management and operations ASSIGNMENT 2

ASSIGNMENT FRONT SHEET Qualification BTEC Level HND Diploma in Business Unit number and title Unit 4: Management and Operations (488) Submission date Date received (1st submission) Re-submission date Date received (2nd submission) Student name Student ID Class Assessor name Student declaration I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism I understand that making a false declaration is a form of malpractice Student’s signature: Grading grid P4 P5 P6 M4 M5 D2 rSummative Feedbacks: rResubmission Feedbacks: Grade: Assessor Signature: Date: Internal Verifier’s Comments: Signature & Date: Assignment Brief (RQF) Higher National Certificate/Diploma in Business Student Name/ID Number: Nguyen Duc Huy GCS18515 Unit Number and Title: Unit 4: Management and Operations (488) Academic Year: 2019 Unit Assessor: Assignment Title: Issue Date: Submission Date: ASSIGNMENT 2- Managing Business Operations Internal Verifier Name: Date: Submission Format: Format: • • • This assignment is an Individual report and specifically You must use font Calibri size 12, set number of the pages and use multiple line spacing at 1.5 Margins must be: left: 1.25 cm; right: cm; top: cm and bottom: cm You should use in text references and a list of all cited sources at the end of the essay by applying Harvard referencing style • The recommended word limit is 2000-2500 words (+/-10%), excluding the tables, graphs, diagrams, appendixes and references You will not be penalized for exceeding the total word limit • The cover page of the report has to be the Assignment front sheet (to be attached with this assignment brief) Submission • Students are compulsory to submit the assignment in due date (slot 38) and in a way requested by the Tutor • The form of submission will be a soft copy posted on http://cms.greenwich.edu.vn/ • Remember to convert the word file into PDF file before the submission on CMS Note: • The individual Assignment must be your own work, and not copied by or from another student • If you use ideas, quotes or data (such as diagrams) from books, journals or other sources, you must reference your sources, using the Harvard style • Make sure that you understand and follow the guidelines to avoid plagiarism Failure to comply this requirement will result in a failed assignment Unit Learning Outcomes: LO3 Demonstrate an appreciation of the role of leaders and managers play in the operations function of an organization LO4 Demonstrate an understanding of the relationship between leadership and management in a contemporary business environment Assignment Brief and Guidance: *This assignment guidance is for reference only and can be customized by the tutor to meet specific needs Assignment scenario You are the head of Operations Management Department of a company in a particular industry (which will be specified by your course tutor) You have been assigned by the managing director to carry out an evaluation on the current operational activities and the role of management and leadership in various contexts This report will enhance the decision making of BOD in the Annual General Meeting with regards to adjusting the operations activities to meet the future objectives and expectations of stakeholders N.B The course tutor will choose different industries which manufacture different physical commodities for different classes studying this module For instance, car manufacturing, food and beverage, pharmaceuticals, mobile phones, computers and laptops, etc.) You are free to choose the company operating in the specified sector Structure of the Report: General introduction: main purposes and structure of the work Main contents of the report: Explain the operations and operations management theories and approaches and the role that leaders and managers play In specific: Discuss the key theories of operations and operations management including six sigma, lean production and queuing theory Explain different operations management approaches including MBO & SMART criteria, TQM, Kaizen, JIT production Find out whether your chosen company is currently applying any TQM techniques and JIT production or not with evidences to justify your answer Besides, propose a SMART objective for your company to aim for in the future In addition to that, critically evaluate the importance of different operations management approaches in contemporary business environment to help obtain and maintain business competitive advantages Explain the importance and value of operations management in achieving business objectives In specific: Discuss the key operational functions of a business (e.g product and process design, scheduling, transformation process, control and distribution systems, logistics and inventory management, capacity management) Find out how your company is currently operating these functions in practice (at least applications must be provided) Explain how managing these operational functions would help your company to achieve the targeted SMART objective (which has been proposed by you previously) Which operational function(s) is the most important one to obtain that objective? To enhance your discussion, evaluate in general whether management or leadership role is more appreciated in the work of managing a business’ operations once the objective is already specified Assess the factors within the business environment that impact upon operational management and decision-making by leaders and managers In specific: Briefly carry out an industry analysis by using Porter’s model to identify the key forces affecting the operations of the chosen company Identify a recent scandal (should be relating to CSR, organizational values, ethics and sustainability) of the chosen company or other company(ies) in