Operation Management in the Food Industry: Iceland Foods Case Study

This report delves into the realm of operation management within the food industry, examining the distinct roles of leaders and managers and their impact on business success. It begins by differentiating between leadership and management, highlighting how leaders create vision while managers focus on goals. The report then explores various leadership theories, including situational, system, and contingency leadership, and provides practical examples of how these approaches apply to real-world scenarios such as conflict situations and employee turnover. The report also analyzes the key operational functions, such as designing and planning, within organizations like Iceland Foods and Amazon.com, emphasizing the importance of operation management in achieving business objectives. Finally, it examines the environmental factors that influence operational decision-making, offering a comprehensive overview of the challenges and opportunities within the food industry.

OPERATION MANAGEMENT
IN
THE FOOD INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1.Differentiate between the role of a leader and the function of a manager............................1
TASK 2............................................................................................................................................3
P.2. Example of the role of the leader and the function of a manager apply in different
situational context.......................................................................................................................3
P.3. Different theories and models of approach, including situational leadership, system
leadership and contingency.........................................................................................................3
TASK 3............................................................................................................................................5
3.1 Explain the key approaches to operation management and the role that leaders and
managers play..............................................................................................................................5
Detail of the Each of the key operational function:....................................................................6
P.5 The importance and value of operation management in achieving business objectives.......7
TASK 4............................................................................................................................................8
P.6 The factors in the business environment that impact upon operational management and
decision-making by leaders and managers..................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Management is considered as a way of organizing the functioning and operations of an
organisation. A manager and leader play important role to help in proper functioning and
specifications of a business. A company is considered as an entity of people that is properly
managed and structured that it can help to a specific organisation to achieve all the targets and
goals at faster rate. The report is about understanding the role and responsibilities of a leader and
managers of Iceland foods limited company, which is a British company. Also, we will discuss
about to the importance of operation management in the amazon.com inc'.which is a large E-
commerce company.
TASK 1
P.1. Differentiate between the role of a leader and the function of a manager Leader: A leader is a person that holds the capability to lead a specific ground or team in
terms of achieve all the targets and goals of the company(Akkerman, Farahani and
Grunow, 2010.). A leader usually holds a very dominating role which is important as well
for controlling and managing the people working them. Manager: A manager is a person that is responsible for managing and administrating the
whole organisation or a particular team or group. Usually, a set of people or employees
have to report to the manager for giving the complete detail of the situation and
upcoming predictions.
 M.1.Analyse and differentiate between the role of a leader and function of a manager by
effectively applying a range of theories and concept:
1. Leaders create a vision and manager create a goal: The focus of a leader is on vision
or aim of what has to be achieved. A leader plans the whole method which he can use for
batter and efficient work out that can help the company in proper planning(Tang and
Musa, 2011). The focus of manager is goals, it does not matter what strategies are being
used, they only focus on the targets and achieve goals. Leader possesses extra capability
that they can think out of box but managers only how they can achieve goals. Iceland
foods Ltd. Is a British supermarket chain and it's need a good leader to make right vision

and accomplish its goals and objective in proper manner and also need managers to
create a big goal in the future.
2. Leaders take risk and manager control risk: A leader are always thinking to do new
activities in the business if they may fail miserably. They know that failure is always
taught us, how we can be successful(Alderton and Saieva, 2013). Managers works for
minimize the risk in the firm. They seek to neglect the problems rather them solving
them. Iceland foods Ltd. leader are required to make the decision for the future success,
that may be risky to the business but may be more profitable to it. And also managers
takes decision to reduce the risk of the firm.
3. Leader build relationship and manager build system and processes: A leader focus
on all the employee in the firm that should be influenced in order to realize their vision.
They spend most of their time with stakeholders. They build loyalty and faith by
frequently delivering their promise to them. Iceland foods limited company's Managers
focus on the analytical approach and ensure system are working well in order to
accomplishment of goals. They don't interact more with their employee in the business.
Iceland foods limited leaders are required to make a good relations and interactions with
their employee in order to motivate them and ensure them about the prediction of future
outcome on the behalf of its decision. Managers in this company build a system and
process and ensure that it should be followed by their employees in anyhow situation. Situational leadership: Situational leadership is a leadership style that refers to when the
leader and manager of a company must set to fit in a particular situation of the company
that will be helpful to create a favorable involvement to the development level of their
employees and he/she is trying to influence them(Barratt, Choi and Li, 2011). With
situational leadership style, it depends on the leader to change their style according to the
circumstances not to employee to change their styles. With in the situation Iceland foods
limited company work more profitable in terms that, if its managers and leader take their
suitable decision according to the situation.
 Contingency leadership: This latest approach is related to the existing management
approaches. In contingency approach it is stated that manager must make decision by
considering number of factors. Iceland foods limited company's managers must use

