DAL HND Business: Management and Operations, Innocent Drinks Analysis

This report examines the leadership and management practices at Innocent Drinks, a well-known smoothie and juice company. The introduction defines operations management and its role in transforming raw materials into profitable products and services. Activity 1 delves into the roles of leaders and managers, comparing their characteristics and functions, including vision setting, decision-making, resource allocation, and monitoring. It also explores leadership theories like situational, contingency, and system leadership. Activity 2 focuses on operations management approaches such as craft manufacturing, mass production, Six Sigma, lean manufacturing, total quality management, and Just in Time, evaluating their importance in achieving organizational objectives. The report analyzes the impact of leadership and management on decision-making within the context of crisis management and new product launches at Innocent Drinks, highlighting the relationship between leadership and management in a business environment.

Management and Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
Activity 1.........................................................................................................................................3
Background of the chosen organisation......................................................................................3
Define and compare various roles & characteristics of a leader as well as manager..................3
Role of leader and function of manager in respective situations................................................5
Theories and Models of Leadership............................................................................................6
ACTIVITY 2....................................................................................................................................7
Approaches to operations management......................................................................................7
Importance and value of operations management to attain organisational objective.................7
Relationship between management and leadership in business environment.............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Operations management is defined as a practice to develop the highest level of efficiency
possible in a company. In addition to this, it is associated with transforming raw material into
products & services which maximise profit in an effective manner. The important role of
managers is to manage all operations and activities in a proper manner as it assist in meeting
with targets in a timely manner (Gholizadeh 2019). For the present report, Innocent drinks is
taken into consideration. The company makes juices and smoothies that is sold through coffee
shops, supermarkets and other outlets as well. The company was founded in the year 1998 and its
head office is located in London, UK. The report is divided into two activities, the first activity
will cover roles of leaders and managers along with a comparison among them. In addition to
this, there will be discussion about different leadership theories and approaches as well. The 2nd
activity consist of operational management approaches and significance of operations
management in attaining business objectives. Later, the report will elaborated factors that
influence on decision-making and operational management by leaders & managers.
Activity 1
Background of the chosen organisation
Innocent drinks make juices, smoothies, kid's drink and many more. At present, it is a
market leaders with 450 employees, 80% share of UK cake and an ownership of coca cola. The
mission of the company is to offer quality and fresh drink in market so that it can gain the
position of market leader (Bianchi, 2018). The company was established by three cambridge
university graduates named as Jon Wright, Richard Reed and Adam Balon. The target market of
company is adults and parents who want a healthy lifestyle.
The company started business from entrepreneurial structure and after the few years, it
adopt hierarchical structure and the reason of changing is to satisfy the requirements. The entity
believe that hierarchical structure assist in separating different departments to attain
specialisation. This structure help company to share responsibility and implement activities in a
systematic manner.
Define and compare various roles & characteristics of a leader as well as manager.
Managers are the one who takes responsibility to control and administer all the
employees prevailing on the company. On the other hand, leaders guides and motivates

employees to attain and meet with the targets in a timely and effective manner. The role of
leaders and characteristics of manager is given below:
Role of Leaders
Vision Setting: It is analysed that leaders set the vision by undertaking all the activities,
values and objectives of company. In addition to this, it is analysed that performing such role by
leaders in an effective manner will assist company to achieve their vision and gain growth as
well.
Decision maker: Another role of leader is to take best decision by analysing situations arise at
workplace (Hassi, 2018). It is analysed that leader with effective communication skills is able to
represent their decision in a proper manner to the staff members.
Role of Manager:
Resource Allocation: One of the major role perform by managers is to allocate the
resource in such a way that help company to maximise its value and enhance its performance
level as well. The manager of Innocent drinks focuses on using the resource in a maximum
manner and for this they put the right people on right place.
Monitoring: Another role of manager's is to check and monitor all activities perform by
employees as it help in making comparison among actual performance and expected
performance. This help managers of Innocent drinks to improve their performance level and
achieve desired goals timely.
Characteristics of a leader:
Self control: It is important for a leader to have the capabilities to differentiate between
what is beneficial or accepted and what is not. It is determine that self control make an individual
motivated and encourage towards their objectives and vision.
Communication: It is significant for a leader to have an effective communication skills
as they provide instruction of guidelines to staff members to attain tasks, objectives and vision as
well.
Characteristics of a manager:
Time management: An effective manager is one who has the ability to manage all
activities and implement them on time period. It help company to meet with their targets and
gain success at marketplace.

