Importance of Operations Management in Achieving Business Objectives

This document discusses the key approaches of operations management and the role of leaders and managers in achieving business objectives. It explains the importance and value of operations management in maximizing revenue and profitability. The document also evaluates how leaders and managers can improve the efficiency of operation management to successfully meet business objectives.

Management
And
Operations

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 2.................................................................................................................................................3
P2. Identifying roles of leaders and functions of managers applied in different situational context. .3
P3. Application of different theories and models of approach...........................................................4
M2. Assess strengths and weakness of different approaches to situations within work environment 5
D1. Critically analyse and evaluate different theories and approaches to leadership in given
contexts.............................................................................................................................................5
TASK 3.................................................................................................................................................6
P4. Explain the key approaches of operations management and role that leaders and managers play
...........................................................................................................................................................6
P5. Describe the importance and value of operations management in achieving business objectives 6
M3. Evaluate how leaders and managers can improve efficiency of operation management to
successfully meet business objectives................................................................................................7
D2. Critically evaluate applications of operation management and factors that impact on wider
business environment........................................................................................................................7
TASK 4.................................................................................................................................................8
P6. Assess the factors within business environment that impact upon operational management and
decision-making by leaders and managers.........................................................................................8
M4. Analyse how different factors affect the business environment and wider community..............9
CONCLUSION.....................................................................................................................................9
REFERENCES........................................................................................................................................10

INTRODUCTION
Operation management is defined as converting from raw materials to work-in-
progress by further transmitting them in finished goods which ready to sale for fulfilling the
requirements of consumers. The project is based upon Starbucks being an American coffee
company that is famous for its coffeehouse chain. This project analyse the roles of leaders
and functions of managers applied in different situational context with strengths and
weakness through various theories and models (Baxley and et.al., 2016). It further explains
the key approaches of operations management with its importance and value for leaders and
managers in achieving business objectives. Additionally, it assess the factors within business
environment that impact upon operational management and decision-making.
TASK 2
P2. Identifying roles of leaders and functions of managers applied in different situational
context
Operation management refers as the ability to transfer inputs of business such as raw
materials into output by converting it in finished products. The managers of Starbucks
implement this as to produce their products from infrastructure, agriculture, etc., that satisfy
the needs, desire and wants of customers.
Leaders:- These are defined as the capability to follow the direction of managers by
performing activities in order to achieve organisation target and mission. The roles of leaders
are explained with reference to Starbucks are mentioned below:-
Roles of Leaders:-
 Team Leader:- Leaders of Starbucks are considered as team leader who takes
responsibility for the actions performed by the effective group to achieve specific
target through co-ordination of every members.
 Delegator:- The leaders of Starbucks delegate the activities through division of work
by designing and representing actions to their workers that leads to accomplish goal.
Manager:- It refers as the top-level management that perform actions by directing
and controlling through strategic decision making which leads to achieve goals and objectives
followed by vision. The functions of managers are described with reference to Starbucks are
as follows:-
 Planning:- The managers generate competitive advantage for business by developing
an innovative plan to compete with rivalries. Managers of Starbucks focus on proper
quality management and less time consumption by their planning procedure to make
product effective (Choi, Chan and Yue, 2016).
 Organising:- After developing a plan, managers organise it in best way to make the
best quality product and to meet the requirements of customers at minimum cost. The

