Principles of Operations and Management

This article discusses the principles of operations and management, including analysis of the business environment, core operational activities, impact of corporate responsibility and new technology, organisational strategy and decision making, and monitoring and controlling in the organisation. It also includes a SWOT analysis of Star Event Enterprise, an Australian event management company.

Running head: PRINCIPLES OF OPERATIONS AND MANAGEMENT
Principles of Operations and Management
Name of Student
Name of University
Author Note

1
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Table of Contents
Section 1: Power point presentation...........................................................................................3
Introduction............................................................................................................................3
Analysis of business environment..........................................................................................3
Analysis of core operational activities...................................................................................6
Explanation of impact of corporate responsibility and new technology................................8
Explanation of organisational strategy and decision making.................................................9
Explanation of monitoring and controlling in the organisation..............................................9
Impact of operations function on supply chain....................................................................10
Section 2: Resource allocation plan.........................................................................................10
Introduction..........................................................................................................................10
Resource management strategies..........................................................................................11
Supplier management strategies...........................................................................................12
Application of tools..............................................................................................................13
Conclusion............................................................................................................................16
Section 3: Risk management plan............................................................................................17
Strategic analysis of operations functions............................................................................17
Developing a contingency plan............................................................................................17
Identify potential risk or hazards and control measures.......................................................18
Developing contingency plans and strategies.......................................................................18
Application of tools..............................................................................................................18

2
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Recommendation..................................................................................................................20
Section 4: Strategic risk analysis..............................................................................................21
Conducting SRA of the organisation....................................................................................21
Developing contingency plans and strategies.......................................................................23
Reference..................................................................................................................................24

3
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Section 1: Power point presentation
Introduction
Operations management is considered as the administrator of business practises that
helps in the creation of a highest level of efficiency in an organisation. According to
Madhavaram, Hunt and Bicen (2017), the major benefit for operational management is that it
can help in maintaining the resources in an organisation. On the other hand, the role and
activities of operations management is strategic as it deals with the planning of organisational
success. It helps in being tactical after receiving credits from the materialistic sources and at
the same time remains operational as it undermines the activities of organisations. The major
functions of operations are to maintain a transformation process. The context of operations
strategy is to maintain any type of changes in an organisation. For this particular research Star
Event Enterprise is taken into consideration that operates in Australia. The functional
departments of Star Event Enterprise include the human resource management, finance as
well as production and sales. For example the human resource management takes into
consideration the number of recruits required for maintaining stability within the
organisation.
Analysis of business environment
In order to succeed in a competitive environment it is necessary for organisations to
understand the business environment by analysing the external factors that affect it (Smith
2016). This can be done by conducting a PESTEL analysis.
Political: The political scenario of a country is usually unstable owing to the
controversies that exist within the different countries. However, in Australia, the political
scenario is stable and it provides the required support that can help in the development of a

4
PRINCIPLES OF OPERATIONS AND MANAGEMENT
company in the region as well as outside of it (Boasson and Wettestad 2016). Therefore, for
Star Event Enterprise to succeed in the business environment the political scenario of the
Australia plays a crucial role. For example, the political scenario of Australia can provide
ample support for the company to develop and engage in organising events that can help it to
promote sustainability in the environment. Thereby the operations of the company can have
excess support from the Government in terms of relaxation of rules as well as financial
support.
Economic: The economic condition provides stability to a country particularly during
the time of recession. Holmes et al. (2015) is of the opinion that with a stable economic
environment Australia can provide support to emerging organisations so that they can
continue with the development of its business. Similarly in the case of Star Event Enterprise,
the economic stability of Australia can help in continuing with the organising of events. For
example, it can help Australia to host national film festivals or sports events that can open up
Australia to the world and help in the contribution of its economic benefit. In this regard, it
can be said that based on the economic support operational planning can be conducted in an
effective manner by spending finances.
Social: The social factor denotes the manner in which the Australian public provides
support to an organisation. The difficulty that Star Event Enterprise may face is that it might
need some time to develop its reputation in the market. Hence, it is necessary that the
company continue with its development so that it can help in understanding the demands of
the customers. Overall, the analysis of the social factor can provide an understanding of the
support usually provided by the people of Australia (Khan, Alam and Alam 2015). This can
help the company to grow and develop so that it Corporate Social Responsibility of the
company can be developed along with its objective of arranging operational activities
involved with the development of planning in the organisation.

