Factors Impacting Operational Management

This assignment delves into the various internal and external factors that significantly impact operational management within businesses. It examines how factors like suppliers, stakeholders, political regulations, economic conditions, social trends, and technological advancements influence operational decisions and overall business performance. The analysis highlights the importance of understanding these factors for effective leadership and strategic decision-making in achieving long-term organizational goals.

Management and
Operations

INTRODUCTION
Management of operations is a process in which it is being ensured that all the tasks and
activities are being conducted in a smooth and effective manner. Main focus on managing
operations is to achieve the aim and objectives of firm efficiency in stipulated time period. In
managing the operations, there is certain team who takes up the responsibilities for conducting
all operations so that effective outcomes can be attained (What is Operations Management?.
2014). There are certain operations which are undertaken like manufacturing of products, quality
management and creating services. In this report, company chosen will be Coca Cola which is a
multinational corporation dealing in soft carbonated drinks across the globe. In this report, there
are certain things which will be discussed like roles of leader and managers which are
differentiated and implemented on various kinds of situations. Moreover, it will demonstrate the
relationship between management and leadership within environment of business.
TASK 1
P1 Define and compare role and characteristics of leader and manager
There are some crucial roles which are needed to be played by the leaders and managers
in modern scenario of business environment. Basically, manager is a person who plays an
important role in managing all the resources and ensuring that they are being utilised in an
optimum manner while, on the other hand, leaders lead a team for attaining organisational
objectives. There are various roles of managers and leaders which are played by them and they
are as follows:
Role of Managers
Goal Oriented: There are certain aim and objectives of firm which is the responsibility of
manager for completing them. Certain steps are being taken while obtaining the results from
completing the aims and those steps are applying policies and rules for following up of
guidelines in an institution (Ashby, Leat and Hudson-Smith, 2012).
Risk Control: There are certain factors in an organisation which are being controlled by
managers and those factors have risk attached with them. So, managers need to make sure that
risk management is putting up all their efforts. Coca Cola needs to make sure that their managers
are following the same.
Role of Leaders

Vision Setting: The main role of a leader is to formulate the basic track for team
members on which by walking, they can attain particular objectives. Vision can be said as a
purpose in which company defines their mind-set and what they want to achieve. Apart from
that, another duty of a leader is to provide and allocate tasks to team members so that main
objectives can be attained.
Building Morale: This is one of essential duties of leaders in which they boost up
morale level and provide them confidence throughout the tasks achievement by appreciation.
This kind of procedure is generally done by giving appropriate feedbacks and appreciation letters
(Babel and et. al., 2012). Moreover, annual appraisal can also work as this will provide self
confidence in employees and thus, their performance level will be raised automatically.
There are certain difference between managers and leaders in aspect of an organisation
and they are described below:
Basis Manager Leader
Directing In an organisation, managers
generally assign the tasks to
employees and provide guidelines
which are needed to be followed
by them for completing the work.
Leaders also allocate the tasks to their
team members but they also work
with them to make the objectives
ideal in nature and create optimistic
vibes in environment.
Change Agents Standard procedure is being
followed by the managers and
thus system which is providing
longer outputs are being adopted
by them.
Innovation is the methodology which
is being adopted by them. They
basically innovate the ways in which
allocated tasks can be achieved in an
effectual manner so that working
environment can be changed with
positive factors.
Uniqueness This kind of approach is being
avoided by managers as there are
some protocols which they follow
and does not go out of track and
the same is being passed on to
Uniqueness is being adopted by
leaders as they handle the allocated
tasks in their own ways (Bainton and
et. al., 2011).

other management.
Risk taking They generally do not opt for
taking risks. Instead of that, they
look out for factors which can
minimise the risk elements.
While leaders just work opposite to it
as they take risk for attaining growth
and success of team.
TASK 2
P2 Role of a leader and function of a manager in different organisational context
There are various situations which both leader and manager faces while working in an
organisation and those are described below:
 Globalisation: In this globalized world, managers must increase new point of view and
walk a thin line amongst productivity and spotlight on every individual market. While
being proficient expects administrators to offer similar items and execute similar
strategies crosswise over outskirts, when conceivable, markets from various societies
have diverse necessities. As indicated by Bartlett, the best practice that a worldwide
director can receive is receptiveness. Administrators must will to inspect the clients in
every one of their business sectors and create items and administrations remarkably
custom-made for them.
 Advancement in technology: Staying aware of the most recent building innovation is
troublesome, because of the immense number of advances each year. Be that as it may, if
upkeep and building supervisors don't keep up, they chance missing chances to diminish
costs and enhance occupant solace and staff productivity. As administrators, it is
unequivocally vital to know about the most up to date innovation and to comprehend its
advantages and confinements. Neglect to do this, and administrators chance getting keep
running over by innovation advances. When a bit of more established gear nears its finish
of life, one choice is to spend more cash on a more productive, best in class substitution.
The little extra capital cost will regularly be paid back with vitality reserve funds in only
several years, and over the life of the hardware, that can mean huge investment funds for
the office which is uplifting news for those on the corporate level.

