Operational Management and Business Environment Analysis

The assignment involves analyzing the role of operational management in achieving business objectives and understanding the internal and external factors that affect business operations. It also requires evaluating the application of operations management in different scenarios and discussing the impact on the business environment.

Management
and
Operations

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1. Define and comparing different roles and characteristics of a leader and a manager......................3
M1: Analyze and differentiate between role of a leader and function of a manager..............................4
TASK 2..........................................................................................................................................................5
P2. Role of leader and the functions of manager apply in different situational context.........................5
P3: Apply various models and theories including situational leadership.................................................6
M2: Assess the strengths and weaknesses of various approaches to situations.....................................7
D1: Critically analyze and evaluate the different theories and approaches.............................................8
TASK 3.......................................................................................................................................................8
P4. Key approaches of operations management and role of managers and leaders...............................8
M3: Evaluate how leader and managers improve efficiency of operational management.....................9
P5. Importance and value of operations management in achieving business objectives........................9
TASK 4........................................................................................................................................................10
P6: Business environmental factors upon operational management....................................................10
M4: Analyze how these different factors affect the business environment..........................................11
D2: Critically evaluate application of operations management and factors that impact on business
environment..........................................................................................................................................12
CONCLUSION.............................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
There are many operational activities in an organization which is managed, monitored
and controlled by Operation Management. Thus operation management play an important and
crucial role in generating profit for an organization through managing and utilizing resources in
such an effective way that brings maximum profitable output (Jacobs and Chase, 2017). The
main purpose of preparing this report is to understand the role and importance of manager and
leader in executing business operations and how they perform in different situations in order to
achieve business objectives. Company named “ Marks and Spencer (M&S)” Ltd. a UK company
which deals in offering clothing, home products and luxury food products in many different
countries. Various theories and models of approaches applied by operation management of M&S
Ltd. are also explained in this report.
TASK 1
P1. Define and comparing different roles and characteristics of a leader and a manager
To execute business operations of M&S Ltd. company in such an effective way that will
brings maximum positive result, managers and leaders both performs their different roles and
responsibilities to achieve common business objectives. Such roles and responsibilities are
explained as below:
Managers: It refers to the persons in an organization who have effective skills and abilities
to design and execute the business operations of an organization in order to achieve desired goals
and objectives of company. They are held responsible to formulate plans and policies to their
workers so that their employees get direction to perform their delegated task in profitable manner
to achieve desired target within pre-determined period of time (Kazda and Caves, 2010). As
there are different departments in an organization and in each department have manager who
perform its duty to utilize resources in order to get profitable outcome. The managers also play
an important role in improving performance of employees through implementing various
incentive programs for them such as rewards, compensation, bonus etc. which motivate
employees to contribute their maximum efforts in achieving organizational desired objectives.
Leaders: They are the persons who have skills and capabilities to influence employees of
an organization to perform their delegated task in an effective and efficient manner so as to
achieve business objectives. They are required to encourage their employees with the help of
using their leadership and communication skills and provide a clear vision to them to achieve
within limited period of time. Thus leaders play a crucial role in bringing efficiency in
employee’s work and motivating them to find new and innovative ways to complete given task
in more profitable manner which directly enhance productivity and profitability of an
organization.
Difference between the managers and leaders:

As they both have common mission and objective to achieve through performing
different roles and responsibilities (Hugos, 2011). In simple words, manager is one who create
objective and a leader is one who motivates its workers to achieve such objective by using
different and effective methods and techniques. Here are the some other difference between
managers and leaders:
Managers Leaders
It is the one who creates target that need to be
achieved in future.
It is the one who guide and motivate workers
to achieve target set by managers.
Manager holds rights and responsibilities to
formulate plans and policies in order to
complete task to achieve desired objectives.
Leaders perform as per the policies and
strategies made by managers and communicate
its workers to perform their delegated task
under given guidelines.
Managers focus on developing new ideas and
effective ways for the development of an
organization.
Leaders focus on implementing such ideas
developed by manager into reality.
They are always ready to take risk in order to
achieve profitable result.
They are always tried to implement new ways
to reduce such risks.
M&S Ltd. is a UK company which deals in providing cloth, home product etc. to their
targeted customers located worldwide. So it is required for the managers of company to design
and make changes in their company’s products as per the need and requirements of customers so
as to maximize the satisfaction level of customers. Manger need to first analyze the demands and
requirements of customers and accordingly adding value to their product so as to fulfill their
requirements. The manager of M&S Ltd. need to formulate effective plans and strategies that
helps in increasing productivity of company. They need to set standards for their workers which
direct them to perform their allotted task within pre-determined time period. The leaders of M&S
Ltd. also motivate its employees to perform as per the rules and regulations implemented by
managers of company and encourage them by using leadership style to complete given task in
profitable manner.
M1: Analyze and differentiate between role of a leader and function of a manager
As manager and leader of company both play an important and different role in achieving
business objectives. Manger is responsible to formulate effective plans and policies to direct its
staff members to achieve desired target whereas a leader is responsible to guide and motivate its
team members to perform their delegated work in more profitable manner.

TASK 2
P2. Role of leader and the functions of manager apply in different situational context
Manager and leader both performs their roles and functions in order to achieve mission and
objective of M&S Ltd. company through giving direction to their workers to complete the given
task within pre-determined period of time in an effective and efficient manner. There are various
trait and styles of leadership and theories of management which should be applied by M&S Ltd.
to achieve best possible result. As M&S Ltd. offers quality cloth and home products at higher
prices due to which they sometimes fails to attract large number of customers. Therefore in such
situation functions of management and skills and knowledge of leader are essentially required to
implement effective plans and strategies through which they can minimize cost of manufacture
in order to increase sales and generate huge revenue for company (Marchington and et. al,
2016)..
Application of role of a leader and function of manager and leader are described as below:
Customers: It refers to person who is the main target of company to get success in
competitive market. As the M&S Ltd. offers quality clothing product to its customers therefore it
is important for them to identify their needs and requirements relating to their product and
accordingly fulfill them in order to provide maximum satisfaction level. For this manager is held
responsible to analyses taste and behavior of customers and adopt new strategies which direct
their employees to perform their given task in effective manner so as to achieve desired target.
Leaders of M&S Ltd. also required motivating its workers to perform their delegated task in
more effective and efficient manner.
Employees: The Company cannot operate it business operation without human resources.
Therefore employee is considered as an essential element for company in order to attain strong
position in market world. So it is necessarily required for M&S Ltd. to conduct development
programs for them with a purpose of enhancing their skills and knowledge (Van Weele, 2010).
The manager also play an important role in promoting effective and efficient workers through
providing rewards, compensation to them which indirectly encourage employees to contribute
their maximum efforts in achieving business objectives. Leaders also need to guide them relating
to utilizing valuable resources in profitable manner that will bring positive result for company.
Society: The future and success of the company depends on the society thus it becomes
the liability of the company to provide product which cannot harm the interest of people. The
company should focus on protecting environment while manufacturing product. The society
decides whether the business will run for longer period or not. Therefore the manager of
company should always keeps focuses on interest and welfare of the society and accordingly
manufactures quality products. For example if M&S Ltd. manufactures clothing product only for
kids then it will bring dissatisfaction among youth generations and senior citizens through which
the brand image of company may falls and the profitability of company also may decreases.

Therefore the company should take care of all people which will allow them to exist in
competitive market world for longer period of time.
Suppliers: It is essentially required for a company to have good supplier who can supply
raw materials to them on time which help them t meet the need and demands of targeted
customers. The manager is held responsible to appoint one effective supplier out of alternative
suppliers who agreed to supply them raw material which is used in manufacturing final product
at certain price and whenever they needed. This will help company in attaining loyal customers
as well as improves brand image in competitive market world. The leader of company should
require providing guidance to its workers to use inputs in such an optimum manner that will
bring maximum output from manufacturing process.
P3: Apply various models and theories including situational leadership
There are different models and theories which are more helpful for company to achieve desired
objective in an effective and efficient manner (Tsarouhas and Arvanitoyannis, 2010). Applying
such theories will motivate and direct their employees to perform their roles and responsibilities
in such an effective manner that will bring profitable outcome in future. Thus it is important to
know about such theories and style of leadership:
Leadership theories:
System leadership: This theory is helpful in resolving issues and problems that employee
faces in working environment. This will help company in achieving business objectives within
specifies period of time without facing difficulties. For example if any dispute or conflict arise
between employees or between top authority and employees then company need to apply
systematic approach with the help of which they can find effective solution that will not damage
the interest of both conflicted parties. Leaders need to make proper evaluation of working
environment and accordingly implement corrective actions if required, to maintain safe and
healthy environment.
Situational theory: As the business environment is complex in nature which can make negative
impact on business operation of company (Ashofteh, Haddad and Loáiciga, 2015). So it is
required for a leader to carefully analyze such complex situation and accordingly implement
appropriate style or approach which help them in dealing with different conditions. This theory
clearly indicates that one single theory is not effective to deal with every complex situation. It