5
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Technology: The technological factor can help Star Event Enterprise to reach out to
customers and provide them with the ability to continue dominating the entertainment
industry. For example, with the help of technology the company can base its events by
providing 3D experience to customers attending any event set up by the company. This can
help the company to gain more recognition in the market. Gopal, Lindberg and Lyytinen
(2016) pointed out that Australia is one of the countries that are considered to be innovative
in terms of technology. Therefore, the application of this particular concept can help Star
Event Enterprise to continue with the development of its operations such as arranging
resources for entertainment purpose.
Environmental: The environmental factor of Australia is sustainable and provides
people with a picturesque experience upon visiting the country. Hence, for Star Event
Enterprise to develop it needs to ensure that the environment of the county is hampered. In
this regard, the company need to make considerations based on the decisions taken in
maintaining the operations of the company so that it can develop sustainability in the
environment. It needs to consider identifying and organising the events that can help in
promoting sustainability within the environment. Star Event Enterprise need to understand
the factors that provide opportunities for growth as well as maintain the expectations of the
environment. By conducting sustainable event arrangements, Star Event Enterprise can gain
the recognition of the business as well as satisfy customers.
Legal: Australian legal laws are strict particularly during the time of organisations.
For example, Star Event Enterprise need to consider laws that can be associated with
employment, maintaining the environment as well as ensuring that customer rights are
maintained. As stated by Kuratko, Hornsby and Covin (2014) the legal factors also contribute
for the success of an organisation as legality in the business need to be made based on the
type of events that are organised. For example, Star Event Enterprise needs to comply with

6
PRINCIPLES OF OPERATIONS AND MANAGEMENT
the Environmental Protection and Biodiversity Conservation Act 1999 so that despite
organising multinational events, the environment of Australia is not corrupted and ensure
development of operations management.
Analysis of core operational activities
Strength
 Ability to rope in celebrities for
promotion
 Contribute in the increase of
economic strength
Weakness
 Weak in terms of financial strength
 Huge employee turnover
Opportunities
 Less competition in the market
 Gain support from local authorities
Threat
 Lack of proper infrastructure
 Unstable environment for conducting
the events
Table: SWOT analysis
(Source: Created by author)
The analysis of the core operational activities of Star Event Enterprise shows that the
strength of the company is that it possesses the ability to gain celebrities for the promotion of
its events. As stated by Hay and Flynn (2016) every event organisation has the ability to
attract audiences with the help of star power. Star Event Enterprise can gain the support of
the celebrities based on the events and with the level of recognition required from the
customers. Apart from this, a second strength of Star Event Enterprise is that can help in
contributing with the economic strength of the country. Most events tend to draw in the
support of international people and thereby help in the growth of the economic condition of a
country by the funds raised.

7
PRINCIPLES OF OPERATIONS AND MANAGEMENT
However, despite the strengths certain weakness also exists among the company. In
order to gain the support of the celebrities it is necessary that a considerable finance is paid to
the people. This can be considered as weak point as the financial stability of Star Event
Enterprise is less. As stated by Gleim, Smith and Cronin Jr (2018) this is mainly because such
organisations do not possess a stable income. Apart from this, another weakness that can be
considered is the fact that huge employee turnover exists in these organisations. The lack of
stable income compels people to leave event planning and take up a full-time stable career
option. Hence, labour required for organising events is less.
At the same time, the opportunities that can be gained by Star Event Enterprise are
that it has less competition in the market. Therefore, the company can built its image and
business slowly base on the development it gets in the market. At the same time, strategies
need to be developed only for the satisfaction of the customers and not for competing against
other companies in a vigorous manner. At the same time support from local authorities can be
gained if the event organised provides social messages and ensures that sustainability of the
business be maintained. This can help Star Event Enterprise to continue with the business in a
proper manner so that the weakness can be overcome.
Along with the weakness, the threat of the company also needs to be taken into
consideration. It has been seen that event management organisations does not have a proper
infrastructure. Therefore, without infrastructure and a hierarchy it is usually difficult for the
company to progress in the environment. This can also be accounted based on the fact that
Star Event Enterprise needs to develop a stable organisational structure so that it can continue
its business activities without having to establish any type of business incompetence. Apart
from this, the instability of environmental factors can be considered as a negative impact for
the continuity of the business. This is considered as the main reason behind the instability in
the income level of Star Event Enterprise.