Delegation: Managers assigned tasks and delegate responsibilities to employees as per
their abilities and skills that help in performing activities in an appropriate manner (Li, 2018).
Difference among Leader & Manager:
Dimensions Leader Manager
Goal Focused It is analysed that an effective
leader male use of its skills in
order to develop goal for the
company.
It is determine that the
managers works according to
the duties given to them by
their superior. They did not
motivate employees and only
focus on achieving objectives.
Decision Leaders take decision about
the objectives and mission of
company and focus on
aligning activities accordingly
(Ruan, 2019).
Managers make decision
regarding delegation of
responsibilities and tasks to
subordinates
people Leaders align staff members
according to their interest,
capabilities and skills as it help
in developing potential in
employees to attain targets in a
timely manner.
The major role that is perform
by manages is to manage and
organise employees so that
activities is implemented in a
systematic and effective
manner.
Role of leader and function of manager in respective situations.
In every organisation, some of the situations is arise that directly impact on the overall
performance of company. The different situations along with the role that leaders and manager
play in that situation is given below:
Crisis Management: It is defined as how a company effectively plan as well as manage
issues that impact on the overall activities of company (Liu, 2018). In relation to Innocent
drinks, the company face crisis and issues at the time of recession and due to this, there is

increase in employee turnover rate as company decline the pay scale level. In this case, the role
of leader and manager are as follows:
 Role of Leader: Herein, the role of leader is to motivate staff members and maintain
good relationship with them. Along with this, the leaders should take decision quickly
and implement it in an effective manner.
 Role of manager: At this situation, the manager role is to gain insight about the reason
of issue and communicate it to the leaders (Nishii and Paluch, 2018). In addition to this,
the role of manager is to focus on solving employees issue so that they can retain in
organisation for longer time period.
New product launch: The leaders in innocent drink are coming with new range of flavours for
their customer. There are important role of leader and manager to manage this new launch:
 Role of leader: Leader is responsible to state the need and aim of launching new
product to the employee. They are introducing the product to employees and
explaining its long term objectives as well.
 Role of manager: Manager is required to distribute the work amongst employees
to be carried out at the time of launch in order to meet all the objectives of launch.
They are required to keep a check on everyone's activities as well.
Theories and Models of Leadership
Situational Leadership: This is adopted as per the development of employees. There are
various factors included in this leadership which are dependent upon competencies as well as
skills. In Innocent drinks leaders are using situational leadership (Agrawal, Atasu and Van
Wassenhove, 2019). This helps them to complete all the activities accurately. There are a number
of functions to be carried out by leader in this model which includes delegating the work
amongst employees, selling, participating with them and so on.
Contingency Leadership: This approach explains that there are a number of different
theories and models which are to be applied at the time depending upon the situation arising.
This help leaders in organisation to make sure that they are actively implementing all the
required activities to achieve every goal.
System Leadership: The theory explains how it is necessary top continue work in a
systematic manner to effectively reach all the goals and objectives. In Innocent drinks leader use

system leadership so that they can effectively the employees and achieve the profitability and
revenues which are expected by organisation.
ACTIVITY 2
Approaches to operations management
Operations management refers to managing various operations in an organisation that includes
stocks, production, various resources and so on. Best set of performance can be produced in an
organisation with proper operations management. Various approaches for operations
management are:
Craft manufacturing: Skilled workers produce goods at minimum volume in this
approach. They are effectively working on small quantity and fulfilling individual needs of the
consumer. They usually work from home to provide these services (Torlak, Demir and Budur,
2019).
Mass production: Mass production can be called as flow or continuous production. Large
volumes of homogeneous products are manufactured. Managers and leaders essentially look into
fact that the quality is not hampered in bulk production.
Six Sigma:Major focus in this technique is on quality. Innocent drinks is also striving for
best quality products and excellence. It is the role and responsibility of leader to make sure that
they are sufficiently applying six sigma and also communicating it to all their human resource.
Lean Manufacturing: Lean manufacturing is one of the technique which focuses on
reducing wastage in organisation. There are two objectives for innocent drink to use this method
first is reducing wastes and the second one is enhancing the quality of product along with it. The
leader encourages others in the organisation to come up with ideas to do so.
Total Quality management: This is an approach in which managers and leaders focus on
reducing all the activities that might result in wastage of time. Managers try their best to
eliminate errors and reduce the chances of risks.
Just in Time: This is a method used to align the time and storage of raw materials in an
organisation. The managers focus on taking steps that will enable them to use resources properly
and also save cost from reducing the carrying cost (Eyers and Naim, 2019).

