Importance of Operational Management in Asda

The assignment provides a detailed analysis of operational management in Asda, discussing external factors such as economic conditions, politics, environment, goodwill, resources, and product prices. It also examines the role of leadership approaches in managing these factors to achieve competitive advantages.

Operation Management

Illustration Index
Illustration 1: Function of management...........................................................................................2
Illustration 2: leadership approaches...............................................................................................4

INTRODUCTION
Operation management refers as an area that is liable for overall management and design
of products and various services. The main target of this management is to fulfil all strategic
goals of the company (Albrecht and Dasigi, 2016). In this context, there is a company Asda,
which is situated at Leeds, West Yorkshire, England. It is a retail company and includes many
groceries; financial services and general merchandise.
In this report, roles and responsibilities of leaders and managers are describes and further,
it will refer various approaches of operation management that are used in the store department of
this company. Lastly, it covers internal and external factors that will influence business activities
and operations.
TASK 1
a)
In every company, there are many managers for various departments and also several
leaders who handle their team to manage all activities and tasks in accordance to achieve goals
and targets of that company (Ando and et.al., 2018). In this context, the manager performs
various tasks for achieving the departmental success. The leaders perform their responsibilities in
order to cover up various complicated situations.
In addition to this context, the meaning and roles of leaders and managers are as follows:
Managers – It is a person, who conducts various task and activities. He or she also makes plans
and strategies to fulfil the organisational goals and targets. The manager is maintained control
and manage all activities of that particular department and gives different tasks to employees so
that they achieve the aim of that department. Every sector of Asda has many managers and they
make new plan and strategies to maintain the control over on the organisation.
Leaders – Leader is a special person who has a team with many members and they work
together for achieving the organisational goals and objectives. The entire team members have
sufficient skills and by using this, an organisation achieves desired targets and goals (Anvari-
Moghaddam and et.al., 2016). The leader is a person who manages staff member and employees
in order to achieve several competitive advantages. The leader has communication and
leadership skills for solving conflicts and issues which can be raise in his or her team.
Managers Leaders
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Managers are depended on the organisational
structure and they are delegates about their
work
Leaders provides direction to their team
members
Manager makes a plan The leader is able to develop the vision
Managers are followed the company's rules
and policies
Leaders are follow his or her own instinct
They deal with technical dimension In this case, they deal with people's aspect in
any organisation
They evaluate many people by their personal
information and performance
They evaluate an individual by his potential
and work efficiency.
Management is a reactive process In this context, leadership is proactive
They have management skills They have leadership skills
b)
In every company, there are various managers for every department who manage their
work according to their staff members. Many organisations follow their own principles and their
manager works according to their skills and abilities (Bahmani-Firouzi and Azizipanah-
Abarghooee, 2014).
In this context, there is a person named is Henri Fayol who was born in 1841 in Istanbul
and he was an engineer and worked in a large mining organisation at France then he was
eventually become the director of that company. There were more than 1000 people who worked
under him. He noticed that there may be some departments in the organization that are
commercial, technical, financial, security, operational and managerial. Fayol described 6 major
functions of management that are Forecasting, Planning, Organizing, Commanding,
Coordinating, Controlling but various business standards and scientists applied only five
functions. These five main functions describes as follows :
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 Planning – It is very important task to accomplish by every manager in his or her related
department. It is very complicated and difficult work to manage all departmental
activities (Deihimi, Zahed and Iravani, 2016). Planning means all things will be
conducted in the future, is decided in present and makes whole procedure about
accomplishment of it. Planning is a special process which is connected with respect to
time and implementation with effectively and efficiently.
 Organising – It is the important task for conducting and managing all employees with
respect to work and this will useful for every manager for their management. This is the
function complete well, if it is well organised. It means requirement of proper staff,
capital employed and raw materials for production of various outputs. In any
organisational structure, there are a good division of various tasks and functions that are
crucial.
 Directing – It is a special task, which is conduct by the manager for give various
commands to their employees and give inspiration to his or her staff members so that
they all work properly in the prescribed manner in order to achieve the desired targets
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Illustration 1:
Functions of management
(source - Functions of management. 2014)

and goals. These orders are given for clear working instructions and it will helpful for
employees so that they all know what exactly they do.