8
PRINCIPLES OF OPERATIONS AND MANAGEMENT
The operational constraints that are faced by business are usually on the manner in
which budgetary allocation of business can take place. The financial position determines the
availability of human resources required for raising the capability of an organisation. Most of
the times, threat and weakness of a company remain the budgetary constraints.
Explanation of impact of corporate responsibility and new technology
Corporate social responsibility can help in understanding the activities that are
required for maintaining effectiveness in an organisation. The manner in which Star Event
Enterprise can help in the development of the society may have a positive impact on the
business. Yan-hong (2015) stated that people can trust the organisation and be assured of the
fact that it does not aim to harm the society with the events that it organises. At the same time
corporate social responsibility also influence operational management by helping in sorting
out the priority activities to be taken in the society. Operations managers respond to it by
developing an analysis of the resources available so that they can help in the growth of the
society. In the recent world, technology plays a major role in the development of an
organisation. Hence, Star Event Enterprise can use technology to reach out to the customers
as well as use it to provide entertainment for the people. As suggested earlier, using
technology to create a 3D holographic event can help in attracting the audiences. Digital
technology can also help in designing, manufacturing and distribution of goods. For example,
the use of software systems such as Enterprise Resource Planning systems (ERP) can help in
managing the operational activities in a systematic manner. The Supply Chain Management
(SCM) can help Star Event Enterprise to maintain a prolonged distribution channel by
keeping in mind the strength of the suppliers. Apart from this the New-Product Development
(NPD) can help Star Event Enterprise to be more innovative while trying to create new
programs for the society. With digital technology, the company can maintain a proper

9
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Customer Relationship Management (CRM).as it can communicate with the customers on a
regular basis.
Explanation of organisational strategy and decision making
Organisational strategy and decision making can be supported by operations
management as it helps in development of departments within the organisations (Suter 2016).
The strategic drivers include failure in production and sales, competitiveness of the rival
companies and to combat the external factors that exist in the market. Different types of
planning include operational, tactical and strategic. The operational planning undertakes the
operations that are involved with an organisation. The tactical and strategic changes involve
the understanding of the resources and capabilities that exist in an organisation. Such
planning have a severe impact on the operational business of an organisation as based on the
type of planning other factors such as monitoring and formulation of strategies can be made.
For example, Star Event Enterprise can develop strategies that can help in the development of
the organisational hierarchy. As seen from earlier analysis, Star Event Enterprise lacks a
proper infrastructure and with it does not have a proper organisational hierarchy. Hence,
decision making of the company need to be based on the manner of improvement of the
organisational structure of Star Event Enterprise. Operations management can provide an
analysis of the activities that need to be conducted by Star Event Enterprise so that every
department can be assigned with a manager on which the employees can report directly.
Explanation of monitoring and controlling in the organisation
Control systems helps in maintaining any form of activity in an organisation. The
planning process is done mainly due to the control of activities so that organisational
development can take place. Operations function can help in maintaining the control system
by considering the effectiveness of planning and the resources that are duly maintained in the
organisations.

10
PRINCIPLES OF OPERATIONS AND MANAGEMENT
TQM: The Total Quality Management can be considered a process by which
organisations maintain the quality of its products and services. In the case of Star Event
Enterprise the organisation, can use the concept of TQM to ensure that the quality of service
provided by the organisation can meet the expectations of the customers. Li (2014) as stated
by the monitoring as well as controlling of the activities in the organisations is done using the
TQM method. Therefore, it can be said that operations managers need to consider the TQM
process that can be related with the organisation so that effective analysis of the efficiency of
the organisation can be maintained.
Six sigma: Six sigma can allow organisations to reduce the number of defects it
makes while manufacturing products. However, in the case of Star Event Enterprise, the six
sigma concept can be applied to the services rendered by the company. The manner in which
the company can continue to provide quality services without making defects such as in terms
of lightning or technical faults can be maintained. One of the manners in which, six sigma
can be used in terms of monitoring and controlling is that it can help in improving the system
by specifying any type of incremental improvement such as conducting a regular check up of
the facilities and activities that are conducted during an event.
Impact of operations function on supply chain
Transformation model: As stated by Shrivastava, Shrivastava and Ramasamy (2018)
transformation model can help a manager to understand the activities of an organisation and
help it to redesign its structure. In the case of Star Event Enterprise, the company can use the
transformation model to direct the operations functions on the supply chain management.
Supply chain management can be guided as per the level of quality of services provided by
Star Event Enterprise so that it can ensure proper supply of raw materials required for its
events take place. The effectiveness of the transformational model can help organisations to
maintain a steady supply. The input process helps in bringing about the changes in an