 Competition: With an end goal to help his boss in staying focused in the commercial
centre, an advertising chief plays out a huge number of research went for guaranteeing
the company's toehold in the business. He may perform client look into by executing
studies and facilitating centre gatherings. He may likewise investigate the publicizing
exercises and deals execution of contenders. What's more, he may evaluate the condition
of the economy as it identifies with the company's business. When this exploration has
been assembled, a promoting director makes different reports in light of his discoveries.
These reports are then displayed to senior administration.
P3 Application of different theories and models of approach
There are number of theories which provides support to a leader so that effective
solutions can be formulated in adverse situations of an organisation. This in turn provide aids to
leaders for executing their duties in effectual manner. There are certain approaches to leadership
which can be applied by Coca Cola and they are as follows:
Situational Leadership: This is one of the most effective and popular approach towards
leadership and that is being developed and innovated by Dr. Paul Hersey. This can be considered
as a tool which has the potential of manipulating the behaviour by utilising the science of
behaviour. This kind of approach can be classified into four stages which can affect the
influencing behaviour and those stages are: Diagnose: The main motive of this stage is to determine the current issues and
problems. It is highly important for an organisation to evaluate the current
circumstances of an individual so that behaviour of an individual can be influenced
(Haux, Winter, Ammenwerth and Brigl, 2013). Adaptability: This kind of stage basically analyse the current wants of situation for
influencing it. Communicate: This kind of stage mainly have their focus on managers and leaders so
that changes which are required can be understood and accepted by both of them.
 Advance: This step focuses on effective management of people movement in aspect to
certain situations.
System Leadership: This kind of approach is being classified as dominant aspect for
leadership styles which are being adopted. Organisation is often seen as open system by most of
the leadership theories and other approaches as the interaction is being done to the outside world

via various ways. An organisation basically consist of various parts just like human body which
consist of various organs. The main organs of an institution is its assets, employees and other
resources. This kind of open approach is being used by Coca Cola as well as they are influenced
and affected by things which are happening in this world (Johnson, 2014).
Contingency approach: This kind of approach states that there is no particular
methodologies which can adopted to deal with certain kind of situations. The best way by which
these kind of situations can be deal is analysing and determining the factors which are involved
in internal and external environment in order to extract the best possible decisions.
Management by objective: This is a contemporary approach which is used for leadership
styles so that objectives can be categories on the basis of priority and apart from that
performance of an employee can be measured. This approach was innovated in 1954 by Peter
Ducker. Tasks are being allocated to every staff member which needs to be achieved within
allocated period of time. It is ensured by this kind of approach that employees are being
motivated and this is helping them to give high performance for attaining objectives.
TASK 3
P4 Key approaches to operations management and roles played by manager and leader
Operational management approaches can be stated as ways through which effective
outputs can be seen along with the qualitative elements as well. Coca Cola can utilise these kind
of approaches in operations management and they are:
Process involves in producing products and services: There are some activities which are
includes in this are as follows:
Generating: In this process company collect all information regrading customers taste and market
trend.
Screening The Idea: In this manger of the business screening all ideas in an effective manner. So
it is identify as a role of manger to screening buyers taste.
Testing The Concept: It is essential concept for the organisation in order to produce their goods
and services to the end user.
Business Analytics: In this process company analysis business situation in an effective manner. It
is important for manger to attain competitive benefits essentially.

Launching the products: It is last phase of the company to produce their all products and services
to the end user.
Total quality management: This kind of approach has their main focus on enhancing
their quality of products and services with the help of continuous development. Priority of this
kind of approach is that is improve and work beyond the expectation level of customers (Kátai-
Urbán, 2014). Vital roles are being played by managers and leaders by providing effective
utilisation of resources for activities of business. Another role of manager is to analyse the actual
needs and wants of customers and satisfying them though products and services.
Just in time: This kind of approach has been popularised and mainly used by Toyota
Production System. This kind of approach has their focus on reducing and minimising the
wastages by utilising raw materials in certain amount which is being required for production
along with the efforts of improving in continuous manner. Vital role is being played by both
managers and leaders for identifying the resources which will be used.
Illustration 1: Just in Time
(Source: Coca Cola's Just in Time, 2017)

