The Impact of External Factors on Decision Making

This report concludes that the impact of outside factors on decision making is crucial in operations management. The operational store manager's role is to reduce costs, improve interdepartmental communication, and support service quality to help the firm grow by taking customer recommendations. Important factors such as lean, six sigma, dynamic, and business networks are discussed, along with environmental sustainability. The report highlights the significance of operation's management in increasing productivity and profit.

Management and operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Difference and similarities between a leader and manager..............................................1
P2 Role of leader and Functions of ASDA's manager according to Fayol............................2
P3 situational leadership, system leadership and contingency leadership.............................3
M1...........................................................................................................................................4
M2...........................................................................................................................................4
Strength and weaknesses of situational leadership: ASDA uses this theory because it is easy
to use simple and it help to realizes the importance of followers and behavior of leaders but on
the other hand it also create negative impact in the work environment by diverting manager's
focus from strategies...............................................................................................................4
D1 ..........................................................................................................................................4
TASK 2............................................................................................................................................5
P4 Explaining different approaches to operation management which is used in Asda Store5
M3...........................................................................................................................................8
P5 Importance of operations management in Asda store......................................................8
P 6 Outside factors that are effecting the operation's management ......................................9
D2 & M4 impact of these above factors which will affect the decision making as a store
manager................................................................................................................................10
CONCLUSION ............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Report will explain the following :different approaches which are used in the operations
management. They are dynamic , lean , six sigma. Defining the role of operation manager. He
manages financial budget , inter departmental communication , customer support service and
manages the support service. Importance of operation management. It focuses on the
improvement in quality with no defects. Material and resources are used well without any
wastage. Outside factors that affect operational management. They are political ,
legal ,economical, environmental, technological and political. All outside factors impact on
operation management. In retail sector Asda store is chosen.
TASK 1
P1 Difference and similarities between a leader and manager
Differences: leaders and managers are two different peoples in ASDA. Leader is a man
who motivate a staff and make strategies in order to achieve the goal for a company. He has a
good qualities such as motivation, innovation in his existing work, develop trust among
authorities but on the other side, managers are a person who manages or control the work in an
organization by proper planning and controlling. Managers have a power to hire or fire the
employees but leaders do not (Difference Between Leader and Manager, 2018) Leaders show a
way of doing work while managers only manages the work. In a company ASDA, managers only
perform their roles through planning, coordinating, directing while on the other side leaders have
a positive attitude towards their work and always ready to support the staff and motivate them.
They lead a team while managers of ASDA support a team to run. Basically the role of leaders
connect their work to achieve future goals but managers only focus on short term goals. Leaders
of a company take responsibility of every work and creates new changes while managers only
take credit and react on sudden changes.
Leaders care about the people and they try to resolve the issue while managers take
immediate action and fire up slow working employees because they did not listen others do work
accordingly. Leaders always try to make new innovations in the products and implement them in
their existing products while on the other side managers only have good ideas they will never
implement it, which makes it completely different from leaders (Uhl-Bien and Arena, 2018).
ASDA's leaders always try to take risk as they are trying to new things even if they may fail but
managers do their work to minimizes risk and try to avoid problem as they are not able to face it.
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Similarities: mangers must be a leader according to the roles and responsibility because
he is also serving in management field and this role raise from supervision power which leaders
have. As both leaders and managers are involve in decision-making process and are worked for a
company to achieve a particular goal. To take ASDA in next level of success, managers and
leaders should have to work together and use creative ideas in order to maximizes the sell. Both
are working to achieve the common goal and make the image as a big brand in the world ( Lynch
and et.al 2018).
P2 Role of leader and Functions of ASDA's manager according to Fayol
According to Henri Fayol, managers of ASDA should follow 5 function of management
as these are universal and every managers must follow these in their daily life which are mention
below:
Planning: Manager of ASDA, should plan for the future and develop new strategies in order to
achieve the targets. For Example, to increase the sell in the retail store, managers should plan to
add more new products such as offer new healthy soft drinks in low price so that selling power of
a company increases which help to make a good image in future.
Organizing: it means that managers should organize the place in such a presentable manner and
hire right people for the job and if they lack the qualities then must train them. They should hire
and secure the workplace with skilled and educated people (Uhl-Bien and Arena, 2018). The
working place of ASDA is organized in such a efficient manner where all the employees feel
comfort and separate every department according to its work and hire supervision on them in
order to check the business activity.
