Evaluation of Key Decisions Taken By the Operations Manager - Essay Example

EVALUATION OF KEY DECISIONS TAKEN BY THE OPERATIONS MANAGER By Submission Evaluation of Key Decisions Taken By the Operations Manager Introduction The modern day world of business thrives in quick and prompt decision making by leaders and executives of various companies. The competition in the market places is so severe such that companies have to make decisions fast and decisively in order to take advantage of emerging business opportunities, or in order to avoid falling into a business pitfall. As such, all decisions adopted by a manager in their capacity and on behalf of the company have to be strategic in such a way that they enable the organization to gain competitive strides in both business and the market. According to Balch (1977), one of the major strategic decisions that a manager can make is to develop a detailed plan that outlines the growth and development of the business as it begins its initial steps of operations The Thai Day Spa business is one such organization that relies on the prompt decision-making by organization managers in order to thrive in the ever-competitive spa business in London. The business plan entails setting up a Thai spa business in the heart of London. This is following a number of economic analyses of the business environment in the United Kingdom, inclusive of the PESTEL and SWOT analysis. Bardi, Coyle, Gibson, Langley, Novack (2008) argue that the main purpose of setting up this business in London is to offer the clients within the city better refreshment and relaxation services. The sap adopts a differentiation strategy by providing contemporary massage services and beauty care to its customers and clients using the traditional Thai style. Consequently, the business needs to have a strategic operational plan that will ensure all its operations run smoothly The operations and activities of the Thai Day Spa require effective management and organization. Consequently, it is imperative for the business to develop a workable team that will ensure seamless execution of objectives, as well as, ensure proper implementation of the strategic goals and vision for the spa. This requires formation of a LAB team that comprises of three critical managers to the performance of the business operations. A longitudinal study (Bolton 1994) on this area suggests that these key business managers include the planning manager, the resources manager, and the operations manager. Each of these mangers has specific roles to perform in order to ensure the success and efficiency of the business, and as such, every decision that they take has a direct and effective impact on the overall performance of the organization, as well as, map out its success strategies The operations manager, on the other hand, is the key player in this research paper, as the paper seeks to deduce the impact of the key decisions made by an operations manager in the Thai Day spa business. In recent studies, (Chapman, 2006), the main roles of the operations manager in the business are to deliver the goods and services from the company as and when demanded by customers. As such, his roles revolve around activities such as production planning, supply chain management, customer service and support, management information and reporting systems, as well as, contingency planning. In undertaking these services, the operations manager enables the organization to deliver the best products and services to its clients, and as such, boost the brand image and reputation of the organization as a caring and trustworthy firm. This in turn boosts the performance of the spa as it gains loyal customers, and with heightened confidence, attracts and retains new customers to the spa who make repeat visits at the spa for more services Body As evidenced in the above report, the operations manager plays a very critical role in the performance of the Thai Day Spa. This is because the operations manager deal directly with the clients of the firm and this is their big prize. The activities and roles of the operations manager enable the organization to create a reputable brand image as the choosiest spa in town, and as such, attract and retain more clients to sample the services and products offered by the business. Childs & Dietrich (2003) concluded that the person responsible for this role must be very professional and competent in carrying out his duties and responsibilities as the future of the organization lies in his hands. In addition, every decision made by the operations manager has a direct and effective impact on the direction that the business takes, especially in line with customer attraction and retention. A key focus on the business decisions by the operations manager focuses on management information and reporting systems, as well as, the supply chain management. These two roles are objective in the strict performance of the operations manager’s roles in the organization. The role of management information and reporting systems is critical in creating an online brand image for the Thai Day Spa business. Effective management information systems will ensure that the company communicates appropriately with its consumers on a regular and effective basis, which also provides them with convenience and executive performance while undertaking their duties. For instance, this requires the company to develop a company website and post the necessary information that it wants its clients to know on this site. Furthermore, this site also enables the company to market and advertise itself on an online platform, and as such, reach out to more clients who boost the sales volume of the business (Curry, Flett & Hollingsworth, 2006). Through an