Lean production: This kind of approach is being utilised on manufacturing and
conduction of other operations in order to make them systematic in nature. The main efforts are
being put on minimising the wastage while processing raw materials into final goods and along
with that maintaining the quality as well (Lam, 2011). There are certain tools and techniques
which are being utilised by leaders and managers to make sure that wastages are minimum in
level.
Queueing and continuous production: This kind of approach mainly focuses on
manufacturing products and services in smooth manner without any interruption. This is
considered as continuous process in which production is being conducted on regular basis. In
context of Coca Cola, the product which they mainly sell is seasonal in nature and it is highly
sold in summer season but still their product has good sell throughout the year. There is vital role
which is being played by managers as the forecasting is being done to identify the needs of
product in future. Moreover, there are number of tools and techniques which are being utilised
by the managers for being productive and improve the profitability ratios (Lindström and et. al.,
2012).
Six sigma: There are certain elements which have potential to hamper the productivity
and thus this kind of approach is highly utilised for eliminating the elements which are being
disruptive. This approach is mainly focuses on satisfying the customers in maximum manner and
that too in cost effective manner. Certain tools and techniques can be adopted for enhancing the
process of production. Profitability of company improves along with performance level of
employees and this all can be obtained if the production process is efficient and effective in
nature. This kind of methodology is being adopted by Coca Cola so that productivity can be
improved and thus ideal supply chain can be established. Manager who is working for an
organisation needs to make sure that effective tools and techniques are being used like control
charts and SPC'S. Most effective tool which is being utilised and that is DMAIC (Define,
Measure, Analyse, enhance and Control).
P5 Importance and value of operations management in achieving business objectives
Objectives of Business can be stated as set of targets which are being established for a
certain period of time by the management. In every kind of business there are some certain
objectives of business like survival in market, selling products and services, providing higher
satisfaction level to customers and maximising the profits (Palizban, Kauhaniemi and Guerrero,

2014). The main focus of coca cola is on maximising the sales of the company so that profit
ratios can be improved through its operations.
Roles of Operations Management
Definition given by APHSA is management of operations is an approach which can aid in
enhancing the quality and capabilities of business operations. Operation management plays an
vital role in an organisation like it provides help in determining the production process which is
being carried out in business process. Another duty of operation management is that it makes
sure that resources are being utilised in ideal and optimum manner and its needs to make sure
that wastages are being minimised in production.
Importance of operations management are as follows: Customer Satisfaction: This is the most essential element for an organisation as
expansion of business totally depends on it. Certain products and services are being
provided to the customer which can meet their actual needs and wants and thus
satisfaction can be provided. Quality of product should also be kept in mind. Brand Image: In common language it is called goodwill of the company. This is raised
when company provides high quality products and services to the customer which in turn
can help them to achieve the certain position in market. Coca cola being a huge brand
name has achieved the name by selling out quality products (Rinke and et. al., 2012). Profit Maximisation: This is the main motive of an organisation who manufactures
products and services. There are certain tools and techniques adopted for maximisation
of profitable ratios. These same strategies are being adopted by Coca cola for
maximisation of their profit. Process design: This kind of approach determines and makes sure that process is being
suitable with the objectives of firm. This kind of approach is basically forecaster and has
a broad point of view. Through the selection of ideal process it should be ensured by
Coca Cola that products and services which are being provided are valuable in nature. Capacity Management: This is the stage where the team of company needs to make sure
that present and future needs of company are being met and thus it can be make sure by
IT functions (Afshar, 2012).

 Facilities and Layout: It is the platform or can be said as guidelines through which the
operations are being conducted. The main focus is given on tools and techniques which
are used in manufacturing like stock, space,equipments, machineries and many more.
 Work Structure: in this kind of approach, appropriate structure is being formed under
which each and every operation is being conducted in smooth manner.
TASK 4
P6 Factors within the business environment that impact upon operational management
There are various factors present in an organisation which has direct impact on the
functioning of operations along with the capabilities of making decisions of manager and leader.
They are described as below:
Internal and External factor:
Internal factor: There are some factors which are included in this factors. These are highly
influence of decision making and operation management. These are determined as below:
Suppliers: This is highly important as it brings sustainability to all the factors which are
related to company. This also includes that resources which are highly limited in nature should
be utilised in optimum manner so that nature and society does not get bad effect (Viani and et.
al., 2012).
Stakeholders: These are the people who are directly connected to the company profit and
loss statements. Mainly the stakeholders are employees, investors, society, suppliers and
shareholders.
Society: This kind of approach is being used to self regulate the business which is being
undertaken by the management itself. It determines the ways in which the business is being
exposed to various factors of environment.
External factor: There are some factors which are highly effects on business performance and
profitability. It is mainly includes PEST Analysis which are determined as below:
Political: In this government rules and regulations are highly effects on decision making
process and operational management in a direct and indirect way.
Economic: This can be said as a process in which in which certain level of economical
growth is maintained along with ecological balance as well.

Social:There are certain segments which are undertaken in this programme are workplace
rights, protection of climate, agriculture and packaging. This sustainability has to be ensured by
leaders and managers.
Technological: This factor highly effects on business performance and profitability in the
company there are different workers are work with the achievement of long term goals and
objectives. These are defined as the people who encourages and support the innovation in an
organisation. There are various programme which are designed by Coca Cola for promoting
entrepreneurship in an organisation.

CONCLUSION
As per the above mentioned report, it can be concluded that operational management is
very essential part of the company development and growth. In order to achieve long term goals
and objectives, manager and leader plays significant role. company use different tools and
techniques for attainment of higher profit and revenue. Leader use various style and approaches
of leadership which help administrator to promote their workers effectively. key approaches of
performance management also help enterprise in order to attract large number of clients towards
quality product and service. Internal and external factor also effects on business operations and
decision making process of company.