Commanding: Managers must supervise all the departments and staff in its routine work and
inspire too for achieving the goals of company. As the planning and organizing done then
managers of ASDA must supervise all the functions and roles with their responsibility. For
example, the head chairman of ASDA is the directing function who give orders and instruct their
employees and give back support as presenting himself a good leader .
Coordinating: this is the fourth step of management where manager should coordinate internally
as well as externally. As ASDA is the largest retail store and leading with many person so it is
necessary to have good coordination and communication at every work level (Lord and et.al.,
2017). The managers should communicate with its staff properly and try to resolve every
problem so that it will help to make an employee work faster.
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Controlling: it is a process of checking and evaluate the current performance of a company by
applying above all four functions. It help to ensure the progress and record the experience gained
from the above plans as to help in future problems. The manager of ASDA also add new product
in its store and using this function of Fayol can check the performance of a company and ensures
whether profit maximizes or not.
P3 situational leadership, system leadership and contingency leadership
Situational leadership: Every leaders have their own style and under situational
leadership, no single style is consider best and leaders change their style according to situations.
Scenario: if there is dispute between the staff and customer regarding defective product and
customers wants his cash back and the staff is not considering this thing at that time, managers
use his skills and to handle a situation, he permit to exchange the product rather to return the
cask back because he knew if cash will be returned then the company's income may affected and
as per the rules there is no system of exchange but still he adjust his style to make customer's
comfort in his store. As the situational leadership refers the managers should change his skills or
style not force followers to adopt their style.
System leadership: it means that managers should create a condition in an organization
so that people of all level can do work according to their efficiency.
Scenario : ASDA wants to increase the sale of its retail store, so the managers wants to produce
more innovative products but they have limited time so by using system leadership, he offer
incentives to all the employees and allot responsibility to each and every person according to
their potentiality. So the manager using his skills and ability keep trying to produce more and
more products in order to increases the sale (Anderson and Sun, 2017). System leadership help
to know the human behavior to create a good leadership using organizational strategies and
innovation in their products. This system will help in future as to build an effective system of
ASDA and take it in next level of success.
Contingency leadership: the leaders are those who adopt different styles and skills in
different situations. It is not compulsory that leaders can use same approach in all situations
because problems or task are not same at every time.
Scenario: As ASDA is a retail store and there is continuous dealing with customers and
employees faces different types of customer so at that time managers can listen their problems
and let them understand about the products and terms or conditions. Next when there is problem
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in production department and operational field then managers should use his style or skills
according to the situation and try to resolve it and presents himself that he can face all the
situation and can analyses the maturity level of his followers and make good relationship
between whole staff and calculate the time available to complete the task with proper speed, this
is a situation of contingency leadership (Lord and et.al., 2017).
M1
By using different range of theories it is analyses that roles of leaders and managers are
different. By using contingency theory, leaders should match his style with particular situation.
The leaders always motivate their followers while managers keep focusing to complete their
work day to day. Another theory such as Skills theory, which states that knowledge and abilities
are main factors for becoming an effective leader and to implement it on the existing work is the
role of leaders while managers only share good ideas but they do not implement it on the work
(Uhl-Bien and Arena, 2018).
M2
Strength and weaknesses of situational leadership: ASDA uses this theory because it is easy to
use simple and it help to realizes the importance of followers and behavior of leaders but
on the other hand it also create negative impact in the work environment by diverting
manager's focus from strategies.
Strength and weakness of system leadership: this is used by ASDA, as it focus on multiple
department of management but it is not a practical aspect and delay in decision making.
Strength and weaknesses of Contingency leadership: the company always uses this theory as it
help in every situations and it is quite flexible in management style while others do not but it also
have weakness such as all leaders and managers do not apply this on their routine (Lord and
et.al., 2017).
D1
Every theories and approaches of leadership in the context of ASDA have their own importance.
Contingency leadership theory is basically used by the the company and it creates many
situations and manager adopt different styles to solve the different situation which is not possible
in situational and system approaches.
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TASK 2
P4 Explaining different approaches to operation management which is used in Asda Store
Operation management refers to the process which is used to convert the raw material into
finished goods. It provides services to the consumers through which chances of increase in profit
are there . In this also covers the use of raw material with minimal wastage of resources. It also
covers which maintenance policies , buying of raw material , handling of material and any more.
