Leadership and Operational Analysis: A Case Study of Avingtrans plc

This report provides a critical evaluation of Avingtrans plc, a UK-based industrial engineering company, focusing on its leadership and operational strategies. It examines various leadership models, including trait, behavioral, and contingency theories, and their impact on the company's operations. The report analyzes the application of autocratic, democratic, and strategic leadership models within Avingtrans plc and evaluates the effects of the acquisition of HTG on the company's technical, financial, and operational performance. It explores the implementation of supply chain management and Just-in-Time (JIT) approaches to improve efficiency and discusses the company's performance pre- and post-acquisition, highlighting key performance indicators (KPIs) and the expansion of operations. The analysis covers how leadership influenced decision-making, resource allocation, and overall business functions, aiming to improve productivity and profitability. The report emphasizes the importance of leadership in managing operations and adapting to the changing market conditions.

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Executive Summary
This report will effectively showcase the better handling of the various organisational
operations that will help in the effective handling of the different operations. In Avingtrans plc,
the better financial, operational, technological and management operations or functions will be
looked after the better management of the various leaders using different theories and models to
increase the overall efficiency of the company. This report will see through the effective
handling of the various operations of the cited business firm. The different leadership theories
like Trait theory, Behavioural theories and Contingency theory is been taken into the effective
consideration with various models like Autocratic, Democratic and Strategic leadership model
that will help in the effective rise in the work efficiency of the company. Also, the report will
effectively cover the various operations that will be taken into the deep consideration by the
company to meet the requirements of the company. Other than this, the effective acquisition of
HTG helped in the better management of the various operations, by improving the technical and
financial management of the company. Besides this, the effective use of the supply chain
management and Just in time (JIT) approach will help in the increase in the efficiency of the
company.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ANALYSIS......................................................................................................................................2
CONCLUSION................................................................................................................................8
RECOMMENDATIONS.................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Leadership plays a very significant and special role in the effective management of the
various operations that helps in the better handling of the various operations and effective
handling of the different functions that will be taken into the appropriate consideration by an
organisation. The effective leadership in the company will help in the effective handling of the
various operations that will support the better decision making, resource allocation and other
crucial operations of the company. This report will cover the effective details of the various
operations and the impact of the leadership models on the operations and business functions of
Avingtrans plc. It is a UK based company which works effectively in the industrial engineering
along with the medical and traffic management industry (Shao, Feng and Hu, 2017.)
It plays a very crucial role in the 'Buy and build' market of the goods and services and
leads to the effective management of the various operations that helps in the better handling of
the different operations in the company. This report will effectively aim for the impact of the
various leadership models and the impact of the acquisition on the cited business organisation.
This report will effectively cover the various theories of leadership such as, trait theory,
behavioural theory and contingency theory, models of leadership like Autocratic, Democratic,
Strategic etc. types of leadership.
Besides this the report will effectively cover the better details of the various operations
that will be taken into the effective consideration for the better management of the various
operation's in the business firm. Besides this, the report will also lay a deep emphasis on the
various leadership measures that are been taken into the consideration and are needed to be taken
into proper consideration that will help in the better management of the various operations
related to the technical and financial aspects of the company, after and before the acquisition of
HTG.
This will include the conditions of the company in the pre acquisition period and the
changes or the modifications that have occurred and are been made post acquisition. This will
help in developing of the various operations of the company and meeting the needs and demands
of the customers (Anderson and Sun, 2017). This factors are very vital and crucial to be taken
into effective consideration by the company or the business firm to have a cleat idea of its
operational requirements to gain a better profitability and productivity. Besides this, it will help
in the effective management of the various operations like the improvement of IT system or
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enhancing the machineries to increase the work efficiency of the employee's leading to the rise in
the production capacity of the company.
The main objective of the company to increase the overall productivity and profitability
of the cited firm by improving the overall functionality of the company through adoption of
better leadership skills and following of various management and leadership models that will
help in the effective handling of the different significant technical and financial operations that
will help in better handling of the various operations in cited business firm (Ricard And et.al.,
2017).
