Operations Management and PEST Analysis

This assignment delves into the world of operations management, covering key concepts such as supply chain management, logistics, and inventory control. It also touches on the impact of external market factors through PEST (Political, Economic, Social, and Technological) analysis. By understanding these aspects, businesses can make more informed decisions to stay competitive in today's fast-paced environment.

Management &
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 The different roles and characteristics of a leader and a manager....................................1
P2 Role of a leader and the function of a manager.................................................................3
P3 Different theories and models of approach, including situational leadership,System
leadership and contingency....................................................................................................4
TASK 2............................................................................................................................................6
P4 Key approaches to operations management and the role that leaders and managers........6
P5 Importance and value of operations management in achieving Business objectives........7
P6 Assess the factors within the business environment that impact upon operational
management and decision-making by Leaders and managers...............................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Operational management is basically based on designing and regulating the processes of
production and distribution in effective manner in respect to satisfying the needs and wants of
customers in the market place. Marks & Spencer is the chosen organisation for this particular
report. Marks & Spencer is a largest British multinational company ,which deals in high quality
home products, clothing and luxury food products (Accomazzi and et. al., 2012). The
headquarter of the company is in the city of Westminster in London. This report contains the
study about the different characteristics and roles of manager and leaders within the organisation.
Their Role in different situation, various theories and models along with their strength and
weakness will also be explained in the organisational context. Thus various key approaches of
operational management and different role of leader and managers in developing the operations
and efficiency will also be discussed in detailed manner.
TASK 1
P1 The different roles and characteristics of a leader and a manager.
Introduction to Organisation
Mark & Spencer is a global retail brand which is propounded in the year of 1884 with its
potential headquarters is in London ,UK. The company is good at selling apparels, high quality
home products and luxury food products. The company has around 979 stores and more than
84,000 employees all over the world.
As a large business enterprises the operation activities of Marks & Spencer are based on
Flat organisational structure in which management has control over all functional departments
of the organisation (Ahuja, 2017).
Meaning of Manager
A manager is a person who manages and directs an organization. They control day-to-day
affairs of an organization and are responsible towards carrying out the organisational goals and
objectives effectively. In an organisation, manager is responsible for planning , organising,
directing, staffing, problem solving and controlling the business activities.
Meaning of Leader
A leader is a person who encourages and leads a group of people to achieve the goals
effectively and efficiently. They are accountable to provide guidance , motivation, training etc.
to there group members so that they can work independently and focused on one direction.
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Difference between role of manager and leader
Basis Leaders Manager
Risk Management Leaders are responsible for assisting
organisational employees towards right
direction so as to develop the
operations of firm. As a popular
retailing brand, the leaders of Marks &
Spencer are concerned on taking risk
and motivate organisational employees
to work within a team to reduce
chance of work by completion of the
organisational activities with proper
collaboration of employees.
Managers are the key elements of
the firm as the overall
managements of operations are
based on the direction of
management. The manager of
Marks & Spencer are concerned on
decreasing the chance of risk by
managing proper implementation
of activities. Managers are also
focused on avoiding risk and
managing problems.
Working pattern Leaders are basically focused on
motivating employees in order to
contribute their significant order in the
organisational operations. The leader of
M&S follows motivational leadership
style as to encouraging organisational
employees to attain desire goals and
objectives of the firm.
The Managers of M&S are using
authoritative management style in
which employees are work as per
the direction of management.
Characteristics of Manager
To manage a company like Marks & Spencer who serves around 32 million customers,
its manager needs to possess some characteristics based on which they serves the organization.
These characteristics are as follows:
Communication: Manager should be able to communicate within the organization as
well as with the outside environment (Alderton and Saieva, 2013).
Controlling: Controlling is one of the important characteristic of managers. There are
different business operations which has to be performed by employees, then it is responsibility of
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managers to control commercial activities. It is also identified as the practices to develop the
highest level of growth and profitability.
Characteristic of Leader
Leaders are the essential for the firms . These characteristic of the leader to help the
company to lead easily to achieve the goals of the company like M&S are:
Delegation: Delegation of duties is very important as it harnesses the growth of an
employee by exposing them to responsibilities. An ideal leader should have delegation as one of
their major characteristics.
Communicative ability: Communication is very important in an organisation. A leader
always have the clear vision about there goals (Burns, 2014). M&S follows the communicative
ability characteristic , there leader have the clear vision about there goals. Communication ability
not simply to explain the things to your team , its also to read and listen the team member.
