Impact of External Factors on Business Operations

This assignment delves into the influence of external factors on business operations, specifically focusing on Marks & Spencer. It examines how factors like social trends, technological advancements, and economic conditions shape the company's operational decisions, using real-world examples and theoretical frameworks. The analysis highlights the importance of adapting to changing environments and incorporating employee feedback for effective decision-making.

Management &
Operations

INTRODUCTION
Operations management implies with performing business operations to achieve high
proficiency in commercial activities. It helps in converting raw stuff in useful product and
services. There are many activities such as manufacturing, purchasing, storing, marketing, etc. in
business organisation which jointly helps to attain good profits and brand image in industry. This
can be done effectively when business operations are organised in efficient manner. With
managing business operations, there are less possibilities of misuse of resources and workers are
aware of their roles and responsibilities (Bealkowski, Lenovo Enterprise Solutions (Singapore)
Pte Ltd, 2015). In managing business, leader and managers plays vital role. In this report, Marks
and Spencer is discussed which deals in retail sector such as home furnishing items, luxury
clothing, home products, etc. It has head quarter in London and listed on London Stock
Exchange. In this report there is discussion about difference between role of leader and function
of manager, different leadership theories applied at work place, relationship between leadership
and management in business environment.
TASK 1
P1 Define and compare the different roles and characteristics of a leader and a manager
Introduction to organisation
Marks and Spencer is good name in retail industry. This organisation was set up in 1884
by Michael Marks and Thomas Spencer in Leeds. It has around 979 stores all over world. There
are around 84,939 employees working.
This organisation has flat organisational structure in which there is less levels of
hierarchy.
Meaning of leaders
An individual that holds superior position as compared to other person. This person has
more roles and responsibilities as compared to other team mates with more power. Leader is the
person who has to lead team mates and motivate them to use different approaches through which
they can achieve targets in more effective and efficient manner (Caniani and et. al., 2015).
Meaning of manager
Manager is the person who works with group off people as per set standards in order to
complete task. Staff members report to managers regarding business operations. They have to
check whether business operations can be performed in effective and efficient way or not. Top
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level managers give instruction to middle level managers and accordingly they ask subordinates
to work.
Difference between manager and leader
Basis Leaders Manager
Risk taking/ controlling Leaders of Marks and Spencer
are risk takers.
Managers of Marks and
Spencer are risk controllers.
Path follower/ makers Leaders are path makers. They
think of new and creative ideas
to accomplish assign duty and
responsibility.
Managers are path followers.
They perform task on the basis
of set standards and
benchmarks.
Focus Leaders of Marks and Spencer
focus on promoting changes.
While managers of Marks and
Spencer does not support
change.
Strategy Leaders on the basis of
proactive strategies.
Managers of Marks and
Spencer works on the basis of
reactive strategies.
Role of a leader
Guiding employees- Leader plays important role in motivating employees. There are
many workers in Marks and Spencer having different mind-set, so this helps to perform
operations in synchronize and desirable manner.
Applying innovative approaches- Leader is another name of innovation. There are
different aspects through business operations can be performed in effective and efficient manner.
Leader provides innovative path through which workers can accomplish target on time and in
appropriate manner (Fayol, 2016).
Role of manager
Motivating- Manager is the person who manages business operations of different person.
In Marks and Spencer, there are numerous worker working in different departments so
departmental managers has to keep eyes on working style and motivate workers to give best.
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Training program- These days’ technological changes are taking place very frequently,
so it is responsibility of manager to [plan training program of workers. This helps to improve
working of overall organisation and workers are compatible to external environment.
P2 Explain role of leader and function of manager in different situational context
Business is the enterprise which is set up in order to achieve good profits. This can be
done when managers -perform business operations in effective manner and as per market trends.
In business environment, changes are taking place very frequently, so managers and leaders has
to analyse market trends and accordingly actions have to be accomplished (Ferruzzi and et. al.,
2015). Managers of Marks and Spencer must use different management theories in order to apply
leadership effectively. Henri Fayol establish principles of management in 1916, are discussed as
under-
Planning- Planning is one of the foremost function which creates path way for further
operations. In planning, resource requirement is analysed. This is the basic and starting stage of
management of Marks and Spencer in which proper discussion is provided to conduct operations
in better and effective manner.
Organising- After planning, organising is done. In organising, source through which
elements can be generated are analysed. Managers of Marks and Spencer has to make startegies
through which operations can assign to correct candidate as per skills and competencies.