11
PRINCIPLES OF OPERATIONS AND MANAGEMENT
organisation as it can help in continuing with the development of supply chain within an
organisation. The output process can help in providing the changes within the limits of the
organisation.
Section 2: Resource allocation plan
Introduction
The section provides an analysis of the resource management strategy that needs to be
undertaken by Star Event Enterprise for the development of the organisation. As seen from
the earlier analysis, the financial stability of the company can be considered as a weak point
mainly because the income level is unstable. Therefore, the financial requirement of Star
Event Enterprise can be considered while formulating strategies to manage the resources. At
the same time, the human resource management needs are required to be considered so that
resources within the organisations can be managed (Sadgrove 2016).
For example, with the effective application of the human resource management, Star
Event Enterprise can identify any shortage of materials for the development of an
entertaining event for the customers. Apart from this Korshikova et al. (2016) stated that the
technological factor is another consideration that needs to be taken mainly because in the
modern world, every planning is done based on the strength of the technologies within the
business. The section highlights the resource management strategies and the tools required
for the development of the resources.
Resource management strategies
In order to continue with effectively managing resources in an organisation, it is
necessary that strategies be incorporated so that every resource can be used effectively in an
organisation. Grant et al. (2014) stated that the resource management strategies in an

12
PRINCIPLES OF OPERATIONS AND MANAGEMENT
organisation can account for addressing the issues related to various departments. In the case
of Star Event Enterprise, the company can adopt a resource levelling strategy so that it can
continue to develop its business in an organisation. The aim of the resource levelling strategy
is to ensure that the stock of resources remain smooth and maintain a balance between the
required resources as well as the desired resources.
Different approaches to resource management strategies include resource planning
and allocation of resources. Resources planning helps in maintaining strategies to incorporate
and manage resources in a proper manner whereas based on the planning, allocation of
resources are done that provides control over the use of resource and authorises limited use of
resource for specific purposes. This can affect business operations and strategies as controlled
resource can help in managing organisational tasks in an effective and professional manner.
In the case of the financial instability of the organisation, Star Event Enterprise investment
can be made so that financial crisis can be reduced. According to Belás et al. (2015), the
managing of resources by taking into consideration the labour need to be conducted by the
human resource department so that Star Event Enterprise can ensure about the development
of the employees. Therefore, man, money and material can be managed by the application of
resource levelling.
Supplier management strategies
Supplier management strategies can be considered as an effective manner in which
suppliers can be kept in check by an organisation. Therefore, as stated by Linder, M. and
Williander (2017) it is necessary to develop strategies based on the effectiveness of the
supplier that are involved with the management of the organisation. One such strategy that
can be developed is by understanding the cost and value of the entire supply chain team. In
the case of Star Event Enterprise, the company need to make an estimation of the thorough
understanding of the costs required for gaining the raw materials as well as the celebrities for

13
PRINCIPLES OF OPERATIONS AND MANAGEMENT
organising an event. The most appropriate supplier to meet the operational goals for Star
Event Enterprise is the service centres that help in organising events and various programs
within the society.
At the same time, accountability needs to be maintained for sufficient plan so that
suppliers can continue to develop the cost of the raw materials (Benlemlih et al. 2018). In this
case, it can be said that for Star Event Enterprise, the alignment of the activities need to be
done based on the financial stability as well as the human resources available for
incorporating any technological competence. Therefore, Star Event Enterprise can add extra
value to the services provided that can continue with the utilisation of assets so that value
proposition can be maintained by every party in an organisation.
Operations manager can be related with the supply chain by ensuring that the
distribution channels be managed in an effective manner. The impact is that with the help of
supply chain management the operations of an organisation can be managed in a specific
manner. The types of relationships that can be maintained in a supply chain management is
mainly with the distribution channels as well as the suppliers for better gaining of relevant
materials within an organisation.
Application of tools
McKinsey’s 7s model: The application of McKinsey’s 7s model can help in
understanding and dividing the areas of an organisation into hard and soft areas. It means that
based on the area of the requirement, the skills of an employee can vary (Tricker and Tricker
2014). The application of this particular model can be done to monitor the changes that take
places within an organisational scenario. Thereby, in the case of Star Event Enterprise, the
company can identify the seven elements and align with mutual reinforcement of the

14
PRINCIPLES OF OPERATIONS AND MANAGEMENT
organisation. Therefore, alignment of the seven elements is required for a company to work
well. The figure provides an idea about the seven elements that exist in an organisation.
Figure 1: 7S framework
(Source: Butler et al. 2016)
In the case of Star Event Enterprise, the company can align its operations by forming
strategies that can be aligned with the vision. For example, the vision of the company is to
organise events that can help in the development of the company and gain approval from the
customers. For this it is necessary that the structure and systems of the company be formed
keeping in mind the number of employees, the style of their work and the skills possessed.
For example, Star Event Enterprise need to build a hierarchical organisational
structure so that technical systems required for the development of the company be
developed. The number of staff needs to be considered that provides an analysis of the style
that is applied while continuing with the development of the organisation. Hard skills such as
proficiency in languages and soft skills such as communication need to be developed by the
SharedvisionStrategyStructureSystemsStaffStyleSkills