the specified sector and discuss the relevant stakeholder pressures on the chosen company Discuss how leaders and managers can resolve the chosen scandal and meet the key stakeholders ‘expectations and reduce the pressure by becoming a corporate entrepreneur and encouraging intrapreneurship Evaluate whether management or leadership role if more appreciated in the work of managing operations to fulfil organizational stakeholders’ expectations and pressures To further enhance the work, critically explain how the pressures and expectations of different stakeholder groups can impact significantly and shape a company’s strategy and operations in general A conclusion to summarize all the key findings and analysis must be presented Plus, you can carry out a self-criticism on your own work (in terms of strengths and weaknesses) Unit assessment criteria Pass LO3 Demonstrate an appreciation of the role leaders and managers play in the operations function of an organization Merit Distinction LO3 & D.2 Critically evaluate application of operations management and factors that impact on the wider business environment P4 Explain the key approaches to operations management and the role that leaders and managers play M.4 Evaluate how leaders and managers can improve efficiencies of operational management to successfully meet business objectives P5 Explain the importance and value of operations management in achieving business objectives LO4 Demonstrate an understanding of the relationship between leadership and management in a contemporary business environment P.6 Assess the factors within the business environment that impact upon operational management and decision-making by leaders and M.5 Analyze how these different factors affect the business environment and wider community managers Assignment In this assignment, I am going to discuss and explain about operational theories, functions, approaches roles of leaders and managers play in enterprises Moreover, I am going to perform relationship between operational management and business environment Samsung is my chosen company for assignment two Samsung is an famous Korea technology corporation Introduction LO3 Demonstrate an appreciation of the role leaders and managers play in the operations function of an organization P4 Explain the key approaches to operations management and the role that leaders and managers play What is operation management? Operation management is the administration of a business to maximize the level of profit by planning, coordinating and controlling The operation management attempts to transform original materials to products and services Additionally, it balances the cost between manufactures and revenue to get the highest level of profit Theories of operation management a Six sigma: Six sigma is a chain of process with an aim to analyze and to reduce the defects, lower the cost of products and services and to meet the customers’ satisfaction It helps to reduce the defects up to Capacity management is the activities of ensuring a business's productivity, maximizes output of products and services all the times Capacity planning: It is the process to prepare for the requirements, prioritize the plan and methods to make the capacity available Capacity controlling: It is the process to manage the output productions, check and compare the practical activities to the available plan Then corrective activities are form to fix the errors e Logistics and inventory management Logistic is a cycle of activities such as storage of goods, packaging, warehousing, goods delivery and so on in order to achieve the ultimate goal is to transfer products and goods from suppliers to consumers Logistics staff will be responsible for the work related to the series of activities mentioned above The benefits of good logistic are reducing a small transportation cost and raise the profitability Supply chain management is the function with the responsibility of connecting business functions and business processes in companies It includes all manufacturing activities and promotes the coordination of processes and activities of marketing, sales, product design, finance and information technology departments Inbound logistic concludes receiving inputs materials, storing and production system, transportation and controlling stock Outbound logistic concludes testing, distributing products to customers, including storing, packaging and delivering Inventory management is the act of deciding which products should be in the inventory and which of them should be kept These activities are very crucial form some reasons It helps the company to adjust the price and maximize the profits by taking advantages of seasonal Additionally, the delays in manufacture will no longer a hard problem because the remaining stock is always ready The final reason is some products should be kept for technical reasons( enhance quality,… ) The stock control system( SCS) is formed to maintain an appropriate amount of stock in storage to optimize some management criterion However, holding too much or too little stock are also become disadvantages to balance between the pros and cons obtained There are two types of SCS: reorder level system and periodic review system f Scheduling is an act of assign tasks and missions to each department to achieve ultimate goals There are three main types of scheduling Workforce scheduling is define as the activity of creating tasks when employees work Operations scheduling is a type of scheduling in which tasks are assigned to gain the important goals of a company (meet the customers’ requirements and inventory managerial target) Demand scheduling refers to the assignation of jobs to employees or different department of a company in a period of time The purposes of