EBUS506 Supply Chain Operations Management: Marks & Spencer

Task 1: Introduction to the organization and management structure

Marks & Spencer is one of the leading retail companies which provide wide range of clothing and other products across the world. The company is also a global supplier of the clothing and fashion products in all over the world. There are around 78000 people in the company in the UK and across the world. Along with this, the company has around 703 stores in the country at high streets and the retail parks. Thus, the company provides excellent shopping environment to the customers having wide range of hospitality options. The company was established in the year 1884. Every company has certain goals and objectives to be achieved in the business. To achieve those goals, it is most important to have proper management and organizational structure in the company. The M&S has the flat management structure in which there are limited levels of the management between the front-line employees and the administrative level. The company follows this structure to motivate and encourage the employees of the company in the decision making process. Along with this, this structure is followed by the company to make the employees more skilled by providing them the opportunity to make decisions and to decrease the democracy in the company. There is less management communication levels between upper managers and the base line employees in the company. It is very easy for the company to do rapid changes and to solve the problems due to less communication level between the employees.

Flat organizational structure always has pyramid shape but same as the traditional structure, it is broader and flatter. Because of this, there are fewer levels of management between the bottom and top managers. Marks & Spencer has the flat management structure and due to this structure, the company is able to reduce the layer of authority in the business process. By doing this, the individual responsibility of the employees and their departments has increased effectively. The employees in the company have to take quick decisions at time to time. The employees have to take the decisions and have to prepare the justification of their decisions. This increases their responsibility and accountability in the company without any increment in the expenditure of the company.

Roles of both managers and leaders

In highly competitive market, the Marks & Spencer also need the guidance of effective leader and manager. A dynamic leader can improve the skills of the employees in the company for effective business operations. Along with this, the leader also motivates the employees to achieve the goals and objectives set by the company. This is really the fact that the effective management in the company one of the main factor for the success of the company. So, it is important for the both, leaders and managers to implement the appropriate strategies for the employees to motivate them. Basically, the role of the managers and leaders in any company is to build and develop the required skills in the employees to improve their performance on time to time for their growth and success. The definitions of leaders and managers are as follows:

Leaders:

Leaders set the new direction for the set goals and objectives for that group that follow the leaders. The leader is basically the spreadsheet or a kind of motivator for the new direction of followers.

Managers:

On the other hand, the manager directs or controls the people in the organization. The manager controls the resources in a group based on the values or principles which are to be set in the organization.

Differences between management and leadership 

Although the work done by the managers and leaders is quite similar but there are difference between the leadership and management. The differences must be considered while managing the organization by any leader or manager. To become the leader and the manager at one time is the practical concept. It is not necessary that a person is the leader then he or she will be the good manager in the organization. There are some differences between leadership and the management and those are as follows:

• Leadership is a kind of talent and virtue of leading people in an organization by encouraging and motivating them. In the company M&S, the Leaders can help the employees by motivating them to achieve the goals. On the other hand, management can be described as the process of managing the various activities and operations in the organization. Managers can control the operations of the company to get better revenue.
• There is the requirement of trust of followers on the leader in the leadership. Without trust and faith of followers on the leader, the leadership is not effective. On the other hand, in the management, there is the need to control the employees or subordinates by the managers.
• Leadership can be considered as the skill of influencing others by the leaders while management can be considered as the quality of ruling over the subordinates or employees in the organization.
• In the leadership, there must be foresightedness of the leader for influencing his or her followers. Leaders can provide guidance and supervisions to the staff and employees in M&K. On the other hand, the management, there is the short range vision of managers for managing others in the organization. They can only guide the people for short term.
• In case of leadership, there are principles and guidelines which are established for the effective leadership. But in case of management, the policies and procedures are implemented for the managing others.
• In terms of nature, the leadership has proactive nature. The M&K needs to develop the confidence in the employees to achieve the goals. Leaders can provide effective guidelines to the employeesOn the other hand, the management has reactive nature. Managers can help the company by showing the efforts to the employees by telling them their role and responsibilities of their jobs.
• At the last point, leadership brings changes in the organization Leaders in the company help the employees in building morale towards their job and work. And on the other hand, management brings stability in the process of organization by focusing on the problems of the employees and providing the right solution.

