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Operation Management
Introduction
Many companies emphasizes mostly in operation management. They are mainly alarmed with the company’s planning, organizing, supervising as far as manufacturing, production and other service are concerned. The operation management departments ensures that the company inputs are been transformed to outputs at an efficient and effective manner. Operation management runs across two fields of operations.
That is the supply chain management and the logistics. It helps the operations mangers to have the knowledge of comprehending the current supply chain management so that they can meet the clients demand in a timely manner. As far as logistics is concerned, the operation managers are very keen when using the resources available on a cost effective basis.
An operation manager is mandated to know all the process of a company. Comprehending them make it easier for the operation manager to run them swiftly. Also, the operation manager must have the supply chain skills to run this operations and the skills related to logistics in order to integrate both the coordination and know-how of the organization work. This will make the operation manager to be successful when running company’s processes, (Gunasekaran, and Ngai, 2012).
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Kolak snack food limited is known to be the leading manufacturing company for snacks and crisps based products. Been the leading company, Kolak understands the interests of the company working in food services, retail, catering, cash and carry and specialty food sector to work with their trusted suppliers. For this reason, they have committed themselves by give their customer’s quality services from the sales of innovated crisps and snacks.
Putting the customers at their heart of operation, Kolak has been to grow and develop rapidly since 1984 and it is well known for its quality and flexible services and products for been the largest crisps and snack producers in Europe. The company has invested heavily in thee infrastructure with manufacturing machines and in people to. They aim at considering the finest inputs, flavors and ingredients and also restructure their supply chain so that they when they purchase their input, they do it at a cost effective way.
They consider their customers taste and preferences and when their customers select the brand of products they want, the company assure them of what they need since they have the experts, resources and they aim to deliver at a cost effective manner.
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With such a reputation, Kolak Company need to have a competent operation manager to ensure that the company brand name is maintained. Operations managers have a vital role in a company. They are meant to put everything in equilibrium according to the company policies and processes that run along all the company department.
Also they are meant to foresee the company’s plans on its onsite operations, (Burke, 2013) When launching a new product in the market, the operation manager should be flexible to coup up with challenges that will come with the product development and market development. Some of the challenges the operation manager will have to deal with include the following, (Dekker, Bloemhof, and Mallidis 2012)
Competing practices- a new operation manager will find it difficult to manage a business that is highly competing in the global market and also that have competing activities within the company. Various business procedures of the firm can have disadvantageous results on the company’s actions when they challenge the efficiency of the company distributing quality products and services. However, using the Kolak Company brand name, it will be easier for the operation manager to win the market since the company is well established.
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Sustainability-the operations manager have a task of coming up with long term customers and maintaining them, formulating a long term strategies employees that help them coup up with the company political, economic, socio-cultural, and technological environment. The strategies formulated is meant to minimize the negatives effects by eliminating wastes which aims to reduce the wellbeing of the clients.
The operation managers may face this challenge because the environment work are seemed to be more insular, (Teittinen, Pellinen, and Järvenpää, 2013). By doing so, the company can secure an opportunity that they should implement to the fullest and be in a position to meet the client’s needs.
Corporate reporting-in many organizations, the operation managers are accountable for issuing corporates reports to the top management. The reports given includes performance and financial data and they are involved to communicate this information to the shareholders. The challenges they face is when the company has not kept up to date and accurate reports for the business.
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Social responsibility-the operation managers oversee on how the organization is interacting with the community at large beyond the fact that they want them to buy the products. It becomes a problem to the operation manager to be able to organize projects that aims at involving the community to show them that the firm recognizes them and they are concerned about them and their customers beyond making profits and create awareness of their business and keep its brand name, (Tano, and, Data Tec, 2013)
A new manager is be able to accomplish a fast fluctuating commercial and technological environment. To do so, the new manger should be able to address to the human side in a systematic way. It will involve the manager emphasizing on the transformation of peoples issues. The managers will have to step out of their cocoon, develop new skills and abilities and convince the employees on their tasks to handle.
The manager should be able coup up with the change and involve all the stakeholders, integrate all the changes and formulate a strategy that will help them to make an informed decisions. The strategic direction taken by the manager should be realistic and must be congruent to the company history and must be flexible enough to a capacity of a change, (Pérez-Feijoo, Martínez-López, and García-Ordaz, 2015). For example the Kolak Company operation manager should try to use the product’s strength in order to overcome this changes and make their brand name to be well recognized and keep their reputation.