Starbucks managers focus on making innovative idea and core competencies to
remain in competitive market and to achieve organisation goals and objectives.
 Staffing:- Staffing means distribution of work among the employees as per their
capability of specialisation which leads to increase efficiency and reduce mistakes.
The Starbucks managers plan to select persons based on the needs of the business, so
that the work is being completed fluently without any error and omissions.
 Directing:- The managers direct leaders and they guide employees to perform their
work with motivation to achieve success in particular duration. Managers of
Starbucks direct their employees for ascertaining the growth of business through
competitive advantages that leads to sustain in global market.
 Controlling:- The managers play very essential role in controlling activities of
employees by rectifying mistakes that delay in achievement of goal by creating
difficulty to compete with rivalries. The Starbucks managers are highly capable in
monitoring the activities of workforce by analysing time consumption for every task
(Cucoranu, 2015).
The situation in accordance with reference to managers and leaders of Starbuck are
mentioned below:-
 Minimise cost:- The main purpose of managers is to strategise pricing with least-cost
effectiveness which enlarge consumers for maximisation of revenue and profits. The
managers of Starbucks attempts to minimise cost to provide high level of satisfaction
for its target market.
 Maximise revenue and profits:- Managers direct and control actions of employees
for producing qualitative goods that may satisfy the requirement of consumers for
which they are ready to pay high price. The managers of Starbucks focus on enlarging
customers through providing high satisfaction from superior product to maximise sale
with profitability ratios.
P3. Application of different theories and models of approach
The implication of theory and model of approach in business is to generate strategic
decision making for planning of managers that is followed by leaders to create an opportunity
for growth and stability of business in economy (Francis, Hasan and Li, 2016). The managers
and leaders of Starbuck should adopt various theories for accomplishment of success by
competing with rivalries as follows:-
 Situational leadership:- It is defined as the ability of leaders to acquire various
leadership styles in accordance with situation to motivate team members through
training and development which increase effectiveness to perform. The role of
managers is to focus on this situation of Starbucks for improving quality of product as
to attract more of their consumers for maximisation of revenue and profits. The role
of leader is to follow the instruction of managers in order to meet the desired target
through providing satisfaction to consumers with superior products.
 System leadership:- This refers as organised procedure of managers directing leaders
to perform task in developing products according to its decided quality which develop

the faith of target market. The role of managers is to concentrate on the case study of
Starbuck for monitoring the action of product development from its manufacturing to
delivery of consumers. The role of leaders is to decide the direct and indirect channel
of distribution to easily meet the requirement of targeted audience which reduce
hindrance of place and maximise revenue.
 Contingency theory:- It is an organisational theory which aims to strategise
innovative idea through strategic decision making for developing co-operation among
employees to perform task with motivation. The role of managers is to build relation
within workers through co-ordination that leads to achieve success. The role of
leaders is to reduce conflicts and develop understanding which results in collectively
performing task for specific target (Ketokivi and McIntosh, 2017).
M2. Assess strengths and weakness of different approaches to situations within work
environment
The strength and weakness of different approaches for situational, system and
contingency leadership within work environment are explained below:-
On the basis of approaches Strength Weakness
Situational Leadership It recognizes the need for
flexibility in accordance with
change in planning. It creates
a comfortable environment
for workers to perform
actions.
It focuses on immediate
needs as compared to long-
term needs. It can be
ineffective for task-oriented
environment.
System Leadership The focus is on achieving the
individual as well as overall
goals of business.
It may not be always
practical and lead to delays in
decision-making. Nature of
inter-dependence is not
defined.
Contingency Leadership It is dynamic nature for
changing in accordance with
the situations and allows
managers to fluctuate
policies. This help manager
to enhance their leadership
and decision making skills.
It is a complex approach, as
the suggestion is very simple
but when it comes to
practical it becomes more
difficult.
D1. Critically analyse and evaluate different theories and approaches to leadership in given
contexts
The behaviour of leaders influence the other members of business by critically
analysing the active participation of leader with its good quality skills such as honesty,
integrity, confidence, inspiring nature, commitment and passion, etc. The leader should have
good communicating skills by decentralising the task to its employees in accordance with
accomplishment of target (Khanna, 2015). It should delegate actions with empowerment and
focus to develop relations among their employees through engagement, involvement and co-
ordination that result in trust and faith between one another.

