Impact of Internal and External Factors on Operation Management

This report examines the impact of internal and external factors on operation management, discussing the importance of operation management, the role of store managers, and different approaches used in Starbucks. It also explores situational, system, and contingency perspectives, highlighting differences between leaders and managers with their characteristic approaches.

Management and operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A difference between manager and leader with their roles and characteristics..........................1
B Defining functions of manager by fayol that are used at Starbucks......................................2
C defining the situational , system and contingency leadership using various situation of
Starbucks ....................................................................................................................................3
TASK 2............................................................................................................................................4
A Different approach to operation management and which are used in the organisation. ........4
B defining the role of store manager...........................................................................................5
C significance of operation management ...................................................................................6
D outside factors which are affecting the operation management of Starbucks .......................8
E internal and external factors affecting the decision making of store.......................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Operation management refers to application of all management functions in the context to
production, manufacturing and other services. It focuses on converting input into output. This
report will discuss similarities and differences between leader and manager. It will also discuss
about their roles and characteristics. It will tell about the functions of manager which is
according to fayol and manager, the business will perform into workplace. It will study about
situational system and contingency leadership using various situations with certain examples. It
will tell about different approaches of operations management in business. Furthermore, it will
tell about the duties of a store manager and its importance. Identify the outside factor which can
affect business. It will also tell about impact of internal and external factors which are
influencing on decision making of store manager.
TASK 1
A difference between manager and leader with their roles and characteristics
Both Leaders and manager are different in the context of their roles. These are:
Leader Manager
he is a person who encourage and guides
people to achieve target set by the business
He is authorised to manage things which
involves planning, organising, directing and
many more.
He gives directions to do work in prescribed
way.
He always makes plans in detail which is
necessary for organisation.
People who are working under him are known
as his followers.
Under him, people doing their work are known
as employees.
Working style leader following is
Transformational
He has implemented Transactional style to do
work.
He is person who makes the decision easier for
followers.
He is person who makes the decision for
employee.
Focuses on growth and development of his
people.
Its main motive to fulfil the results from which
company is achieving the new heights.

He is the person who encourages change in
working of employee and helps them to adopt
it.
He always reacts to change because the
situation are new for him.
He uses fight as an asset because it enhances
chances learns .
Always avoid conflicts because his opinion is
conflicts creates problems between employees
focus on effectiveness Core motive is to increase efficiency.
Roles and characteristics of leader as well as manager are described below:
Characteristics and role of leader - qualities which the person is having are: he must be focus
on his strategy which he made for followers. He must tackle employees by making emotional
attachment with him. This works the best on people. He is having all the qualities which leader
must have. Not only the physical but the conceptual quality as well(Stein and et.al 2017). He is
very reactive to changes. If the change happens, then he has to be aware of that to implement in
its strategy. Popularity of leader on basis of its knowledge, skills and ability to take decisions.
His main work is to encourage his team to achieve goals and objectives of company. The change
must be adopted by the leader because he is only person who guides the people.
Characteristics and role of manager - he must be experienced to take decisions that are
important. By his experience he has learnt lot of things. Knowledge which is required by the
manager is having or not. His communication must be so appropriate so that there are no chances
of confusion. His communication skills are good enough through which he can convey message
to his team members. His role in the business is to look after every employee activity.
B Defining functions of manager by fayol that are used at Starbucks
There are different functions of manager according to fayol. These are given by him to do
work easier way. It solves problems in creative way. Functions of manager according to fayol:
 Planning - it is the toughest task which needs entire organisation involvement. It is time
consuming but once it is prepared by the superior to there are no chances of confusion to
anyone. It is done for reducing risk for future circumstances.
 Organising - in this function, all the work must be organised in decided manner. It
involves the arrangement of capital, staff, and raw material. It ensures that work is going
on as prescribed in plan.

