Costa Café: Enhancing Efficiency through Operational Management

This report examines the operational management strategies employed by Costa Café, founded in 1971, focusing on approaches such as Total Quality Management (TQM) and Just-In-Time (JIT) inventory systems. It discusses the roles of managers and leaders in enhancing efficiency, reducing waste, and increasing revenue. The report also evaluates the impact of factors like stakeholder concerns, Corporate Social Responsibility (CSR), business ethics, and external factors such as political and environmental considerations on Costa Café's business environment and community. Ultimately, the analysis concludes that effective operational management, incorporating these approaches and considerations, is crucial for Costa Café to achieve its business objectives, maintain customer satisfaction, and stay competitive, while also acknowledging both the positive and negative impacts of these strategies.

UNIT 4 – MANAGEMENT AND
OPERATIONSCosta Café Company

TABLE OF CONTENT
 Introduction
 Approaches of operational management
 Significance and worth of operational management
 Explaining how leader and manager can improve efficiency
 Describing factors that affect the operational management
 Explaining factors that affect business environment and community
 Use of operation management
 Summary
 References

INTRODUCTION
 Operations Management (OM) is the authority of commercial performs to discover
the greatest level of productivity in a chosen business.
 It is mainly helps to transform the initial material into a finished outcome so that the
business can meet the outcome.
 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.

APPROACHES OF OPERATIONAL
MANAGEMENT
Total Quality Management:
 It is a customer-oriented process and direct for continuous
development of business operations of Costa cafe co. 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 Costa cafe organization.
 This strategy cut inventory costs through supply material, goods
and labor exactly when required in the manufacturing process.
 It increases the profits & efficiency of the company.

CONTI...
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.

IMPORTANCE AND VALUE OF OPERATIONAL
MANAGEMENT
The main objective of company is to stay ahead in the competition and for that there is a
need to reduce the waste and raise revenue as well. In addition to this, company
should also conduct market research so that the requirement of customer can be
improved.
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 Costa cafe business organization & achieve
their objectives.
Waste reduction
 It is a most important components of Costa cafe operations management.
 They use various strategies like JIT, lean production etc. To identify & minimize
wastes of raw material.

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.

FACTORS WITHIN THE BUSINESS
ENVIRONMENT THAT IMPACT OPERATIONAL
MANAGEMENT
Concern of the Stakeholders:
 Small business stakeholders include suppliers, employees, customers &
competitors.
 Manager & leader analyze 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.

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.

Continued…
Political factor:
• Changes in the country’s political situation might affect the business performance
because it might increase the tax rate of a company’s products.
Environmental factor:
• Costa Café need to use those material which do not cause any negative impact
over environment. For that comply with sustainability act so that effective
outcome can be generated.
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CRITICALLY EVALUATE APPLICATION OF
OPERATIONS MANAGEMENT
 The use of operational management within an organization is
wide because it might create negative as well as positive impact
over the business performance.
 There are many factor that affect the policies of a company which
include cost, price, quality. So, manager and leader of Costa Café
need to consider the same to meet the defined aim
 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 significance and worth of OM to attaining business objectives and also
by implementing ways manager of a company can improve the loophole of the. Company as well.
 The study has also discussed the factors such as CSR, business ethics, COVID-19 that cause a direct
impact over Costa Café performance.

REFERENCES
 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.
 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.
 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.
 Tang, C. S., 2017. OM forum—Three simple approaches for young scholars to identify relevant and
novel research topics in operations management. Manufacturing & Service Operations Management.
19(3). pp.338-346.
 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.