Operations Management: Vodafone Leadership and Management Report

This report provides an analysis of leadership and management within Vodafone, a major telecommunications company. It begins by defining operations management and its significance in converting inputs to outputs effectively. The report then explores the roles and characteristics of leaders and managers, differentiating between their functions and responsibilities, including planning, organizing, commanding, directing, and controlling. It also examines different leadership theories, such as interpersonal, decisional, and informational roles, along with autocratic leadership. The report further discusses how various organizational situations, including stable, slow-to-moderate changing, and fast-changing environments, affect the roles of leaders and managers. The report provides a comparison between leaders and managers including their approach, subordinates, function, traits, roles and responsibilities, and authority. It also covers contemporary and seminal theories of management like management by objectives, classical management theories, behavioral theory, and contingency theory. By applying these concepts to Vodafone, the report offers a comprehensive understanding of effective leadership and management practices in the telecommunications industry.

Operations
management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
a. The roles and characteristics of leaders and manger..........................................................1
b. Different situations in the organisation can affect the role of leader and function of a
manager..................................................................................................................................6
c. Use a range of theories and concepts to leadership............................................................8
CONCLUSION:.............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operations management define as a term of controlling , planning , organizing in context
of production and manufacturing(Helms, 2016) . This control the process of production and
manufacturing. Aim of this is to ensure that an organisation successfully convert input to output
in an effective manner. It design and execute operation that convert resources into desired good
and services. Operation management implement a organisations business strategy. Vodafone
company is a provider of telecommunication services in United kingdom. Vodafone is worlds
second largest phone company founded in 1982. This reports cover role and function of leader and
manager .Different situation which affect the role and function of leader and manger, Theories
and concept of leadership in context of Vodafone.(Aboelmaged, 2014).
MAIN BODY
a. The roles and characteristics of leaders and manger
Manager- Manager refer to a person who is responsible for managing, controlling and
proper running of an organisation. They are responsible for designing and developing strategies
and technologies for the growth of the firm.
Leader- leader refer to an individual who encourage, motivate and guide the employees
for following the strategies and policies that are developed by the manager so that they can help in
the growth of the firm.
In above part it has been discussed the compare and different functional role and
characteristics of leadership and manager . In order to operate any business there is various
operations include in Vodafone . The comparison includes the roles which varied characteristics
of manager and leader.
Management define as managing different activity of an organisation. Its create
effectiveness in profit and non profit organisation that enhance the strategy for accomplishment
of the objective. Organization achieve its objective through availability of the resources and
managing organisation effectively. In this there is a four function of managers according to
Fayol's which is given below:
Planning: This is specify the function in which Vodafone plan about future. In this
Vodafone will predict the future regarding the mission and resources (Hugos, 2018). For
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example, Aim of manager of Vodafone can increase the sales in the market with the help of
making an appropriate plan which work effectively for them.
Organizing: Effective coordination between authority and responsibility. This is focus on
the synchronization of employee in the organisation. Vodafone appoint its employee according to
the skill and ability. For example, manager of Vodafone focus on desired skills and capabilities of
an individuals while hiring employees for specific position in company that helps to complete
tasks perfectly in future.
Commanding: Managers must supervise subordinates in their daily work and inspire them
to achieve company goals. It is the responsibility of the managers to communicate organisations
aim and goals to their subordinates. The commanding of employees should always be consistent
with the company polices and every manager should treat subordinates in line with the standards
of the firm. For example, manager is Vodafone prefer to communicate every important
information to employees and actively listen their views also which encourage people to obey
instructions of their supervisor accurately to achieve set goal.
Directing: This is about motivating directing employee. Inspired and encourage them to
perform well in organisation. Vodafone guide their employee for providing effective services to
its customer. In Vodafone, with the help of it the manager can direct the employees to do work
according to the strategies and polices. For example, manager of Vodafone use to provide correct
guidelines and ideas to employees for directing their efforts in correct direction which are
favourable to attain desired objectives successfully.
Controlling: This is focus employees performance, monitor there performance. Control is
about observing and reviewing the performance of employees. According to performance of
employee management take there possible action. Better performance of employee lead to the
success of organisation. For example, manager of Vodafone observe and monitor the performance
of employee for achieving its objective in market(Anderson and et. al., 2018).