online platform, the company can also undertake e-marketing strategies such as social media marketing, which is the growing and emerging trend in modern day marketing. This enables the company to reach out to a large multitude of its potential customers especially considering the modern day digitalized world whereby most people meet up on social media networks rather than face-to face or through other communication networks. Management information systems also enable the organization to develop a closer relation to the customer as they can reach out to them through the online platform much easily and efficiently as opposed to the traditional business platform whereby the customers had to physically report to the brick and mortar physique of the organization in order to access their services. As such, the online platform enables the consumers to enjoy convenience and efficiency while dealing with the business, such as when booking their massages, and as such, don’t come to the spa and wait in long queues before getting the right attention, paying for the services and products offered by the spa. An early report (Fredendall & Hill 2000) reported that this eliminates the necessity of carrying around hard cash, as the online platform enables the customers to swipe their cards, or pay over a secure online channel. The MIS also creates room for an effective reporting system that allows the company to conduct appropriate research of its market, judge its performance, as well as, use the feedback from its customers to make necessary adjustments that boost the quality of their service delivery. For instance, a face book page or a twitter handle is an efficient method of collecting on the spot views, opinions, suggestions, criticisms, and complaints about the company’s products and services, and it is a less costly channel, which the business can engage and change the future of its operations to suit the tastes and preferences of its consumers. A recent study (Handfield, 2011) found that a management reporting system also enables the organization to collect viable reports that will enhance the execution of effective strategies by the organization. These could be field reports and customer responses critical in improving the performance of the business, as well as, enhancing the quality of service delivery in the Thai Day Spa. On the other hand, the role of supply chain management also plays a critical role in building the reputation and goodwill of the company. As mentioned earlier, the company specializes in using products from the Harnn Products Company Limited. The company has a reputation for providing spa products in different locations across the world, such as in Thailand, major Western Countries with the exception of the United Kingdom, as well as, a numerous collection of Asian countries. The incorporation of this company is in Thailand, and its headquarters are at Bangkok, the capital city of Thailand. Consequently, in undertaking the executive role of supply chain management, the operations manager has to make effective plans to ensure that the spa always has the products from Harnn Company that it needs whenever customers come calling at the spa. Jackson (2006) argues that this will enable the organization to have everything it needs whenever it needs, and as such, always be in the right position to attend to its clients professionally as well as proficiently. In order to undertake effective supply chain structures, the organization has to engage a global supply chain platform. This is majorly because the company has to import its products directly from Bangkok in Thailand, which is the home country of the Thai Day Spa. Furthermore, the Harnn Company Limited does not have its supply and distribution channels across the United Kingdom, which is the operational hub of the Thai Day Spa. According to Knapp (2010), the operations manager has to engage global supply chain mechanisms in ensuring the products get to their premise in London within the required time, as well as, within the right condition and quality as required by its customers. This will enable the organization to attend professionally to its clients, and as such, give them an opportunity to grow in confidence and trust in the spa, thereby a significant growth in loyalty and allegiance to the brand and products of the company. Global supply chains integrate the overarching rationale required by global economies. A global economy refers to the economic activities that have a worldwide presence. As such, it commands a consumer clientele from all over the globe and therefore incorporates global supply chains in order to reach out to their consumers worldwide. Global supply chains enable businesses and organizations to overcome logistical challenges that may arise in the process of delivering goods and services from their manufacturing plants to their customers across several continents and countries in the world. A longitudinal study (Leeman, 2010) undertaken in this area shows that, the integration of global supply chains takes place in a number of stages according to the strategies adopted in business decisions. This is because of the complexity of global decisions. Global decisions require a lot of input from logistics. Logistics refers to the infrastructural requirement needed to facilitate transfer of goods and services from one point of the globe to the next. These include a myriad of facilities such as internet connectivity, road, rail, water and air transport routes, as well as efficient and effective communication lines. Global economies greatly influence the operations of most firms nowadays. This is because globalization brought about a major crush in the world markets thereby turning the world into a global