The concept of the definition tells about the reduction in wastage of resources. it helps to use it
wisely as there is more need of it.
There are various approaches of operation management. Some of them are:
 Dynamic approaches – This approach help the firm , what is the reaction in particular
situation or the change of circumstances in context to its daily work. It serves the clients
on time. This is developed by Dr Marek Szelagowski in the year 2005. This traditional
approach is replaced by this. It makes owners to change their pattern of working with
help of software. Different processes must be implemented in a way which can help the
firm in direct process of owners. The main authority is liable to change the process, is
not limited. It can be given to various groups. In order to execute activities, the owners
must allow changing process driven application. In the standard process, whole
elementary process is not included.
 Lean manufacturing approach – Under this approach, firm focuses on the waste
minimisation which will not affect the quality at all. Waste material is created by
overburden of work and workload which is not even. This works on technique that only
those things are added to the product which are increasing its value. Toyota production
system has recognised “lean” in 1990s(Akhtar, and et.al., 2018.). Term was invented by
John Krafcik. This principle was derived by Japanese manufacturing industry. By
implementing lean method, the maximum flow of work will be there and applying the
procedure of strategic operation while minimising waste. It aims at the increase of
productivity ,which makes the simplification of operational structure through this
working environment became easier.
 Six sigma approach - This main purpose to see statistical data which focus on regular
improvement without making any defect in product, process and service. Earlier, it was
developed by Motorola in the middle of 1980s and after that, it became famous in
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General Electrics in early 1990s. Many companies have already followed this approach.
Word sigma represents population standard deviation which shows measurement of
variation in data set collected in process. It shows process of averaging standard deviation
in specific limit. It measures the performance ,in which one goal of minimising defects.
Each project which follows six sigma has to implement number of steps. For regular
improvement in the product and all defects are minimised. It uses the empirical statistical
method. It is implemented in Asda retail store and going on very well . By this company
products defect are reduced and the regular improvement in the quality. From better
quality only clients are better attracted. It is duty of promotional manager to create
demand of the product through promoting .
 Kaizen approach - in this approach motive is to create the improvement at all level . It is
duty of all employee to check at every stage of business and if they think there is need to
improvement then take initiative . it works on the less wastage , improvement in goods ,
safety of all workers ans increase in productivity of employees. it will maximise in
retention of employees . Improve in the quality of worker or potential . There will be
more satisfied customer .
 TQM- under this its focus is to improvement in quality of product . All the quality related
works done in company come under this. It is also contributed in measuring performance
of company. By using this technique on instant basis will improve in their efficiency of
worker. It was developed in the first world war because at that time there is need to
improvement in quality.
Role of store manager
Role of the store operational manager in Asda Store is significant. Manager also ensures
that all the departments are working to achieve desired goals which are decided by company. The
responsibilities are:
 Manages the budget - He finds the ways that where he can minimise the cost of the
whole work. Always exploring the new methods like purchasing the quality equipment
at low prices, production cost can be reduced and while working on the contracts which
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are new. He also finds solutions from where the cost can be minimised. By making
workers more efficiently the cost can be reduced.
 Manages the interdepartmental communication- Small stores which has many
departments but the working is fully separate and no other department knows about each
other. It creates hindrance in reaching the desired goals. By this conflicts, tension and
loss of efficiency is there(Chevalier, and et.al. 2015. ). Manager has to ensure that
every section is doing according to the desired goals. There must be the proper
communication between the departments so that chances of misunderstanding will be
minimised and enhancement of morale.
 Manages the customer service- Their role is not limited to the production only. They
look after issues faced by customers while using the product. All problems are heard
and solutions are found effectually. Change in the working environment can resolve the
issues. These changes are discussed with staff members and later on, work is done to
improve the product. Complaints are heard regarding quality, taste, packaging and many
more. Understanding and adopting the changes will create more value to product. By
improvising the product, it became likely to consumers and maximum retention among
clients can be made.
 Manages the support service - There are many support services which can help to
increase the working capacity. Company is following support service which includes
information technology. Administrative , financial support, etc. and these services are
maintained through performance growth which helps to reach expected target.
 Quality - store manager always take care of it. there are more need of quality check in
company whether it is about the product or using the resources. if quality is maintained
in that case person will be more favour of the product. it will more work in products and
services.