Commanding- Commanding is one of the important component which helps to assign
correct roles and responsibilities to workers. While commanding manager must analyse skills
and competences of workers. It is essential for managers to analyse whether operations are done
in better and appropriate manner or not. If operations are not done in appropriate manner, then
there is requirement of proper guidance and direction to workforce.
Coordinating- With the help of coordination, possibilities of positive outcome are bright.
When results gets negative, area of flaws can be detected and corrective actions can be taken.
Coordinating is important because there is requirement of different personnel through which
operations of Marks and Spencer can be done in better and effective manner. Possibilities of
duplication of activities will nil.
Controlling- At last controlling is done. In case of negative result, through controlling
appropriate measures can be taken. Lastly after coordination, there is requirement of controlling
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of operations. This provides knowledge about conducting business activities and its progress
rate.
Marks and Spencer is big name in industry, this is because they alter there policies
according to market trends. There are different situations arise in environment which affects
working style. If leaders of Marks and Spencer does not perform operations in appropriate way,
then they might be go out of run in industry. Some situations are as under-
Stable situation- In business, there are some situations which does not change frequently.
They changes very rarely (Fitzpatrick and et. al. 2015). In order to completable with such
situations managers has to analyse market and then actions has to be taken. In case of Marks and
Spencer, performance appraisal is related to stable changes. Policies of performance appraisal is
done once a year, so this is example if stable situation. In order to coordinate with it managers
has to check performance of employees whole year.
Moderate situation- Marks and Spencer is the organisation which deals in clothing,
home furnishing, etc. so there are changing taking place in taste of consumers. So it is
responsibility of managers to analyse market and then provide appropriate product. As there is
change in fashion, so it is essential to alter stock at stores. These changes are part of moderate
situation. In this situation, changes are not done rapidly but these are important alterations which
assist in growth and development of business (Higgins and et. al., 2015). Managers and leaders
of Marks and Spencer has to regularly take feedback from customers which helps to analysing
taste and trend of customers.
Fast changing- In fast changing situations, alterations are done on frequent basis. There
are technological up-gradation taking place very frequently. This is effective for growth and
development of business. These changes are important for business growth because, if not do so
then this makes Marks and Spencer out of run. Up-gradation in mobile application is example of
fast change. With this change there is ease in shopping to customers, display of product can be
resolved. It is responsibility of leaders and managers to select approaches through which
technological up- gradations can be done in effective manner.
P3 Apply different theories and models of approach
In business operations, changes are taking place with rapid speed. It is essential for Marks
and Spencer to accept alteration to make same brand image in society. As there are many
workers working to achieve goals and targets hence manner has to lead them so business
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operations are according to market trends. Leadership assist in performing operations in
appropriate way because manager keeps eyes on working style of employees. In case of any
flaws, appropriate action can be taken.
Situational leadership- Situational leadership is applied to business operations according
to circumstance, business environment. In business, there are different situations which arise, so
with the help of situational leadership, manager act according to employees' perception, nature of
team, type of task, etc. In this leadership style, there is no specific set of leadership approaches.
In case of Marks and Spencer, there is change in taste of consumers hence manager has to
motivate workers to analyse market and then provide product and services (Khlat and et. al.,
2016). In this leadership, there are four components i.e. telling, selling, participating, delegating.
With the help of situational leadership managers can use monetary or non monetary benefits
which helps in sustainable development of organisation and increase growth prospects for Marks
and Spencer.
Advantages Disadvantages
With this leadership, manager can apply
different techniques in order to motivate
workers. As there is difference in demands and
needs of employees, hence with this technique
they can motivate employees as per
circumstances.
There are possibilities of dissatisfaction among
employees because of this leadership
techniques because if employees motivate
worker with monetary benefits, then this may
create situation of personal indifference at
workplace. This affects working environment
of Marks and Spencer.
System leadership- System leadership has some rigid policies which has to be followed
by managers in order to lead employees. There are some specific criteria according to which
managers perform operations such as benchmarking (López and et. al., 2015). Managers set
specific goals which has to be attained by employees which helps to This leadership helps to
perform operations in appropriate way and possibilities of defects gets reduced. This is the
leadership criteria which is important for reducing possibilities of defects and commercial
activities are done in set format.
Advantages Disadvantages
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System leadership helps managers to perform
operations in set format. This is effective for
accomplishing task on time and in specified
manner.
In current market, changes are taking place
frequently, so there is requirement of new and
innovative approach, in such case this
leadership approach does not apply.