15
PRINCIPLES OF OPERATIONS AND MANAGEMENT
staffs so that the events can be organised in an effective and efficient manner. This can also
help in reducing the costs of an organisation by using techniques such as Just In Time so that
proper delivery of materials can be made.
Cost-benefit analysis: According to Lopes et al. (2015), the cost-benefit analysis can
be considered as a systematic approach that can help in estimating the strengths and weakness
of alternatives of a particular business. An example of this can be the transaction made in a
business that includes the strength of the supplier and the negotiation method used for
meeting the business requirements. In the case of Star Event Enterprise, the company can
analyse the decisions taken by it so that it can sum up the situations that benefit the existence
of the business. One of the considerations that need to be made is the fact that Star Event
Enterprise need to analyse the total cost of a particular programme based on the benefits it
can gain.
For example, if Star Event Enterprise aims to conduct a sporting event like a cricket
world cup in Australia, the company need to analyse the benefits it can provide for the
country. Thereby, the actions and the consequences are related to the cost incurred by the
company. At the same time, Barney (2014) stated that based on the cost-benefit analyses an
estimation of the planning process can take place so that calculation over the subtraction of
cost and benefits required for the organisation can be made. The Just In Time can help Star
Event Enterprise to ensure that every services are delivered on time by considering the
limited time required for the delivery. This can help the company to ensure that every event
can be conducted in a consistent and effective manner.
VRIO framework: The VRIO analysis is done to determine the capability or
resources that a competitive potential can have on the resource or capability of an
organisation. Sehnem et al. (2016) stated that it usually asks four questions that can help in

16
PRINCIPLES OF OPERATIONS AND MANAGEMENT
the analysis of resources and determine its priority based on the implementation of resources.
For example, it is necessary to determine the strategic choices made while obtaining
resources that are capable of providing strategic implementation of business. In this regard, it
can be said that for Star Event Enterprise to continue with the development of its
organisation, the four questions of the VRIO framework need to be analysed. These four
questions and it possible analysis of Star Event Enterprise is provided.
Resource or
capability Valuable Rare
Imitable or
non-
substitutable
Organised
or exploit
Impact on
competitive
advantage
Ability to rope in
celebrities Yes No Yes Yes
Realised
sustainable
competitive
advantage
Specialist in
organsing events in
short notice Yes Yes No Yes
Realised
competitive
parity
Ability to retain
employees Yes No Yes Yes
Realised
temporary
competitive
advantage
Figure 2: VRIO framework
(Source: Min et al. 2016)
The analysis shows that resources and capabilities possessed by Star Event Enterprise
can have a competitive advantage in the market. However, the advantage that the company
may get is the fact that it can organise events in short notice. Therefore, it can be said that
based on this the rarity of the company can be maintained and this can provide a realised
competitive parity of the business. Therefore, the VRIO framework provides an analysis of
the resources that can help in its growth. This can help in conducting the value chain analysis
of the organisation so that the financial capabilities can be maintained.

17
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Conclusion
Therefore, it can be concluded that resource management strategies as well as supplier
management strategy is required for the development of a proper operational activity in an
organisation. In the case of Star Event Enterprise, recommendation can be made about the
manner in which financial stability can be improved. The company can take up planning
events for small scale organisations and small businesses so that a regular flow of income can
be generated. This can help in reducing the employee turnover rate so that the company can
gain profitability. The practical application of the tools for resource allocation can be
considered as an effective manner in which Star Event Enterprise can benefit in a competitive
market.
Section 3: Risk management plan
Strategic analysis of operations functions
In the case of Star Event Enterprise, the chosen operations function is that of the
financial instability that may provide the company with a disadvantage going into the
business. As seen earlier, the financial instability condition in an event planning organisation
can result it being at a loss. Hence, it is necessary that Star Event Enterprise understand the
risks that may exist while trying to be financially viable so that it can continue to entertain the
1500 customers. Therefore, risk management plan based on core financial capabilities of the
organisation need to be taken into account so that Star Event Enterprise can understand the
core competence that exists within an organisation.
Developing a contingency plan
The analysis of the PESTEL and SWOT analysis of Star Event Enterprise show that
the company can gain opportunities for development base on the external support that it may
receive. However, certain weakness and threats such as lack of infrastructure and financial