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Also, the manger should start at the top since change in an organization is unsettling for staff. The manager should come up with a new approach that will motivate the employees and at the same time challenge them. The approach should limit the employees from looking upon the top management team for direction, support and strength.
The manager should be able to work with other people so that they analyze vividly on the direction they have to take for change, be able to comprehend the behaviors and the culture the change is inducing to the organization, and be able to find a solution to those changes, (Lunenburg, 2012). The new operation manager at Kolak Company should be able to communicate the dynamic changes that are facing the company operations. With a flow of communication, it will become easier for the company to know how they will deal with the internal or external environmental issues affecting the business.
In addition, the manager should involve every department of the company. The changes in the company running involve the changes in the company’s reengineering their plans and coming up with new targets that are to be implemented. The transformation of company activities must be part of the strategies that identify the management in the company and be able to roll the change down to the staffs so that they can help implement the changes throughout the organization, (Cameron, and Green, 2015.).
The changes that may be facing the Kolak Company may be outside their reach. The operation manager should involve every member of staff in order to come up with a plan that will help the company to adopt and coup up with the changes but keeps the company’s vision alive.
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The manager should make the change process as a formal case. To avoid questioning by the staff, the manager have to formalize the changes and write a new vision statement that will help create team work, (Scarbrough, and Corbett, 2013.)
The manager will to operate in a changing environment, should be willing to overwork during the time of change and be a fanatics who is willing to launch a serious figure amongst the work force in the kindness of change. The leader must be willing to own the company responsibility for overseeing change and coping with it in all the company’s department. The ownership by the manager will involve people who will help recognize problems and come up informed solutions.
The manager must be willing to motivate the so that they can work effectively and efficiently. Failing to coup up with the changes, the Kolak Company will face a bigger threat from any political, economic, social, technological, and ecological conditions that will hit the company unexpectedly causing a change in their operations.
The mangers who operates in a changing environment of commercial and technological change, should be able to communicate the message to the entire stakeholders. A good flow of communication from the top management to the junior staffs is aimed to communicate and pass the right information to the employees about the changes at the right time through communication from multiple and terminated networks, (Hayes, 2014).
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Lastly the manager is expected to prepare and plan for the unexpected. The manager should always review the company operations on their impact on a day to day activities. This will help the management to fully adopt to any unpredictable transformation.
Kolak Company have to formulate a strategy that’s abide to its marketing operation. The strategy may be as follows, (Bettis, Gambardella, Helfat, and Mitchell, 2015)
Operating location– The Company should come up with a strategic place where it is aiming to develop a market for its product. The decision about the market should be independent and should make sense regarding the company operations.
Customer analysis-the company through the marketing department should carry out analysis for developing their target market and gets the know-how on what their customers really needs. When a bigger number of customers are happy with the product offered, then the demand will vary as per the needs of them, (Lee, Chiu, Y.L, Wu, and Liu, 2014)
Competition analysis-the company should be able to analysis and understand the competition in the market. This will help to create a distinction with their competitors operations.
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Analysis of capability and system of one’s own company– it will be of necessity when the company will have to achieve a continuous and a continuous abilities and also be able to come up with a stable system in order to offer a endless value to their client and show a different approach as compared to what the competitor is offering, (De Mooij, 2013)
Setting Quantitative targets– the company will set up a target they are aiming to achieve by the end of a certain period. The target will go hand in hand with the customers’ needs and if there is any change, the operations should be evaluated amicably, (Jain, 2014)
Aiming in context with the divisional strategies– each department in the organization should come up with their own plans that will help push the project onward.
Performance analysis-this will involve analyzing the gap between the desired performance and planned performance. It will encompasses on analyzing of the company historical performance that will help to forecast on future performance.
Choice of strategy– after a careful assessment of company goals, strengths, potential and limitations operations, the best alternative and strategy that will be congruent to the vision of the company will be implemented, (Gunasekaran, and Ngai, 2012)
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SWOT analysis
Kolak Company is best known for its snacks products. Producing another health product to the market will be a significant role to play since the company is well known by its brand name and the quality products it offers to its clients that come with efficient and effective services.