means after proper evaluation of working environment leader need to adopt suitable theory
through which can successfully deals with complex environment.
Contingency leadership: As company operates its business operations in contingent
environment which may affect them in either positive or negative manner. Thus it is essentially
required for leader of M&S Ltd. to evaluate the contingent environment and accordingly
implement effective plans and strategies to develop working style in order to achieve desired
target. A contingency theory need to be applies at workplace in order to deal with contingent
environment.
Management theory:
Modern theory of management: This theory is related with enhancing skills and
capabilities of workers of organization through which their employees can contribute their
maximum in achieving business objectives. This will help company in increasing efficiency in
work of employees which will also bring best possible result.
Classical theory of management: This theory help manager to motivate its employees to find out
the easiest and economical way to perform delegated work in more effective and efficient
manner through which company can earn huge profit (McKay and Markova, 2010). This theory
is mostly applicable when the employees have complicated task to perform which help them to
achieve growth and success in an organization.
M2: Assess the strengths and weaknesses of various approaches to situations
Contingency theory of leadership:
 Strengths: This theory is helpful in managing business activities in contingent
environment in more effective and efficient manner.
 Weaknesses: Sometimes the manager fails to monitor business environment due to high
complexity which bring negative results to company.

System theory of leadership:
 Strengths: The manager can able to resolve employee’s issues and problems through
following systematic structure.
 Weaknesses: The theory is not much effective sometimes due to high complexity.
Situational theory:
Strengths: It is useful in providing training to leaders in an organization and it also emphasis on
leader flexibility (Nonami, Hashimoto and Boyer, 2014).
 Weaknesses: It becomes difficult that how dedication is conceptualized according to this
approach.
D1: Critically analyze and evaluate the different theories and approaches
There are various approaches and theories which need to be applied by manager and leader
in order to achieve business objectives. The manager and leader of company need to first
examine the effective approaches and accordingly implement in order to bring positive
outcomes.
TASK 3
P4. Key approaches of operations management and role of managers and leaders
Various approaches are needed to be followed by company in order to achieve best
possible results. Such approaches are as follows:
Total quality management (TQM): As M&S Ltd. deals in offering different products such as
clothing, housing products etc. to their targeted customers across worldwide. Therefore it is
important for company to produce quality product which help them in attaining competitive
advantage as well as largest market share (Kwak, Kim and Yoo, 2011). The manager is held
liable to conduct training sessions and development programs for their employees with a motive
of improving their skills and knowledge so that they can perform their delegated task in an
effective and efficient manner.