 Commanding - in this, clear orders are given to employees to work in that manner.
Manager must ensure that all the employees are working according to the direction. All
the orders are communicated clearly to workers as well as employers(Shevchenko and
et.al. 2018).
 Coordinating - when all the employees are working in a team in that case organisation
function in better way. Both employees and employers are working in coordinating
manner and it will increase its growth. In group learning person can work in better way.
 Controlling- in this, all the work is done according to plan. Here all work is controlled
by organisation to achieve target(Wang and et.al. 2018. ).
In Starbucks, business manager is following fayol universal functions which are made to do
work in easier way. It makes a person to handle the entire situation which are prevalent in that
scenario. Manager is following all functions as planning is done by him to reduce situation of
chaos. It makes complex things in easy way. In organising also the working is systematic. It
organises work in which are required by firm. All these principles that are very benefited by the
company. For example Starbucks before entering India analysed the market and its need which
are necessary to establish. This results of good planning, which is made successful to Starbucks.
It organised its cafe in well manner through which the company is getting popularity. All staff is
fully trained which are making the good impact on the clients. Customer are fully impressed by
the quality services provided by the staff.
C defining the situational , system and contingency leadership using various situation of
Starbucks
Situational leadership - this is developed by the Kenneth Blanchard and Paul Hersey .
It refers to the leader or manager adjust style of working for the development of organisation. In
this leadership style, leader has to change himself according to the situation not to make any type
of pressure on followers. According to the situation he has to adapt changes in himself and his
plan so that he is able to work in different situation (Rangarajan and et.al. 2018.). This is needed
by the leader because he has to face different circumstances on daily basis.
System leadership - these leaders are in multiple figures who makes the conditions easier so that
progress made by others on changing society. Any leader who is of region or out of borders can
become the system leader.

Contingency leadership - he is the person who applied the right kind of leadership at correct
time. This was developed by the Fiedler . Situations are different all the time but implementing
correct type of leadership styles in that context is benefit for the company.
Starbucks is following all the situational leadership style because this company has to implement
different concepts in different situations. As always situations are diverse but the facing that
situation with the help of concepts. In this leader has change according to the situation. He has
adopted all the changes which are benefiting the organisation. Like in India the company has
made changes according to the place in which it has done business. Many a time there are the
situations which are affecting the business. It has to make changes which are required for the
growth of organisation. Sometimes there is need to change in the by both leader and followers.
Like if there is introduction of the technical change in market and which is needed by the
organisation as well. Under these changes are not done by the leader only but for the staff
also(Presuhn and et.al. 2017). It is the duty of manager /leader to look after and encourage the
employees that work will be easier to do. this style will be benefited to employees . It will help
them to face difficult situation in easier way. There are many things which are done to achieve
the objectives of the company. It will be more beneficial for the manager to take difficult
decisions. These are the decisions which are made to look after the growth of company.
TASK 2
A Different approach to operation management and which are used in the organisation.
There are different approaches to operation management. These approaches are contributing
in daily working of organisation. It makes the work easier for the manager to do the work in
organised way. There can be more approaches which are made to do the work in better way. This
approaches are the guidelines which shows the path to employees as well as employer to work in
organisation. These approaches are :
 Six sigma approach - this approach tells that on continuous improvement in product will
increase in the productivity of workers. It helps in making product more attractive.
Something new is presented in front of client then he will also show interest in that. It
represents the reduction in defects, quality improvement and profit in company. It can be
used in performance measurement. The worker will do maximum work with
improvement which shows the perfectness in them. In Starbucks this approach is