 Coordinating – This kind of activity is done by the manager when all tasks are
harmonized and by using this the company work its business activities better than others.
In this context, positive influence of staff members is important (Jin and et.al., 2015). It is
the aim of discipline and stimulating motivation within the team and this is used in the
success of the particular company.
 Controlling – This task maintain control over on the team members in the right way and
all the employees done their work according to the manager's order. The manager uses
this technique for maintaining control over staff members and his or her team worker.
c)
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Illustration 2: leadership approaches
(source – TBAE 2018)

Leader is a special person of a company; he conducts various tasks and he leads his team.
The best leader always inspires his team members and him or she accomplishes all work with the
help of all employees (Kavousi‐Fard, Niknam and Baziar 2015).
The various functions of leaders of Asda Company are divided into different categories
and he or she performs such functions in the proper way. The leadership is a special post in the
company and it is leads and control the team and his or her group. In accordance with this, there
are many authors and scientist who provides various approaches and theories which are too much
helpful in their work. The management team of Asda and their leaders follow such theories are
as follows :
 Situational leadership theory – In this type of theory, the leaders can control every
complicated situation and they are able to work in different situations and their work also
good. This theory gives by the Ken Blanchard and Paul Hershey in 1969 with their skills
and abilities. This theory states different type of conditions and situations, the leaders can
use this as the business tool for solving various conflicts and issues.
 Contingency leadership theory – To become a successful leader, he or she can use this
theory in his or her work to get best results. This is a unique technique for solving various
types of problems that can generate in the organisational environment (Keahey Riteau
and Timkovich, 2017). This is useful for every leaders and for their organisation. The
management of the Asda company uses it for their leaders and the leaders are also work
properly and their team members are able to achieve the competitive advantages.
 System leadership theory – This is a different theory for applying in various situation
and it is a systematic approach. The company Asda and its leaders use this as to maintain
the control the whole workings of his or her team. This will help in communication
process and by using this a leader can understand the future targets and aims. For this
reason he would able to achieving them in the given time frame (Luo and et.al., 2017).
The system leadership approach also use for improving the staff abilities and their skills
in accordance to reach at certain height of success with effectively and efficiently.
TASK 2
1.
Production Process in the manufacturing company deals with controlling and
developing various products and services in the management process. It is a system that
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implement various process and techniques in order to convert of raw materials into finished
products (Albrecht and Dasigi, 2016). Operational management of a business consist of many
approaches and plan essential in fulfilling the organisational aim and targets. These strategies
play crucial role cost minimization which will result in increase profits. In production house, raw
material and various inputs are used in combination with labour power. Raw materials are
manufactured and modified using plant and machinery and output received in a form of finish
goods. It is necessary in maintaining healthy environment of the organisation and increase
productivity in order to achieve desired targets and objectives of the firm. Operations
management approaches which are used is the Asda are as follow:
Six sigma approaches – It is a effective technique, this is essential for providing useful guidelines
for work to achieve the target and if the above is approved management team it becomes
organisation (Ando and et.al., 2018). Management uses this technique in managing all events of
the organisation and the improving the weak points. It measures performance of workers
according to the benchmark set and optimally utilize in various resource of business. Asda is
capable of implementing this technique to improve the business process and achieve desired
goals on time. It is essential for enhancing the quality of products and it is beneficial in the
minimising of defects and errors from process. It will result in time saving and reducing the
production cost.
Lean production approach – This approach is used by organisation to minimize the wastage of
resources. This technique implemented by various department in the Asda company (Anvari-
Moghaddam and et.al., 2016). Specialist and skilled managers use this policy in the best possible
manner to get best and desired outcome. It is beneficial for both entrepreneur as well as for
stakeholder. Earlier Lean approach was used by manufacturing department but currently this is
used for various factors like Lean Engineering, Lean office and Lean Developments.
Further, the various approaches of operations management in product base industry are
like Just in Time, Kanban Kaizen and in order to make the best products this is utilised in several
process. In the service industry, the Agile development approach is use for delivering quality
products and better services (Bahmani-Firouzi and Azizipanah-Abarghooee, 2014).