Coordinating: The coordination is very important between employees which can be
facilitate by proper instructions of manager in order to complete the tasks in proper manner. It
includes to improve communication between team members and solve conflicts in order to
establish an effective coordination which impacts positively on operations and related outcomes.
For example, a manager of Vodafone should focus on coordination of staff members as it will
facilitate to increase regular productivity of them.
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Human relation theory of management:
This theory of management focus on the capability of an individual . This is for creatively
and gearing management toward bringing out the potential. Human relation theory focus on
aligning the needs of worker with the need of the company(Karlsson, 2016)
Leadership provide a criteria in which they provide guidance and motivate employee in
the organisation for achieving certain object of organisation. It is about influencing for doing
there best in the organisation. Leader is the the person who set the direction and help other to do
the right thing.
Different theories and role to leadership :
Interpersonal role: This is the role which define personality , lifestyle of organisation.
Practices of organisation varied for division of communication on the based role that focuses on
action. In Vodafone lifestyle and traits of employee constitute that will be valuable for the
organisation .
Decisional role: This is define as decision which is taken by the organisation for achieving
the objective . In this leader should take the decision in the organisation in order to achieving the
goal. In Vodafone it is very important to take take right decision in order to achieving the goal of
the company.
Informational role: this role are the role in which decision are taken in context of benefit
of employee(Kavuri and Kottomtharayil, CommVault Systems Inc, 2014).. This information is
kept by the managerial activity and their relationships. In Vodafone decision are taking in context
of benefit of the employee for there welfare.
Autocratic theory of leadership:
This theory include the involvement of employee in decision taking. This theory known as
the best theory of leadership. if Vodafone apply this theory then they get to know about many
new ideas and different point of views. With the use of this theory employee feel valued in
company and perform well in the organisation.
Differentiate between role of a leader and function of a manager by applying theory and
concept:
Objective, of manger is to set out the role of employee in Vodafone. Leader objectives in
the organisation is to guiding employee, motivate them and inspire to perform well in there
company of Vodafone.
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Communication, the communication of the manager in Vodafone should be done to the
policies regulated to the leaders. There is an responsibility on leader to communicate with
employee as per the policies set by the Vodafone(Castro, Rocha and Oliveira, 2014).
Emphasis, manager focus on the things and activity of Vodafone . Leader focus on the
entire employees and inspire them.
Work,manager allocate the work to employee according there capability and skill. Leader
is the person who motivate to perform well or work done in Vodafone .
Apart from this, there are some theories of Contemporary and seminal theories of management are
as follows:
 Management by objectives: It is an strategic management model which used by the
company with the aim of improving the overall performance of the company by
determining all the objectives. It is beneficial for both management and its employees as
well. The main focus of this type of model is to encourage all the workers and commitment
among workers in order to attain set objectives in systematic manner.
 Classical management theories: This type of management theory is based on the belief of
the workers. It does not take into account of social need and job satisfaction that may
contribute in maximizing the profitability level at market place. As it help in increasing the
productivity level of the workers and at the same time also improve the performance level
of the company.
 Behavioural theory: It is also an important theory that is based on the idea that all the
behaviour are acquired by conditioning. Mainly, it is related with the human relation
movement as it help in determining the human dimension of the task activities at
workplace. Along with this, it is also contribute in better understanding about the human
behaviour within the organization like motivation, group dynamics, conflicts, expectations
and many more. All these are help in evaluating the workers behaviour at workplace.
 Contingency theory: This type of theory is related with effectiveness of the leader within
the organization as it help in determining the situation occur at workplace. In this regards,
the leader of company is responsible for find out what type of leadership style and
situation. This will aid in improving the performance level of the company at market place.
Difference between leader and manager:
Basis Leader Manager
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Approach The leader set the direction for
their workers to attain their set
targets.
Manager do planning and
organizing the the map for
workers to attain set outcomes.
Subordinates Leader has workers as their
subordinates.
Manager has employees as a
subordinates.
Function The main function of leader is
to leading, directing and
influencing workers at
workplace.
Function of manager is to
manage and organize
employees activities at
workplace.
Traits The traits of leaders consist
strong communication, passion
& commitment, positively,
innovation and collaboration.