ANALYSIS
The Avingtrans plc will look after the effective handling of the various business
operations that will help it to effectively management of the various operations to meet the
requirements of the customers or stakeholders on the external level while the operational
requirements that are been taken into the effective consideration for the better handling of the
various operations in a better way. Various leadership models and strategies will be taken into
the effective consideration to meet the needs and requirements of the clients and customers in an
effective and significant manner. These theories and better management of the operations will
help in the effective management of the various operations that will lead to the better handling of
the different operations in the company (Willis, Clarke and O'connor, 2017). Some major
leadership models that are been taken into consideration are:
Trait theory: It states that the effective leadership in an organisation is deeply based on the
various traits that are been acquired or are been possessed by an individual leader. The
possession of the effective traits such as intelligence, sense of responsibility and creativity
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Illustration 1: Leadership theories

will help in the effective management of the various operations at Avingtrans plc. This will
help the leaders of the company to have the effective handling of the various operations in
the cited firm and help them to fulfil it in a very effective manner. It will help the firm to put
the effective assessment of the various operations to improve the productivity and
profitability of the firm. In the pre acquisition phase in the company, the leadership
maintained the functionality of a limited number of the operation's and departments, but
after the effective acquisition of HTG, the scope of the leadership has increased to a greater
extent in the company (Martinko And et.al., 2018).
Behavioural theories: This theory will effectively look after the various operations that are been
taken into the proper consideration in the company. The effective behaviour of the leaders in
the pre acquisition phase as well as the post acquisition period of the company will support
efficiently in the better maintaining of the various operations and work quality of the
company.
Contingency theory: It states that there is no specific or single way to lead the team or carry out
the various operations in the company. This approach will help the Avingtrans plc to take
into consideration the effective and better management of the various operations as per the
needs and requirements of the different operations in the company. It will help the cited firm
to improve its overall performance in post acquisition phase (Teepapal, 2018.).
Besides this, various leadership models are also been taken into effective consideration to
improve the quality of the services or the products that are been produced and offered by the
Avingtrans plc. Some leadership models that are been taken into consideration are:
 Autocratic leadership model: This form of the leadership will include a single
answering authority or boss, which will look after the better management of the various
operations in the company. This involves the effective decision making that will not
include the other employee's or executives in the firm. It has little or no flexibility. In
Avingtrans plc., the highest authority will follow this type of leadership model to carry
out the various operations in the company and will include the effective policies and
procedures development for the company.
 Democratic leadership model: This leadership model will include the effective decision
making in the company, by including all departments of the various sections of the
company. This leads to the better interaction and is used for the consideration of the
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decision on the departmental level. It facilitates better communication process at
Avingtrans plc by increasing the competence, creativity and fairness among the
employee's to carry out various operations in post acquisition phase (Alonso‐Almeida,
Perramon and Bagur‐Femenias, 2017).
 Strategic leadership model: The strategic model will help in the better handling of the
various operations that will help in adopting the effective measures for the problem
solving or rectify the issues occurred at the organisation in pre or post acquisition phase.
It will help Avingtrans plc to take into consideration the effective technological and
financial measures to meet the requirements of the organisation in a better way in the post
acquisition phase of the company.
Other than this, the technological efficiency and the information system of the company
is also deeply affected. During the pre acquisition phase, the working capacity of Avingtrans plc
was very limited and restricted. But after the effective acquisition of the HTG, the technological
efficiency of the company is deeply impacted in the positive manner and has lead to a significant
rise in the working efficiency of the company. The better technological functions adopted after
the acquisition will help in better operational and financial management of the company. Apart
from this, it had helped in better allocation of different resources in the cited business firm
(Teepapal, 2018.)
Company is required to perform well in the market so that it may be able to expand in the
best possible in the future as well. Avingtrans Plc which is the biggest organisation engaged in
manufacturing and supplying heavy industrial engineering goods to aerospace sectors is
performing good throughout past several years (Kerzner and Kerzner, 2017). In the year 2017,
company has acquired another good performing organisation named HTG (Hayward Tyler
Group) Plc. This has doubled the power of firm in the most significant way. The resources are
doubled and leadership characteristics are also developed in effective manner. The analysis is
being highlighted on the basis of leadership, operations, information systems and financial
management in effectual way.