contingency approach when according to the changes in situation they must change usage
of resources in the business. If they have any shortage of row material and lack of food
delivering then, the manager has to take decision to use their available resource at present
time for providing services.
TASK 2
P.2. Example of the role of the leader and the function of a manager apply in different situational
context
In any place, it is common that there were occurred various type of situations, sometimes
environment is good and many time low as well(David, 2011). So both leader and manager know
how to manage and control such situations so that there can be no sort of issue or conflict in the
company. Conflict situation: There come various time in a company when there occurred some
conflict situation in work place. In these type of situation, a leader think ways that how
can the situation can be solved out without making any future problems with any of the
employee. That means a leader thinks that how a situation can be resolved in a way that
the interaction between the employees can stay maintained and the issue can be resolved
as well but a manager thinks that whatever the result may be, the company should have
achieved the targets and goals as well. It does not matter for a manager to keep and
manage the relation with other employees, a manager think about only the outcome of the
business.
 Employee turnover: A company may face employee turnover and it is very common
things for may firms. It can be happen because of many reasons like less motivation in
the company, less incentive and salaries etc(Dekker, Bloemhof and Mallidis, 2012). In
this case a leader can focus on the ways such as providing some sort of incentives or
increment of the employee in the company so they can be motivated from it and more
focus on works which will further prove beneficial for the company. In this case, a
manager thinks that organisation some activity is enough and it does not matter that the
staff will go. Some sort of incentive and increment in the salary can motivate the
employees and more focus on the work. A manager thinks that they will hire new
employee and they will help to managing the dimension of the company. Usually a

manager does not think about including any way of providing motivation, rather they
think of changing activities that can help the company.
P.3. Different theories and models of approach, including situational leadership, system
leadership and contingency
 System approach: System approach is dependent on the assumption that
everything is interlinked and interrelated to an organisation(Fuller and Martinec,
2011). A company system has a boundary that determines that which part are
internal and which part and external. The leader controls the working of the
employee and communicate the situation of the firm and motivate the employee to
work according to the needs of the company such as Iceland foods limited. Need
to the changes in the operation of the company and implement those strategies
which can improve the quality of the business.
 Contingency approach: Contingency theory focus on the change in the strategies
according to the changes in the situations(Galindo and Batta, 2013). A leader
plays an important role in the situation in which they influence the employee to
make changes in the operation. The manager of Iceland foods limited, should
consider the reason behind the cost increment of the company and apply the
theory to implement some changes in operational activities to decrease the high
price of the products selling and reducing the transportation cost. They changed
the policies of the firm in selling an operational department of the firm.
 Classical management theory: Classical management theory is applied in Iceland
food limited., where the managers make the policies to increase the productivity.
According to this theory each management group has its own responsibility and
objectives. The top management usually board of director and chief executives
they will always responsible for the goal and objectives of the company(Haksever
and Render, 2013). The company classify their responsibilities between top
management and its subordinates and they are obligated to do their job properly.
 Strength of these approaches: Classical theory are properly based on scientific
principles of this approach(Heizer, 2016). It helps to make high productivity and
many rules and regulation that will help in batter understand the management of

the firm. Contingency management theory has its best strength is its flexibility, it
adopts management style according to the situation. And the quantity theory
provides the value of data analytical approach that will help top managers and
leaders to develop their decision quality according to their selective
approach.
 Weaknesses of these approaches: The classical theory is old approach and it conducts
some weakness which is job satisfaction is ignored by the employee and there is a scope
of conflict between employees and managers. This will not help a company's
management function to operate in appropriate manner. There can be misuse of power
and internal battle with the employees. It is difficult to predict about human being
behavior and slower decision making process also show the weakness of these
management approaches. In the contingency approach, there are scope of lot of changes
in the management and employee feel uncertain of the current condition.
TASK 3
P.4 Explain the key approaches to operation management and the role that leaders and managers
play
An introduction to the key operation of the organisation: Designing: Designing is the first step of the product development and expansion in
which including the several features and characteristics of the product that should be sold
by this company's product and services(Jacobs and Chase, 2017). A leader and manager role in designing: A leader and manager of Amazon.com
inc'.company ensure that product and services provided by company are working in well
design by their subordinates. And also managing the ordering with full facilities and
machinery to use in providing services by the company. Planning: Planning is the one of the key important function of management that is
followed by top management to full utilize the available resources to operate with the
various situation. In the for instance changes in the requirement of the products can be
increased and decreased. A leader and manager in planning: A leader and managers of Amazon.con inc'.company
must ensure that they have proper planning about selling their products in all the