18
PRINCIPLES OF OPERATIONS AND MANAGEMENT
stability of the company exists that may hamper the development in the future (Rua, França
and Fernández Ortiz 2018). In this regard, contingency plans based on the catering and
refreshment facility of the company can be made. Instead of recruiting celebrities to promote
their programmes, Star Event Enterprise can promote events by using the employee skills
they possess. This can help the company to cater for local people with low risk of engaging in
financial instability in the business. At the same time, use of expensive technology can be
reduced so that the money for the technology can be used for arranging shows outside the
country.
Identify potential risk or hazards and control measures
The potential risks or hazards that can arise from the catering service are that Star
Event Enterprise may fail to continue with the development of its entertainment unit.
Christopher (2016) stated that the development of organisational structure is important for the
development of an organisation as without proper organisational structure employees cannot
be controlled. Therefore, without proper aim of its business Star Event Enterprise may find
itself struggling to meet the needs of the 1500 customers in the business. Another risk that
may occur is the fact that the company may fail to retain customers without providing proper
services. Control measures for these risks can be for the company to start understanding the
requirements of the customers and the required actions undertaken to start a catering service.
Developing contingency plans and strategies
Contingency plans and strategies that can be development for countering the lack of
experience in the catering department can be attributed to the fact that it can develop a strong
service centres across Australia. For Star Event Enterprise to succeed, it is necessary that the
company try to gain a firm foothold in the market of Australia by serving the people of the
country with small quantities of food. With less competition in the market, this particular
strategy can help in the development of market competitiveness. Therefore, this particular

19
PRINCIPLES OF OPERATIONS AND MANAGEMENT
contingency plan can be considered as a mode of advantage for Star Event Enterprise to
thieve in. Apart from this, other mode of mitigating the lack of experience in the catering
service is that it can employ people from sponsorships to help in arranging the food in the
catering units of the company.
Application of tools
Risk management standards: In the modern world, risk management standards have
proved as a vital point of success for a company. Ross (2017) pointed out that various
standards have been formed that can help in the implementation of risk management
strategies systematically and in an effective manner. Every standard is regularly updated as
risk management is considered as an ever changing notion for a company. For Star Event
Enterprise, the application of these standards can help it to find techniques that in turn can
help in its development in the market. For this it is necessary that the company follow the
guidelines and principles mentioned in ISO 31000 2009, so that it can continue with the
development of financial stability.
Risk mapping: Risk mapping helps in the development of communities that are
usually affected by natural disasters. However, in the case of Star Event Enterprise, the
company need to use the risk mapping system to ensure that disasters in the form of internal
capability of the organisation are maintained (Oakland 2014). For example, it is necessary
that the risk mapping be made in a manner that helps in directing the managers of the
organisation. For Star Event Enterprise, the risk mapping technique can be based on the
effective it has on the development of its catering services. In this case it can be said that the
risk mapping activity underpins the effectiveness of the strategies that are used to develop
experience in the catering of 1500 people and aim to maintain the critical as well as non-
critical objectives.

20
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Stakeholder analysis: The analysis of the stakeholder suggests that Star Event
Enterprise does not have proper support necessary for the development of the organisation.
As stated by Goetsch and Davis (2014) for an organisation support from internal as well as
external stakeholders is a must. In the case of Star Event Enterprise, the company lacks this
support mainly because it does not possess the employability power to continue with the
development of the organisation. Therefore, the management as well as the employees tend to
less interest for the development of the company. Consequently, the customers sometimes
remain dissatisfied despite the quick service provided by the company. The risk associated
investors can be considered as catastrophic as without proper investment consideration of the
financial activities of an organisation cannot be maintained. For example, investment cannot
be made in case companies decide to expand in a foreign country. The risk with customers
can be considered as moderate as without support from customer it can be difficult for
organisations to progress effectively. For example, the product or service quality provided by
a company may not match the expectations of the customers and therefore, may pose threat
from the competitors. The risk associated with suppliers includes fewer resources being
supplied to the companies on the basis of the bargaining power associated with the
management of an organisation. For example, suppliers may tend to supply raw materials to
the organisations that offer more amount for purchasing the resources that it has to offer. This
can help in increase the threat of the bargaining power of the suppliers. However, it can be
mitigated by using proper technologies and strategies. With the employees it is necessary to
motivate them and ensure that the high risk is controlled in an effective manner.
Recommendation
Therefore, conclusion can be made about the potential capability of the risk
management strategies and the risk mitigation strategies used by Star Event Enterprise. The
support of the stakeholders can be considered as a recommendation as it holds the power of