Just in time: It is an inventory strategy which is required to be implemented with a motive
of reducing cost and increase efficiency in production process by ordering raw material from
suppliers on time through which company able to meet the requirements of their targeted
customers. Therefore it is essentially required for manager to first recognize the future needs and
demands in market and thereafter communicate with suppliers to supply raw material whenever
the company needed with the help of which they can produce quality products in order to fulfill
need and demands of customers.
Lean production: It is considered as an important approach which must be applied by
manager of company while producing product which help them in eliminating wastage that will
make positive impact on the price of product. Through this approach the company can offer
quality product at less price which attracts large number of customers. This will help company to
achieve strong position in market as well as attain profitability.
Continuous improvement: Through using this approach the company can able to focus on
implementing new changes in characteristics of product according to the need and demands of
customers. For this the manager first carefully analyze the behavior of customers towards the
product and accordingly put their maximum efforts in adding extra value to their products which
attracts large number of customers and maximizing their level of satisfaction.
M3: Evaluate how leader and managers improve efficiency of operational management
Leader and manager is two important person of an organization who put their maximum efforts
and using their skills and knowledge to achieve business objectives within pre-determined period
in more effective and efficient manner (He and Huawei Technologies Co., Ltd., 2011).
P5. Importance and value of operations management in achieving business objectives
Operation management play an important role in achieving desired output from input used
in manufacturing process. The operation management has focused on adding value to the product
which maximizes interest of customer to purchase their product in order to get maximum
satisfaction. The manager is held responsible to adopt effective plans and strategies which
increase the entire performance of company.
Importance of operation management:
Evaluation: The management of company is required to set target that to be achieved
later and accordingly execute and evaluate the business operations in such an effective manner
which will help them in minimizing inefficiencies such as excessive use of inventory and raw
materials etc.
Cost minimization: The operation management has mainly focused on utilizing available
resources while producing quality product which will reduce cost of product. Optimum

utilization of resources helps M&S Ltd. to attain huge profit as well attract large number of
customers due to low cost of product.
Financial and human resource management: The Company can implement effective
plans and strategies only when they have good financial resources and skilled and qualified
employees. M&S Ltd. needs to maintain financial resources for the purpose of facing future
financial problems that will help them in gaining competitive advantage as well. Thus the
company can implement changes in production process only if they have sufficient financial
resources.
TASK 4
P6: Business environmental factors upon operational management
Internal and external are two such environment which can make positive or negative
impact on business operations of company. Therefore it is essentially required for operation
management to make proper analyse of such factors through which the company can operates its
business activities without facing any problems and difficulties. Such internal and external
factors are as follows:
Internal environemnt:
Owner: It refers to the person or group of person who holds ownership of company and
whose decision is final for company. Therefore the decisions taken by them will definitely
influence the business environment which brings either positive or negative result.
Employees: it refers to an individual or group of individual who contribute their
maximum efforts in achieving desired target. If the company have qualified and skilled
employees then it will make positive impact on the business operations of company which also
increases efficiency and productivity of company.
Stakeholders: They are the one who takes participation in business operations and holds
voting rights in decision making process. Therefore they can also influence the business
operation of company either in positive way or negative way.
External environment:
Analysis of external environment are as follows:

Figure1: PEST Analysis, 2012
Political factor: It refers to rules and regulations implemented by government for
company to run business more smoothly. M&S Ltd. may found difficulties to maintain market
share due to European integrations and free trade agreement.
Economic factor: The economic factor also make impact on business operations of
company. For example if the economy of UK is increases then the purchasing power of
customers also increases which directly increases sales of company and generate huge revenue.
Social factor: As large number of customers in UK prefer to buy trendy style clothes
rather than classics due to which M&S Ltd. may lose its market share of its customers.
Technological factor: M&S Ltd. need to adopt various advanced technology in order to
reach their product to large number of customers. For example through using internet the
company can sell its quality products to targeted customers that will help them in beating small
retail stores (PEST Analysis, 2012.).
M4: Analyze how these different factors affect the business environment
The company’s business operation can be affected by internal and external environment by
which the company may find difficulties in achieving business objectives. Therefore the manager
of company is required to make proper analyze of such internal and external environment and
accordingly implement corrective measures in order to overcome these factors.
D2: Critically evaluate application of operations management and factors that impact on business
environment
It is the responsibility of operation management to carefully analyse the internal and
external factors which make impact on business environment. The company can achieve growth

and success only when the management cans able t handle such factors in more effective and
efficient manner.
CONCLUSION
It has been concluded from the above report that management operation is necessarily
required in very organisation to achieve business objectives in an effective and efficient manner.
The manager and leader of company also play an important and crucial role in achieving growth
and success of an organisation. Various management theories and leadership styles are
essentially required to adopt in order to deal with different situation arise in working
environment. There are also various internal and external factors which need to be analysed
carefully so that they cannot affect so much to the business operations.

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