Planning The Strategic Goals And Objectives Of The Organization

Question: Discuss about the Process Of Planning The Strategic Goals And Objectives Of The Organization. Answer: Introduction: Operations management is considered as that area of management which mainly design and control the process related to the production and redesigning of business operations while producing goods and services. Operations management mainly ensures that business operations of the organization conduct efficient use of resources for the purpose of meeting the business objectives and requirements of customers. Operation section related to the business plan reflects the picture of what generally goes in the day to day activities of the business (Sanders, 2014). This report mainly creates an operational plan or process map for a coffee shop named as Beans Beans, and for this purpose this report focuses on three areas which are stated below: First area identifies the critical components related to the functions of the operation management in different organizations, and also states their relationship with the decision making and value chain. Second area define the principle and quantitative methodologies for the purpose of assisting the decision making in operation process such as operational planning, scheduling, and inventory management. Last section evaluates the role of operations management in the strategic management of organizations and supply chains. Lastly, paper is concluded with brief conclusion which state key points of the report. Brief overview of company: Beans Beans coffee house will be the place for coffee lovers and this caf serves high quality coffee with the trendy snacks, and a soothing ambience to its customers. Customer oriented strategy of the company includes convenient location and excellent customer service for the purpose of building strong customer base. Owners of this caf possess long term management experience in the food service industry. Main products of this coffee house includes gourmet coffee products such as espressos, cappuccinos, latts. Coffee shop also serves different types of snacks which also includes healthy alternatives. Operational plan: Operational management is not an individual process, and it is more concerned with the complete transformation process which means complete business. It reflects the changes occurred in the competitive environment, and what operations have to be conducted for the purpose of meeting the future challenges. It is related to the long term development of its operation resources and processes so that they can provide the basis for a sustainable advantage (Geoffrey, 2000). Functions of operation management: Operations management is considered as that business function which mainly manage the process of creation of goods and services, and it involves different functions such as planning, organizing, coordinating, and controlling all the resources of the organization which are required for producing goods and services of the organization. Critical components: Following are critical components of the operational management functions which also support the decision making and value chain process: Design of goods and services: operational management of caf mainly focus on the premium design for goods and services offered by them to the customers. This area of operation management reflects the high-end brand image of the firm. Main character of the caf is linked with the differentiation generic strategy of the company, and also with the premium pricing strategy. Quality management: Beans Beans use best component in context of quality management, and for this purpose company take its source coffee beans directly from the farmers who meet the quality standards stated by government. Process and capacity design: this area of the operations management ensure effectiveness in cost by providing efficiency in the workflow and other process. It is considered as one of the important contributors to the success of caf. Process of the caf must be highly efficient, and for this purpose caf improves its capacity utilization by designing such process which meets fluctuating demands (Kattering University, 2016). Job design and human resources: human resource management is the most important function of any organization. Culture of caf involves such attitude of employers which ensures cares for the workers of the caf, and it also involves functional positions and positions for management of inventory. Supply chain management- supply chain of this involves process in which caf directly contact with the farmers for the purpose of getting coffee beans. Strategy of the caf also involves diversification of the suppliers for the purpose of ensuring stability in the supply. Therefore, it can be said that in this area of operations management, caf ensures ethics and meet its corporate social responsibility. Inventory management: inventory management at the caf is directly related with the supply chain of the firm and also with different facilities. Inventory management of the caf involves office automation and manual monitoring of activities (INC, n.d.). Relationship with value chain and decision making: In 1985, porter introduced the concept of value chain for the purpose of examining the functions of the performance of the company and their relations with the source which ensures competitive advantage. It considers the caf actions in context of activities and also analyzes the importance of different activities which are helpful for producing and delivering final product or service (MHED, n.d.). Above stated components play very important role in the value chain and decision making process of the caf. Through these components caf develop competitive advantages and create value for shareholders. It works as separate system and conduct different actions which create value for business. It not only create value for business but also provide support in decision making, as they provide relevant information related to the different processes of the organization to the management, and this information is used by management while taking the decision. These components also help the caf in achieving the competitive advantage over their competitors. These components help the organization to ensure that process and activities conducted by the organization meet the requirements of the customers. T can work as a framework which assesses the performance of the organization, and also assess required changes to achieve the objectives set by the caf. Value chain activities of this caf includes following characteristics (Linkedin, n.d.): Inbound logistics Outbound logistics Operations Marketing sales Service Caf get its raw materials from the suppliers, and they mainly focus on maintaining strong and best relationships with its suppliers. Caf sell its products through store and all its stores are licensed. Ready products of the caf are shipped from its warehouse to its retailed stores. Caf purchase, roasts, and sells high quality coffee beans other products related to coffee. Beans Beans roast there for more period of time as compared to other coffee makers. Marketing and sales are considered as most important process of the brand value chain, and this process add lots of value to the business. Caf mainly give attention to the customers service and it is considered as most important area of the value chain. It must be noted that for providing better services to the customers caf also provides online services to its customers and these services are provided through website of the caf and mobile app. Process map for the same is stated below (Choi, 