21
PRINCIPLES OF OPERATIONS AND MANAGEMENT
improving the capability of the organisation in a significant manner. At the same time, it is
also necessary that Star Event Enterprise seize control of the catering services so that more
financial development takes place. In the case of the stakeholders, it is necessary that the
company get enough support from its internal stakeholder by providing the necessary
motivation such as providing monetary and fringe benefits.
Likelihood Consequence
Insignificant Minor Moderate Major Catastrophic
Almost
certain
5 10 15 20 25
Likely 4 8 (Operations
failure)
12 16 (Failure
to meet
standards
set in ISO
31000
2009 )
20
Moderate 3 6 (Lack of
infrastructure)
9 12
(Technical
failure)
15
Unlikely 2 4 6 8
10(Inability
to communicate
strategies)
Rare 1 2 3 4 5

22
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Figure 3: Risk analysis
(Source: Oakland 2014)
Section 4: Strategic risk analysis
Conducting SRA of the organisation
Risk mapping
Likelihood Consequence
Insignificant Minor Moderate Major Catastrophic
Almost certain 5 10 15 20 25
Likely 4 8 (Risk due to
ineffective
services)
12 16
(Workplace
ethical
misconduct)
20
Moderate 3 6 (Lack of
infrastructure)
9 12 (Risk due
lack of
support from
stakeholders
)
15
Unlikely 2 4 6 8
10
(Empoyee

23
PRINCIPLES OF OPERATIONS AND MANAGEMENT
turnover)
Rare 1 2 3 4 5 (Lack of
suppliers)
Figure 4: Risk mapping
(Source: Oakland 2014)
The calculation of the SRA was done by considering the factors that mostly affect the
business. For example, the risk factors for each of the events are taken and calculated with the
projected risk score and identifying an average impact. Next the average probability is
considered and based on it the impact of risk is rated as low, medium or high. For example,
the number 10 signifies the severity and intensity of the risk. The red zone is the impact that
it may have on the organisation. There is no such calculation for the risk. The severity of the
risk depends upon the risks that have been identified. From the analysis of the table it can be
seen that Star Event Enterprise has various forms of risks that need to be mitigated so that the
company can continue with its existence and dominance in the market. The high or
catastrophic risk factor is the fact that the company have a large employee turnover and with
it lack of supplier. The core reason for the existence of such risk is that the company does not
have a proper organisational structure nor does it boast the competence of being financially
viable. At the same time, it is to be taken into consideration that the company may suffer
from greater risks that may arise from the lack of financial stability. This is also displayed in
the map that suggests that work place ethical misconduct is made within the company. The
fact that some of the workers are seemingly paid more than the others can be considered as a
reason behind the existence of failure in the company. Besides this, it can also be seen that
the lack of support from stakeholders can be considered as a risk management factor for Star
Event Enterprise. Without the support from the stakeholders the company cannot undergo

24
PRINCIPLES OF OPERATIONS AND MANAGEMENT
any changes that may have a significant impact on the financial instability. This can also be
attributed due to the lack of infrastructure in the company.
Developing contingency plans and strategies
Therefore, in order to ensure that the risks be mitigated at the organisation, it is
necessary that Star Event Enterprise develop plans such as ensuring that stakeholders provide
support for the company. For example, it is necessary that the stakeholders particularly the
internal stakeholders provide support for the development of the organisation. The mitigation
techniques provide an analysis of the planning and development strategies that can help in
providing a financial stability for Star Event Enterprise. In this manner, the company can
continue with the development of motivational plans that can help in retaining employees and
reduce turnover rate. Therefore, it is necessary that support of the stakeholders be gained in
an instantaneous manner so that investment on the financial front can be made. Apart from
this, workplace ethics can be developed that can help in understanding the rules related to the
development of mutual respect and coordination. This needs to be done by the managers by
providing notices in the organisation that can help in the development of workplace culture
within the organisation.