Importance and value of operations management to attain organisational objective
Objectives of Innocent Drinks
 The company aims at increasing their product line by launching new products.
 The company aims at increasing their sales and profit.
 The company aims at giving back to society with the means of corporate social
responsibility.
Role of operations management
 Operations management needs to be applied on research and development department in
order to focus on the fact that company is bringing in new variety of juices. Innocent
juice is effectively using total quality management. With the help of it they focus on
saving time of employees which are wasted in unproductive activities. This time can be
then used effectively by the employees in research and development department which
will then bring innovations.
 Mass production is a great tool that can be used by innocent drinks in order to increase
their profits and revenues. It is an effective way with the help of which company can
produce in bulk. This will help organisation to gain economies of scale. They can also
produce similar quality goods and along with it they may also reduce cost. Reduction in
cost will ultimately increase profit margins of organisation. Innocent drinks can use some
of profits and give back rest to consumers by lowering the prices.
 Innocent drinks can use Lean management. With the help of this function they can reduce
wastes. It is an effective way to save nature from the damage and also treat the waste that
is produce. Operations can be enhanced by working on the waste disposal by
organisation. With the help of this company is indirectly contributing towards corporate
social responsibility. Just in time is another approach that will schedule the incoming of
raw materials in the organisation (Peña Esteban and et. al., 2019). Using this approach
will also help to manage the waste and make sure that no raw material is extra and being
wasted. This is essential for innocent juice because the raw materials they use for drinks
are necessary to be used within specific time period.
In this way operations management and various approaches used in it will effectively help in
fulfilment of objectives.

Relationship between management and leadership in business environment
Various factors and their impact on business management and leadership are mentioned
below:
Internal Factors: This consists of all the factors in organisation itself that can be controlled by
managers.
 Employees in Innocent drinks are an important part of organisation. It is the duty of
leader to consistently motivate employees and their behaviour effect business
management as well. Stakeholders: They are the ones whop are investing in the organisation. It is necessary
that leaders and management of the organisation is focusing upon the stakeholder. It is
necessary to keep them satisfied.
External Factors: There are a number of such factors that are affecting externally and the
organisation have no control over such factors. Some of them are mentioned below:
 Culture is an important external factor that also sets up a relationship between leader
and management in a business environment. It is often seen that the culture of employees
and organisation sets up the line for leadership. It becomes necessary for leader to
understand the culture of employees in order to lead towards success.
 Values are considered to be an important part of a persons character. The values for
leadership style as well as sets up their relationship with the employees as well as
management of business. It is necessary to study the values of people around top
comfortably stay with them (Wang and et. al., 2020).
 Sustainability is another requirement of an organisation these days which is affecting
management and leadership. This refers to continuing business for a longer period of time
without damaging the environment.
 Technological factors are another external factors that are directly influencing the
leadership style and management in an organisation. It is necessary for innocent drink to
be up to date and keep changing there technology as the advancement in external world
happens and it is the duty of leader to explain it to the employees.
 Suppliers are important stakeholder but they are external sources for an organisation. It
is the duty of leader and management to make sure that they are dealing with suppliers to
bring benefit to the organisation. They need to negotiate for benefit of organisation.

CONCLUSION
From the above study, it is analysed that operations management plays vital role in an
organisation to attain business goals and objectives. It is determine that leaders and managers
play different roles in different situations arise at workplace. There are various styles of
leadership used by companies such as system, situational and contingency which help in dealing
with issues in an effective manner. There are various factors that impact on the decision making
and operational management by leaders and management such as social factors, stakeholders,
CSR, sustainability and many more.

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