P2 Role of a leader and the function of a manager
Managers are important component which helps to perform business operations in
effective and desirable manner through proper planning and coordination among different
departments. There are different functions played by leaders such as planning, organising, etc.
these activities assist in getting positive results out of it. Functions of managers are as under-
Planning- Planning is one of the basic function which helps in performing commercial
activities in appropriate manner. Planning involves activities which makes an guidelines for
further activities. There is requirement of different resources such as finance, labour, machinery,
etc. are planned for performing operations.
Organising- Organising means planned resources has to be implemented in appropriate
manner. Managers organise resources, so cost for Marks and Spencer can be reduced and
resources are available on time.
Commanding- Commanding means to keep eyes on working style of workers. There are
numerous employees in Marks and Spencer so managers keeps synchronization in their
activities(Feng and et. al., 2014).
Coordinating- Coordination is important among different departments of Marks and
Spencer. Managers makes strategies in order to coordinate among business activities. With the
help of coordination targets are achieved on time and within specified budget.
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Controlling- Controlling is the last function performed by managers. In case of negative
results with the help of controlling, area of flaws can be known and corrective measures can be
implemented.
There are several situations in which managers perform important role. These days
changes are taking place very frequently, so leaders has to be make changes in their working
policies (Galindo and Batta, 2013). Leader has to motivate workers through which they can use
innovative approach to accomplish business objectives.
Stable changing situation- This is the situation in which changes are taking place rarely.
This is the situation in which managers of Marks and Spencer alter policies scarcely. For
instance- motivational policies for employees are changed rarely so in order to motivate lower
level managers, monetary benefits are given. While in case of top level managers non- monetary
benefits are used such as promotion, transfer, etc. In such changes managers play significant role
to plan incentive policies for employees.
Moderate changing situation- In moderate situation, managers has to analyse market
regularly. Marks and Spencer deals in clothing sector, so there is change in taste of consumers.
This is example of moderate situation. In this there is requirement of leaders has to analyse
approaches through which they can satisfy consumer demand. Leader has the responsibility to
analyse market and taking feedback then policies has to be taken according to customer
requirement.
Fast changing situation- Fast changing situation includes technological changes. These
days up-gradations in software are done frequently, so managers has to upgrade their system.
This ease in working and business operations are compatible to other firms. Managers of Marks
and Spencer has to plan training event for enhancing knowledge of employees.
P3 Different theories and models of approach, including situational leadership,System leadership
and contingency
In business environment, changes are taking place very frequently so Marks and Spencer
has to alter their plans and policies to maintain good brand image in industry (Gunasekaran and
Ngai, 2012). This can be done through leading and motivating employees to give their best.
There are different motivational approaches such as monitoring intensives or non monitory
benefits. These are implemented as per mindset of worker. Managers of Marks and Spencer has
different leadership theories which helps to get positive result. They are discussed as under-
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Situational leadership- This leadership theory works as per situation. There is no specific
method to lead personnel. As per circumstances situation leadership is implemented. As per this
leadership, managers guide and direct employees according to situation and circumstances. In
this leadership, there are four components, they are- telling, selling, participating, delegating.
Advantages Disadvantages
In situational leadership, managers of Marks
and Spencer has to coach workers, so this helps
to get positive results out of commercial
activities.
There are possibilities that leadership
technique may prove wrong because of wrong
perception by managers. This affects business
operations in adverse manner.
System leadership- System leadership is opposite of situational leadership. In this
leadership, there are some set ways, methods through which managers can lead their team
(Hillier and Price, 2013). In this leadership, there is no innovative strategy in this style and this
leadership approach are rigid and consistent. There are different goals and targets set by leaders
which has to be achieved by subordinate so in this case system leadership is used because set
targets has to be achieved through appropriate manner.
Advantages Disadvantages
As business operations are performed in set
way, so there are bright possibilities of getting
positive results.
It is not important that same set of leadership
technique works for every situation. So this
might not give positive results.
Contingency leadership- Contingency means danger. There are many ups and downs
happening in business environment, so in this case managers has to be ready to lead employees
according to circumstances (Jacobs and Chase, 2017). For instance, if there is some issue to
consumers related to quality of clothes, then in this case leader has to take fast decision and
guide team to analyse market, check quality properly so situation can be handled.