 Efficiency - manager also takes care of persons efficiency and according to it allot the
work to them. He observes the work of each and every employee and after that only see
their potential of working. He looks that which worker is completing work on time with
less resources .
transformational process -it involves the leadership , redesign and development process .
leadership process redesign process development process
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Under this process the leader is
performing all the work which
by using his skill of
foresightedness . its focus on
their values , traits and
practices which are related to
organisation and uses it in
organisation to fulfil their
responsibilities .
in this factors like all the
internal which are used to
make a plan for the
organisation after that these
are implemented in company.
in priority basis they observe
where is need to change in
policies to make better
organisation.
in company development of
both employees and products
are there . After redesigning
the product its the time to
implement those changes . In
this process teams and their
members are given authority ,
resources , knowledge which
are needed to take decision .
M3
Asda store has already operational manager which focuses on reducing cost, listening
customer problems and solving them by making changes in product which are likely to the
consumers, inter departments communication and many more. The complete work related to
production as well as post production is look after by manager. These processes are managed by
him efficiently. The overall work is look after by him. If any problem the manager is facing then
he can directly consult to immediate superior. Role of leader is to improve the business
objectives are : he encourages , motivates to achieve target set by the company. His role is very
necessary in organisation . in this all the worker are guided by him . He shows the correct path to
them .
P5 Importance of operations management in Asda store
Operation management includes controlling, planning, organising and directing in the
process of manufacturing. Manager also makes sure that all the products are timely delivered.
Importance- It focuses on the daily activities of business. This is necessary for every
organisation. By applying this, there is optimum utilisation of raw material, money and other
resources without any wastage. quality is improved. It measures the productivity of employees
and manager. It manages the different activities of business which are already in process. It
makes product according to requirement of consumer. After fulfilling demands of clients, firm
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can sell it. Firm is using resources in an efficient way which earns profit for organisation. All the
employees are working with full efforts(Chiarini, and Vagnoni2015. ).
which makes the firm to grow more. Earlier it was considered that operation management
must not be followed in the organisation but later on all of them found its reliability. If
organisation is manufacturing products to selling then with help of operation management they
are working in proper manner. Issues handles by manager like design , operations and
maintenance of the system which is used in production of goods. It is used for profit as well as
non profit organisations. Any kind of the firm can use this like small, medium, large. Without the
operation management any business can hope for success. Entity can use resources with no
wastage. From this world can see the progress. It is working on the development of the product.
It also maintains cost, speed, quality, flexibility of product. It fulfils all the desired demand of
client which can help them to earn profit to maximum limit. By this long term relationship with
customers. Firm can increase the number of retention of employees as well as clients. All the
consumers are satisfied when the product is according to them.
P 6 Outside factors that are effecting the operation's management
Factors that are affecting operation's management are
 Political – it means rules and regulation. If more rules are changing on instant basis than
all work have to start in new way. The pattern of working will change. It takes time for
employees to understand that process. Workers feel overburdened with work. The
complexity of work will increase. Manager responsibility will also maximise. He has to
continuous look after the employees work.
 Economical – if all the work is not in the budget then manager has to face problem of
shortage of fund. In the recession time manager has to see that all expenses are
minimised with reduce wastage(Gillen, Jacquillat, and Odoni 2016). Budget is assigned
for ones and after that all work is done according to that only.
 Socio cultural - the product is made on the basis of the one culture. It must not be there,
any packaging, ingredient , labelling , branding affect any religion. For example if firms
packaging is of certain colour which is affecting a particular religion. Then legal
actions will be taken against the firm. Product is made for all considering factors in
remind for that. If any cultural issue will be found in product , then it will spoil the
image of the company. Daily working has mostly effect on the entity.
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 Technological – if organisation has not applied any technological advancement then
systematic working is not there. With the help of technology firms work became easier.
Much software are available in market according to the needs . Almost all work is done
through advancement of information technology. Different machines are there to
simplify the work. By not using any type of help from computers entity is lacking
behind from competitors.
Apart from this there are some other factors such as Legal – any changes which are
related to legislation can effect the organisation. Any change in particular law which are
affecting the daily working of the entity. For example earlier company is following the rules
which are made by ruling party at time but now the party change and new rules are there( Jacobs,
Chase, and Lummus, 2014.). The employees as well as the employer both has to face
challenges. Their will be change in style of working. Whole process is new for employees and
manner of working will affect. Resultant can be ,employees turnover increase. Entity can face
challenge of shortage of workers. Overall working get affected .