In relation to operations management, it is the responsibility of operations managers to
reduce overall costs of the production so that manufacturing can be done with higher
productivity in effective manner. Pre acquisition phase of Avingtrans was not overall good but it
was increased up to high extent after acquisition of HTG Plc. This is evident from the fact that
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energy revenue was improved up to 15 % of earlier revenue which is the remarkable
achievement by the company. HTG Plc was acquired for £29.4 million in the year 2017.
Moreover, medical revenues were also improved (Barr and McClellan, 2018).
Operational management adds value to organisation as production costs are reduced and
higher production can be accomplished in the best possible way. The post-acquisition era has
been successful for the company as it is focusing on attaining market leadership by expanding
operations in varied countries to accomplish maximum revenue. Following the acquisition of
HTG Plc, organisation is focusing on forming bulk in energy division. The oil and gas operations
are however decreased which is required to successfully attained and acquisition is helping
company in expanding operations in the best possible way. Timely delivery of goods to
customers is severely increased as it was 97 % in the year 2016 and maximised to 99.2 at the end
of 2017 financial year. This has been major KPI (Key Performance Indicators) to the company.
The acquisition of HTG Plc is favourable to company as several sites have been opened for
energy division with repair amenities in India and China. This has led to enhancement of Group's
workforce in quite effective way.
The models of operations management are JIT (Just in Time) and TQM (Total Quality
Management). These two models add value to organisation in effective way. JIT approach is
used in Avingtrans Plc to achieve production in desired way without wasting resources which are
not needed in the production site. In simple words, this model adds value to organisation as
resources are optimized and supply chain management is enhanced as well. This helps to
wastage of scarce resources and efficiency is garnered by taking raw materials in the production
only when it is needed (Lee and Tang, 2017). Thus, wastage of time and resources is reduced and
efficiency is obtained. On the other hand, another model is referred is TQM. This model is
purely focused on providing superior and quality products to customers so that satisfaction level
can be enhanced in a better way. This adds to company that quality standards must be followed
so that customers may be imparted with better quality commodities quite effectively.
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Moreover, there are other theories of operational management such as Lean
Manufacturing (LM) and Theory of Constraints (TOC) and Supply Chain Management (SCM).
Starting from LM theory of management which deals with minimisation of wastage in the
production so that higher productivity can be achieved with much ease (Ketokivi and McIntosh,
2017). This is the operational management system which gives priority to reducing of wastage
and without compromising with the productivity of goods to be deliver to the customers so that
satisfaction level can be enhanced in the best possible way. LM approach is the main reason
adding value to the organisation quite effectively. It was initiated by Toyota organisation, a giant
in automotive sector. Avingtrans Plc is able to take benefit out of the approach so that wastage
can be minimised.
On the other hand, TOC theory is concerned with achieving goals in effective manner
without much influence of constraints which occurs during production phase. There are many
constraints which occurs in the organisation such as equipments, people and policy affecting
entire production of goods quite adversely (Yawar and Seuring, 2017). TOC recognises it and try
to reduce influence so that constraints do not pave the way for low production. While other
theory is concerned with SCM. This is another essential theory in operations management. SCM
is the whole process of company goods which is reached to final customers. It is the flow of raw
materials which are moved in the production site, leading to WIP (Work in Progress) of
inventory and conversion of goods for final consumption to customers are available. Thus, SCM
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Illustration 2: JIT model Source:
manufacturingtomorrow.com

should be streamlined in that manner so that finished goods can be provided to customers within
stipulated time.
Apart from this, financial management plays crucial role in the company. Financial
performance of Avingtrans Plc is cleared from the fact that revenue of the firm increased by 7 %
as it was 21.2 million in the year and roused to 22.7 million at the end of 2017 year. It is cleared
from the figures that acquisition of HTG Plc has immensely helped to increase financial health
and performance of firm in effective way. Moreover, profit margin also maximised in the year
2017 as it was 0.4 in 2016 year and increased by 104 % to 0.7 million. This is EBIT (Earnings
Before Interest and Tax) of the firm which is remarkable as garnered by the company. On the
other hand, gross margins also hiked because of agreement of more contracts in the year 2017.