The traits of a manager
involves empower the team,
remain productive, results
focused and empathetic.
Roles and responsibilities The leaders roles &
responsibilities are developing
strategy, provide training,
listen to employees, setting a
clear vision, motivating
employees. guiding employees,
monitor team members and
communicate instructions
clearly.
The manager fulfil several
roles & responsibilities
including daily operations,
staffing, set gaols, liaising,
administration, delegation,
motivate, enforcing policy,
training and evaluation.
Authority and power Leaders has legitimate power,
charismatic power, expert
authority, reward power,
coercive authority and political
power.
Manager has power of
influencing people and get
them complete the desired task
properly. They have several
types of authority like legal,
expert, reverent, reward and
punitive.
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b. Different situations in the organisation can affect the role of leader and function of a manager
In this the role of the leader and function of management represent Vodafone company
for the better improvement and changes in operations of company. They varied different type of
traits and characteristics of leadership in functioning management. This concept allows the
changes for that initiate knowledge of managerial activity.
Many different situation focus on organisation that includes the concept for the detailed
activity of the result the enhance three varied situation which is explain below :
Stable situation : In this there is no any further changes in the organisation. This situation
focus on no changes that will influence purpose of Vodafone . This situation maintain the stability
in Vodafone . For example there is not any changes in taste and preferences in customer then there
is the possibility that they will not affect in the organisation.
Slow to moderate changing situation: It is define the competition will not be offended
then the situation will not rise and slow while changing the scenario. When in Vodafone there is
no change but when taste and preferences of customer is getting change then the company are
from slow to moderate.
Fast changing situation : This situation is the rapid situation in which organisation
purpose as it draw down the fast changing condition . Fast changes are apply because of the
market environment. When the taste and preferences of an customer changes on continue basis
then Vodafone going take new some changes. This time its work as non profitable tool because
organisation can not achieve continue and fast change this can risky for organisation.
Situations affecting roles or leaders and manager
Short of staff – The shortage of staff members create difficulty for both leaders and
managers because work load cannot be be managed by leaders and set goals of manager is
difficult to be achieved. In context of Vodafone, shortage of employees create problem for team
leaders in terms of managing daily routine work and manager is required to put efforts again to
hire candidates fro desired designations vacant in organisation.
Maintenance issues – This can be described as operational issue in equipments used in
operations including technical problem and servicing of machineries. It involves several problems
which may take place at operational working area which are responsible for creating issue in
performance of leaders and managers in Vodafone. However, repairing consumes specific
duration of time and maintenance take some of duration which waste time of leaders to complete
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daily targets. Moreover, managers face problem to fulfil set objective to desired time of
productivity.
Discrimination issues – The discrimination problem create conflicts between employees
and demotivate them which impacts negatively on their performance regularly. Meanwhile,
leaders in Vodafone are required to give time to every person in order to encourage them again
which facilitate to improve the working of people. Manager should focus on establishing new
effective policies to solve and reduce conflicts between employees. These aspects increase work
pressure on leaders and manager which is favourable for their performance.
In this there is many situation for changing. In this for Vodafone the best strategy is slow
to moderate in this is because in this Vodafone have time to take decision and understand the
market requirement (Fagel, 2016). This is not define as quick change in this change will be from
slow to moderate mode. This will work effectively for the company like Vodafone.
External organisation changes: This changes include the outer changes of the
organisation. This external organisation changes include the government regulation ,
competition , tax policies , economic situation , changes in the taste and preferences. This
comprise the organisation factors that influence at macro level. This changes affect the
organisation in this this point should be consider because its play measure role in this
organization. Company like Vodafone there is an many factor which affect Vodafone. In this
there is an so many competition in the market. Vodafone need to focus on change and preferences
of customer so that they can retain there customer for so long.
Internal organisation changes : this changes are define as a inner changes which is
going on in the organisation. This factor are also affect the organisation this changes include
management team change , changes in financial situation of the organisation, various strategy
regarding the product . This all are the internal changes of the organisation . When Vodafone
started changing in there internal organisation then its work positively for the organisation market
share will be increase of and customer can meet there need easily .
In this context, there are some important function of management which may aid in
executing entire activities at workplace in appropriate manner. All these can be understood by
following points:
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Planning in the analysis of organisation slow to moderate position considers . In this
various planning techniques to be used which includes budget allocation , utilization of resources ,
availability of work force and after that decision are taken.