Advantages Disadvantages
This is the leadership which helps to deal with
contingent situation arise at work place in
better way. In this innovative measures can be
As there is difference in mindset of managers,
so there are possibilities that conflict may arise
among them related to implementation of
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taken by managers of Marks and Spencer to
deal with situation.
strategy. This affects brand image of Marks
and Spencer.
Impact of managers and leaders in implementing theories on organisation-
Leaders and managers plays important role in improving working style of organisation.
Leadership helps to get positive results out of performance of workers. It is essential that
managers has to analyse market and then motivate employees to give best. Out of above
mentioned leadership theories, situational leadership is best. In this, actions are taken according
to circumstances (Kato, NEC Corp, 2012). Managers has to generate guidelines to perform
business operations and then actions they analyse working style of employees. Hence positive
results can be analysed in working style of employees.
RECOMMENDATIONS
As recommendation, there is requirement of raining of employees, so they are compatible
to external market. When technological up-gradations are done in working style,. Then class
room training must be provided. This helps to know importance of change. Marks and Spencer
has good brand image in industry, this is because they motivate their employees, but they must
give chance to employees in decision making. This helps to get good and innovative ideas to be
implemented at work place and this boost confidence of workers.
TASK 2
P4 Key approaches to operations management and the role that leaders and managers
Operations management is identified as an effective area of management which is related
with controlling and designing the activity of production and redesigning operations of company
in the manufacturing of services or goods. Operation management of M&S is related with the
store layout in which business has revamped their visual marketing and window displays to do a
good task of showcasing its products or services (Parsanezhad and Dimyadi, 2013). In this,
manager and leader of the company play vital role by applying different approaches to operations
management. Some are determined as under:
Total quality management: It is referred as a structured and extensive organisational
management approach that put emphasis on continuous improvement of services and product
quality by following continuous feedback. In addition, it is a act of overseeing entire activities
and tasks desired to retain a wanted excellence level. It includes developing quality assurance,
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planning, quality enhancement and control. Main purpose of applying this approach is to
improve their quality and enhance performance in all functions, processes and departments. In
this, leader play vital role in ensuring effective utilisation and involvement of all of its
employees. Beside this, manager ensure continuous improvement of business and production
process.
Continuous improvement: It is an approach which is applied at work place to improve
function of business. It main aim is to eliminate the wastage of organisation. It is based on the
principles of the 5S. It is implemented in the operational management to break down the
departmental barriers and improves team work (Peng and Lai, 2012). This method is iterated by
the approach of six sigma. This approach is followed by the textile and manufacturing industries.
The role of managers is to identify the success of team and maintain awareness among team. In
this role of leader is to invite large number of workers to product and service quality.
Lean production: This system is refer as a systematic and simple approach which
supports in reduction of wastage. Lean production is essential and assist in the operational
management of M&S Ltd by enhancing visual management, improving product quality, reducing
use of manpower and increasing efficiency in the manufacturing process. Role of leader in lean
production is supports the employees to know their actual and real duty about such approach. In
this manager also play essential role in reporting the progress and success to the top
management.
P5 Importance and value of operations management in achieving Business objectives
Operational management covers designing, managing and controlling production process
so as to accomplish efficiency and effectiveness in their functions from production to quality
services and products. It is important and significant for the M&S in order to maintain wastage
and improve their quality. There are various importance and values of key approaches to
management which are determined as under:
Scheduling: It is identified as an effective and significant function of operations
management as it support in accurate distribution and scheduling of tasks as per the employees
skills, business resources and time available for winding-up of the task or activity. Task
scheduling is referred as an important and essential process for M&S as it develops the whole
framework of the activity to be completed in a allotted time duration (Singhal and Singhal,
2012). It fulfils the business objectives and goals of designing the accurate product at the perfect
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period by applying the accurate process. The effectiveness of scheduling process or activity will
support M&S to complete the task allotted by the organisation according to the requirements and
needs of the business which will assist them to attain their business goals and targets.
Control and distribution systems: These are refer as in important and significant factor in
operations management of an enterprise as it is liable in monitoring the process of product
manufacturing and ensuring accurate distribution of business products or services in order to
achieve objectives and targets of M&S. The efficiency of this system can be enhanced by
adopting a useful and strong control system. It is important to enhance logistics infrastructure of
business to meet the long term goals and objectives of firm. The distribution and control system
is related with the accurate monitor of distribution of resources as per the different procedures in
a calculative way.
