Internal and External Environmental Factors Affecting Business Operations

This assignment delves into the concept of internal and external environmental factors that influence business operations and management. It provides a comprehensive overview of the importance of these factors, including internal parties such as employees and management structure, and external factors like government policies, consumer demand, and market conditions. The assignment references various books, journals, and online sources to support its discussion, offering a practical guideline for understanding and addressing environmental factors in business operations.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define and compare roles and characteristics of leader and manager...................................3
TASK 2............................................................................................................................................5
P2 Examples how role of leader and function of manager implemented in different situations 5
P3 Apply different theories and models of approach, including situational leadership, systems
leadership and contingency leadership........................................................................................6
TASK 3 (Covered in PPT)...............................................................................................................8
TASK 4............................................................................................................................................8
P6 Factors of business environment which affects operational management and decision
making by leader and manager...................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operations management means planning of business activities which assist in
synchronization of different commercial activities. This is field of management which is relevant
and crucial for performing operations according to consumer demand and external market. There
are many departments such as research and development, market analysis, customer dealing, etc.
works to achieve goals and objectives (Jacobs, Chase and Lummus, 2014). Managers plays
important role in getting positive outcome from business activities. With the help of operations
management different departments are aware above their roles and responsibilities. This report is
based on Google which is American multinational technology organisation. They are specialised
in online advertisement, cloud computing, software, search engine, etc.
In this report, there is discussion about roles and responsibilities of managers and leaders
with their characteristics, role of leaders and managers in different situations which arise at
business organization, different approaches of operations management, importance and value of
operations management in achieving business objectives and at last about factors which affects
business operations.
TASK 1
P1 Define and compare roles and characteristics of leader and manager
Managers are the people who makes group of people to perform operations in specified
form. Manager of Google is responsible for planning, coordinating, and controlling business
operations of organization. This assist in making coordination among different divisions of
Google.
Leaders are the people who lead group of two or more people. They are responsible for
getting positive outcome from team (Alderton and Saieva, 2013). Leaders in Google work to get
positive results from team. Team leaders are responsible to motivate work force to use new and
innovative methods to accomplish task.
Roles of managers
Planning training events- planning of training for workers at Google is responsibility of
managers, for improving performance of workers. For instance: there is requirement of training
for new software installed at workplace. Managers at Google analyze which method is best and
significant.

Hiring skilled employees- Google is one of the largest IT organizations. Hence there is
requirement of employees in different departments. It is responsibility of managers to select best
candidate out of crowd. This is because this helps in providing best services to managers.
Role of leader
Motivates employees- There is requirement of motivation of employees which makes
changes in their business operations. Google is one of the biggest firms which make changes
according to external environment. In IT sector, changes are taking place very frequently, so it is
essential and relevant for making alterations in operations so changes can be done according to
external environment (Chiarini and Vagnoni, 2015).
Execute strategy- Leader has responsibility to execute strategies which aims at achieving
goals and objectives. There is requirement of different strategies related to technical solution
which assist Google to keep their client satisfied. Execution of strategy refers to guiding workers
how to deal with circumstances.
Difference on the basis of characteristic of Manager and Leader
In common terms, leaders and managers plays similar role such as they work to make
employees perform according to external environment. They both work as support for team and
liable for the results of workforce. But apart from this there are some differences on the basis of
their characteristic which are discussed as under-
Basis Leader Manager
Conflict resolution In team there are sometimes
conflict arise. In this case
leaders at Google take it as
positive aspect which helps to
create coordination among
team mates.
While managers at Google take
conflict as bad part because it
affects performance of workers
in negative manner.
Copies or innovate Leader favour to perform
assigned task in new and
innovative manner.
Managers of Google perform
task in specified and according
to set benchmarks.
Capable to take risk Google is biggest technology
company. Hence their leader
While managers of Google
avoids risk. They have fear of

takes risk to learn new things. failure.
Respond towards external
changes
There are frequent updates
taking place in technology.
Leaders respond towards them
quickly.
While managers does not
respond to them. They prefer
to work with old pattern.
Hence from the above table it is clear that there is difference in working style ,
characteristic of managers and leaders. They have crucial role in management of business
operations and leadership activities (Kato, NEC Corp, 2012).
Classical theory of management plays important role in planning, organising,
coordinating business activities at Google. These activities are performed by managers and
leaders to get positive outcome and optimal use of resources is possible.
As per contingent theory of leadership, there are many changes taking place in
technological sector, so in this case, leaders of Google have to motivate employees to deal with
it. They perform ideas to employees to work with new approaches.
TASK 2
P2 Examples how role of leader and function of manager implemented in different situations
Google is one of the biggest organisation in the field of technology. This is because, they
accept changes which are taking place in external environment and employees resistance rate is
good. Hence in this case, managers and leaders plays crucial and significant role in business
environment. There is discussion about some situations which arise in Google and role of leaders
and managers to deal with them.
Stable situation
These are the situations which changes very rarely. For instance: there are very rare
changes taking place in Google (Ahuja, 2017). In this case, managers are responsible to accept
changes and alter organisational policies of Google. While leaders make employees understand
about reason of changes in policies. Sometimes there is dissatisfaction among workforce at
Google, in this case leaders interact with workers and provide them satisfaction.
Moderate situation