circumstances so that they can help company employees effectively in well planning abut
their product selling techniques on online basis and this activity would assist to
accomplish business goals and objectives effectively. Managing: Managing is also an important part of operation management of Amazon.con
inc'.company in which team work play an important role to being it capable to success.
The top administration of an organisation managing the system through employee
stimulation which is more effective in development and better performance. It includes
training, culture and leadership in the business(Karlsson, ed., 2010). A leader and manager in managing: A manager of Amazon.conm inc' can use better
techniques while managing their online ordering process and also providing product and
services effectively with the help of efficient management techniques and tools so that
their online services can be effectively managed. Coordinating: Coordinating is also a necessary approach to the operation management of
Amazon.com inc'.company that assist to coordinating with various role and responsibility
of the work with the staff and operation team of organisation. A leader and manager role in Coordinating: In this approach a leader and manager
coordinate their subordinates and employee in very effective way and make
communication between team members and leaders so that they would be able to share
their ideas about improving their effective online services.
M.3. Leaders and managers can improve efficiencies of operational management to successful
meet Amacon.com inc'.business objectives The key role and responsibilities of a leader and a manager: A leader and manager of
Amazon company play an important role for in managing and controlling its business
decision in the firm(Krajewski, Ritzman and Malhotra, 2013). They amazon company's
managers determine, how much product are available in our retail store and how much
quantity should targeted to be sold in the predetermined time period on the online basis.
As, a leading player in the e-commerce company amazon is an example of a significant
technology user supported to optimize operational efficiency. Policy formulation: Policy formulation is one of the important key jobs of operation
management. Amazon.com inc'.company need to operate their function on daily basis

within a non-arbitrary set of instruction. These recommendations are basically constituted
by leader and managers of this company. There are several departments in this company
and they are responsible to how they can communicate each other. A leader and manger
can chose appropriate method to be favorable for both employee and company. A leader
and manger must create policy formulation to improve the quality of sales in the firm and
employee are also satisfied with salary and facilities provided by the company. Planning: These is another concept of operation management in which a leader and
manager ensure that all the activity and process defined in the plan and policy of the firm
is being done in proper manner(O'Fallon and Rutherford, eds., 2011). A leader and
manger has to determine that which product is targeted to be bought and sold and what
prices of a product to be, all these things are determined by the managers in Amazon.com
inc'.firm. A leader of this company can think differently to make proper planning
according to the situation of the company and profitable decision to increase the
efficiencies of the business.
 Financial management: Operational management play important role in budgeting,
reducing cost of the product, purchasing cost of the products and keeping in the track
firm financially. A role of A leader and manger, he/she can make a crucial decision in the
critical situation of the business and changes the decision track financially favorable to
the organisation. A finance manager can make a profitable decision in order to increase
the wealth of Amazon.com inc'.company and they will make the decision according to
the situation. Supply chain management: Operation management is concern about this strategy to
make decision about efficiently manage their supply chain management of the company
to support its objectives and goals. Amazone.com inc'.does this activity through its
automation and suppliers of the company with the help of company's it assets. Based on
the required data available on the company's website customer can contact with company
and supplier also through company's online services and track their order. A leader and
manger of Amazon.com inc'. Can use updated techniques to provide better online
services in very effective manner so that company's market share can be raised
efficiently.

