Kraft Foods: Leadership, Management, and Operational Strategies

This report delves into the core differences between leadership and management, focusing on their respective roles and characteristics within a business context. It uses Kraft Foods Banbury as a case study to illustrate how leaders and managers apply their skills in various situations, including risk-taking, decision-making, problem-solving, and team building. The report examines the application of leadership theories, such as situational, behavioral, and systems leadership, evaluating their strengths and weaknesses. Furthermore, it analyzes key approaches to operational management, including the Six Sigma approach, and assesses the factors influencing operational efficiency within the business environment. The report concludes with a critical evaluation of operational management and its impact on the broader business environment, offering insights into how leaders and managers can enhance performance and achieve organizational objectives. The report also provides a detailed comparison of the strategic and individual functions of leaders and managers within the organization.

Management and operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
a) Comparing different roles and characteristics of a leader and manager ................................3
b) Manner in which role of leader and function of manager is applied in different situations . .4
c) Applying theories and models of leadership...........................................................................4
d) Analysis and differentiating among leader and function of manager.....................................5
E) Strength and weaknesses of varied approaches to situations in work environment...............6
F) Critical analysis and evaluation of different theories. ...........................................................7
TASK 2............................................................................................................................................7
A Key approaches to operation management and role that leaders and managers play.............7
B Importance and value of operation management in achieving the business objectives..........8
C Factors within business environment which impacts operational management and decision-
making by leaders and managers................................................................................................9
D How leaders and managers can improve efficiencies of operational management.................9
E Different factors affecting business environment and wider community..............................10
F Critical evaluation of operational management and factors impacting wider business
environment...............................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business operations are related to the designing and controlling the process of the
production. Through these, business organisation will be able to achieve its objectives in an
efficient manner. The manager is responsible to organize the day to day activities so that overall
performance can be improved as well as profitability can be achieved. This is mainly concerned
with the process that convert inputs into outputs (Ravi, 2008). Management of the organization is
deals with the overall operations of the firm that how to manage its operations and so on. The
company have many mangers who have their respective roles according to their functional unit.
It is the responsibility of the firm to manage all the business activities so that success can be
achieved in the market. The present report is based on Kraft Foods Banbury which perform its
operations in United Kingdom. The food industry provide food to the number of customers and
focus on their business activities (Krajewski, Ritzman and Malhotra, 2013). The below
mentioned report is based on the management and operations which explains the roles of a leader
and how these roles help the firm in achieving their goals. Along with this, it also explains the
strength and weaknesses of the different situational theories.
TASK 1
a) Comparing different roles and characteristics of a leader and manager
Leadership is a significant factor which can help to operate a business more effectively
through using various resources like land, capital and entrepreneurship work together to attain
organisational goals and objectives more effectively. There are various roles and responsibilities
which performed by manager within the organisation (Patnaik and et. al., 2009). These roles and
characteristics as given below:
Roles and Characteristics of a leader Roles and Characteristics of a manager
A passionate leader has vision for future which
can help to motive him.
On the other hand a manager is more focused
on their projects and task which is related to
the short term goals of the company.
A leader concentrates on the strategic level
decisions which provide long term direction to
the business.
Whereas manager is taking decision for their
operational and tactical task which is related to
daily and short period of time.

Leader of the business inspires the team attain
their long term goals and objectives.
Manager also motivates their subordinate to
complete their projects on right time which can
help to increase efficiencies and productivity of
their employees (Liu and et. al., 2008).
b) Manner in which role of leader and function of manager is applied in different situations
A leader and manager have to deal in different situations in the organization so they have
to perform their roles and functions in an efficient manner. Through this they will be able to
achieve their objectives and improve the overall performance. Some of the situations are:
Risk taking: Every manager and leader have to be risk taker then they will be able to lead
the food industry towards the success (Weng and et. al., 2010). The manager have to take risks in
some situations like crisis, recession etc. further, if risks will not be taken by the manager then
profits will not generated.
Decision making: It is the role of the manager to take some decisions by involving all the
employees. In order to get success in the market the manager should consider the ideas of their
workers. Through this, satisfaction among all the people can be increased. Both leader and
manager have to take effective decisions so that all objectives can be achieved.
Problem solving: This should be done by all the manager and leader so that problem can
be resolved of the employees (Weiss, 2010). The manager of Kraft Food Banbury can also use
some tools and techniques to solve the problems of the staff members.
Team building: It is the role of manager and leader to create a team of people so that
quality work can be done by all the employees in competitive environment. If team will perform
good then they can improve their overall performance.
c) Applying theories and models of leadership
To attain organisational goals and objective in an effective manner leader is requred to
use various tools which can help to attain their these goals. There are following theories which
can be used by the leader to enhance overall firm’s performance and profitability:
Situational theory: According to this theory, no leadership techniques are best in a business unit,
especially in food business (Berkes, 2009). Leadership theories are dependent on the situation
and business strategies which can be used by the firm.