In moderate situations, changes are taking place very rapidly but less then fast changes.
For instance: Google is big organisation, hence hiring of employees take place. This is the
crucial business activity because there is involvement of cost as well as time. In this case,
managers are responsible for selecting proper method of hiring (Kato, NEC Corp, 2012). This is
crucial and relevant for for Google because this is way to select best candidate from crowd.
While leaders of Google in this situation are responsible for providing induction with team
mates, orientation program, training , etc. of new candidates.
Fast changing situation
In technological field, changes are taking place with rapid speed. All these changes lies in
fast changing situation (Burns, 2014). For instance: change in software at workplace is best
example of fast changing situation for Google. In this case, managers are responsible for
planning training program, cost effective approach, etc. While in this case, leaders has to interact
with employees and analyse if they are facing any problem in working with new techniques, in
case of any, then correct actions have to be taken.
P3 Apply different theories and models of approach, including situational leadership, systems
leadership and contingency leadership
Leadership means to provide guidance to workforce to accomplish task in specified form.
In technological sector, alterations are taking places with rapid speed. Hence in this case,
employees may face problems to deal with it. Hence in this case leaders at Google interact with
employees and tries to solve their problem. There are mainly three modes of leadership which
are discussed as under-
SITUATIONAL LEADERSHIP
This leadership can be understood with the help of Hersey and Blanchard's leadership
system. There are four primary leadership styles and four different models of maturity.
Leadership style-
Telling (S1)- This is the stage in which leaders at Google provide information to what has
to be done hoe it can be done ti get positive results (Song and Parola, 2015).
Selling (S2)- This is the style in which managers sell their idea to employees to
accomplish assigned task.
Participating (S3)- In this leadership, there is authority to employees to take part in
decisions. At Google, workplace is liable to work with new ideas.

Delegating (S4)- In this leadership, decisions are taken by employees and there is less
role of leaders in performing operations. Hence in Google, employees have right to make
changes in their working style.
Maturity level
M1- In this level of maturity, there is lack of knowledge, skills among employees to
accomplish assigned task (Galindo and Batta, 2013).
M2- In this group, employees they are willing to complete task but there is lack of ability
among them.
M3- This is the group of people who are skilled and have knowledge to complete task,.
But they are not ready to take responsibilities.
M4- This is the best level of maturity, in this employees are willing to take responsibility
and they are equally capable to do it (Omansky and Kanner, Autodesk Inc, 2014).
Advantages Disadvantages
It helps to create comfortable and suitable
environment for workers at work place.
This leadership focus on ultimate results
instead of long term benefits.
SYSTEM LEADERSHIP
System leadership works on the basis of set standards which are old. This leadership
theory was given by Rensis Likert. This can be understood with the help of four approaches.
They are discussed as under-
Exploitative- This is the situation in which possibilities of conflict among employees at
Google is more. Managers makes policies to overcome it.
Benevolent- In this approach, managers of Google does not control employees and
policies are framed to motivate them (Peng and Lai, 2012).
Consultative- As per this approach, there is free communication among employees and
superior of Google. This helps to make good culture and reduce possibilities of issues at
workplace.
Participative- In this approach, there is authority to employees to take part in decision of
Google. This helps workforce to know about policies which has to be framed.
Advantages Disadvantages

In this approach, there are some set methods to
lead team, so possibilities of conflict are less.
This system is based on set benchmarks
because there is lack of innovation.
CONTINGENCY LEADERSHIP
contingency leadership is the approach which works in case of emergency. Google works
in the field of technology, so it is responsibility of leaders to guide team in such cases. This is the
leadership which depends on two aspects i.e. task and people oriented (Subramanian and
Ramanathan, 2012).
Task oriented- Leadership depends on task which creates situation of contingency.
People oriented- Characteristic of employees also affects this leadership because there is
difference in perception of individuals.
Advantages Disadvantages
This leadership helps to deal with unfavourable
situation arise in business environment.
There are possibilities of conflict among
managers of Google because of different in
their perception.
TASK 3 (Covered in PPT)
TASK 4
P6 Factors of business environment which affects operational management and decision making
by leader and manager
Google is the organisation which is biggest in industry and they perform operations according to
external changes. Hence benefit of it are they are known for their innovations and
differentiation among others. There are some internal as well as external factors which affects
decision making process of managers and leaders. Some factors which affects Google are
discussed as under-
INTERNAL FACTORS
Work force- Google is big organisation. There are many workers working to make
client satisfied. Hence employees are the core asset for Google and its good relations with
consumers. For instance: employees are not satisfied with basic facilities such as lighting,

