BTEC HND Business: Management and Operations - Sainsbury's Report

This report provides a comprehensive analysis of operations management, focusing on the case of Sainsbury's. It begins with an introduction to operations management, its key approaches, and the crucial roles of leaders and managers in enhancing efficiency and meeting business objectives. The report delves into specific operational approaches like Just-in-Time (JIT), Total Quality Management (TQM), and Kaizen, illustrating their application within Sainsbury's. It emphasizes the importance of operational management in achieving organizational goals, including enhanced product quality, waste reduction, and customer satisfaction. Furthermore, the report examines the factors within the business environment, such as political, economic, social, technological, environmental, and legal (PESTEL) factors, that impact operational management and decision-making. A comparison between leaders and managers highlights their distinct roles in building relationships, managing risks, and driving operational improvements. The report concludes with a synthesis of these elements, providing a detailed understanding of operations management principles and their practical application within a real-world business context, specifically Sainsbury's.

Management and
Operations

TABLE OF CONTENT
 INTRODUCTION
 Key approaches to operations management and the role of leaders and managers
 Leaders and manager can improve efficiencies of operational management to
successfully meet business objectives
 Importance and value of operational management in achieving organisational goals
 Factors of business environment that impact upon operational management
 CONCLUSION
 REFERENCES

INTRODUCTION
 Operation management is defined as the administration of practices which ensure optimum efficiency
in business. According to Bernheim and Bodoh-Creed, (2019), operation management is also defined
as the management aspect which is associated with process, business functions and government
systems which businesses must use to meet their objectives and to enhance their productivity,
effectiveness and efficiency.
 Management and operations can be understood as administration of business practises in a company
to create the highest level of operational efficiency possible with the proper utilization of resources.
 It is an important element for organization which refers to functions of converting materials and
labour into finished goods, services to maximize the profit of organization and the overall
productivity levels. Sainsbury is the second largest chain of supermarket in United Kingdom with
large variety of products and services catering to demands of consumers.

Key operations of organisation
The primary operations of an organisation are classified as follows:
Finance: These operations manages accounts and financial aspects related to business.
Operations: In order to meet the organizational objectives organisation is also required to
manage operations such as production, inventory and human resources and corporate social
responsibility.
Marketing: For sustaining long term growth organisation performs marketing functions so
that services can be improved and satisfactory services can be provided to customers.

Development of operational management
To gain competitive advantage Sainsbury aims at maintaining good quality of operational services.
For this purpose organisation can use variety of approaches:
 Craft manufacturing: In this approach skilled work force is utilized to produce low volume
goods with high degree of quality. It is mainly suitable for small scale operations and industries.
 Mass production: Organizations such as Sainsbury produces huge volume of goods with
minimum variety or personalization. Instead goods are produced and supplied as per the
organizational market research and plan.
 Continuous improvement: It includes approaches such as JIT, Kaizen or TQM to bring
continuous improvement in the existing services or product. The purpose of this operational
approach is to maintain high quality standards related to operations.

Key approaches to operations management and the
role of leaders and managers
Leaders and managers play an important role in operational management. They assure that operational
activities are performed in alignment with the budget, existing resources and long term organizational
goals. Leaders also manages human resources so that operational goals can be accomplished. Another
important role played by leaders or managers in operational management is conflict management so
that team or individual conflicts does not affect the efficiency of operational management approaches.
The key operational approaches which can be used by Sainsbury are as follows:
Just in time
 This approach focuses on identifying and correcting the obstacles in production process. It shows
the hidden problems of inventory in time prevents a company from using excessive inventory and
smooth the production.

Cont.
 Role of leader- Leader should be quick and efficient in delegating inventory
requirements details and supply information to team members. There should be
proper coordination among leader and other hierarchies for proper application
of this approach (Zidan and Otálvaro Herrera, 2019).
 Role of manager – Manager should be efficient in functioning out management
duties properly which includes researching about the total inventory
requirements, financial to be utilized for overall reaching of production targets.
Eliminating risks and inventory wastage by not ordering extra inventory.
Total quality management
 This approach focuses on long term success through customer satisfaction,
improving quality services and the organizational culture they work in.

Cont.
 Customer focused organisation
 Leadership
 Involvement of people.
 Process approach
System approach to management
 Continual improvement
 Factual approach to decision-making
 Principles of TQM
 Mutually beneficial supplier relationship

Kaizen Principle
 Kaizen approach focuses on creating continuous improvement based, ongoing
positive changes for major investments in company for higher profit margins. It is
based on cooperation and commitment in company, creating solutions for arising
management problems in company and analysing final results. (Muller, CommVault
Systems, 2020).
 Functions of leader- A leader by working with Kaizen approach has the function to
lead the team members with efficiency,get the best optimum results from human
resources working in company, by establishing systematic working criteria in
production target

Importance and value of operational management
in achieving organisational goals
 Operational management is responsible for managing resources of the company or its day to day operation for
achievement of organisational goals. Therefore, operational management is mainly responsible for managing
or manufacturing final goods or services of the company. Effectively performance of operational management
helps in increasing overall productivity and achievement of organisational goals. Thus, operational
management is important for Sainsbury company for following reasons:
 Achievement of company objectives: As operational management main function is to supervise and monitor
that activities are performed as per the plans. Continuous monitoring helps in effective completion of task and
take corrective action within time.
 Enhances quality of product: Operational manager ensure that while manufacturing and delivering of
services quality of product and services should be maintained.

Cont.
 Wastage Reduction: Operational management plays an important role in reducing wastage of material and
cost of production by continuous monitoring production process. Sainsbury can improve its overall
production by using lean manufacturing system which helps in reduction of waste and cost of production.
 Enhance goodwill: Operational management is responsible for manufacturing and offering quality product
or services to customers which helps in developing and maintaining quality of products. Sainsbury is able
to expand and grow its goodwill value by effective functioning of operational management.
 Optimum utilization of resources: Operational management by planning strategies for increasing overall
efficiency of production is able to make optimum utilization of organisational resources

Cont.
 Increase revenue: Operational management helps in increasing revenue of the company
by reducing cost of product and increasing customer's satisfaction by providing quality
products and services. Well-established brand image of company helps in attracting
potential customers as well as add new customers to the company. Thus, it helps in
increasing revenue and achievement of predetermine goals of company.
 Satisfaction of customers needs: Operational management satisfied the needs of
customers beyond their expectancy by providing quality products and services. Effectively
performance of Operational management helps in achievement of Sainsbury goals as it
lead to repeated sales by satisfying customers needs and maintaining customers loyalty.