Behavioural Theories: Behavioural theory of leadership focuses on how the leader behaves in
the business organisation (Wang and Zhang, 2007). In this theory, there are four types of leaders
which as described below:
Autocratic leaders and manager can make their decision without discussing with their
subordinate.
Democratic leaders are those who take suggestions discuss with their teams and make their
decision accordingly. This kind of style is required where discussion is matter with their
subordinates. But sometimes this type of style can take more time for decision-making which is
not good for the business unit (Strong, 2009).
System leadership: This theory is based on interaction and collaboration between various
department in the system. There are various systems within business unit at various levels which
can include higher, middle and lower level. For implementation this type of system, This kind of
approach is more effective in Kraft food to maintain their operational efficiency at the different
level.
d) Analysis and differentiating among leader and function of manager
A leader is a person who can motivate and inspire their subordinate or teams to attain
their targets. Moreover, manager is a person who can manage and control all departmental tasks
in the business corporation (Strong, 2009). The firm like Kraft food having various stores which
requires effective manager and leader to manage overall business operations effectively
(Kim,and et. al., 2010). There are two type of function of a leader in the kraft food as given
below:
Strategic function: This is one of the important function of a leader which is related with the
business strategies and top level decisions making. These strategies can provide a long term
direction to the company. Manager can set the their long term goals and vision and make their
strategies accordingly.
Individual function: In this function, a leader can check the quality of food which is served to
their customers. It is important for the company, because firms are known for their food quality;
therefore, he can try to improve their standards of their food quality which can enhance
customer satisfaction level (Wen, Peng, and Wen., 2010).
There are following functions of a manager:

Task Function: As a manager of Kraft food, he can define functional task for their different
functional department such as production, quality, finance and HR. Apart from that he can assign
roles and responsibilities and also allocate resources to their departmental manager and take
feedback on the regular basis. Additional, he is responsible for quality of food, quality of service
and effective control over financial resources (Hongwei, 2007).
Individual Function: A manager of Kraft food is required to conduct meeting and communicate
with their team member over a period of time. He is also required to maintain organisational
culture and discipline within the business corporation.
Here, leader is more concentrate on people where as manager is focus on the task and
projects in the organisation. Manager is responsible for their operational and functional areas on
the other hand leader is arranging all required resources to achieve organisational goals and
objectives.
E) Strength and weaknesses of varied approaches to situations in work environment.
Kraft Foods Banbury uses different approaches in their work environment so that they
can achieve all the objectives of the firm. Each theories having their own pros and cons which is
required to focus to use these approaches in to the organization. Strength and weaknesses of
different approaches are:
Trait theory: This theory explains the core competencies of the human. It is an
experimental approach that explains that why different people react in different situation. The
strength of this theory is that it is based on the statistical data and through this approach the
manager will be able to identify the characteristics of the people (Zeng and Hou, 2007). The
weaknesses are that through this future behaviour of the employee cannot be predicted.
Behavioural theory: This theory is deals with the behaviour, attitude and values of the
person. Motivation level can be increased in the people on the basis of these behaviours. The
strength of this theory is that it improve the relationship among employee and employer. Along
with this this method is objective and measurable (Bruccoleri, Pasek and Koren, 2006). The
weaknesses of this approach is that it is difficult is examine the behaviour of a person.
Human relations theory: This theory deals with all the employees who are working in
Kraft Foods Banbury. Through this, communication can be improved between all the employees.
The strength of this theory is that through this relations can be improved between all the people.