operations scheduling are making the efficient in using labor and machine for appropriate tasks, reducing the time, minimizing the production cost and maximizing the performance of enterprises Choose functions application Distribution system: Samsung adopt indirect distribution system For example, in Vietnam, Samsung provides their goods and products to retail company such as The Gioi Di Dong, FPT corporation, Cellphone S and so on Process design: Samsung always create new looks for their devices Especially in smartphone segment, there are many sort of phone such as Samsung Note, Samsung Galaxy, Samsung J, Samsung S and so on Each of them has different and outstanding physical features to be realized and accompanied with different functions and spare parts Water drop screen, foldable screen, advanced fingerprint technology are small parts of Samsung’s design (DESIGN) Samsung divides their smartphone segment into many smaller segment based on prices, arranges from over 100$ to 1000$ Customers will have multiple choices (DEVELOPMENT) Samsung concerns about collecting customers’ feedback and ideas to improve their products(MARKET PULL) As a result, Manufacturing Process of Samsung (Source: Lim et al 2014) Samsung’s supply chain management As a result, thank to has good performance of those functions above, Samsung become a redoubtable competitor to other smartphone cooperation, especially Apple Inc LO4 Demonstrate an understanding of the relationship between leadership and management in a contemporary business environment P6 Assess the factors within the business environment that impact upon operational management and decisionmaking by leaders and managers Macro environment PESTLE framework is an analysis method which is used in macro- environment by marketers It have an huge impact on organization’s business PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental/Ethical is applied for many crucial reasons Summary, PESTLE helps enterprises to determine and adapt to market Political determine the extent to which a government may influence the economy or a certain industry Political factors include tax policies, fiscal policy, trade tariffs etc… Economic are determinants of an economy’s performance that directly impacts a company and have resonating long term effects Economic factors include inflation rate, interest rates, foreign exchange rates, economic growth patterns etc It also accounts for the FDI (foreign direct investment) depending on certain specific industries who’re undergoing this analysis Social scrutinize the social environment of the market, and gauge determinants like cultural trends, demographics, population analytics etc Technological pertain to innovations in technology that may affect the operations of the industry and the market favorably or unfavorably This refers to automation, research and development and the amount of technological awareness that a market possesses Legal have both external and internal sides There are certain laws that affect the business environment in a certain country while there are certain policies that companies maintain for themselves Environmental include all those that influence or are determined by the surrounding environment This aspect of the PESTLE is crucial for certain industries particularly for example tourism, farming, agriculture etc… (Ian 2006) Application Political Samsung Electronics spreads out over 80 countries around the world In the most markets where Samsung operates, political environment is conducive for their operations Besides, there are some fastidious markets such as India market, especially the USA market Overall, Samsung had successfully activated in many countries where the political factor is benign In the past few years, Samsung had to face political tension between its home country South Korea and the North Korea At that moment, the company was already to prepare not only for political instability but also war Economic As the opening up of many markets, the Samsung Electronics can expand their global footprint However, the macro- environment in which Samsung is operating globally facing to uncertainty and volatility Thus, Samsung had some economic strategies Firstly, they focus on spread out in emerging developing countries Secondly, Samsung invests heavily to the infrastructure in every country they have a business in for example, in South Africa they bought lands to build the big factory It will manufacture and assemble its products for whole Africa, it means there are more employment opportunities coming and there is an opportunity for South African economy Social If we’re talking about social – cultural environment, Samsung have done a great if job in building their own world, making their own culture The company`s main customers are everyone because they want everyone to use their products Samsung company pays great attention to social media network because it brings many benefits to the company And the company always introduces its products to customers like galaxy A7, galaxy S9, galaxy A9 They always learn about customers and different ways to get their products to customers Technology Technology is one of the most important factor of Samsung Samsung company has always focused on their technology to create products to meet customers` needs through this, and recently Samsung electronics company cooperates with the startup community through Samsung NEXT to improve on search, support and investment for other businesses in 2018 Samsung have their own teams of technology to develop and innovate it every day Besides the machine itself, they also experiment with more technique Technology always applies to new products of the company Legal Samsung has had to face heavy penalties for its alleged imitation of the