Organisation in this Vodafone organize and coordination will be maintained by stablity
of the result for the economic development and measuring technique in order to enable results
Directing,in this Vodafone direct there employee to perform better in the company. The
leading function is en roll in the slow to moderate to moderate position . The motivation to
employee is to higher growth and utilization of compete demand that will fluctuate according to
the taste and preferences that ensure the productivity.
Controlling this allow Vodafone to controlling the operation regarding the internal
management. Preparing staff for the practices and reviewing of the policies undertaken and the
right adopt of the technology.
Leadership styles:
Directive style: this style is very use full in support the managerial activity that can
communication other subordinate(Ferguson and et. al., 2016) . This style is that which is not find
any guidance to achieve it
Supportive style this style is style which reduce the stress and frustration in the
organisation. For increasing the productivity that entails the organisation growth and emphasis on
the result through activity.
Participate styles :this will emphasis on the decision take the organisation
purpose .Evaluate the method and result in order to maintain participation for maximum strength
and including factor that relate.
c. Use a range of theories and concepts to leadership
In this there is varied theories and including the model and approaches that is relate to
various aspect. This theories are given below:
Situational leadership-
The situational leadership theory is that which initiate the organisational behaviour and
working for the employee. This theory also known as life cycle theory of result. This theory is an
adaptive leadership styles. This style is not based on any specific skill of the leader , modifies the
style of management according to requirement. Vodafone enable to adopt this theory for the
factors and evaluation of varied situations in order for various action taken for the forces.
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Situational leadership is a model of choice around the whole world and following various aspects
in which people and different workshops maintain a report to bring out better outcome of people.
For example, in it the leader can motivate the employees for increasing the sales of the company
and gaining competitive advantages form the market by using their efforts according to the
situation. In this analysis the leader and manager firstly analyse and diagnose the situation than
they accept it. Than they make communication about it with the employees and develop strategies
according to the situation.
Diagnose – The situation leaders prefer to initially analyse and understand the overall
situation properly.
Adapt – They use adjust behaviours of employees in context of desires of particular
situation.
Communicate – Situational leaders communicate to people regarding new adoption and
changes in plan for facilitating acceptance of them.
Advance – Management of specific condition.
System Theory-
The system theory involves systematic rules and regulation in which everything is pro
planned. This is an interdisciplinary system of the result include action. This includes two system
that active and passive system(Gupta and Starr, 2014) .Vodafone should apply this in context of
well extend result. This is for systematic way of doing work. For example, to increase the sale of
the company by 20% the manager and leader can provide a systematic formate to the employees
and develop polices according to that so that employees follow them and operating their work in a
systematic way and style.
Diagnose – The leaders using system theory focus to understand particular situation to
manage policies present in specific system of company.
Adapt – The modify behaviours of employees and encourage them to accept required
modifications.
Communicate – They make communication with people to provide information about
specific problems and desired changes and motivate people to apply the same accurately.
Advance – Manage specific problem.
Contingency leadership style-
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The contingency theory define as influencing the decision which is taken. This
comparatively highly position for the right situation in leadership(Heizer, 2016). This affect the
decision making process of Vodafone. A contingency theory explains influence the Vodafone
purpose for the influencing the decision taken. This leadership style describes about various
leadership style in organisational context according to the situation. For example, In case of
Vodafone if the company want to increase the sale of the company than it apply some specific
leadership style that are flexible enough for an organisation during the time of this situation.
Diagnose – The contingency leaders understand specific situation and actual demands of
the same.
Adapt – They use to provide information to employees about contingency and desired
modifications.
Communicate – They communicate about changes and make people encouraged to adopt
required mortification.
Advance – Manage the contingency issue.
CONCLUSION:
From the above mention report its has been concluded that in organisation there is
different of role of manager and different role of leader play in the organisation. Without manager
a organisation can not managed in a effective manner. Leadership style help in influencing and
motivating employee in organisation. Leaders work in many others situation.
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REFERENCES
Books and Journals
Aboelmaged, M. G., 2014. Linking operations performance to knowledge management capability:
the mediating role of innovation performance. Production Planning & Control. 25(1).
pp.44-58.