The weaknesses of this is that employees of the firm are not friendly with their customers (LI,
MING and MA, 2007).
F) Critical analysis and evaluation of different theories.
Situational leader of Kraft food Barbary can be used various styles which can help to
improve the business operations of the firm in to the different situations. On the other hand
system leadership style for Kraft food is more focus on the different components of firms system.
This system is more appropriate for the business because they can communicate, shares and
cooperate their roles and responsibilities and attain the organisational goals and objectives
collectively (Rani, and Moreira, 2010).
Behavioural theories of leadership also one can be used by Kraft food but this is less
effective as compare to situational and system approach. In this theory there are different
leadership traits which can not suitable for the firm. In this theory if leaders can use autocratic
style which is suitable in the situation where most of suggestions not required on the other hand
if leader can be use democratic style which can take more time for make a decision (Andreassi
and et. al.,2009).
Therefore, system approach and situational theory is more suitable for Kraft food to
maintain the operational efficiency within the organisation.
TASK 2
A Key approaches to operation management and role that leaders and managers play
Different approaches to operation management are :-
Six sigma approach: Customer satisfaction is the major goal of the firm which can increase the
profitability. Six sigma technique is related with the improvement in the existing process and
deliver high quality products and services to its customers (YUAN and et. al., 2008). It is
statistical approach which tells the firm quantitatively how a system or process is perform within
the organisation. The objective of this approach in to Kraft food is to overcome the wastage,
rework and errors, increase customer satisfaction level and it can leads to increase profitability
and competitiveness.
Role of manager in this approach having a great significant because they can identify the actual
needs of their customers and check quality of the products and services. The important function

of manager is that to collect data form its customers and analyses these data, so that they can
improve the quality of their products and services.
Lean approach: This is another important approach which can be used by Kraft food to eliminate
waste and adding value for the customers. The objective of this approach in the context of Kraft
food is that to offer product and services at the lower cost with the highest quality at the
minimum time (Haider and Riaz, 2010). Manager requires that to use flexible and efficient
approach in their operational activities. The function of a manager is that to coordinate with all
department, so that they can deliver products just in time to its customers, set the quality
standards and match their products and services with them. It can help to improvement in the
quality of the products which can leads to increase customer satisfaction level. Another task of a
manager is that to effective control over all resources such as man, machine, material and money
which can reduces the cost of production and increase the profitability of the firm which is a
common goal of a business unit.
B Importance and value of operation management in achieving the business objectives
Operation management is an integral part of an organisation which can focus on the
transformation of raw material into finished goods without compromising in the quality of the
products and services (Krajewski, Ritzman and Malhotra, 2013). Operation management having
great importance to the Kraft food which can help to attain their goals and objectives. The goals
of the company is that to provide highest quality products to its customer at the lower cost and
reducing the delivery time. It can increase the customer loyalty and profitability of the business
unit.
Operation management includes a wide range of activities such as designing, planning,
managing and coordinating. These function can help to attain the organisational objectives more
effectively which can increase the level of customer satisfaction and profitability of the
company. Kraft food is required that to design their products according to the need of their
customer, for that they can conduct market survey and taking feedback (Kuruppuarachchi and
Perera, 2010). They also can design the overall process which can improve the delivery and
customer handling of product just in time. Business environment is change over a period of
time, firms required to cope up with these changes and make their planning accordingly. An
effective planning can help to Kraft food their future demand of products and services. Business
entity can focus on the a sound management system within the organisation such as

organisational culture, discipline and performance. Coordination also important in the firm
which can is required a sound communication system which can leads to increase the operational
performance of the company (Lin and McDonough III, 2011). Along with this they have to
maintain the positive brand image throughout the whole world which belongs to the cultural
background on the account of the cost efficient product provided at number of outlets in the
whole world.
C Factors within business environment which impacts operational management and decision-
making by leaders and managers
Internal and external factors can affect a business and the decision-making which is taken
by by the leaders and manager of Kraft food. Internal factors such as financial variables, internal
relations and human resources. Financial variables is related with all financial resources like
funding, investment and source of income (Mayer,Kuenzi and Greenbaum, 2010). Financial
resources must be affected by externally as well. For example, change in interest rate on loans
can affects their operational and expansion decision-making which is done by manager. Internal
relation is belongs to relationship between the staff and higher authorities. Kraft is one of the
leading food and coffee chain which requires talented staff, lack of quality workforce can affects
the operational decision-making of the company.
External factors is another important factor which can affects a business externally, it can
include suppliers, competitors and technology. Suppliers played a significant role in the decision
making of Kraft food, because they are supplying raw material to the firm. If suppliers can
increase their price which can leads to reducing revenue of the firm (Morgeson, DeRue and
Karam, 2010). They can also provide quality material which can helps to increase the sales of the
company. Therefore, business unit requires to maintain a sound relationship with their suppliers.
Competitors another factor which can affects the operational decision-making of the firm,
because if firms can reduce price of the product, it can increase the competition level in the
market.
D How leaders and managers can improve efficiencies of operational management
It is important for the Kraft food to increase the management and operational efficiencies
within the organisation. It is a major role of a leader and manager to using various tools which
can help to improve performance of operational management (Müller and Turner, 2010). There
are various tools and techniques such as inventory control, quality control, supply chain