Environmental - if company is doing any kind of pollution which is exceeding the limit
can cause harm to the environment. Government has set standards for firms to follow certain
rules regarding pollution. Any rules which are modified seeing alarming situation of
environment, then in that case pattern of working get affected. If any natural disaster happen then
firm is ruined and no working will be there. Land as well as air pollution standards limit is
exceed then company will be in great problem.
Asda store is following all kind of factors that are affecting daily working of the entity. Retail
store is understood all the factors which can cause harm. There can directly and indirectly affect
the working of the firm.
D2 & M4 impact of these above factors which will affect the decision making as a store
manager
For decision making various factors are there which can affect it. Making the decision is
not easy task. Many a time , failure of the decision but by taking it as learning experience move
ahead(Platman, D. and et.al. 2018.).
 Political – the changing of rules can make entire change in working style. Overall
restriction of certain item by government then it can affect the firm. The loss can be
bear by the entity. Results can be changed by the political factors. Any time company
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has to ready to deal the change in circumstances. It can be tax amendments , which has
not much impact but for understanding it needs time. Increasing or lowering the tax rate
can effect working of the business. Employees has to more work hard for the firm.
 Economical - this factor can limit organisation from achieving objectives. Most
common factors are :consumer behaviour , employment factors, interest rates, inflation.
The income of the consumer never remains same. Due to various reasons. It can be
inflation or purchasing power. If customers will not purchase the product then it will
affect the earning of the firm. Employment can be the reason. The unemployment will
increase then no one has the capacity to purchase.
 Socio cultural - the people are changing , their taste and preference, fashion etc. now
most of the people has no time to shop from stores. The online trend of buying is
increasing. Popularity of social media on its top. Elder people are stick to the
traditional way. But the growing people are more addicted to the technology.
Companies also has to make changes seeing the latest trend. Online facility will be
there to compete with contenders. These factors can make impact on earning from
sales. Nowadays persons are more diet concious so according to the requirement of
them products are made(Smith, S. and et.al. 2018). If firm is not updated then other
will take advantage of it population change is directly affecting firm.
 Technological - lacking behind in implementing the technology can make firm far
away from the advancement. The work will be more difficult . The risk of lost of data
is always there. For finding the old records pages has to be turned. Lot of energy
wastage of men and material will be there. Any software is used then work will be
divided and employees can do other work.
 Legal – the change in the particular law can directly affect the business. Laws are
there for the systematic working . But some are modified for irritation of the workers .
All the implementation of the law directly affect the working of the business. There are
many laws consumer law , discrimination law , copyright law, health and safety law
many more.
 Environmental- any business which is causing harm to the environment in any respect
is not acceptable. Firm is throwing out the waste which is affecting the environment .
There are set standards for pollution and exceeding that limit can fully disrupt the
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working. If any type of waste is found in water and land then strict actions can taken
against entity(Venkat, A and et.al.2015). Firm can apply techniques which are helpful
in controlling pollution whether it can be land , air and water.
CONCLUSION
Report is concluding that the impact on the decision making by outside factor. Various
approaches are there for operations management. Some of them are lean , six sigma and dynamic
. The role of the operational store manager is to reduce the cost , interdepartmental
communication , support service which can help manager to know how can the firm grow more
by taking customer recommendation. This can help them to earn more profit . Importance of
operation's management which can help the firm in increasing the productivity of the employees
as well as product . Above all the factors can help the business to grow more.
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REFERENCES
BOOKS AND JOURNALS
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Top management tangible competencies, relationship‐based business networks and
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Chevalier, P. and et.al., 2015. Revenue management for operations with urgent orders. European
Journal of Operational Research.240(2). pp.476-487.
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.
Gillen, D., Jacquillat, A. and Odoni, A. R., 2016. Airport demand management: The operations
research and economics perspectives and potential synergies.Transportation Research
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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.
Platman, D. and et.al., 2018. Model Transportation Systems Management and Operations
Deployments in Corridors and Subareas Primer(No. FHWA-HOP-18-026).
Smith, S. and et.al., 2018. Benefits Estimation Model for Automated Vehicle Operations: Phase
2 Final Report (No. DOT-VNTSC-OSTR-18-01; FHWA-JPO-18-636). United States.
Joint Program Office for Intelligent Transportation Systems.
Venkat, A and et.al., 2015. Strategic management of operations in the emergency
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