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2.
In the Asda company consist of different managers like store manager control and
coordinate all activities related to warehouse which is essential in operational management. In
order to get desired achievement they plan manager plan their schedule in advance and work
according to it. The store manager distribute the daily target between employees and team
members to avoid the confusion. Each departmental manager should develop plan and different
strategies for achieving their desired targets (Deihimi, Zahed and Iravani, 2016). it is
responsibility of manager to maintain positive working environment of store department this
assure that employee work in a desired manner. They must be aware about the customer's wants,
needs and develop products to satisfy their demands. This help in maintaining the brand image
and goodwill of the business in front of the potential buyers. Manager on the basis of their
observation identify the needs and requirements of staff member. The knowledge and
experience of managers help in identifying the current trends and fashion. It is essential in
designing of new products and delivering quality services. Management must implement
innovative ideas to fulfil the requirement of their clients. Business can increase sale and profits
by modifying the existing products according to the specification provided by customer's. In
order to achieve growth and development management must utilise effective techniques in the
business process. Development of creative products grab the attention of buyers which help in
capturing of market share. Store manager of Asada company perform have many duties and
responsibilities within the organisation and his or her role is describes as follows:
Management of different equipment’s It is an essential liability of the store manager that
he or she should manage all assets and appliances
which are uses in the production process. This is a
basic role of the manager and he would liable for
arranging all equipment’s in the right way.
Making new market strategies In every company, the store manager makes new
plans and strategies to achieve competitive
advantages in the target market.
Cost optimization It is an essential for earning more profits and this
task should conduct by every manager (Jin and
et.al., 2015). It is a basic need of every organisation
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that makes more revenue and this is possible only by
reducing the cost.
Recruiting and handling This is also an additional work of the manager
because in some situation there are needs of
manpower or labour.
Maintain the sales environment For increasing sales, the manager makes various
plans and strategies for achievement of desired
turnover and success.
Inventory holding In the production department, this is an essential
task for handle types of bulk stock and also manage
the transportation service.
Manage the budget In the company, every department get certain
amount of fund for utilize in many expenses
(Kavousi‐Fard, Niknam and Baziar, 2015). It is the
duty of the store manager that he or she manages
their budget according to the fund.
3.
Operations management is considered to be the complete administration of organisational
practice & which produces highest range of aptitude possible for the organization. This
department is purely focuses on the production of various services and products in the prescribed
manner. In any organisation, there are many departments and the management of operations
helps in each and every department to attend the several business activities. The management
team is capable for manage all activities related to business and they also liable for managing the
operations related functions (Keahey Riteau and Timkovich, 2017). In the operation's
management these things are includes like designing, overseeing, controlling the whole
procedure of redesigning and production of the particular products and service. The Asda
company has many activities related to the operating various functions and its management team
accomplished it with effectively and efficiently. In this company, there are many departments
and major importance of the operation's management in such, as follows :
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1. In accounting department – The operations activities is too much useful in this
department because by using various methods and standards in this accounting
department, it operates its tasks smoothly and working environment also maintain (Luo
and et.al., 2017). In addition to this context, the payroll is easygoing to handle and also
the predictable cost can measure. This department also maintain its proper bills and
payment system so that the employees can work in better environmental situation.
2. In human resource department – This department is capable to make new plans and
predictions about the requirements of their staff member and employees with the help of
operation management. The manager of this department can use several methods for
training and development of new entrants and trainees. By using this management, it will
become easy to fill the vacant post and its cost is also decreased level (Mohammadi,
Soleymani and Mozafari, 2014). To develop employees capabilities and skills, it is the
best management which should be in every organisation in order to achieve desired goals
and targets.
3. In legal formalities – For every company, it should necessary to fulfil all requirements
of the legal structure of that particular country in which the company is situated. For all
activities of legal division, the operation's management is too much necessary for
fulfilment. Rules and regulations made by the government should be fulfil by each
company in order to achieve competitive advantages in their target market.
4. In marketing department – This department is also got success, if the all operations
related activities are success. In the company, this is only a department which is
maximum use of the operations. It is also a requirement in it because in marketing, there
are various activities which needs the better operations.