TASK 3
P4. Explain the key approaches of operations management and role that leaders and
managers play
The key approaches of operation management within organisation are to be awake of
the products produced. It develops competitive advantages through internal strategies to
compete with their competitors for remaining stable in global market. These key approaches
are explained with reference to the managers of Starbucks are as follows:-
 Total Quality Management:- It is described as the ability to focus on improving
quality to manage its effectiveness which meets the requirements of potential
consumers to achieve success. The role of managers for Starbucks is to attract large
number of consumers with their qualitative product by rectifying errors through
corrective measures. The role of leaders in Starbucks is to supply products through
easy and efficient manner of channel distribution.
 Six sigma:- This refers as the set of management techniques that attempts to improve
business process by identifying and eliminating errors which increase time
consumption that delay in goal achievement. The role of managers for Starbucks is to
analyse procedure from manufacturing to finished product that generates goods with
competitive strategy to compete from rivalries that are Dunkin’ Donuts, McDonald’s,
etc. The role of leaders in Starbucks is to increase effectiveness by managing the
quality of goods that satisfies the demand of target market (Lamba and Singh, 2017).
 Supply chain management:- This is defined as the procedure which is utilised by
producers in delivering finished products to target market for satisfying their needs,
desire and wants. The role of managers in Starbucks is to promote their direct and
indirect channel to remove the hindrance of place for consumers through
manufacturers, agents, wholesalers, retailers and consumers. The role of leaders in
Starbucks has to manage the distribution by managing the least-cost effectiveness
with improved quality and efficiency.
 Business process redesign:- It is explained as the process of improving efficiency by
cutting slack and excess, minimising the cost, etc. The role of managers in Starbucks
direct and control the actions performed by workforce by targeting towards the goal
achievement. The role of leaders in Starbucks is to manage their actions in particular
department that create opportunity for growth of business.
 Lean manufacturing:- It is the methodology that focus on reducing wastage in
production while simultaneously maximising profits. The role of managers in
Starbucks is to aim on utilising the scrap material into valuable product. The role of
leaders in Starbucks is to manage manufacturing with least wastage and disposal that
result in achievement of goal efficiently (Lee and Tang, 2018).
P5. Describe the importance and value of operations management in achieving business
objectives
The operation management plays very prominent role for business to achieve goal and
objectives for its success. It is the procedure of converting raw material into finish goods for

satisfying the requirement of target market through maximisation of revenue and profitability
ratios. Its importance is described with reference to Starbucks as follows:-
 Improve productivity:- Managers usually focus on improvement of productivity
from employees by directing them to reduce time consumption while producing
qualitative products. The role managers in Starbucks implement supply chain
management in organisation for delivering their finished goods to its end-users for
maximisation of revenue. The role of leaders in Starbucks targets to improve quality
of goods as to meet the satisfaction level of consumers for maximisation of profits.
 Utilise resources:- Every business target can be achieved effectively and efficiently
by utilising scarce resources in global environment. The role of managers in
Starbucks focuses on increasing strength and opportunities of business to utilise of
scarce resources. The role of leaders in Starbucks aims organisation objectives to
accomplish their individual target with co-ordination (Majukwa and Haddud, 2016).
Operation management is done for making core competences which make the business
different from rivalries and helps in market stability. Managers and leaders of Starbucks
develop business value from the following:-
 Increase goodwill:- By generating high return from the risk taken, helps operation
managers to increase goodwill of business. The role of managers in Starbucks is to
attract the consumers with their qualitative product to realise the investment at least-
cost effectiveness. The role of leaders in Starbucks avoids the possibility of delay in
goal achievement by performing their actions with time management.
 Improve quality and safety:- This means that providing customers safety gears such
as insurance, food and cloth, etc., which creates opportunity for business employees to
increase product quality. The roles of managers in Starbucks have to meet the
requirement of consumers by monitoring the production quality. The role of leader in
Starbucks is to achieve success by focussing on rectifying the errors in production
quality by taking corrective measures.
M3. Evaluate how leaders and managers can improve efficiency of operation management to
successfully meet business objectives
The operation management play the major role in improving the inefficiency and un-
productive elements of production by identifying the redundancy factor and eliminating the
mistakes through corrective measures. The role of managers in operation management of
Starbucks is to provide profits with minimising the cost for attracting large number of
consumers with qualitative products. The role of leaders in Starbucks is to maintain flexibility
that result in achievement of success for competing with rivalries (Merigó and Yang, 2017).
D2. Critically evaluate applications of operation management and factors that impact on
wider business environment
Operation management is defined as the ability to develop finished goods from the
raw materials by transmitting them to final products which are ready to use by its end-users in
order to increase sale and profits. This focus on the factors of macro-environment to analyse
the external opportunities and treats occurs from the competitive strategies of global market.