Apple’s iPad and iPhone and this has led to the company taking a beating as far as public perceptions and consumer approval of its strategies are concerned It remains to be seen as to how the company would wriggle out of the legal maze that it finds itself in the developed markets because of the various lawsuits Environmental With the rise of the ethical consumer who wants his or her brands to source and make the products in a socially and environmentally responsible manner, Samsung has to be aware of the need to make its products to satiate the ethical chic consumer This means that it has to ensure that it does not compromise on the working conditions or the wages it pays to its labor who are engaged in making the final product The key factors affecting operational management and decision making Political and technology are the key factors impact Samsung a lot Years ago, the conflict between South Korea and North Korea made South Korea got in political troubles stuff At the present, the harmony and cooperation between the two area of Korea has reduced the political tense and help South Korea develops sustainable and peacefully Otherwise, in 10/ 2018, the politician of North Korea, Kim Jong Un want to be an investor of Samsung corporation in Southeast Asia Hence, that could be a good foundation for Samsung in Korea By spreading out over the world, it affects operation management, it raise the quantity of products and build good relationship with custmers Otherwise, they reduce the delivery cost by put the workshop in many area around the world Technology is the second factors Innovation and new ideas are the only can help Samsung to compete with Apple The lack of some knowledge about the customers’ perception of technology could lead to the failure For example, with people who are using apple devices, their information are ensured and protected strictly Apple seems to make a customers’ protection system better than Samsung Samsung adopt android software which is easily accessed by third party Thus, if Samsung cannot perform well at protecting customers’ information, they could fail On the contrary, Samsung have good design of devices thank to good operation management The staffs are motivated and encouraged to have new ideas Thus, the operation management plays crucial roles of Samsung Business environment Porter’s Five Forces is a powerful competitive analysis tool to determine the principal competitive influence in a market Five Forces analysis helps you stay competitive by developing strategies that help their businesses be more competitive and profitable, strengthen organization's position compared to the other players for reducing the competitive pressure as well as generate competitive advantage Porter’s five forces model includes competition, new entrance, buyers, suppliers and substitute Competitive rivalry is the amount of competitors in the market The larger the number of competitors, the less power the company will be overwhelmed Therefore, companies often attract customers such as product discounts or gifts The power of supplier is showed by easily in increase prices of products or services Moreover, diversity and attractiveness of the company's products or services also affect the suppliers In addition, if there is less the number of suppliers, company will have and we need their help The power of customers is an evaluation of customer's bargain on products or services Customer strength is expressed through enormous orders If the cost to another supplier is low, customers can easily change their options The threat of substitute is products or services can be replaced by opponent’s company's product or service Because when there are same products or services exist in a market, the customers are seemed to change supplies The threat could reduce the power and profitability of the supplier The threat of new entrants is that our company's brand will be affected by new people The company should have barriers to block these new one.( Will, 2019) Application Current competitors: Apple is the most redoubtable rival to Samsung They have strict rules to Samsung to get in America Market Some of their products and technology are advanced and innovative than Samsung’s for example, in 2016, the USA have enacts rules to ban Samsung from producing products The American company abused their laws to compete with Samsung Powers of buyers: Samsung has spreads out over 80 countries around the world They have vast amount of segment that customers will have multiple choices when buying their products In June, 2018, Samsung became the most popular smartphone brand with 3.6 billion smartphone were sell Threats of new entry: The threats of the new entry are seemed to impossible to beat Samsung Some of them such as Xiaomi, Huawei, Nokia For example, Nokia used to be a famous smartphone brand with outstanding products Because of bad management and wrong orients, Nokia had conflict in its internal corporation and leaded to failure At the present, the conflict between the USA and China cause the collapse of Huawei As everyone can see, Samsung’s competitors are disappearing day by day Powers of suppliers: the raise of Samsung quantity and reputation cause the satisfaction of suppliers Samsung is developing and they could ensure the needs of inputs supplies Besides, at Samsung corporation, they have good principle to treat staff, including internal staff and counterpart’s staff In conclusion, they can have sustainable suppliers The key factors affecting operational management and decision making The most crucial factors is powers of buyers and suppliers Because of the customers’ need and perception, Samsung know what they should create, innovate and prioritize The customers are the most important factors which