village. In recent studies (Lewis & Slack, 2003), firms have to grapple with issues arising from a global perspective such as the need to source materials and products for use in the business globally. For instance, there are companies that deal with merchandising imported products only, or products not necessarily manufactured or produced within their borders. Examples of these are the companies that curved a market niche in luxurious goods, such as fashion and design, music and film, as well as major electronics. Moreover, firms have to contend with global customers who demand their products and services from all corners of the world. It is imperative for the operational manager to make the right decisions that will benefit the operations of the organization, basing on the objectives of each role as discussed above, as any negative decision will bring down the performance of the organization, as well as, cost it its potential clients. As such, it is important for the organization, and especially the business operations manager to come up with the right decisions that will affect the performance of the organization positively. Menken & Wheelwright (2009) show that the operations manager should choose right in his or her undertakings under the management information and reporting systems role, as well as, that of supply chain management in order to ensure that the organization only reaps benefits from his decisions rather than suffer dents from wrong decisions or delayed decision-making from its perspective. This also denies it the opportunity to take advantage of emerging market opportunities such as the avid market within the London city of spa and massage services. As the operations manager of the Thai day spa located in London, i decided to make strategic decisions on the provision of management information and reporting systems, as well as, the supply chain management. The decision i made in the management information and reporting systems role as an operations manager is to launch an online platform for the business. This was through the creating of a company website, as well as, setting up various platforms on social media networks that would enable the company to get closer to the customer. On the other hand, i decided to adopt global supply chains in the supply chain management in order to get the right strategies in undertaking the supply demands of the company. Menken & Wheelwright (2009) argue that this right practise would ensure effective delivery of products from the Harnn Corporation in Bangkok all the way to the spa’s main hub of business situated in London. The decision to take on the adoption of an online platform of doing business for the Thai Day spa located in London under the role of management information and reporting systems enables the organization to grow and develop across a global scale. The organization, through an online platform, is in a position to grow its operational spheres and incorporate even those clients who are outside the city of London and still demand the products and services offered by the massage parlor. In addition, an online platform increases the market sphere of the spa in such as way that it is able to reach out to a wide range of clientele owing to its adoption of social media marketing, one of the most recent and fast developing strategies in modern marketing. A recent study (http://www.bls.gov/oes/current/oes435061.htm) found that, it is able to attend to the customers living in London permanently, as well as, those visiting the city on business or pleasure, especially those who develop awareness of the existence of the spa through the online platform, such as social media networks like twitter and Facebook. The adoption of an online platform in the execution of the management information and reporting systems of the organization is also critical in systemizing the operations of the organization strategically in order to be in line with the computerized and technological world. Despite the fact that the Thai Day Spa specializes in the usage of traditional herbs, products and styles that are almost ancient and outdated in the modern day London metropolis, it does not have to remain behind in the technological setting and framework, especially in the adoption of modern technological practices of management and operations. As such, a smooth blend of the traditional styles of massage and spa setting with a modernized communications and operations system enables the organization to attract clients from all quarters of the market, such as the old who cling to traditions and cultures, as well as, the youth who want to go with the modern trends of operations. Peterson, Pyke & Silver (1998) concluded that this, incidentally, provides the Thai Day Spa with an opportunity to take advantage of market operations, and in fact, create a competitive advantage against its competitors in the industry, most of who make use of westernized products and styles of massage and leisure relaxation The adoption of this decision is in line with the competitive theory as suggested by Michael Porter. This theorist adopted a Five Forces Competitive Theory or model that enables the organization to create competitive advantages that take advantage of emerging market opportunities, as well as, keep ahead of competition within the market, or the industry of operations. Michael Porter comes up with five strategies or forces that enable the organization to create a competitive edge over its competitors. The Five Forces that affect the performance of the business as suggested by Michael porter are the power of suppliers, the bargaining power of buyers, the threat of new market entrants, the existing competitive rivalry between suppliers, as well as, the