Therefore, leaders and managers could be effective in enhancing efficiencies and
effectiveness of business operations in order to meet business objectives and goals in successful
manner (Subramanian and Ramanathan, 2012).
Clearing labour redundancies: It is identified as an effective and essential for a M&S
leader in order to abolish entire useless hierarchical positions that is existing in the lower ground
of business structure during the part of any significant tasks. Beside this, leader will be able in
order to communicate business objectives with the other workforce. As per the opinion of
operational management, it supports in clearing all the unproductive and ineffective components
of the manufacturing activity. It impact on employees productivity in which main role of
manager and leader is to determine the redundancy factor.
Creating incentives programs: It is identify as an another main technique that
administrator requires to apply in order to maximise efficiencies of business operations. As it
perform as a motivation and promotions towards the workforce who work with more efficiently
for the M&S for its own advantages which maximise the productivity and performance of
workers.
Therefore roles of manager and leader are important for the growth and success of
organisation within predetermined time duration. It will also essential for increasing sales and
profit of company (Accomazzi and et. al., 2012).
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P6 Assess the factors within the business environment that impact upon operational management
and decision-making by Leaders and managers
Marks and Spencer operates in society and in business environment changes are taking
place frequently. This is the association which has good image in industry because managers
take actions according to change in external factors. PEST analysis is effective technique to
know what is happening in external business environment.
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(Source: PEST Analysis, 2015)
Political- In political analysis, government bodies, rules regulations are considered.
Government bodies are important component in business sector. There are some rules and
regulations such as tax rate which has to be considered by managers of Marks & Spencer has to
consider. In case political party changes then there is change in their policies also. So this affects
decisions of Marks and Spencer and change in policies has to be done.
Economical- Economical factor includes finance related terms such as inflation ,
deflation, per capita income, etc. There is difference in these economical rate as per country. So
managers of Marks and Spencer has to consider these rates in decision making (Ahuja, 2017).
For instance in UK, loans are available at lower rate as compared India. So it is economical for
Marks and Spencer to raise funds in UK. This affects decision making strategies for business
growth of Marks and Spencer.
Social- Social factor includes cultures, values, ethics of people residing in society where
business operates. Marks and Spencer operates at world wide level and there is difference in
demand of clothes. In UK western attire is acceptable while in India it is not so accepted. This
affects decision of managers related to delivering goods and services to society.
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Illustration 1: PEST Analysis

Technological- Technology changes are taking place very frequently these days.
Technological changes helps to perform business operations in effective and efficient manner. It
is essential for managers of Marks and Spencer to analyse technical changes properly because
there is involvement of cost as well as time. This affects decision making of managers. For
instance, accounts software gets updated then this helps in performing work in appropriate way
through proper planning and managing business operations (Alderton and Saieva,2013).
CONCLUSION AND FUTURE RECOMMENDATIONS
PEST analysis is one of the effective technique through which external environment can
be acknowledged. It is important to consider changes which are effective and signifiant for
business growth and development. If external changes are not considered by managers of Marks
and Spencer, then this affects brand image. There is impact on decisions taken by managers
because of change in external factor of business. Technological changes has to be accepted and
in order to learn new technique, training must be provided to employees.
As recommendation, market analysis helps in growth and development of association.
Mangers must interact with employees so that their preferences can be known and actions can be
performed accordingly. There must be involvement of employees in decision making so that they
can understand organisational policies in more effective way. When interaction with employees
is effective, then this helps to maintain good relations among peer members. Training must be
providing according to requirement whether on the job or off the job measures.
CONCLUSION
From the above discussion importance of operations management is clear. Managers and
leader plays vital, role in managing business operations. As there are many situation arise at
workplace, so in those situation manager has to act as per situation. In case of technological
changes market analysis is done by managers to implement change in appropriate way.
Leadership plays vital role in upgrading positive results out of working, so situation,
contingency, system leadership is used. There are different techniques such as lean production,
total quality management, etc. which are effective for improving performance of organisation
and reduce possibilities of defects. Scheduling, Control and distribution systems, Clearing labour
redundancies, etc. are positive results of operations management. In order to analysis external
market PEST analysis is done and then its impact on decision making is used.
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REFERENCES
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lean manufacturing (lean production). 2017. [Online]. Available through:
<https://searcherp.techtarget.com/definition/lean-production >.