 Total Quality Management: Total quality management approach describe a management
techniques to long term success of the business through customer satisfaction(Peng and
Lai, 2012). TQM seeks to develop quality and performance which will fulfill the
customer need and satisfy their desired values in the organisation. Amazon.com
inc'.company's leader and manager ensure that developing their quality of product and
services according to the feedback of customers on their products and services and
modify them at the stage of customer satisfaction level. Inventory management: It is an inventory strategies to company's employee raise their
productivity and minimize waste by receiving goods only as they are required in the
service providing process. Amazon.com inc'.company's leader and manager improve the
efficiencies of operational management by applying just in time strategies to increase the
productivity and quality of the product and reduce the waste and utilize them on their
relevant substitute to new product development.
 Continuous improvement: In this approach business professional frequently analyzing
their process to identify the issues and eliminating them. This is not required a big
changes in the business(Sheu, 2010). It can be done by small changes like checking
service providing quality of the firm, survey on customer satisfaction, service provided
by the firm etc. Amazon.com inc'.company's leader and managers by these activities can
recognize the defects of product and services and remove them at the productivity
development stage of the business and also ensure the customer satisfaction level.
P.5 The importance and value of operation management in achieving business objectives
 The importance and value of operation management: Operation management is a most
important part for Amazon.com inc'.company's manager and leader. It can improve the
service quality and profitability which can make healthy financial climate to the business.
It can help to achieve company's customer satisfaction at the competitive priorities.
Operation management are concerned about to the most complex part of the management
activities relating about planning, controlling, leading a company operation. Operation
management have range of making its strategic and tactical operation of the company.
Operation management add value planning of new product's innovation, product
redevelopment, product expansion and complementary product that will help to raise

productivity and quality of product and accomplish business objective easily. Operation
efficiencies can be improved by providing better goods and services to the customer they
possibly can(Slack, 2015). Improve the organisation supply chain management and
understand competitor strategies in the recent market, who they are providing the best
product in the market and by reducing the cost such as labor, transportation, taxed and
other expenses.
M3. Leaders and managers can improve efficiencies of operational management to successful
meet Amacon.com inc'.business objectives
 A leader and manager of Amazon.com inc'.company improve efficiencies of operation
management by centralized governing mechanism of the firm and translate its role in
company operation. By inventory control efficiently they will be able to improve their
profitability in the business and another component is quality control according to the
needs of the customers and demand in the market, a leader and manager ensure the
quality and make them batter at the customer satisfaction level. This all activities must be
done by Amazone.com inc'.company's manager and leaders to improve their operation
management efficiencies.
TASK 4
P.6 The factors in the business environment that impact upon operational management and
decision-making by leaders and managers Corporate Social Responsibilities: Corporation social responsibilities is a company's
initiatives to assess and take responsibility for the company's effect and social well-
being(Slack, Brandon-Jones and Johnston, 2011). A leader and managers of
Amazone.com inc'.company's are required to must take action to their corporate
citizenship and must involved in short term cost to improve their nearby climate and
improve the social responsibilities of their corporation will make a long term effect on the
people living mind and promote positive social and environmental changes. Businesses Ethics: Business ethics is a moral function that provide a manner in which
the business should behave. A leader and managers of Amazon.com inc'.company must
know in their corporation in ethical way to identify what is right and what is wrong and
make the right choice to all(Slack, Chambers and Johnston, 2010). It is easily identified

the ethical issue to the company and a leader of the company make sure there are not
happening in unlawful and unethical in their company. They create a negative impact on
their employee and company's value as well. By business ethics of the company they can
impact on the decision making process of a manager and leader that will overall affect the
operation management of the firm.
M4. Different factor affect the business environment and wider community
 Internal and external factor(PESTLE):There are some external and internal factors
which effect the operational management of the business and also decision-making
process of leader and manager within Amazon.com inc'. Business. Some external factors
which are Economical factor which defines about each country economic circumstances
impact on the business growth effectively likewise political and social also an external
factor which affect the business growth sufficiently like each country governments are
changing at their time period and governments leaders decision also affect the business
environment effectively. Social culture make affect the business externally because of
there are numbers of different culture presented in different countries so that leader and
manager of Amazon.com inc' need to take their decision by mentioning social factor on
their mind. And some internal factors like technological and environment factor affect the
business in several ways such as if Amazon.com inc' business does not update technology
at their workplace then he would not able to stand for more time in this complex
competition so that company need to upgrade innovative technology in the business to
sustain better in the market.
CONCLUSION:
On the above discussion we have analyzed that a manager and leader are responsible to
the all activities of the company in proper manner. They are required to make their decision on
taking look upon the above components of operational management and their role and
importance in Amazon.com inc'.company. Which helps to recognize the company's problems
and issues and assist to solve them easily. We have discussed the role of a leader and function of
the manager in the Iceland foods limited company, and also give suggestion to perform better in
the firm to operate their business in proper manner.