threat of substitute products, which is inclusive of technological changes. The last concept suggested by Porter supports my decision in adopting the latest and best technological practices, such as the company website, an online platform, as well as, e marketing, such as social media marketing through social media networks such as Facebook, twitter, MySpace, and Skype (Poirier, 1999) In building alongside the Porter’s five factor theory, the business is able to develop strong structures in the market that enable it stand against other already existing businesses in the same line. For instance, at the start of the project, it noted that the Thai day spa was specializing in traditional Thailand massage practices, as well as, using traditional herbs for undertaking their practices, as opposed to the other already existing spas, which incorporate the use of westernized styles and products of massage, and spa. A study by Power (2002) established that the adoption of an online platform empowers the organization to compete strategically with the other business in the same field that are already in existence in the market, and as such, put it in a lucrative position to become a market leader while undertaking its operations in London. Furthermore, the online platform and other technological practises that come along with management information and reporting systems puts the company in the edge as among the leading business within the city, and as such, reengineered to provide their customers with the best quality and affordable services, with a traditional touch that incorporates various health benefit The porter’s five-factor theory has been very instrumental in the development of the business plan for the Thai day spa. This is majorly because it enlightens the operations manager to know the right practises to undertake in order to remain relevant and competitive in the market. This is in relation to the uniqueness of the services provided by the spa, which are very different to the ones the customers within their market know or like. An early report (Souse & Oz 2014) reported that it is evident that the Thai Day Spa is a new line of business in the spa market of London because it practises traditional massage and leisure practises, as opposed to the westernized spa and leisure practises applied by most massage and spa centres in the city. This therefore requires the spa to create strategic competitive advantages that will enable it to be the leading player in the market, to attract and retain new customers, as well as, command a loyal following of its customers due to their exceptional quality in service delivery and operations The role of supply chain management relies on the theory of needs as suggested by Abraham Maslow. The supply chain management is an important role in the operations of the company as it enables the company to provide the customers with the right services and products needed for its activities, and to undertake the implementation of its objectives, goals, and mission. The main goal of each organization, apart from maximizing its profits, is to attend to the needs of its clients, and ensure that they get the best quality services, which is the right value of their money. In having the right strategies for the role of supply chain management, the Thai Day Spa manages to provide its clients with the specific needs in their lives, in accordance to the theory of needs suggested by Abraham Maslow (United States IRS, 1989) The hierarchy of needs theory had five major stages of human needs that motivate them to pursue various goals and missions in their lives. According to Balch (1977), the five needs determine the motivational level of the client, and as such, control the reason why they work hard in getting what they need or want. The first stage on this hierarchy of needs theory is the biological and physiological needs. This incorporates the basic needs that an individual requires such as air, food, drink, shelter, warmth, sex, sleep, and much more. The second need for the human being is the safety needs, which is the protection and security that the individual gets from elements of threat to their lives, and also ensure security, order, law, limits, stability, as well as, order. The third need of human beings is the belongingness and love needs. This is the sense of belongingness that an individual needs while existing within the society, with affiliations such as work groups, family, affection, relationships, intimacy, and many more. The fourth level of need in the Maslow’s hierarchy of needs is the self-esteem needs. These banks on the self-esteem of an individual, as well as, how these individuals they feel about themselves. As such, esteem needs include self-esteem, achievement, mastery, independence, status, prestige, dominance, as well as, managerial responsibilities. The final stage of needs as provided by Abraham Maslow is the self-actualization needs. This is the stage where the individual realizes his or her personal potential, as well as, realize aspects such as self-fulfilment, and seek personal growth and peak experiences. Bardi, Coyle, Gibson, Langley, Novack (2008) argue that the stages of human needs motivate an individual to seek appropriate parameters of success, and this trickles down to the individual performance of an individual, which in turn multiplies as the enhanced productivity of the organization The theory of needs as suggested by Abraham Maslow is essential in the operations of the Thai Day Spa as it creates room for the management of the company to know the factors that motivate people to work harder in their entities of work. As such, through this theory of needs the management of the spa is able to realize how best to motivate