In the new market, the target market are the young populations who goes for snacks products. The company must be willing to meet the clients taste and preferences and fulfil they request when they order a special type of snack.
The company beliefs that the customers are the heart of the business. It means that the new product established will be according to the customers’ needs and it will be health so that it does not affect customer’s health issues.
The new product should be launched into a market where there is demand for a particular product. The company should be able to analyze the market gap in all its global markets and see an opportunity that will make them fulfill their target.
After establishing the customers’ needs and seizing an opportunity, the company will have to employ a competent person who will manage to administer quality services to the customers and be creative enough to know what the taste of the customer is. Also, the location of the business should be strategically placed such that it becomes easier to produce product with the new technology and also easier to distribute the products. With this, it will be easier to make profits due to better know how of the market, (Hollensen, 2015.)
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PESTEL Analysis
The Kolak Company should set up the market for the new product where there is political stability. This will ensure that the business is running swiftly and there is customers for the product.
Establishing a business in a political stable market, the Kolak Company is well assured that the economy of the market is stable and they make sales for their products.
The company should be socially responsible. They should interact with the community beyond the aspect of making profit. This will make the company to be well established and in return will be able to make maximum sales
Due to advanced technology, the company should set up the market for the new product where there is availability and accessibility of latest technology that will help them with ease of production, (Rachet, 2014)
The Kolak Company should develop a market in an environment that best suit its products and will be convenient for its customer’s hygiene.
To come up with a market, the company will have to adhere the government rules and regulations and it should have proper documentation before it starts operating.
It can be summarized that operation management in a company is well concerned with control, redesigning, the organization operation in the productions of goods and services. The operation manger should be competent in a way that he or she is very keen to ensure that the operations are handled in an effective way and at cost effective when meeting the customer’s needs.
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It can be concluded that the operation manager is the key person who is at the higher notch of maintaining the company operations. Any misinformation by the operation manger will eventually leads to unpredicted changes and this will alter with the company progress because of dynamic unexpected changes that may lead to the company incurring various cost when trying to control redesign, and oversee the company operations running swiftly. , (Belleflamme, and Peitz, 2015).
Having a competent operations manager, Kolak Company will be able to launch its new product in the market. Following the operation strategy and the operations manager has the skills of supply chain management and logistics, the company will develop the new product and develop a new market which it will be able to meet the customer’s requirements effectively and efficiently at a minimum hurdle rate.
It can be recommended that Kolak Company can launch the new product into the market. Having analyzed the market fully and the customers at the same time, the company through the operation management team can spear head the launch of the product that will be of high quality and will satisfy the customer taste and preferences.
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References
Belleflamme, P. and Peitz, M., 2015. Industrial organization: markets and strategies. Cambridge University Press.
Bettis, R.A., Gambardella, A., Helfat, C. and Mitchell, W., 2015. Qualitative empirical research in strategic management. Strategic Management Journal, 36(5), pp.637-639.
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De Mooij, M., 2013. Global Marketing and Advertising: Understanding Cultural Paradoxes: Understanding Cultural Paradoxes. Sage Publications.
Dekker, R., Bloemhof, J. and Mallidis, I., 2012. Operations Research for green logistics–An overview of aspects, issues, contributions and challenges. European Journal of Operational Research, 219(3), pp.671-679.
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Jain, S.K., 2014. Impact of advertisement on the consumer behaviour a case study of some selected fmcg products in union territory of chandigarh.
Lee, T.W., Chiu, Y.L., Wu, Y.S. and Liu, H.S., 2014, September. An intelligent image-based customer analysis service. In Network Operations and Management Symposium (APNOMS), 2014 16th Asia-Pacific (pp. 1-4). IEEE.
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Scarbrough, H. and Corbett, J.M., 2013. Technology and Organization (RLE: Organizations): Power, Meaning and Deisgn. Routledge.
Tano, M., Data Tec Co., Ltd., 2013. Operation management device to be mounted to a moving object, portable information terminal, operation management server, and computer program. U.S. Patent 8,421,864.
Teittinen, H., Pellinen, J. and Järvenpää, M., 2013. ERP in action—Challenges and benefits for management control in SME context. International Journal of Accounting Information Systems, 14(4), pp.278-296.
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