management, provide training etc. which can help to increase the efficiency. Inventory
management is related with effective control over inventory which can be stored by the firm.
Managers requires to maintain balance between demand and supply and plan their inventory
accordingly. Quality is one of the major element which can help to increase the sales and
customer satisfaction (Salahuddin, 2010). Leader is more focus on the quality of the products and
services which can be offered to their customers. They can set the standard of quality of their
products and try to improve qualities. Supply chain is one of the important function in the
operation management, specially in food chain. Manager try to make sure they can get their raw
materials on the right time and goods are available to their customer just in time. Staff training is
one of the important part to improvement in the efficiency of operational management. Manager
can provide periodic training to their staff on various issues like customer handling, problem
solving and decision-making (Schyns and Schilling, 2011).
E Different factors affecting business environment and wider community
There are various factors which can affects the business environment and its growth for
the future. These factors can be directly or indirectly affects the business operations and its
performance. These factors as given bellow which can affects a business:
Political factors: Political factors is one of the major factors which can affects a business
directly. Political stability in an economy is essential for growth of a firm and expansion of their
business (Heizer and et.al., 2009). There are various rules and regulation which can be made by
the government which can affects the business. For example, if government can impose new
regulation regarding expansion which can affects firms long term plan.
Economical factors: Economic factors is related with the economic condition of the country, if
economy indicators are sound such as income level, interest rate, inflation rate, employment rate,
and GDP rate, it can help to increase the business automatically. These factors also impact the
profitability of the company, for example if government can impose new taxes or increase their
existing tax rate. It can leads to reducing the profitability and sales of Kraft food, because it can
reducing the saving of an individual due to higher interest rate (Johnston, 2005).
Social factors: Social factors can includes demographics, age distribution, income distribution,
population, education, ethical issues, consumer trends etc.. These factors having a great influence
over the business environment. For example, UK is well educated society with effective income
which can leads to increase the sales of the company. Culture is also important for the firm,

people of UK can prefer going outside with family and friends which can also help to increase
their business operation within the country (Olsen and Sætre, 2007).
Technological factors: Technological factors played an important role in today's business
environment. It is related with the innovation and automation in the production process, it can
affects a business favourably and unfavourably. If Kraft food is more focus on technology, it can
increase their operational efficiency and profitability as well. It can increase the production of
products and reducing the waiting time in services. Technology also helps in the promotion and
advertising of the company, there are various social media platforms such as Facebook, You
Tube, Instagram etc. (Pansiri and Temtime, 2008). can help to promote their products and
services to their potential customers. Apart form that online platform also provide an
opportunities to Kraft food to increase their sales and reducing their operational cost.
Environment factors:Today customer is more aware towards the environmental issues, therefore
almost each and every company is more focus on this issues. It is important for Kraft food to
make concentrate on environment related issues (Ravi, 2008). For example, if firms can provide
their coffee products which can less harm to the environment can attract more and more
customers. They can also recycle firms waste which can overcome the pressure on environment
and crate a good image in front of their customers and society.
Legal factors: Legal issues are related to the polices which can be made by the government and
government authorities. It can affects the business operation of a company directly or indirectly.
For example if government can increase the minimum wage rate which can increase cost and
reducing the firms profit (Krajewski, Ritzman and Malhotra, 2013).
F Critical evaluation of operational management and factors impacting wider business
environment
Operational management is a process where raw materials are converting into finished
good at the maximum efficiency and lower cost by using man, machine and material. It is
important of kraft food that to make an effective control over operational management which can
improve the productivity and performance of their staff. Manager is make sure that to provide
resources and their staff is to these resources in efficient manner (Patnaik and et. al., 2009). It
can help to overcome the cost of operation and reducing the cost of the product which help to
create competencies for the firm.

Internal and external factors can affects a business favourably or unfavourably, because
internal factors can be controllable, external factors are beyond the control of a company but
these factors can be overcome by the manager (Liu and et. al., 2008). Managers required to
conduct detail market research which can help to design their products accordingly. For example,
if firms sales is going down, immediately manager can conduct a market survey from their
existing customer and try to identify new and changing needs, so that they can change their
products or services according to their needs. It can help to maintain their profits and sales of the
company.
CONCLUSION
As per the above mentioned report it has been described that operation management is
significant for an organisation which help to operate their business activities smoothly. The role
of leader and manager is important to maintain the efficiency at the strategic, operational and
tactical level. Leaders of Kraft foods have to use the appropriate models of leadership which will
helps in attaining the success and targets. Moreover, the staff members of Kraft foods have to
perform the operations in the proper way as well as the decisions must be taken so that they have
to attain the specified goals and targets within the limited time frame.