Academic Master

Human Resource And Management

How Does Operations Management Affect The Overall Business Performance?

The operations manager is responsible for the production of goods and every activity that impacts the process. This includes the supply of raw materials, the production process, quality checks, and delivery of products. Hence, they play a crucial part in the success of a firm and its products. The mismanagement of the operations department can lead to the failure of all the departments and affect the overall business performance (Jacobs 2014).

Functions of Operations Manager

Management of Resources

The operations manager is responsible for managing both raw materials and the personnel involved in the production of the products or services. They take into account the inventory, how the raw materials are received, and from whom they are purchased. The operations manager maintains the quality of the products and services delivered to the customer. Similarly, the operations manager of the Oak Pub Huddersfield considered the low sales of the pub and worked on the presentation of the services they offered to the customers (Slack 2015).

Financial Management

The Operations Management Department plays a key role in the financial management of the firm. It caters to the budgeting of the firm and calculates the overall costs expected for the firm and the production activities to occur. Moreover, it manages the costs of the firm’s operations. Operations management ensures that costs created by business operations are minimized. It addresses the sales forecast and notifies the finance department of the operational activities that affect the cash flow statement. The operations manager of Oak Pub catered for the costs of the new services they were going to introduce and the expected sales.

Goal Setting

The Operations Management is the core of every business. It determines the products and services to be produced by the business, the goals it wants to meet, and how to achieve those goals. The operations manager establishes the business’s objectives in order to meet the ultimate goals of profits and growth. It plans for the sales and the market demand expected for a certain product or service. The operations department not only focuses on setting the goals but also implements the actions to achieve the goals (Haksever, C. and Render, B., 2018).

Communications

The operations department focuses on the primary of the business’s success, which is effective communication. It makes sure that orders and commands are clearly delivered from the top management to the lower management, as this affects the activities of product production. It ensures that feedback is received from employees in order to ensure that all employees are on the same track to keep the business goals on track. Operations managers play the role of a bridge between different departments and their employees. They cater to any issues and miscommunication between departments, which can result in the failure of the business’s product or service. The working environment is meant to be positive and welcoming so that all employees can perform well and be productive (Krajewski, L.J., Malhotra, M.K. and Ritzman, L.P., 2015).

The Oak Pub provides services to its customers; hence, clear communication and motivated employees are crucial to the firm. The operations manager makes sure that all these activities and employees are on the same level in order to deliver the best services and products to the clients.

Efficiency and Productivity

Successful firms are always focused on improving their efficiency and productivity. The operations department has a major role in fulfilling this objective of the business. It always seeks new ways of production that are more effective and efficient in order to minimize costs and improve the productivity of the firm and the employees. The operations manager tries to minimize the wastages created during the production process and take maximum advantage of the resources available to them. Similarly, Oak Pub wants to increase the productivity of the firm and its employees to achieve maximum profits and reduce wastage.

Product Design and Packaging

One of the primary jobs of the Operations Manager is to design the product and cater to its production process and packaging. The success of the product is directly related to the success of the business. Therefore, the operations department ensures that the product meets the requirements of the clients. They constantly work on making the existing products better and more advanced while introducing new items that attract customers. In the case of services, the operations manager assures the clients of the quality of services provided by the employees of the firm. Customer satisfaction is the indicator of the success of products or services (Lawson, B., Krause, D., and Potter, A., 2015).

The operations manager of the Oak Pub introduced new services that met the requirements of the clients and attracted new customers. They focused on the key to the success of a product, and that is having a unique selling point. The operations manager is aware that there are hundreds of Pubs in the area that provide similar services; hence, they had to attract customers with their unique features.

Packaging is a form of value-added that is controlled by the operations department. They focus on the quality of the product but also ensure attractive packaging that is relevant to the brand and gains the attention of the consumer.

Operations Management Plan

Problem:

An unattractive and generic theme of the Pub that customers think is old-fashioned and depressing.

Improvement Plan:

Choose a theme that is unique and attractive to consumers. A theme based on the 1980s and 1990s as it will serve as a nostalgic experience for consumers between the ages of 25-35, which is the target audience of the Pub. The popularity of movies and TV shows such as ‘Stranger Things’ and ‘’ is a sign that people appreciate memories from their childhood and the era of the 1980s. Hence, the Pub will serve customers with an exciting experience.

Problem:

Dependence on the sales generated from the bar and the dine-in services.

Improvement Plan:

Diversify into event management and themed birthday planning. The market demand for themed parties is at its peak. The competition in the event management industry is high. However, with its unique theme and concept, Oak Pub can attract many consumers who want to plan their birthdays and parties. Parties can be held at any desired venue for the client, including the pub itself. The operations manager will have to provide the services of event planning, food, drinks, and bringing its unique theme to life for their consumers at any location.

This will increase the popularity of the pub as the people attending these parties will be attracted to the pub’s services and will try to visit it or hire its event planning services. They also provide Oak Pub a platform to promote their menu of food and drinks as people will be able to taste it without paying.

Problem:

A limited number of products and outdated food menu with average food items available at every other restaurant and café.

Improvements:

Revise the menu and introduce new products, such as new drinks and themed cocktails with unique and exciting names. Oak Pub can introduce new food items based on the theme of the pub or anything that they are best at. New food items that aren’t easily available at other cafes and restaurants, such as customized dishes, where the customer decides what and how they want their dish to be made. This will make the process more exciting and personalized for the consumers. Moreover, the session will become interactive, which is what most pub-goers seek.

On the other hand, cocktails and drinks can be customized as well, with a few unique additions to attractive and unique names that excite the consumer and ignite curiosity. This will increase sales as the Pub will now have a unique selling point, which will attract many new consumers who would want to experience the place.

Problem:

Lack of awareness and poor promotions that don’t target the potential consumer.

Improvements:

Invest in promotions through social media and posters in the local area. Most of the young population between the ages of 25-35 are active on social media websites such as Facebook and Twitter. Hence, Oak Pub should market its services and products on these social media websites and encourage its customers to provide reviews and feedback to increase the pub’s awareness.

Moreover, they can provide special discounts to customers who publically check in to Oak Pub. This will promote the Pub among friend circles and the locals of the area, who will wish to see the place everyone has been talking about.

Operations Management plays a vital part in every business and its success. An effective and visionary operations manager can lead a firm to grow and maximize profits through the management of production processes, customer satisfaction, employee productivity, and efficiency, minimizing costs, forecasting sales, and creating budgets.

An effective operations department will make sure the product meets the market requirements in order to increase the firm’s sales. Similarly, Oak Pub’s new operational strategy will make improvements to the current products and services to attract consumers and raise awareness. This will increase sales and profits and lead to the success of the Pub.

References

Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.

Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.

Krajewski, L.J., Malhotra, M.K. and Ritzman, L.P., 2015. Operations management: processes and supply chains. Pearson.

Lawson, B., Krause, D., and Potter, A., 2015. Improving supplier new product development performance: the role of supplier development. Journal of product innovation management, 32(5), pp.777-792.

Haksever, C. and Render, B., 2018. Service and Operations Management. World Scientific Books.

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