25
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Reference
Barney, J.B., 2014. Gaining and sustaining competitive advantage. Pearson Higher Ed.
Belás, J., Bilan, Y., Ključnikov, A., Vincúrová, Z. and Macháček, J., 2015. Actual problems
of business risk in SME segment. Case study from Slovakia. International Journal of
Entrepreneurial Knowledge, 3(1), pp.46-56.
Benlemlih, M., Shaukat, A., Qiu, Y. and Trojanowski, G., 2018. Environmental and social
disclosures and firm risk. Journal of Business Ethics, 152(3), pp.613-626.
Boasson, E.L. and Wettestad, J., 2016. EU climate policy: Industry, policy interaction and
external environment. Routledge.
Butler, T.D., Armstrong, C., Ellinger, A. and Franke, G., 2016. Employer trustworthiness,
worker pride, and camaraderie as a source of competitive advantage: Evidence from great
places to work. Journal of Strategy and Management, 9(3), pp.322-343.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Gleim, M.R., Smith, J.S. and Cronin Jr, J.J., 2018. Extending the institutional environment:
the impact of internal and external factors on the green behaviors of an individual. Journal of
Strategic Marketing, pp.1-16.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence.
Upper Saddle River, NJ: pearson.
Gopal, D., Lindberg, A. and Lyytinen, K., 2016, January. Attributes of Open Source Software
Requirements--The Effect of the External Environment and Internal Social Structure.
In System Sciences (HICSS), 2016 49th Hawaii International Conference on (pp. 4982-4991).
IEEE.

26
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Grant, K., Edgar, D., Sukumar, A. and Meyer, M., 2014. ‘Risky business’: Perceptions of e-
business risk by UK small and medium sized enterprises (SMEs). International Journal of
Information Management, 34(2), pp.99-122.
Hay, J. and Flynn, D., 2016. How external environment and internal structure change the
behavior of discrete systems. Complex Systems, 25(1), pp.39-49.
Holmes, K., Hughes, M., Mair, J. and Carlsen, J., 2015. The internal and external
environment for sustainable event organisers. Events and Sustainability, 17(31), p.15.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), pp.955-961.
Korshikova, M.V., Belikova, I.P., Sakhnyuk, T.I., Sakhnyuk, P.A. and Svistunova, I.G.,
2016. Methodological provision of active management of economic risk in agrarian
business. European Research Studies, 19(2), p.113.
Kuratko, D.F., Hornsby, J.S. and Covin, J.G., 2014. Diagnosing a firm's internal environment
for corporate entrepreneurship. Business Horizons, 57(1), pp.37-47.
Li, W., 2014. Risk assessment of power systems: models, methods, and applications. John
Wiley & Sons.
Linder, M. and Williander, M., 2017. Circular business model innovation: inherent
uncertainties. Business Strategy and the Environment, 26(2), pp.182-196.
Lopes, J., Farinha, L., Ferreira, J.J. and Silveira, P., 2018. Does regional VRIO model help
policy-makers to assess the resources of a region? A stakeholder perception approach. Land
Use Policy, 79, pp.659-670.

27
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Madhavaram, S., Hunt, S.D. and Bicen, P., 2017. The FREE (Firm Resources and External
Environment) Framework as an Alternative to SWOT: An Abstract. In Academy of
Marketing Science Annual Conference (pp. 49-49). Springer, Cham.
Min, B.S., Min, J.H., Jang, W., Han, S.H. and Kang, S.Y., 2016. VRIO Model Based
Enterprise Capability Assessment Framework for Plant Project. Korean Journal of
Construction Engineering and Management, 17(3), pp.61-70.
Oakland, J.S., 2014. Total quality management and operational excellence: text with cases.
Routledge.
Ross, J.E., 2017. Total quality management: Text, cases, and readings. Routledge.
Rua, O., França, A. and Fernández Ortiz, R., 2018. Key drivers of SMEs export performance:
the mediating effect of competitive advantage. Journal of Knowledge Management, 22(2),
pp.257-279.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Sehnem, S., Roman, D., Sehnem, A. and Machado, N.S., 2016. Competitive Advantage in a
Credit Cooperative: The Role of Resources. International Business Management, 10(15),
pp.2768-2779.
Shrivastava, S.R., Shrivastava, P.S. and Ramasamy, J., 2018. Encouraging real-time tracking
of vaccines to reduce the risk of stock-outs: World Health Organization.
Smith, B., 2016. Nature and Geography: Tragic Voids within Marketing Textbooks and the
External Business Environment. In Global Perspectives on Contemporary Marketing
Education(pp. 47-64). IGI Global.
Suter II, G.W., 2016. Ecological risk assessment. CRC press.

28
PRINCIPLES OF OPERATIONS AND MANAGEMENT
Tricker, B. and Tricker, G., 2014. Business Ethics: A stakeholder, governance and risk
approach. Routledge.
Yan-hong, J.I.N., 2015. Integrating the Internal Environment with the External One for the
Sustainable Development: A Case Study of Jilin Province's Business-undertaking
Environment. Journal of Jilin Institute of Chemical Technology, 2, p.006.