Costa Cafe: Approaches and Factors Impacting Operations Management

This report examines the operational management strategies employed by Costa Cafe, focusing on approaches like Total Quality Management (TQM) and Just-In-Time (JIT) inventory systems. It explores the roles of leaders and managers in enhancing operational efficiencies and evaluates the impact of various factors, including stakeholder concerns, Corporate Social Responsibility (CSR), and business ethics, on the business environment and community. The analysis critically assesses how these factors influence decision-making and overall business performance, highlighting both the positive contributions of ethical practices and the potential negative impacts of issues like high production costs or supply chain disruptions. The conclusion emphasizes the importance of effective operations management in achieving business objectives and navigating the complexities of the modern business landscape.

UNIT 4 – MANAGEMENT AND
OPERATIONS
COSTA CAFÉ COMPANY

TABLE OF CONTENT
 INTRODUCTION
 P4 APPROACHES OF OPERATIONAL MANAGEMENT
 P5 IMPORTANCE AND VALUE OF OPERATIONAL MANAGEMENT
 M3 LEADERS & MANAGERS CAN IMPROVE EFFICIENCIES OF OPERATIONAL MANAGEMENT
 P6 FACTORS WITHIN THE BUSINESS ENVIRONMENT THAT IMPACT OPERATIONAL
MANAGEMENT
 M4 THE FACTORS AFFECT THE BUSINESS ENVIRONMENT & COMMUNITY
 D2 CRITICALLY EVALUATE APPLICATION OF OPERATIONS MANAGEMENT
 CONCLUSION
 REFERENCES

INTRODUCTION
 Operations Management (OM) is the authority of business practices to discover the greatest level of
productivity possible within an organization.
 It concerned with transforming raw materials into finished goods as efficient as possible.
 The report is based on Costa Cafe co. founded by Bruno Costa & Sergio Costa in 1971.
 It is an subsidiary co. which provide various products such as coffee, tea, sandwiches, snacks and iced
drinks.

P4 APPROACHES OF OPERATIONAL
MANAGEMENT
Total Quality Management:
 It is a customer-oriented process and direct for continuous
development of business operations with aiming for long-term
success.
 It ensures that employees particular work concerning common
goals of enhancing product & service quality.
Just-In-Time (JIT):
 The JIT inventory system is a strategy of managing raw-material
supply in organization.
 This strategy cut inventory costs through supply material, goods
and labour exactly when required in the manufacturing process.
 It increases the profits & efficiency of the company.

P4 APPROACHES OF OPERATIONAL
MANAGEMENT
Role of manager:
 The manager role is to recruit the experienced & talented candidate to position them on the vacancy.
 The manager explore & receive information related to internal & external events to achieve the
understanding of the organization and its environment.
Role of Leaders:
 The role of leader is to explore the wants & desires of the employees and according to that motivating
them.
 A leader has to focus on developing the ability & productivity of the employees.

P5 IMPORTANCE AND VALUE OF
OPERATIONAL MANAGEMENT
Revenue increase
 An firm achieve good reputation through good quality of products & services and
customer satisfaction with the help of operations management.
 This leads to increasing revenues of the business organization & achieve their
objectives.
Waste reduction
 It is a most important components of operations management.
 They use various strategies like JIT, lean production etc. To identify & minimize
wastes of raw material.

M3 LEADERS & MANAGERS CAN IMPROVE
EFFICIENCIES OF OPERATIONAL
MANAGEMENT
 As discussed above the various significant roles are played by managers & leaders in organization to
achieve business objectives successfully.
 The relationship of the manager & leader helps in Costa Cafe company to achieve the desired output &
operate the resources according to its competency & potential.
 Both leader & manager evaluate the needs & desires of the employees and customers then make
decisions according to that for fulfilled the customer demands.

P6 FACTORS WITHIN THE BUSINESS
ENVIRONMENT THAT IMPACT OPERATIONAL
MANAGEMENT
Concern of the Stakeholders:
 Small business stakeholders include suppliers, employees, customers &
competitors.
 Manager & leader analyse the requirements of the consumers and basis on that
they make decisions to achieve organizational goals and objectives.
CSR:
 Corporate social responsibility (CSR) is the way of companies manage their
business processes to bring a positive effect on society.
 This impact the overall decisions of the organizations.

M4 THE FACTORS AFFECT THE BUSINESS
ENVIRONMENT & COMMUNITY
 All these factors such as CSR, shareholders concern, business ethics & COVID-19 affect the business
environment & wider community in both positive & negative way.
 CSR and business ethics positively affect the society and business. If business follow ethics &
understand their social responsibilities it helps to grow the business and society.
 CSR helps co. to build its goodwill and strengthen the companies image.
 Creating a positive effect on society means providing jobs, strengthening economies, development of
individuals etc.
 It has also the negative impact like discrimination, higher prices, competitive disadvantage, clashing of
business objectives and so on.

D2 CRITICALLY EVALUATE APPLICATION
OF OPERATIONS MANAGEMENT
 Several applications of operations management and factors give a
positive and negative impact on the wider business environment.
 These factors such as cost, price, quality etc. are being analysed
properly so that policies can be made powerful & results in
accomplishing the objectives of the Costa Cafe company.
 High costs of production leads to high price of products that give
low profits to the co. low quality product dissatisfies the
consumers & breaks their loyalty.

CONCLUSION
 From the above report it has been concluded that Costa Cafe co. use various approaches (TQM, JIT,
lean production) to OM & various role of leaders and managers play.
 The report has also analysed the importance and value of OM to achieving business objectives & also
evaluate how managers and leaders can improve efficiencies of OM.
 The study has also discussed the factors (CSR, business ethics, COVID-19) within the business
environment that impact upon OM & decision-making of leaders and managers.

REFERENCES
 Tang, C. S., 2017. OM forum—Three simple approaches for young scholars to identify relevant and
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 Lee, H. L. and Tang, C. S., 2018. Socially and environmentally responsible value chain innovations:
New operations management research opportunities. Management Science. 64(3). pp.983-996.
 Wang, S., Li, J. and Zhao, D., 2018. Institutional pressures and environmental management practices:
The moderating effects of environmental commitment and resource availability. Business Strategy and
the Environment. 27(1). pp.52-69.
 Smith, A. and Stirling, A., 2018. Innovation, sustainability and democracy: An analysis of grassroots
contributions. Journal of Self-Governance and Management Economics. 6(1). pp.64-97.
 Guha, S. and Kumar, S., 2018. Emergence of big data research in operations management, information
systems, and healthcare: Past contributions and future roadmap. Production and Operations
Management. 27(9). pp.1724-1735.