it is possible to
establish effective
employee relations
within the working
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environment such as
Baxters.
Weaknesses However, situational
theory is based on
different parameter
and assumptions by
which leaders not
wants to use such
method quickly in
their leadership style.
While using the
contingency approach
the leader cannot
provide explanation of
each and every
specific term. Apart
from this it is not a
valid theory because
most of the firms are
always used backups
in order to overcome
unconditional
situations.
On the other very first
weakness of system
approach is that it is
very lesser used by the
leaders at the
workplace. Further,
there are not any
criteria and
benchmarks settled out
for applying the theory
(Peng and et.al.,
2015).
1.6 Critically evaluating different approaches of leadership
The above mentioned all the leadership theories such as situational, system approach as
well as contingency are up to greater level helpful for the respective company as well as leaders
in order to enhance efficiencies and productivity of the Baxters company. When the leader uses
such approach then he can lead the overall group of people in the proper way as well as enhance
their skills and talents. With such approaches leadership is beneficial because he can resolve
new, unconditional as well as challenging terms and situations of the business environment.
However, it can be critically evaluated that the respective leadership approaches are sometimes
hinder the smooth functioning of the company. For instance, there is a leader who has not
abilities to face new challenges and overcome such situations in the Baxters (Wong, 2015). At
that time there is a typical and unpredictable situation arises and he is unable to use and apply
contingency theory at the workplace. Then it is not possible to reduce and eliminate such facing
things and overall organisation affects in negative way. It can be evaluated that all the theories
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are helpful as well as create negative process in the company for leading and guiding individuals
in order to achieve goals and objectives of the respective food processing enterprise.
TASK 2
2.1 Key approaches to manage operational activities
Operation management is process in the food industry where raw materials are converted
in the final output and offers to buyers in the market. Further, it helps to manage overall
operation of production process in the proper way, for that there are different approaches are set
out which are such as follows:
System approach: In the respective approach the company receives raw material and then
it turns these things into finished food products in order to provide consumers. As per the theory
all the process such as inbound and outbound will be complete on the basis of specific system. It
is very efficient and widely used approach by the companies for managing their operational
function in proper way. It helps to the Baxters to offer better and nutritional food items to the
customers by which they rely on the firm and repetitively consume its goods (Nahavandi, 2016).
Dynamic approach: Another approach for managing operational activities in effective
way is dynamic where the company not use any specific theory and parameter. As per the
respective approach the business such as Baxters produce goods and services on the basis of
market trends as well as current needs and demands of the customers. When they need different
types of food items after adding some more nutritions, then firm will produce according to that.
By this the management able to meet with buyer's needs and wants as well as increase sales and
profit.
Role of manager and leader in operations management
In order to fulfil settled goals and objectives of the company there is manager and leader
both plays very important and significant role. Without such mentioned key persons the Baxters
unable to achieve its targets and objectives as well as cannot maximize its profit in the food
industry (Miner, 2015). The leader plays a role in the company for formulate better team, lead
them, provide highly effective training programmes etc. With this the company able to become
more productive in the food industry of UK. Further, the manager allocate adequate financial and
other required resources to the operational function of the Baxters which helps to make hygienic
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food products. Apart from this check and evaluate quality of the food products, control over the
costs etc. roles plays by the manager at the workplace.
2.2 Value of operations management for meeting objectives of Baxters
Operation management plays most significant role in the company, without such process
an organisation cannot survive in the industry as well as produce goods and services to the
customers. It helps to the Baxters company in order to produce effective, hygienic and nutritional
food items. Higher the nutritions lead to attract more number of customers towards the company
by which sales of the firm enhances and profit as well in the food industry. Apart from this with
help of operation management the business enterprise can make better quality of goods and
services by which more number of customers attracted towards it. Every company wants that its
customer increase consistently by which market also enhances in the overall food industry
(Wong, 2015). By attracting more customers the Baxters company able to achieve goals and
objective within the industry.
Moreover, the respective management process helps to the company in order to produce
highly effective products by which the Baxters able to increase repetitive purchasing habits of
buyers. These will lead to enhance faith towards the business entity by which its creates better
brand image in eyes of customers as well as corporate world. Hence, the company can become a
brand across the world in food industry. Further, operational and marketing manager share their
finding and opinions by which they are able to know current market trend as well as needs and
wants of customers. On the basis of that informations' operation manager produce food items
which helps to fulfil their demands and needs. It leads to achieve objective of increasing market
share within food industry of UK as well as the world.
2.3 Elements which influence operational management as well as decision making process
In the business environment there are more number of elements which affects to the
smooth functioning of the Baxters in positive and negative manner (Orr and Cleveland-Innes,
2015). Further, by such factors operation management and decision making of leader and
manager also affected which are enumerated below: Employee relations: At the workplace it is very necessary for the firm to establish and
manage better relations between employee and employer, employer and employer as well
as employee and employee. When it hampers then coordination between marketing,
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finance and operation manager will reduce and cannot provide better as well as adequate
informations. Further, overall management is affected and leader or manager cannot lead
the team as well as make effective business decisions. Profitability of the firm: Higher the level of profit lead to increase quality of the food
items offered by Baxters to its consumers. Further, it helps to manager in order to allow
shareholders for provide high amount of dividend (Santos, Caetano and Tavares, 2015).