Anderson, D. R. and et. al., 2018. An introduction to management science: quantitative approach.
Cengage learning.
Castro, A. J., Rocha, A. P. and Oliveira, E., 2014. A new approach for disruption management in
airline operations control (Vol. 562). Heidelberg: Springer.
Fagel, M. J., 2016. Principles of emergency management and emergency operations centers
(EOC). CRC press.
Ferguson, N. T., and et. al., 2016. Secure management of operations on protected virtual
machines. U.S. Patent Application 15/243,647.
Gupta, S. and Starr, M., 2014. Production and operations management systems. CRCPress.
Heizer, J., 2016. Operations management, 11/e. Pearson Education India.
Helms, M. M., 2016. Encyclopedia of management.
Hugos, M. H., 2018. Essentials of supply chain management. John Wiley & Sons.
Karlsson, C. ed., 2016. Research methods for operations management. Routledge.
Kavuri, S. and Kottomtharayil, R., CommVault Systems Inc, 2014. Systems and methods
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
P4: Key Approaches to Operation Management and Role of Leaders and Managers................1
P5: Importance and Values of Operation Management in achieving business objectives..........2
M3: Leaders and managers improve efficiencies of operational management to meet business
objectives.....................................................................................................................................4
P6: Factors of business environment affect operational management and decision-making by
leaders and manager....................................................................................................................4
M4. Analysing how these factors affect business environment and wider community..............7
CONCLUSION................................................................................................................................8
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INTRODUCTION
Operations management define as a term of controlling , planning , organizing in context
of production and manufacturing. Lo-real is a French personal care company in clichy with a
registered office in Paris. This company is the worlds largest cosmetic company founded in 30
July 1909. This report helps in understand role of operation manager with regards to improving
efficiency and decision they make. Key element and approaches of different operation
management system . Explaining such factors like corporate social responsibility , culture , values
and there impact on business (Sodhi and Tang, 2014)
TASK 2
P4: Key Approaches to Operation Management and Role of Leaders and Managers
Operation management refers to the framework in which operations of the management
are taken care of. It contains study and management of various processes in an organisation
related to design and operations of goods and services.
L'Oréal is a French originated company providing personal care products. It is
headquartered in Clichy, Hauts-de-Seine. It is world's most trusted and largest company in
cosmetics department providing products of haircare, skincare and make-up. L'Oréal is famous for
its approach in operation management as it helps the organisation in limiting the cost and
increment in profits.
Key Approaches of Operation Management
There are mainly three approaches surrounding operations management in L'Oréal :
First approach of operation management is Lean Manufacturing. It states to limit the
amount of waste in manufacturing by establishing standards. This method helps in reducing the
amount of waste caused due to overburden and unevenness of work. Lean Manufacturing have
impact on overall cycle of the business. L'Oréal as well has implemented the idea of Lean
manufacturing in their operations in order to create an atmosphere where they can improve their
productivity, limit their waste and improve the quality of products for the profit maximisation.
L'Oréal uses lean manufacturing in order to increase their productivity, improve the product
quality, reduce the time of manufacturing the products and eliminating the manufacturing waste.
L'Oréal is considered a large organisation in respect to growth and profits because of their
approaches here(Swink and et. al., 2017). The role performed by the different managers and
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leaders of L'Oréal here is to assure that the employees knows the values that are expected from
them in order to create an environment which will be waste free and high productivity.
Second Approach of operation management is Six Sigma. It is very popular mode of
statistical approach used by L'Oréal in order to remove any defects or errors which can reduce the
productivity of L'Oréal. The main purpose of six sigma is to provide assistance in order to increase
the level of productivity to the managers and leaders of L'Oréal. It helps the managers and leaders
of L'Oréal in achieving their goals and objectives within a short duration. This approach provides
a framework to L'Oréal in graphical format so that they can analyse where they can work step
wise and reduce their cost in order to maximise their profits.
Third Approach of operation management is Total Quality Management. TQM refers to
the total quality improvement everyday by the labourers in order to provide the customers with
best services and products in order to maximise their satisfaction. The main aim of this approach
is to improve the quality of the products provided by the L'Oréal, as L'Oréal is known for the
quality of their products as it differentiates them with that of their competitors and makes them
stand out in the market. The key role performed by the managers and leaders here is to assure that
there is no compromise made by anybody in the development process of the products and the
original quality of the products remain intact.
