Operational Management Approaches at Costa Cafe: A Detailed Report

This report provides an overview of Costa Cafe, a prominent coffee house chain in the UK, and examines its business objectives, focusing on customer satisfaction and expanding its reach. It highlights the importance of operational management in enhancing effectiveness and creating a better work environment. Various operational management approaches employed by Costa Cafe are discussed, including Total Quality Management, Six Sigma, and Lean Management, emphasizing the roles of leaders and managers in optimizing resources and continuous improvement. The report also addresses Costa Cafe's corporate social responsibilities towards stakeholders, customers, and employees, as well as the internal and external environmental factors impacting the business, such as corporate social responsibility, business ethics and stakeholder concerns. Finally, the impact of environmental factors on decision-making and operational management is analyzed, with a focus on eco-friendly products, a better work environment, and customer satisfaction. The report concludes with a list of references used.

MANAGEMENT AND
OPERATIONS

TABLE OF CONTENT
 Costa Café
 Business Objectives
Importance of operation management function
Operational management approaches and the role of manager and leader
Corporate Social responsibilities
Factors within the business environment
 Impact of environmental factors in decision-making and operational management.
 References

COSTA CAFE
 Costa cafe is a coffee house chain in the United kingdom. It
provides different kinds of coffee to the customers.
 Company is known for crafting the finest quality coffee. Costa
cafe is one of the most popular coffee house in the UK.
 According to the survey, Costa Cafe voted as the Nations
favourite coffee shop (Costa Coffee named “NATION'S
FAVOURITE COFFEE SHOP BRAND”, 2018).

BUSINESS OBJECTIVES
 The main business objective of the Costa Cafe is to satisfy the customer through the
quality of the coffee.
 The aim of the company is to increase the customer experience and grow the reach
of the organisation among the people.
 The fine quality of coffee is made to increase the loyalty of customers towards
company.

IMPORTANCE OF OPERATION
MANAGEMENT FUNCTION
 Operation management refers to the control and supervise the
process of production process and service delivery (Webb,
2017).
 Operation management plays an important role in the business
as it creates effectiveness and remove the barriers of the
operation or any task within the company.
 It creates the better environment for the employees in the
organisation

OPERATIONAL MANAGEMENT APPROACHES
AND ROLE OF LEADER AND MANAGER
 Various management approaches are taken by the
Costa Cafe.
 Operation management approaches refers to the plan or
strategies of the company to develop the process of
production and service of the company (Ramos, de Morais
and Barbosa-Póvoa, 2018).
 Following are the three approaches taken by the Costa
Cafe in order to better the quality of the coffee and
utilization of the resources.

TOTAL QUALITY MANAGEMENT
 It refers to the continues process of the detecting and
reducing the barriers in the process of manufacturing and
supply chain in order to increase the quality of the product
and improving the customer experience.
 The role of leader is to encourage and supervise the
employees in the given task to ensure the better optimization
of the resources.
 The manager gives the task to the most capable group
according the need of the task and qualification of the group.
This leads to the better and faster work.

SIX SIGMA
 It provides the business tools to improve the capability of the
business process.
 Six Sigma is a statical process that works by reviewing limit
mistakes and defects.
 The role of the leader in this business operation management is
to lead the overall effort and has responsibility for approving the
projects.
 Manager ensures that the every employee is evolved in the
process of improving.

LEAN MANAGEMENT
 It refers to the approach to manage the business that
supports the continuous improvement.
 It is a long term approach that seeks to the achieve the small
goals of improvement.
 The leader plays a role of coach that guide every decision,
big to small and encourage the employees to make smart
decisions.
 Manager in lean management optimize the production or
service process.

CORPORATE SOCIAL RESPPONSIBILITIES
 Corporate social responsibilities refers to the accountability of the
company towards the society, environment, stakeholders and the
people (Ferrell, and et.al, 2019).
 SHAREHOLDERS
 CUSTOMERS
 EMPLOYEES
.

FACTORS WITHIN BUSINESS
ENVIRONMENT
Factors within the business environment refers
to the internal elements that affect the business in
various ways. Following are the factors of Costa
Cafe:
 Corporate Social Responsibilities
 Business Ethics
 Concern Stakeholders

IMPACT OF ENVIRONMENTAL
FACTORS
Environmental factors may affect the business in many ways.
 Decision-making process by the leaders and the operational
management by the managers of the company are impacted in the
following ways due to the environmental factors.
Eco-friendly products
Better Work Environment
Customer Satisfaction