5. In finance division – Operations is play an essential role in collecting the funds and
capital requirement of the company. The management team is prepare the best model for
collecting its capital needs from various financial institute and further, the financial
department of the company is capable to manage all funds according to budget and
expenses (Radnor and et.al., 2016). So for this reason, the management of all operations
are required for this company Asda and it will fulfil all business activities in order to
achieve desired aims and targets.
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4.
All the departments within the organization works towards attaining the goals and objectives that
are set. At each levels, there are various type of elements that affects management in negative
manner. In this context, it is important to make sure that all factors are properly considered in
order to make the firm achieve their targets effectively and efficiently (Radosavljević, Jevtić and
Klimenta, 2016). In the Asda company, the management use several elements to identifying such
factors and then they solve for improvement in their operation management. This organisation
gets deep influence from outsiders and this is a great impact on its business activities. Every
manager of this company have many methods to solving the problems which are generates from
outsiders. For this company there are several factors that can effect the internal environment of
the company. So for this reason the organisation should eliminate all these factors and ensure
about its growth. In this industry, there are so many elements related to its external environments
and this will affect the sales and reduce the organisational productivity. This will also affect to
the employee's morale and due to this the staff members influenced in their work. The strength of
this company also reduce and many points of weaknesses can raise and this situation is become
complicated for managers of various departments. Major external factors that can influence the
operation's management of Asda group are discussed below :
 Market Situation – In such criteria, the business get affected from various market
conflicts and condition and due to the increasing and decreasing trend, the demand and
supply of various products and services of the organisation. In the target market, the
company sell its outputs and earn profits (Ribeiro and de Sousa Jabbour, 2017). If there
are any change in the market condition, then it will a huge impact on the company's
selling process.
 Suppliers – These are such persons or entity who sale their product to the company and it
is received as the raw material or for resale purpose. The purchase department of this
organisation is makes many policies regards to the material purchasing from creditors or
suppliers and they affect to the organisation (Szewczak, 2016). So for this reason the
management should consider this as major element for the company.
 Customers – Customers are those persons who purchase the company's products and use
its various services for their livelihood so this is also an external factor that should
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consider by the Asda's management team and rectify. The company can change in its
policy and make new designs for attract new customers.
 Economic Condition – It is also a considerable point for every company that it should
compile those updates and rules for their products and various services (Albrecht and
Dasigi, 2016). There are various changes in every economy and the organisation get
influenced by these changes.
 Politics – It is a huge element in every nation in their political environment and if the
company is situated in that economy then it should suggest to preparation according to
such policies and laws.
 Environment – In this context, the environmental factor can affect to the operation's
management and there is a special element is corporate social responsibilities that would
compile in each company's management.
5.
In every company, there are a big influence by the external factors on this business
activities and the management has challenge to solve it (Ando and et.al., 2018). The company
has many techniques to rectify it and it is a pattern which is based on the generalizations and
experience. It can lead the memory errors, faulty logics and several problems. The management
team of the store department makes decisions and innovative for various products and services.
These new ideas help in the production process. Various sectors that get influence by external
environment are discussed as follows :
 Goodwill – The external factor have a huge impact on the brand image as well as the
goodwill of the organisation. The image of company can change by its external
environment factors (Anvari-Moghaddam and et.al., 2016). These factors may influence
the company's policies that are customer policy, sales policy, production policy and many
more. The store manager makes many plans and strategy to resolve it and make best
brand in the particular industry.
 Resources of organisation – Every organisation have their own resources that are
required for accomplishment of production and trading activities and such resources also
influence. So for this reason the store manage should manage all these resources in the
right way.
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 Product price – Each product and service have its fix price and the external factor also
influence in the process of price decision by the store manager.
CONCLUSION
Management of various operation is an essential element for every company. The
management team of each organisation should consider this as the key point of success. In any
company, there are many managers and leaders for managing and maintaining control over on
that particular company. In this context, Asda company follow many operational activities in its
business and it follows many situational strategies to eliminating conflicts and issues. In this
report, major functions and responsibilities of leaders and managers are described. Furthermore,
importance of operation management in this company is discussed in the right way in order to
achieve competitive advantages.
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