Contingency leadership- Contingency means danger. There are various situations which
occur in business environment. This leadership approach differs as per situation and
circumstances. This leadership depends on perception and mindset of workers. This technique is
effective when manager's working style matches which current situation. Managers use best
measure through which overall production of Marks and Spencer ca be improved.
Advantages Disadvantages
With this style, managers are able to know
perception of employees which helps to
perform in significant manner.
This approach is difficult to implement because
here is difference in perception related to
similar situation. Sometimes this creates
d9fference among managers as well.
Impact of roles and leaders on organisation-
With the help of these leadership theories, business operations can be performed in more
effective and efficient way. With the help of system leadership, it is easy for managers to
perform operations as per sett standards. In this case managers must set standards and motivate
employees to perform well (Minchala-Avila and et. al., 2016). With this it is easy to reduce cost
and improve quality of product and services. This ultimately helps in overall growth of Marks
and Spencer.
RECOMMENDATIONS
As future recommendation for managers of Marks and Spencer is that they must use give
chance to employees in decision making. This helps to get new and innovative ideas and at the
same time employees also feel motivated as they are important part of organisation. As there is
technological up- gradations in industry, so managers must plan training event for employees. In
order to motivate subordinates level employees monetary benefits must give, while for middle
and upper level managers must consider non- monetary incentives.
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TASK 2
P4 Explain the key approaches to operations management and the role that leaders and managers
Operations management means design and control production and other related
activities. There is use of approaches which are important for supervising commercial activities
in order to gain high productivity and profits. Marks and Spencer is the organisation which
operates in different part of world, so they have plan their operations according to need and
demand of consumers. In order to expand business and maintain same image in industry, it s
essential to convey employees regarding their job roles and responsibilities. Key approaches
followed by managers of Marks and Spencer are as under-
Total quality management- Total quality management means actions taken by managers
in order to reduce errors and from goods and services (Morschett, Schramm-Klein and Zentes,
2015). In this approach main focus is at production department which are liable and responsible
for their aim. This motivates employees to perform operations in effective manner and hence
quality of product and services can be maintained.
Continuous improvement- Continuous improvement is the process through which
managers of Marks and Spencer take actions in order to improve quality of product and services.
This helps to increase customer satisfaction and enhance brand image in industry. Continuous
improvement can be done through four main actions plan, do, check, act. These four activities
help to maintain good quality product.
Six Sigma- Six Sigma technique is based on Japanese approach in which main focus is to
nullify defects. As per this technique managers measure quality of products by comparing
defects while production. With reduction in wastage, cost can be maintained and profits of Marks
and Spencer can be improved (Pavlineri, Skoulikidis and Tsihrintzis, 2017).
These approaches of operational management can be implemented by active role of
managers. Departmental head has to keep eyes on working style of workers, sob they can lead
them to give best. In order to reduce wastage, Six Sigma must be used by managers of Marks and
Spencer. Managers must use proper communication channel such as email, business phones,
conferences call, etc. in order to discuss and deliver appropriate information. With the help
continuous improvement technique, managers can perform operations to improve quality and this
helps to increase consumer loyalty for brand.
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As Marks and Spencer is the organisation which deals all over the world, so it is
responsibility of managers to deliver some powers to subordinate level employees with
responsibility. This helps them to perform commercial activities in more effective way. In order
to reduce possibilities of wastage, managers must use training methods through which employees
can have knowledge about technological changes and this helps in increasing efficiency of whole
organisation.
P5 Explain the importance and value of operations management in achieving Business objectives
Operations management is one of the important component in order to run
business in effective and efficient manner. These days’ demand of consumers is changing
frequently, so with the help of managing business operations they can coordinate with market
trends (Peng and et. al., 2015). There are different departments in Marks and Spencer having
inter- related operations such as purchase department works according to instruction of
production managers, production departments depend on sales manager, etc.
Reduction in wastage of material- With the help of operations management, possibilities
of wastage gets reduced. In operations management there is coordination among various
department, so activities are performed in planned manner. It is important to manage and
organise resources in positive manner through proper storage. In management operations,
managers of Marks and Spencer plays very important role as they create link among departments
and flows appropriate information to concern department.
Quality improvement- Quality is one of the important component which is asked by
customers these days. Marks and Spencer has good name and fame in industry, now it is
responsibility of leaders and managers to perform take actions which helps in improvement of
quality (Schulze and et. al., 2016). There are different quality aspects such as continuous
improvement, Total quality management, etc. which has to use by managers in order to improve
quality of product and services.