When profitability ratios such as gross and net margin reduce then it will not able to give
better rate of return to its potential investment. On the other side lower the profit lead to
reduce capability of adopting new technologies by which quality affects. Hence, such
these ways operational management and decision making of leader and manager
influence. Competitors: Those firm who provide similar food items are known as rivalry firms.
Pricing policy of competitors affects to the current strategies of charging prices of food
items. If those companies charge lower price than Baxters needs to make changes in their
existing pricing policy.
 Suppliers: Production process depends on the raw material and unfinished goods which
are provided by the suppliers to the Baxters. If they not provide raw material on time then
overall production process of the company will affect in negative way and it cannot offer
food items to buyers on time (Bums, 2016). Further, it influences to make changes in
decisions made by leader and manager earlier.
2.4 Techniques in order to make operational management more efficient
It is very important in the company to increase efficiency as well as productivity of the
operational process. In context to this there are various types of tools and methods used by the
management, which are described below: Inventory control: Very first technique is to control over the stock which remains in the
firm and unsold. The organisation needs to utilize inventory in order to generate higher
amount of sales and revenue. Further, it can control by using re-order point, which helps
to purchase stock after sell out all the available previous inventory.
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 TQM approach: As per the method Baxters able to control over the cost and increase
quality of the food items. Using Total Quality Management tool respective company
become more able to produce hygienic and nutritional food items by which customers
will be attract (Galloway, Kapasi and Sang, 2015). Kaizen approach: The method where the company produce goods and services on the
consistently basis without incurring wastage and damage foods items. With this the
operational process able to produce better quality of services and reduce total cost of
production. Hence, productivity of the respective process as well as Baxters get increase
in the food industry.
 Lean Production: The tool or method in which business able to make effective products
with no wastage, is known as lean production. When the Baxters food processing
business entity apply the respective approach in the production process then it will be
able to generate higher sales. Apart from this it helps to reduce production cycle or time
to produce food items, decrease total costs and expenses of the production, improve
quality with high nutritions as well as eliminate waste etc (Shi and et.al., 2015).
2.5 Analysing numerous factors affects to business environment of Baxters
The company influences by various types of internal as well as external factors in order
to generating sales and revenue. Internal factors are such as value system of the company,
goodwill as well as brand image and reputation in the food industry, financial terms and policies
etc. affects to the Baxters in terms of negative way. Apart from this another macro environment
elements such as suppliers, creditors, rivalry firms, substitute food items, intermediaries of
marketing process etc. also influence working conditions of the company in the food industry.
Moreover, on the business environment of Baxters various types of external or macro
factors affects for generating revenue as well as profit in the food industry. The factors are such
as legal, economical, political, environmental, cultural, social, technological etc. Economic
elements consists with exchange, interest as well as inflation rate due to which the company
cannot earn high amount of profit (Arnold, Fletcher and Anderson, 2015). There is a factor i.e.
technology which lead to enhance product quality and sales as well in the overall respective
industry. Taxation policy of the government and political conditions of the country is also highly
affects to Baxters's profit and financial performance in the food processing segment.
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2.6 Critically evaluating operations management and influencing factors
Operation management is the key factor for each and every business organisation for
producing goods and services with help to raw materials and available resources. Without such
process the company is unable to survive in the market as well as earn profit. Further, it helps to
increase more number of customers by which financial performance become strong in the food
industry. It can be critically evaluate that better the quality and updated technology will lead to
increase cost of production by which prices and profit fluctuated. Apart from this the
management is very helpful for Baxters in order to offer high nutritional and more hygienic food
items (Jackson and Sørensen, 2016). Apart from this above mentioned numerous factors as well
as elements which are highly influenced to the operation process as well as overall company in
terms of generating sales. The factors are such as financial position and performance of Baxters
in the food industry as well as suppliers are also main factors of the business entity. It can be
analysed that another factors such as rivalry firms, demand of customers, tests and preferences of
community of the country etc. also affects the production process of the company. It can be
evaluated that the organisation must consider the respective factors while producing food items
such as fruits, condiments, soup, meat etc.
CONCLUSION
From the above analysis of management and operation it can be articulated that leader
and manager both are key person for every business organisation whether it operates in the food
industry or any another sector. It can be said that leader helps to the Baxters in order to lead
individuals and manager helps to make plan for achieving objectives and goals. There are
different theories of leadership such as contingency, system and situational by which leader can
meet with the organisational targets and objectives. Further, it can be analysed that operational
management is an intellectual process for Baxters for producing better and nutritional food items.
In order to this at the workplace there are different micro, macro as well as internal and external
factors affects to the company for making business decisions and achieving objectives and goals.
SELF EVALUATION
After researching about the management and operation department of the business I
evaluated that leader and manager both are intellectual people of the firm such as Baxters food
processing company. Without leader and manager it is not possible to manage overall business
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and lead to every person of the group. Moreover, I analysed that for each and every organisation
it is necessary to adopt effective tools and techniques for managing as well as enhancing
productivity of the operational management. In context to this according to me the company
needs to use kaizen, TQM, lean production etc. approaches by which it will be able to produce
hygienic food items. Further, in the business environment numerous types of elements highly
affect to the Baxters in order to achieve objectives and goals.
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