Different roles of management and leadership in application to different organizational situations

Leadership and management are essential for the organization and its operations. In case of the Mark & Spencer, it is important to set the goals and motivate the employees of the company to attain those goals. Basically, the role of the leadership and management is to lead and motivate the employees, groups an individual of the company. There are various theories given by many researchers on the leadership and management which support the effective leadership in the business organization. There are various theories such as situational leadership, system leadership, and contingency theory, which support the role of the leadership in the business process.

Situational leadership model:

According to this model, the leaders should have multiple styles of leaderships. Instead of using one leadership style, the leaders must change the styles according to the situations. There are four main leadership styles that should have the leaders to manage the organization i.e. telling or directing, selling or coaching, participating or consulting and delegating.

System leadership theory or approach:

The system theory connects the leadership styles with the organization. to manage the organization, it is important for the leaders to use appropriate and applied leadership. There are three levels i.e. individual manager, managerial team and the organization. According to this model, the organization is a system and a powerful force to open or close the door of leadership.

Contingency theory:

The leader in the company must be a charismatic leader. The leader should motivate the employees and also takes care of the employees. According to this theory, there is no any effective way to lead any company properly. Leading the organization depends upon the situational factors in the organization and the reaction of the leader upon that factor. Along with this, leader should provide innovative ideas based on the situations for the success and growth.

Management theories in the organizations can help to improve the productivity of the organization. By implementing the management and leadership theories, M&S will be able to improve the service quality in the market. The managers and leaders don’t have a single theory to implement. They implement the combination of various theories focusing on the goals and the environment of the workplace. The above stated are the popular theories which can be implemented in M&S to increase the productivity of the employees.

Conclusion 

It has been observed that both, leaders as well as managers are important for the company to motivate the employees. From the above discussion, it is clear that the leadership and management have different nature but both have important role in the development of the organization. By bringing change and maintaining stability in the organization, both leadership and management have significant impact in the operations of the company. Further, it is recommended that the leaders and managers do the work in the organization in terms of complexity, volatility and the level to get success and growth in the market.

Task 2

Key approaches to operations management of Marks & Spencer 

Operations management is the important key for the success of any organization. This is important for the company to earn more profit and to improve the business in the competitive market. Marks & Spencer is the largest retailer company in UK with around 600 stores in all over the country. The company is operating in 34 countries having 250 stores across the world. The success of the company is based on the effective operational management in the market. The Marks & Spencer’s operation management includes variety of approaches to manage the inventory and supply chain in the business operations along with the sales performance. The management of the company covers different decisions areas of the operations management. The decision areas focus on the issues and challenges that the managers face daily in the operations. The application of the operation management of the company shows that the company gives priority to the managers in the business goals. The main operational functions of the company are as follows:

The design of goods and services:

The Marks & Spencer is the famous retailer company so; the company has its own goods and products such as women’s clothing and fashion products. The operations management of the company designs the retail services by focusing on the variables of efficiency and cost effectiveness. To design the products, the company focuses on the maximum efficiency of the retail services. Along with this, the company focuses on the minimum production cost i.e. the products of the company are designed in a way so that they are easy to mass-produce.

Supply chain management:

The supply chain of the company is connected with the advanced information technology. The supply chain is focused on minimizing the cost of the operations. The managers and vendors work together and decide when to move the amount of product in the supply chain. The company has strong bargaining power with the suppliers. The company has spent lots of time and money to develop the effective supply chain in the business. In the supply chain, the products are centralized in the warehouse of the company and then the collected products are delivered to every store. Along with this, company is using the inventory management system to deliver the products to the customers in the fast way.

Inventory management:

In the inventory management of the company, company includes vendor-managed inventory model and just-in-time cross checking of the products. in the vendor-managed inventory model, the suppliers in the company connects with the information system and then they decide to deliver the products based on the inventory level. By this way, the company is able to minimize the stock outs in the company. It helps to maximize the performance of the company.