2007): Process map for online orders Decision making in operation process: Operation process is considered as branch of management science which defines the factors contributes in organization success while conducting day to day operations of the business. It develops and applies those methods and techniques which help in designing and implementing such systems which are effective and efficient while conducting activities in the organization. There are number of operational issues which range from purchasing to the final distribution of the products and services. From last few years, organizations witnessed increase scope of operations management and how this function contributes in the growth and profitability of the organization. Caf develop the capability to deliver its products and services as fast speed and ensures cost cutting in the production process. It provides competitive advantage to the caf and improves production efficiency. Before conducting any activities in the operation management, it is necessary for caf to ensure successful decision making. Decision making is considered as most important process of any organization and complete process of the organization is based on this single process. It includes evaluation of alternatives for the purpose of identifying the best solution related to the problem. While making the decisions, management also analyzes the pros and cons of every alternative solution. Application of operations management must be run in smooth manner and achieve the goals and objectives of the organization. Following are some principles which must be taken into account while making the decisions of the organization: Planning- planning is considered as base of any area of management, and on this framework related to the operations management of the organization is built. In this administration assess the present stage of the caf, and where it wants to be in the upcoming future. In this management of the caf determine the appropriate course of action and then find out the way to implement them for the purpose of attaining the objectives set by organization. Implementing- implementation is also considered as most important function of the organization, and in this function caf conduct, manage and monitor the activities planned by the management. Effective implementation helps the staff of the caf in achieving the goals of the organization with their personal or career goals. It ensures motivation of the employees, communication with employees, department dynamics, and department leadership. Scheduling- Beans Beans generally use automated and manual scheduling process for conducting different business activities in the organization. Caf applied such schedules for managing the human resource which are flexible in nature. This area of operation management directly related with the objectives of the process with streamlining processes, as it allows some degree of flexibility in the management positions of the caf. Quantitative approach to the management of the organization involves the use of quantitative techniques such as statistics, information models, and computer simulations, for the purpose of improving the decision making. Quantitative approach of operation management include following components: Computers models can be used by the managers for the purpose off determining best way to do something, and this saves both money and timing of the caf. Caf can also use mathematical forecasting as it helps in making the projections and these projections are useful in the process of planning. Inventory modeling helps the organization in controlling inventories by mathematically determining how and when to put order for a product. Management can use queuing theory for the purpose of allocating services to human resource or workstations for the purpose of reducing customer waiting and service cost (Cliff notes, n.d.) Cafs operations management use different types of strategies in context of productivity criteria, and some of these strategies are stated below: Average order filling duration for the productivity of caf. Coffee beans weight processed on the basis of time. Duration of equipment repair. Role of operations management in the strategic management supply chain: The main purpose of the operations strategy is to provide a plan for the operations management for the purpose of ensuring best use of its resources. Policies and procedures are specified by the operation strategy for the purpose of using the resources of the caf and support its long term competitive strategy. In this caf frames the effective framework for the purpose of supporting operation plan of the organization and also link the operational plan with the main objectives of the organization. It must be noted that, operational plan of the caf is responsible for managing the resources which are required for producing the goods and services. Operational strategy is considered as that plan which mainly specifies the design and use of resources for the purpose of supporting the objectives of the organization. It includes various factors such as locations, size, type of the facilities, skills of the worker, technology, processes needed, and quality control methods. It is necessary to link the operational strategy with the business strategy of the organization, and it must be of such nature as it helps the organization to achieve its long term plan of the organization (CSCMP, n.d.). On the other hand, supply chain management also play important role in the operation management, as it is considered as most integral part of most businesses and considered as important part of the organization success and satisfaction of the customer: It ensures delivery on right time, as customers expected organization deliver the products on time. This can be understood through example, if caf does not deliver its products on time then it reduce the satisfaction of the customers. Generally, customers expect that caf served the products quickly even before the time they commit. Supply chain management also reduces the operating cost of the organization in different ways: It helps in reducing the purchase cost by ensuring quick delivery of the costly product for the purpose of avoiding hold of costly inventories. It helps in reducing the production cost by ensuring cost efficiency (Florida tech, n.d.). Conclusion: After considering the above facts, it can be said that Beans Beans caf can ensure effective operation management in the caf by including all the critical components in the strategy. This report provides a plan for the operations management which ensures best use of its resources. Inventory management at the caf is directly related with the supply chain and value chain of the firm and also with different facilities. References: Choi, K. (2007). The value chain's use for the service industry. Retrieved on 19th March 2018 from: https://www.tandfonline.com/doi/abs/10.1080/10941660108722094. Cliffs Notes. Quantitative School of Management. 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Retrieved on 19th March 2018 from: https://online.kettering.edu/news/2016/09/21/10-critical-decisions-operations-management. Linkedin. Porters Value Chain - Does it serve the service industry?. Retrieved on 19th March 2018 from: https://www.linkedin.com/pulse/porters-value-chain-does-serve-service-industry-rajesh-bhadwal. MHED. Introduction to Operations Management. Retrieved on 19th March 2018 from: https://www.mheducation.co.uk/he/chapters/9780077133016.pdf. Sanders, N. (2014). Operations Management Defined. Retrieved on 19th March 2018 from: https://www.informit.com/articles/article.aspx?p=2167438.