cafeteria, ventilation, etc. of association, then managers has to alter it to make them satisfied
(Slack and Brandon-Jones, 2018). While in this case leaders has to regularly interact with
employees through trade union to analyse what changes are demanded by workers. This helps to
make long term relations with consumers.
Capital resources- Financial resources within organisation is one of the crucial element
for growth and development of Google. Hence in case financial position of association is not
table, then in this case managers has to analyse market to gain same financial position. Optimal
sources of funds for pursuing business operations is done. While leaders must motivate
employees for to work within specified budget and use finance in optimal manner.
EXTERNAL FACTORS
Political factor- Political factors includes government policies such as tax rate, etc. in
order to make long term existence in society role of government is important. For instance:
there is law in China regarding sharing information online. In this case, managers and leaders of
Google has to alter working style and follow norms of government.
Economical factor- Economic factor of society are important for business existence.
GDP rate, inflation rate, etc. are part of economic rate. Countries such as China, India, UK,
South Africa, etc. have increasing GDP rate. This situation is positive for growth and
development of Google because organisations put more advertisement on google. In this case,
decisions of manager and leaders gets affected due to economic policies of country.
Social factor- Social factor includes demand of consumers on the basis of social,
cultural, ethical values. Google is used as search engine by people hence due to difference in
level of education, lifestyle, etc. there is difference in search results of client. For instance:
college going students search education related matter. Hence in this case, managers makes
decisions for providing appropriate result to clients. There is difference in mindset of employees
as well as per change in geographical background. Hence decisions of leaders gets affected to
make workers motivated (Kato, NEC Corp, 2012).
Above discussed factor provide knowledge about reasons which affects decision making
of managers and leaders. These changes does not only affects operations department but these
affects other departments as well. For instance: there is issue to employees related to working
environment, hence in this case finance department has to set budget for altering infrastructure
of association. These changes affects business in positive as well as negative manner because

sometimes due to these factors, main core operations of Google gets affected in negative
manner.
CONCLUSION
From the above discussion it is clear that operations management plays important role in
growth and development of organization. Managers and leader have crucial role for attaining
targets within specified time. There are different situations arise in business enterprise in which
managers plays crucial role. Six Sigma and Lean manufacturing are two approaches which are
reduces possibilities of defects and hence cost of services are maintained. These helps to create
synchronization in business activities and focus on customer satisfaction. Operations
management plays important role in maintaining quality of product and services. Business
operations are done according to external market with external environment analysis by
managers and leaders. Internal parties such as employees, management structure of organization
affects business operations and external factors such as government policies, change in tax rate,
change in consumer demand, etc. affects business organization as well as community in which
business runs.

REFERENCES
Books and Journals
Ahuja, R. K., 2017. Network flows: theory, algorithms, and applications. Pearson Education.
Alderton, P. and Saieva, G., 2013. Port management and operations. Taylor & Francis.
Burns, M. G., 2014. Port management and operations. CRC Press.
Chiarini, A. and Vagnoni, E., 2015. World-class manufacturing by Fiat. Comparison with Toyota
production system from a strategic management, management accounting, operations
management and performance measurement dimension. International Journal of
Production Research. 53(2). pp.590-606.
Galindo, G. and Batta, R., 2013. Review of recent developments in OR/MS research in disaster
operations management. European Journal of Operational Research. 230(2). pp.201-
211.
Jacobs, F. R., Chase, R. B. and Lummus, R. R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Kato, K., NEC Corp, 2012. Operations management apparatus, operations management system,
data processing method, and operations management program. U.S. Patent 8,190,949.
Kato, K., NEC Corp, 2012. Operations management apparatus, operations management system,
data processing method, and operations management program. U.S. Patent 8,225,144.
Kato, K., NEC Corp, 2012. Operations management apparatus, operations management system,
data processing method, and operations management program. U.S. Patent 8,286,035.
Omansky, A. H. and Kanner, J. L., Autodesk Inc, 2014. Systems and methods for construction
field management and operations with building information modeling. U.S. Patent
8,732,125.
Peng, D. X. and Lai, F., 2012. Using partial least squares in operations management research: A
practical guideline and summary of past research. Journal of Operations Management.
30(6). pp.467-480.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Song, D. W. and Parola, F., 2015. Strategising port logistics management and operations for
value creation in global supply chains.
Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
Process in operations management. International Journal of Production
Economics. 138(2). pp.215-241.
Online
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