Quality management:

The Marks & Spencer is focused on the quality standards of the product to meet the expectations of the customers. The management of the company checks the quality level of the products after that the products have been sent to the various stores. This ensures the sustainability of the company in the market.

Roles of managers in the operational functions 

The manager is important part in the business organization for effective operation management. The roles and responsibilities of the manager in the company include providing quality, safety, delivery, and business integrity to the customers. Basically, the manager makes the most efficient utilization of the available resources for the effective business process. The roles and responsibilities of the managers in the Marks & Spencer can be as follows:

Planning:

The planning for the operations is the main concern of the manager in the company. So, the manager has to determine about the products which are sold and marketing of the product to the customers. Along with this, the manager plans and coordinates the activities among the various departments.

Controlling resources:

To control the resources is another concern of a manager in the company. The manager in the Marks & Spencer can observe the implementation of different policies and procedures such as payroll policies. There are various activities such as how much employees are paid, how much funds are kept for the operations, and how much funds are allocated in the supply chain and inventory process on daily basis. Along with this, the manager has to check the financial statements on daily basis to make sure the company is operating properly or not.

Policy formulation:

To formulate the policies and procedures in the company is the main duty of the manager. The company should operate the operations under the proper guidelines. The guidelines are mainly established by the manager in the organization which includes the communication and cooperation done by various departments with each other.

There are various business factors which impact the operations of the company and the decision making process of leaders or managers. The company cannot control these factors but can implement the change if needed. There are some external factors such economic, political and legal conditions which impact the decision of the leaders.

Political environment:

Political environment can be considered as the major threats for the Marks & Spencer. The company operates in many countries and deals with different kind of political environment in every country. The change in the policy of governments can affect the operations of the company. The company has to be dependent for assistance on the government policies of those country in which it is operating. So due to the change in the government, the assistance will be disappeared in the short time period.

Legal:

The legal frameworks and the policies affect the operations of the M&S in the market as the company is operating global market. Taxation is the most common law which has changing feature in the legislation. Sometimes, the taxation changes within a night with the warning and the company and managers take lots of time to prepare laws of the taxations. There are many other laws such as industrial relations, consumer protection, environmental laws and health and safety laws. According to the various laws, managers have to take decision on time to time.

Market:

This is the most popular and big factor in the operations of the M&S. there are many competitors of the company in the retail market. So, the managers have to take decisions according to the nature of the market. The reason is that not only competitors increase the competition, but they also change their strategy to stay competitive in the market. So the managers must be alert with the innovative business strategies in M&K.

To meet the goals and objectives of the company, it is important for the leaders to adopt proper management and leadership approaches. By the planning, decision making process, delegation, internal communications, meeting management and managing the company, managers and leaders can improve the performance of the company. The operational efficiency can be improved by implementing proper planning and process of the operations in the M&K.

Conclusion and Recommendation 

From the above analysis, it can be observed that the M&K has various operations in the business i.e. Quality management, Inventory management, Supply chain management and design of goods and services. To manage these operations, there are various roles performed by the managers such as controlling resources, planning, and Policy formulation etc. along with this, to manage the operations in the M&K, the managers need to analyze the impact of the external factors on the business. So, there is the need of proper and effective strategies for effective operations in the company. Here are some are commendations which can be adopted by the M&K to improve the operational efficiency in the market.

• To improve the quality management process, M&K can involve the experts in this field to manage the quality checking process while introducing new products in the market.
• The aim of improving the quality is to meet the needs and requirements of the customers. So, it is necessary to understand the some factors in quality such as flexibility, productivity, minimum cost and delivery terms. So, there should be the implementation of new and appropriate methodology for the new projects and the products.
• Managers in the M&K should find out the opportunities to improve the efficiency and effectiveness of the company rather than waiting for the problems which reveal opportunities for the improvements.
• The higher management of the company should insure that the assurance of the improvement has not compromised with the quality policy and objectives in the products.

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