Operation and Management: LO3 & LO4 Report - Analysis

This report delves into operation management, focusing on the key approaches and the roles of leaders and managers within organizations. It examines the importance and value of operation management, highlighting functions such as control and distribution, transformation of raw materials, process design, and capacity management. The report analyzes various approaches like Kaizen, Six Sigma, and TQM, illustrating their application within organizations like Boots. Furthermore, it identifies the factors in the business environment, including social ventures, corporate social responsibility, culture, ethics, and sustainability, that impact operational management and decision-making. The report concludes by emphasizing the effectiveness of operation management as a tool for enhancing business functions and profitability, supported by relevant references.

Operation and management
LO3 & LO4

Table Of Content
 Introduction
 Key approach to operation management and role that leader
and managers plays
 Importance and value of operation management
 Factors in business environment that impact upon operational
management and decision making
 Conclusion
 Reference

INTRODUCTION
Management and operation is considered as administration of
business practices which is used to create the highest level of
efficiency and increase organizational profitability.

Critical analyses of threats and opportunities faced
by SMEs
The SMEs faces various threats and opportunities while initiating
their activities. In context to the threats, SMEs faces fierce
competition threat, inadequate market access, lack of technological
threat and many more. With these threats, these enterprises faces
huge challenges for achieving success. In context to the
opportunities, SMEs can leverage e-commerce trends, innovative
technological adoption, government schemes and many more.

Key approach to operation management and role
that leader and managers plays
Operation management is the process or practices which is used by
management in order to perform all functions and maintain good
performance. To managing the operation organization uses different
approaches where leader and manager are playing their role and
function such as:

Cont..
Kaizen approach:
This approach is used to create the continuous improvement based on
idea that ongoing positive changes can reap major improvements.
This helps to use radical changes or top down edicts in order to
achieve transformation.

Cont..
Six Sigma approach:
This approach is disciplined, statically based, continuous
improvement and data driven which is used for eliminating defects in
product, process and services.

Cont..
TQM:
This describes as approach which uses to long term success through
customer satisfaction and improve the process. It involves customer
focuses, total employee involvement, process centered, integrated
system, fact based decision making, communication and continual
improvement which drives as organizational success.

Cont..
Therefore, all three approach is used by Boots organisation where
leader are playing different roles and manager are performing their
functions effectively. They can improve the production, quality and
delivering process which helps to gain the high efficiency and
profitability.

Importance and value of operation management
Operation management is the managing process which involves
planning, organizing, coordinating and controlling the functions and
make efforts to complete the goals and increase organizational
profitability. This is management function by involving management
function, managing people, information, equipment and technology
which is required in production and distribution process. In context to
Boots, management are using operation management in order to control
the distribution process and increase the business performance.
Identification of different operational function in context to Boots
corporation is defined as:

Cont..
Control and distribution system: This is important function of operation
management which helps to control the business activities and distributing
process in order to achieve business goals and make profits.
Transformation of raw material in to finished goods: Operation
management also performing function by transforming the raw material in
to finished goods and increase the revenues.

Cont..
Process design: This function states that organisation should have
clearly process design which helps to increase the attention and
maintain the goof performance.
Capacity management: This means organisation uses operation
management to ensure that business and its essential activities are
running in good way at all time and all conditions.

Cont..
Management by objective analysis:
Management by objectives is a strategic management model which is
used by organisation in order to improve the organisational
performance by clearing objectives. There is need to agreeableness of
management and objectives which leads to completion of task and
goals. This analysis is done by management of Boots Organisation
where goals is decided by managers with the support of employees
and they focus on completion of task effectively.

The Boots organisation have different objectives
which are as defined:
Enhancing the service quality: The objective of Boots organisation
is to enhance their services quality by using appropriate distribution
system.
Reduction of waste: Business organisation are running their business
by using man hours and material in which it wastes many resources.

Cont.
Maximisation of investment: In business organisation management
wants to increase their investment so they can increase the production
and business activities.
Innovation: In context to Boots organisation, innovation is the way
to increase the production and profits by bringing innovation which is
the aim of organisation.

Relation of business objectives by highlighting the
importance and value of operation management
In Boots organisation, mangers are running their functions effectively
in order to accomplish their business objectives. Functions are linked
with organisational objectives such as control and distribution function
of such organisation helps to enhance the services quality, transform of
raw material in to finished good is used to reduce the wastages and
increasing productivity which are the objectives of cooperatives. If
organisation is not focusing on functions then it cannot attain the
business goals so, function are linked with objectives.

Factors in business environment that impact upon
operational management and decision making
In business environment there are many factors that impacts upon
operation management and its business activities. For organisation it
is important that to focus on such factors and try to control over them
so operation can be manage effectively. In context to Boots
organisation there are many factors which impacts on operation
management that are as defined:

Factors that impact on leader's decision
making and operation management
In business environment there are many factors which has impacted on
leaders decision and operation management such as social ventures
which are established for social purpose and welfare that affects the
decision of leaders. The role of social ventures is increasing where
organisation need to produce products and services according that can
help to satisfied people. If society is not feeling well then it become
difficult for organisation to run its business in competitive
environment. On the other hand business environment is changing
continuously where leaders need to understand the changes otherwise
it can affects negatively business.

Cont..
Corporate social responsibility: This is key concern factor which is
used to managing the operation of large business as it contributes in
social activity which helps to increase the image of business.
Culture: In business organisation people are not same religion and
tradition so they have different culture due to which business activity
can be reduces.

Cont..
Ethics: This means ethical behaviour and social responsibility which
are happening in employees and helps to complete the goals.
Sustainability: This factor impacts on operation management by
meeting with present needs of customers without comparing to meet
with future needs.

Cont..
From the factors it has argued that all factors in context to Boost organisation
impacts on operation management and decision making by managers and
leaders. For instance, CSR which helps to increase the image of company
because all decision are taken by operation manager which impacts on
stakeholders which invest in business. Leaders provide training and proper
assistance under difference culture which has impacted on employees and
they work well. Ethics helps to maintain the good relation and behaviour
which impacts on customers and they helps to increase the sale of products
and services.

CONCLUSION
From the above discussion it has been observed that operation
management is effective tool in business organization which helps to
manage the functions and business activities effectively. Proper
management and utilization of resources helps to increase the
performance and profitability.

REFERENCES
Antunes, M. G., Quirós, J. T. and Justino, M. R., 2018. Total
quality management and quality certification: effects in
organisational performance. International Journal of
Services and Operations Management. 29(4). pp.439-461.
Teller, C., and et. al., 2018. Retail store operations and food
waste. Journal of Cleaner Production. 185. pp.981-997.
Bochtis, D., Sorensen, C. A. G. and Kateris, D., 2018. Operations
Management in Agriculture. Academic Press.
Yu, W., and et. al., 2018. Operations capability, productivity and
business performance. Industrial Management & Data
Systems.

THANK YOU