decide the success and failure of a company For example, after Huawei failed at beating Samsung, customers are caring about Samsung products Another brand such as Xiaomi is not concerned because it is a Chinese Corporation They could fail anytime because of the trade war between China and The USA As a result, Samsung is the brand which most people care much about Because of the collapse of Huawei, Samsung’ share increased 4% percent The Intel and Quanlcom corporation stop providing parts and material for Huawei Then they pay more attention on Samsung companies Thus, Samsung has sustainable and long-term suppliers Thank to good operational management, Samsung determine and collect good feedback, ideas and perception from customers to create the right devices The variety in products is also another reason that Samsung has power of customers The operation management at Samsung is also good at seize opportunities and potential They seize opportunities from others competitors( Huawei) to have a strong and sustainable suppliers Pressure from stakeholders Stakeholder is a term for individuals and organizations that have close relationships with businesses They concern about company’s resources, usually impact directly on businesses in strategies, plans, business activities and can ensure the existence and development of the business The internal and external stakeholders of the company including their needs and expectations: Internal stakeholders are people in a company who care about their success and failure They are rewarded or punished accordingly their result The internal stakeholders include shareholders, managers and workforce Shareholder is the owner of the enterprise Managers are people who ensure that company has good perform to achieve ultimate goals Workforce are classical staff, who not have managerial functions External stakeholders are outside factors (individuals, groups or organizations) which are influenced by outcomes or result of a company The can impact the enterprise through proposing economic or political pressure External stakeholders include customers, supplier, government, trade union, local communities and general public Customers are groups of external stakeholders and are affected by the company They always want to own and experience good and right quality products and services with appropriate cost Suppliers are whose raw materials are provided to the company They desire to be a long- term suppliers to the company Suppliers’ expectation is they want company to prompt pay and grow of purchasing Government enacts laws and principles They want enterprises to obey and follow the rules Tax payment and jobs creation are also belonged to government’s expectation Trade union can be cooperators or conflicts to the company Local communities are strongly affected by the success or failure of the enterprise in their local The communities want their company to protect the environment while manufacturing, create jobs opportunities and impact the local reputation The general public has the prospect of successful company (Source: Boundless, 2016) Application Samsung has faced a scandal of Samsung Galaxy Note7 Explosion The amount reach to over 100 explosion with Note in the year Customers very worried about their devices The pressures from customers cause the decrease in Samsung selling quantity Additionally, the salary of staffs and customers are reduce because the quantity of the company reduce The pressure from the society is very huge because the competitor, Apple Inc has enact some laws and prohibit the use of Samsung devices on some transportation As a consequence, Samsung lost 22 billion USD and 11% share They also lost the reliability of customers To deal with the scandal, Samsung has collected information about this Samsung propose that not all the announcement about explosion are real They have evidence to prove their words Besides, they collect the devices, check and testing before provided to customers again They also apologized and support the victims of explosion with new devices and gifts( vouchers) Reference list Banton,C(2019)JustinTime(JIT) Available at: https://www.investopedia.com/terms/j/jit.asp [Accessed on March 12th , 2020] Jamie, J () Continuous Improvement: Definition, Benefits and Tools Available at: https://tallyfy.com/guides/continuous-improvement/ [Accessed on March 12th , 2020] Haseeb, (2017) PESTLE analysis of Samsung Available at: http://marketingdawn.com/pestleanalysis-of-samsung/ [Accessed on March 12th , 2020] Steve, K (2017) Samsung announces what caused the Galaxy Note to overheat and explode Available at: https://www.businessinsider.com/samsung-issues-galaxy-note-7-battery-report2017-1 [Accessed on March 12th , 2020] Tung, T (2019) Trieu Tien va cau chuyen cam tu cong Samsung tai Viet Nam Available at: https://nhipcaudautu.vn/the-gioi/trieu-tien-va-cam-hung-tu-cau-chuyen-thanhcong-cua-samsung-tai-viet-nam-3328098/ [Accessed on March 12th , 2020] Will, K (2019) Porter’s Forces https://www.investopedia.com/terms/p/porter.asp Available at : Worthington, I & Britton, C (2006) The Business Environment th edn England, Financial Times Prentice Hall ... GCS18515 Unit Number and Title: Unit 4: Management and Operations (488) Academic Year: 20 19 Unit Assessor: Assignment Title: Issue Date: Submission Date: ASSIGNMENT 2- Managing Business Operations Internal... introduction: main purposes and structure of the work Main contents of the report: Explain the operations and operations management theories and approaches and the role that leaders and managers play... March 12th , 20 20] Jamie, J () Continuous Improvement: Definition, Benefits and Tools Available at: https://tallyfy.com/guides/continuous-improvement/ [Accessed on March 12th , 20 20] Haseeb, (20 17)