Reduction in operating cost- Operating cost is the expense incurred by Marks and
Spencer in order to run business in appropriate manner. In operating expenses transportation,
storage cost, maintenance cost, etc. are not directly related to manufacturing of product in Marks
and Spencer. But helps in assisting business operations with minimum cost and profit of
organisation can be maximised.
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Improved communication- Communication is medium through which one individual can
share views, thoughts, ideas with other. It is one of the important aspect which helps to perform
business operations in effective and efficient way. As there are different departments in Marks
and Spencer so it is important to convey information from one department to other. With the help
of operations management, managers convey complete and relevant information through mail,
business phones, etc. so it helps to create good and proper communication.
Above discussed importance of operations management can be effective with
involvement of leaders. It is responsibility of leader to proper plan business activities and convey
to concern department. This helps to perform business operations in effective and efficient
manner. TQM, continuous improvement, Six Sigma are some quality measures which has to be
used by managers of Marks and Spencer. Managers must fix appropriate time for every activity,
they must analyse regularly business operations and in case of flaws proper guidance has to be
generated. As there is change in market trend, then it is responsibility of managers to convey
alterations to various departmental head.
P6 Assess the factors within the business environment that impact upon operational management
and decision-making by Leaders and managers
Marks and Spencer is the company which has outlet in different parts of world. They
have dynamic approach of working. This brand has good image in India, this can be maintained
by essential role of managers. These days’ changes are taking place very frequently, so in order
to analyse these days PEST is used by Marks and Spencer. Managers has to later their business
plans and policies and alter decisions in order to coop- up with external business environment.
Political- In political factor, government rules, regulation, policies are considered. There
is difference in political parties as per change in country, so managers have to alter their
decisions (Wang and et. al., 2015). For instance, as per change in government party, they launch
new tax of cleanliness, then managers of Marks and Spencer has to change their decisions and
working policies. They have to change their decisions in form of techniques to proper drainage
system, dustbins, etc.
Economical- In economical factor, tax rate, inflation deflation, per capita income, etc. are
considered. There is difference in inflation rates of different countries such as UK and India, so
process of product will finalise accordingly. For instance, tax rate of bank loan become higher in
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such case managers of Marks and Spencer has to change their decision of raising funds through
bank.
Social- Social factors includes culture, geographical background, etc. for society where
organisation operates. As Marks and Spencer has world wide reach, so it is important to analyse
culture, trend of society and then product and services has to be launched. As there is more
demand of western dresses in UK as compared to Asian countries, so managers has to alter their
dresses according to Asian countries. This affects decisions of company also.
Technological- Technology plays very essential role in improving working style of
organisation. As per change in technology n market, managers of Marks and Spencer has to alter
their working style, this helps to maintain same brand image in industry and long run is possible
in industry (Wu and et. al., 2016). As there is no need of mobile application of Marks and
Spencer, but as per technology up-gradation, they alter their decision by launching portal
application.
Conclusion and future recommendation
From the above decision it is clear that external factor of business also affects business
operations. In order to maintain same image in industry and to compete with other organisations
it is important to accept changes. Feedback from employees must be taken so working style can
be modified. As per change in technology manager must adopt it as per suitable for business
growth and development and compatible with other firms.
As recommendation managers must take views of employees related to working style.
When technology upgrades, then training programme must be conducted. Training must be done
by methods through which workers can learn and feel comfortable at work place. In order to
reduce out of stock material and duplication of activities, proper communication channel must be
used. Managers must provide chance to employees in decision making so perception can be
analysed. This helps to use new and innovative technique at work place and they also feel crucial
part of organisation. This helps to create good and flexible environment within association.
CONCLUSION
From the above discussion, role of operations management is cleared. It is important
sector which helps to perform business operations in effective way. Managers and leader helps to
perform business activities in desirable manner.
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In organisation, there are different situation such as in case of change in customer's
desire, then manager has to analyse market and strategies are framed for selling or storing old
store. This helps in arrival of fresh stock. Maslow's need hierarchy theory is effective for
satisfaction of employee's monetary or non monetary needs. This helps to maintain good and
long term relations with employees. Continuous improvement helps to improve quality of
product and services and hence brand loyalty increases. External environment factors such as
government policies, rules and regulations, etc. are not in control of managers hence
organisational policies has to be altered. Hence operational management helps to perform
business activities in appropriate manner.
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REFERENCES
Books and Journals
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