contributing in the growth of business. By reducing mistakes in product will improve in
quality.
 lean principle approach - this shows the regular improvement in product which is
necessary in market. It increases potential of worker. By doing continuous improvement
in product, it will become perfect. The more will be development in goods. There are
workers who are putting their efforts for making the stock by adding features to it.
Starbucks is following this principle and because of that quality wise stock is improving
on daily basis. It is doing business of selling coffee and doing continuous advancement in
product will make it according the consumer taste . It is very important for the product
which is showing better day by day.
 Dynamic approach - it means different(Ponnaluri and et.al. 2018.). In this changing
world, there is need to adopt changes in organisation as well as himself. There are more
chances to get success in world by implementing changes in product, price, place and
promotion. For moving ahead from the competitor, trends which are prevailing in market
need to be implemented. If firm has not adopted any changes then entity will be lacking
behind from development. For example if Starbucks has not followed the new methods
or techniques which are used by all companies then there are chances of lacking behind
from contenders.
From the managers point of view it is necessary to implement these approaches in organisation.
It will prove helpful in contributing in growth of firm. These approaches are boon for the
purpose of development in organisation.
B defining the role of store manager
In a company its role is significant. He plays many responsibilities as a store manager.
Some of them are :
 Appointing the employees for store - it is basic duty of store manager to make the new
entries in firm. He makes sure that, employees he is appointing are appropriate for the
post. He can play all the duties which are required for the job. He must ensure that all the
workers are trying their best to fulfil roles of them. He is always there to support for the
workers who are working there. He makes sure that employees who are working get the
work according to his /her interest or specialisation. He must be always there to

encourage people in working area. If new changes are there which are necessary to
adopt in organisation, then he must motivate them for the development.
 Achieving targets - manager must ensure that all the employees are doing the work in
prescribed manner. There are set targets for the employees which have to achieve by
them. By achieving target employees will contribute in growth and development of
business. These are standards by seeing them growth of employees as well as employer
both are benefited(McGuckin and et.al. 2017.). Manager must ensure that all the workers
are working according to standards.
 Maintain g goodwill - he is the person who is responsible for the making popular in the
eyes of world. This is the responsibility of worker to make sure that all the orders are
given superior, he must follow them. For creating image, providing quality of goods and
services, long term relationship with clients, post selling services which are made to
satisfy more to customer. These are steps from which clients will be satisfy more. In this
work of manager to ensure that persons are working under him are doing the correct job.
These are people who are responsible for the work and superior authority is for making
plan and strategies.
 Managing the assets - he is sole responsible person who has to manage the incomes and
losses. It is the prime duty to preserve the assets of firm and try to reduce liabilities.
Assets are income for organisation while liabilities are borrowed funds which has to
return by the firm. He has to look after the raw material which is available in entity. If
not then work of the firm for that time period will stop and this will cause loss to
organisation.
In Starbucks also the store manager is following all the duties which are to be fulfilled by him.
Manager has to look after the work of each and every employee. In this he manages the work
according to time and situation(Liu and et.al.2018).
C significance of operation management
Importance of operation manager in store is very necessary in organisation. Work of the
operation manager is to look after the daily task which are prevailing in organisation. it is the
duty of manager to make changes in working style of organisation. Importance of operation
manager are:

 Management of resources - in this he is responsible for managing raw material in
organisation. The task of the operation manager is to look after the appointing employees,
the work which are assigned to employees, making the development plan for the
employees. He is responsible for the purchasing raw material, supplying of goods and
inventory.
 Financial management - it is the key role of manager to look after the budget which are
allotted in particular department. It is necessary to focus to look after minimising funds.
There are funds which are to be given for specific purpose. Supply chain management
helps in reduction of costs. Funds must be used in appropriate purpose. They are
working on the forecast of resources, sales report and financial management to increase
the results. By using these techniques which are used in reducing costs help- in
contributing the good management of resources(Ketokivi and et.al. 2017). It will increase
the efficiency of employees. They can do the work in better way.
 Goal setting task - this management is responsible for looking after daily activities of
organisation. It is the duty of the management to set target for each and every employee
and he is working according to it. Work is all the same which are followed by other
companies like planning, organising, directing, controlling. These are the same work
which has to be followed by organisation but in different way. It makes differentiate the
work from other firm.
 Working in the changing environment - in this all entity is working in diverse
environment. It is the responsibility of management to look after the changing
environment. By adopting changing environment, it is the duty of worker to work in it.
daily task can be performed with the help of new techniques' implementation. It is the
duty of worker to take the change in positive way. In addition, the operation management
has to look after the providing training to employees to cope with new change.
Starbucks is following all the responsibilities of operation management which help in working
of daily task. It contributes in development and growth of organisation. Daily working style will
improve.