Gross profit maximised to 17.9 % in response to 14.9 % in 2016 year. On the other hand, EPS
(Earnings Per Share) also improved because of the profits garnered from disposal of aerospace
benefiting shareholders in the best possible way (Aquilani, Silvesti, Ruggieri and Gatti, 2017).
Acquisition of HTG Plc has paved the way for company to achieve future goals in quite
effective way. Skills will be enhanced in a better way as before acquisition, company has face
shortages of experienced staff. In relation to this, Cost Volume Profit (CVP) analysis is crucial in
this aspect. It is used to determine how changes in the costs affects income and volume of
company. The main essence of this method is that firm makes assumptions that sales are constant
per unit. Goods produced are sold by the company. Moreover, Break-even point is calculated so
that no profit no loss is achieved by the company (Cost-Volume-Profit Analysis, 2018).
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Illustration 3: CVP analysis Source: knowlegegrab.com
The models of financial management are DCF (Discounted Cash Flow), Merger model,
budget model etc. DCF model is used to derive value of company based on NPV (Net Present
Value) of future cash flows of company (Olson and Wu, 2017). This is useful for Avingtrans Plc
to achieve value of firm's cash flows. Another model is merger one which deals with acquisition
of one company with other. This is the advanced model used by Avingtrans Plc to acquire HTG
Plc. Budget model is used to formulate and prepare budget for the coming period in effective
way. This model is based on income statement by taking quarterly or monthly figures.
CONCLUSION
Hereby it can be concluded that acquisition plays important role in the company so that it
may be able to expand its operations in the best possible way. The acquisition of HTG Plc has
paved the way for Avingtrans Plc in quite effective way. The financial health of company has
enhanced quite significantly. In addition to this, operations, leadership and information systems
are also doubled and performance of the company is maximised. After acquisition of company,
firm is able to expand in all spheres in the best possible way. In relation to this, operations are
also doubled and company is achieved goals in all spheres of operations management. Moreover,
post-acquisition, information systems are also enhanced in a better way. Technological up
gradation is accomplished and as such, productivity is enhanced as well. Moreover, Avingtrans
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Plc is able to provide better quality services to customers and as a result, level of satisfaction is
increased up to high extent. In relation to this, better leadership style has been adopted and as
such, perfect decisions are made in the company. Authoritative leadership style is being adopted
by the company which has enhanced level of decision-making is being followed by the company.
This all perspectives of management system has immensely increased performance of the
organisation in the best possible way. Moreover, financial condition is strengthened in a better
way. The operating as well as gross profit are increased up to high extent. Thus, the outcome
which can be highlighted from the overall performance of company is enhanced after post-
acquisition.
RECOMMENDATIONS
The above report has demonstrated several numbers of issues faced by Avingtrans Plc
after the acquisition of HTG Plc. They have gone through several numbers of changes that
largely affected the employees in terms of performing well and with a willing sense of
contribution of their own. This is firstly on referring to the several cultural changes bought by the
Avingtrans Plc that acquired another company called HTG Plc and imposed a strict culture of
work at the workplace. This largely disappointed the employees who were earlier having a right
of participating into the process of decision making, within a democratic approach of leadership.
However, it later converted in the application of an autocratic leadership approach that prevented
the employees to take part in much of their organizational decisions. Considering the same, it is
recommended to the Avingtrans Plc to undertake some informal ways of addressing the workers
and try involving them in the organizational activities. This way they will overcome the sense of
reluctance from the employees and they will perform in their best possible manner. Also,
introducing a reward system is referred to be yet another effective approach to ease down the
strict work culture imposed after the acquisition of the firm. Moreover, SCM management
should be enhanced so that firm may be able to provide goods to customers in the best possible
way. This will also inject production and more productivity can be achieved leading to reduce in
time of manufacturing of products and providing finished goods to customers. This is helpful for
company so that goods can be provided to customers in the best possible way. Moreover,
investment is required to be made in technological sphere so that production may be enhanced
and as such, more productivity can be made. In addition to this, net profit of the company is low
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