P5: Importance and Values of Operation Management in achieving business objectives
Importance of Operation Management
Operation Management fulfils a major role for L'Oréal in order to achieve their goals and
objectives in the management. The importance of Operation Management in achieving goals are:
The very first important feature of operation management in context to L'Oréal is it helps
in low wastage of things. It establishes that L'Oréal experiences less wastage of material because
of implementation of different approaches, which results in low wastage and low cost, and the key
to successful business is to either increase your profit or low the cost and this approach helps in
low wastage of raw materials and help L'Oréal in achieving their goals and objectives effectively
and efficiently(Varley, 2014).
Other important element that needs to see while implementing approaches of operation
management in the L'Oréal management is that it helps in enhancing overall capacity of
productivity in the cycle of business. As when there would be less wastage, high productivity,
identification of defective material and their elimination will obviously results in overall
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increment of overall productivity of L'Oréal products which will results in establishing and
attaining different aims and objectives.
Values of Operation Management
There are different values associated with the Operation Management which helps an
Organisation like L'Oréal in achieving their goals and objectives. Some of them are:
The value of any product is derived from the utility that a consumer will experience out of
it and the ultimate motive of all the organisations is to create a product that a consumer is willing
to buy in a market place in exchange of money and it can be achieved only by creating a such
which will provide the utmost satisfaction to the customers keeping ion view the different motives
of the Organisation, this is the framework or values that L'Oréal wants to achieve through their
work. L'Oréal is a successful organisation working for the benefits of customers as well as
themselves by providing a low cost product at high value.
To consider the different values in the L'Oréal, it also needs to analyse various approaches
in regard with the operation management. Some of the key approaches of operation management
is Six Sigma, Total Quality Management and Lean Manufacturing. These approaches helped an
organisation in low productivity, low cost and high profits in L'Oréal.
Key Elements of Operation Management
Operation Management is the function that creates a basis for management functions like
Planning, Organising, Directing, Staffing and Controlling and due to increment in various
production function, its uses become important in L'Oréal.
Elements are compounds of any material, similarly, operation management as well have
certain elements in organisation function that distinguish them from others. The most important
element of operation management is it helps in effective production planning and control. It is a
system that helps in creating a specific procedure of how to get things done in the course of
management at L'Oréal. It ensures that manufacturing is done as created according by the plan.
Other important element of operation management is to assure that the quality of material
and product is up to the mark as it ensures that the quality standards are met and customers are
satisfied with the product they are receiving. It sets standards of quality expected from the
production department in order to have a competitive advantage in the market. These type of
elements help the firm to stand out in the market(Wensveen, 2018)(Wiggins, 2014).
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M3: Leaders and managers improve efficiencies of operational management to meet business
objectives
In order to achieve the goals and objectives of an organisation efficiently managers and
leaders of L'Oréal establishes certain standards that help the team in successful implementation of
policies in short term as well as long term. The managers and leaders of L'Oréal perform certain
functions, one of the major function performed by managers and leaders is to ensure that the
quality requirements are met and according to the standards of L'Oréal. It is very important
function as L'Oréal is known for the quality of the products they provide to their
customers(Ramasamy and et. al., 2014).
Other important function performed by managers and leaders of L'Oréal is to see that the
inventory in the factories or in supply units are enough to meet the requirements of people as there
neither should be surplus of production nor there should be deficit of products, products in the
inventory should be at the right number in order to meet the needs of the people.
P6: Factors of business environment affect operational management and decision-making by
leaders and manager
Business environment refers to the micro and macro factors in which business is working
in. To study the business environment of L'Oréal, the two analysis would be done, which are,
SWOT Analysis and PESTLE Analysis.
SWOT Analysis refers to analysis of various strengths, weaknesses, opportunities and
threats of an organisation. These are analysed to study the overall capacity of L'Oréal, that is, the
internal factors of the business comprising strengths and weaknesses and outside environment of
L'Oréal, that is, external environment of business comprising opportunities and threats.
16

The major strength of L'Oréal is that despite the competition prevailing in the market,
L'Oréal is the leader in the growing cosmetic industry. The main reason behind the success of the
company is that it is completely focussed on beauty products.