It determines the quantitative techniques, models and approach to evaluate and monitor the
trends competitors which affects the stability and growth opportunity of business.
TASK 4
P6. Assess the factors within business environment that impact upon operational management
and decision-making by leaders and managers
The factors of macro environment in business surroundings that impact operational
management and decisions of managers and leaders are categorised on the basis of PESTLE
Analysis.
PESTLE Analysis:- This framework analyse the changes in factors of macro-
environmental that affects the growth and stability of business either positively or negatively
in achievement of success for competing with competitors. These are further explained with
reference to managers of Starbucks are mentioned as under:-
 Political factor:- It refers as the element which includes the rules and regulations
governed by government that affects the sustainability of business in global market.
Its determinants are fiscal and monetary policy, trade tariffs, labour and
environmental laws, tax policies, etc. The roles of managers in Starbucks are
adversely affected as they have to implement innovative ideas by stopping the
existing plan in accordance with change in political leaders (Prashar, 2015). The role
of leaders in Starbucks are negatively impacted as to stop current action and to
perform with new plans through strategic decision making with environmental laws.
 Economic factor:- This is considered as determinants which consists of interest rates,
economic growth, disposable income, foreign exchange rates, etc. The roles of
managers in Starbucks are adversely affected by fluctuating exchange rates through
inflation and deflation affects the economic growth and stability of business. The role
of leaders in Starbucks is negatively impacted as they have to provide minimum
wages and salary for employees.
 Social factor:- It includes the determinant such as demographic conditions,
population growth, age and income distribution, health consciousness, etc. The roles
of managers in Starbucks are favourably affected as they provide employment
opportunities to society who are literate that increase efficiency. The roles of leaders
in Starbucks are positively impacted by concentrating on birth, death, literacy, rate for
providing satisfaction to members with their health and safety measures.
 Technological factor:- This factor includes new technology, automation, innovating
ideas, etc. The roles of managers in Starbucks are favourably affected in positioning
products to its target market that result in maximisation of revenue and profitability
ratios. The roles of leaders are positively impacted by enlarging customers through
satisfying their needs, desire and wants with qualitative products (Russell and Taylor,
2014).
 Legal factors:- It is the element which consists of legal and lawful obligations, health
and safety measures, consumer protection rights, product labelling and packaging, etc.

The roles of managers in Starbucks are unfavourably affected by this factor as they
have to pay minimum wages to employees and proceed with payments of bonus in
accordance with their work performed (Song and Parola, 2015). The roles of leaders
in Starbucks are negatively impacted as they have to focus on time consumption for
particular work and duration of task performed by every labour.
 Environmental factors:- This factor consists of environmental pollution targets,
stability and instability of business, full utilisation of scarce resources, etc. The roles
of managers in Starbucks are favourably affected by taking corrective measures which
increase consumer support and loyalty. The roles of leaders in Starbucks are
positively impacted by focusing on health and safety measures of consumers while
producing the finished goods.
M4. Analyse how different factors affect the business environment and wider community
The different factors of business environment which collectively affects the stability
of organisation and wider community are classified as political, economical, social,
technological, legal and environmental. These elements affect the business either positively
or negatively through favourable and unfavourable conditions. It further affects in planning
for growth opportunity by creating threats that result in delay for achievement of goals and
objectives. This also creates negative impact on the behaviour of employees as their
motivation decreases with the continuous change of target (Uhl and Gollenia eds., 2016).
CONCLUSION
From the above discussion it have been concluded that operation management is very
essential for transferring raw material to finished goods in order to survive in competitive
market that creates opportunity for the growth of business. This project covers the analysis
for roles of leaders and functions of managers through planning, organising, staffing,
directing and controlling that are applied in business. It describes various theories and models
including situational, system and contingency leadership. This further explains the key
approaches of operations management with its importance and value for leaders and
managers in achieving business objectives. Apartly, it assess the factors within business
environment are explained with PESTLE analysis that impact upon operational management
and decision-making.

REFERENCES
Books and journal
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NJ: John Wiley & Sons.
Song, D. W. and Parola, F., 2015. Strategising port logistics management and operations for
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