D outside factors which are affecting the operation management of Starbucks
Internal and external factors affect the operation management. In internal factors
includes employees, owners, board of directors, culture. External factors are economic,
technological and socio cultural environment. These are explained below:
internal factors
 Employees - workers are important part of organisation. These are the person who are
working at initial stage of firm. They have capability to change the whole era of
working(Enyinda, 2018.). Like if they have joined the union and from this bad impact
happen over them then , there are chances of erroneous work.
 Owners - these are the persons who has invested money in organisation. He is the only
one who is changing rules and regulation according to situation, making of strategies and
all the related decision. He has direct impact on the organisation. If firm's policies change
then workers has to work accordingly.
 Board of directors - these are the person who is responsible for looking after work of
general manager. These group of persons has duty towards whole organisation. if any
issues are prevailing in organisation, in that case their duty is resolve them.
 Culture - in firm the habits, values, beliefs, working style affect the employees. Different
entity has diverse culture in it. these culture affect directly on workers working there.
Success of firm depends on the working culture.
external factors
 Economic - these conditions which are prevailing in organisation which will affect the
working. Inflation, interest rates and unemployment are vital economic factors which are
affecting the working of entity. At the time of inflation, for reducing the cost firm starts
to reduce the workers. In this phase many persons lose their jobs because of increase in
prices of commodities.
 Technological factors - under this situation if any firm is not adopting advance
technology then chances of lacking behind are more(Chirumalla 2018). Competitor will
move ahead from organisation. Using new technology make work easier. The work will
be recorded systematically. This factor will not affect directly.
 Socio cultural factors - it involves the beliefs, values and demographic conditions. All
these conditions together will affect the working of organisation. Like workers come

from different background and their knowledge, way of working are not same, in that
case it will affect the entity.
All these factors are affecting Starbucks. Internal factors which are making impact directly and
external factors which are not impacting on direct basis.
E internal and external factors affecting the decision making of store
Internal and external factors which are affecting the decision making of organisation.
Like in internal factors :employees affect the decision very much. These persons are the prime
source through which work is done. if they are not doing work according to the described by
superiors in that case loss may occur to them. Owners affect the decision because of change in
strategies , rules and regulation and policies in that case worker has to change their working
style. it will take time to understand the policies. So work will be slow by workers . It will
impact on decision making of store. Board of directors are group of persons which are
responsible for taking decision for whole firm. If they do any changes in organisation then in that
case decision will affect. Culture is main part of organisation. it will affect the working of
employees as well as employer. It has great impact on decision making(Bai and et.al.2018.). If
working environment has lot of gossips , confusion then it will impact firm. External factors are :
economic factors includes situation which involves inflation, recession and depression and all
these have diverse impact on decision making. At the time of inflation firm will reduce the
workers, in case of recession increase number of workers. At the time of economic
circumstances their strategies change in drastic basis. Technological factors are related to
adopting advance technology used by firm . It is the work of superior staff to do the work
implement on daily basis otherwise firm is lack behind from competitor.
CONCLUSION
From this report it is concluded that impact of internal and external factors which are
affecting their decision. It has also discussed that all the internal and external factors which are
making impact on operation management. Importance of operation management. Role of store
manager has also discussed in this report. Different approaches of operation management which
are used in Starbucks. It has also studied about the situational, system and contingency which
are used in Starbucks. Explained difference between leader and manager with their characteristic.

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