One of the biggest weakness of L'Oréal is the decentralised organisational structure. Due
to many subdivisions of the company, there is difficulty in control of L'Oréal which is slowing
down the production of company.
As L'Oréal company enhance women of all ages, so the growing demand of beauty
products give them the opportunity to focus in their field of specialisation. Another opportunity
that L'Oréal should take advantage of is its great market share because of numerous patents
registered by the company(Naser and Al Shobaki, 2016).
Growing competition in the field of cosmetic brand is a big threat for L'Oréal group
because of which other brand could surpass the profit of L'Oréal. While L'Oréal may be trying to
provide best of its line people may find that their products are not satisfying the basic needs and
would skip buying L'Oréal products.
PESTLE Analysis refers to the study of various macro factors which affect the
performance of L'Oréal in the business environment. PESTLE Analysis will help in study the
external elements in which L'Oréal is working.
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Political Factors of L'Oréal consists of various import policies of France and this regions
works great for L'Oréal as the policies are working in the favour of L'Oréal because of the
advancement of globalisation.
Economic Factors of L'Oréal plays a very high role as the prices of skincare products are
quite high in some of the countries in which L'Oréal is working whereas some of the countries
have low prices which creates diversity in the prices in the countries in which L'Oréal is working.
Social Factors of L'Oréal is referred to various materials used in creating a product, for
instance, some ingredients can be considered as holy in any country which may result in backlash
from the country and huge losses.
Technological Factors refers to the innovation created by L'Oréal in order to have a
competitive advantage in the market. It brings out the creativity of certain fashionistas which will
help in help in selling of trendy products(Kulkarni, Apte and Evangelopoulos, 2014)
Legal Factors refers to legal aspects of the products of L'Oréal. As it is a brand of upper
middle class people and they give a lot of view in the legal factors of a product, so, L'Oréal needs
to have a close look in these areas.
Environmental Factors refers to social responsibility fulfilled by L'Oréal. L'Oréal has
initiated lots of project in order to fulfil their responsibility towards the environment.
These factors play a major role in analysing business environment. These elements have
certain advantages and disadvantages. The advantages of these analysis can be that it helps in
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analysing various opportunities and threats as well as micro and macro elements of L'Oréal.
Similarly, various disadvantages of the same would be that it is not reliable as these factors can be
different in the real world.
The impact of Corporate Social Responsibility, Cultures, Values, Ethics and Sustainability
on business operations is very huge as these factors have led to the foundation of L'Oréal as
because of culture, ethics and values have made what L'Oréal is today. Also, every organisation
needs to perform some role towards the society they are living, similarly, L'Oréal needs to do the
same(Kerzner and Kerzner, 2017).
. These little elements play a major role in the operations as they create a whole model on how the
organisation needs to work.
M4. Analysing how these factors affect business environment and wider community
These factors creates an impact on the business environment externally as well as
internally. These factors can have positive as well as negative impact on the business as it helps
the L'Oréal in analysing the true opportunities and help in reducing the effects that can caused in
the workings of L'Oréal. These factors helps in realising the true potential of L'Oréal. Also, these
factors are responsible in creating the plans and procedures of L'Oréal that helps in evaluating the
profit ratio.
CONCLUSION
From the above report it can be concluded that Operation Management is the key to
success for any organisation. Operation Management helps several organisation in creating a
workplace which would be free of any decay at the same time it will provide effective results to an
organisation, as it helps in estimating low cost, increment of productivity and advancement of
profits in order to achieve goals and objectives. The major role performed in the establishment of
operation management is of Managers and leaders of the organisations as they are the people who
provide a direction to employees on how to implement it.
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REFERENCES
Book and journals
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hierarchical storage management, such as global management of storage operations. U.S. Patent
8,832,031.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Kulkarni, S. S., Apte, U. M. and Evangelopoulos, N. E., 2014. The use of latent semantic analysis
in operations management research. Decision Sciences. 45(5). pp.971-994.
Naser, S. S. A. and Al Shobaki, M. J., 2016. The Impact of Management Requirements and
Operations of Computerized Management Information Systems to Improve Performance
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Varley, R., 2014. Retail product management: buying and merchandising. Routledge.
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