its members of staff to undertake their duties and responsibilities diligently. A longitudinal study (Bolton 1994) on this area suggests that the more dedicated and productive the staff members of the organization are the more efficient and productive the entire organization ends up. This will in turn lead to the development of a reputable brand image that will attract new customers to the spa, as well as, retain the existing customers as loyal and trustful confidants in the spa and its brand. Since the role of supply chain management incorporates a long chain of persons before the products reach to the intended customer, the operations manager can apply this theory to motivate the participants in their chains of supply, and as such, ensure that the supply chains of the company run smoothly and efficiently for the success and growth of the organization In recent studies, (Chapman, 2006), the operations manager plays a very critical role in the support of the goals and objectives of the organization. He or she allows the organization to adopt organization learning, a concept that enables the firm to improve it in all capacities, especially those concerned with improving the productivity of the business. This entails adoption of various creativity and innovation practises, such as coming up with new operational systems of organizational management and planning. The definition of this new role played by an operational manager is explorable as the “A distinctive approach to operational management and planning that strives to achieve a cutting edge competitive advantage basing on the strategic deployment of operational plans and systems”. It is also imparative to think about the operations manager as the master of contigency planning in the organization. In the mordern business world whereby there are numerous business risks and aggressive competitiion that could easily topple any business at any time, it is always imparative for every organization to have a contigency plan. This is the role of the operations manager. A Childs & Dietrich (2003) concluded that a contigency plan is a process that prepares an organization or a business to respond coherently and objectively to an unplanned event, especially considering the continuity and risk management of businesse. As such, the contigency plan is the alternative plan of action that the business take in the event that the expected results fail to materialize, and sometimes referred to as plan B. As the operations manager of Thai Day Spa business, I have several contigency plans to cushion the business operations in case the market plans turn out negative as we originally forecasted and plannedit. For instance, if the spa clients reject the traditional Thai style of beuaty care and massage therapy, we can easily shift to the mordern westernized style of beautycare and massage therapy while still maninating usage of hearbal and traditional products to mainatain an executive appeal. The business has to offer the best quality of customer service in order to prosper in the ever-competitive service market. The key to gaining trust and confidence of loyal clients in any service industry is by providing them with high quality services, as well as, memorable customer experience journeys (Curry, Flett & Hollingsworth, 2006). This entails provision of services to the customers and clients of the spa before, during, as well as, after they make purchase of the services we are offering. As the operations manager, I strive to ensure that the customers arriving at the spa get the best of services in order to achieve the highest level of customer satisfaction, and as such, meet the expectations of the customers in all manner and style. Production planning is another critical role of the operations manager; this refers to the administrative process that ensures the business has all the raw materials necessary to undertake its operations. As such, the role of the operations manager is to ensure that the spa, at all times, has all the necessary herbal products, oils and massage equipment needed to undertake its operations of beauty care and massage services. This in turn provides the business with an opportunity to grow and expand its market share and operations (Curry, Flett & Hollingsworth, 2006) Conclusion It is imperative to note that the decisions made by a manager in his capacity as the representative of the organization in a given role, such as the operations manager in the Thai Day Spa. The decisions made by the person in charge of a given docket within an organization affect the growth and development of the entire organization as a whole. An early report (Fredendall & Hill 2000) reported that whether the organization will be successful in its quest by achieving all its structured objectives and goals, it all depends on the right decision-making by the people or individuals charged with the duty of making these decisions. Therefore, before an individual in the manager’s capacity of an organization makes a decision, he or she should evaluate and determine what impact their decision will have on the growth and development of the company. These decisions should be in line with the goals, vision, mission, and objectives of the company, and not on personal goals and ambitions of the individual manager For instance, in the above case of the operations manager of the Thai Day Spa launching its products in a new and developed European market of London city, the manger had to think and contemplate on the overall growth and future position of the spa while coming up with his decisions. These decisions were to affect the company positively and as such, assist the company to manoeuvre through the new English market with their traditional Thai products and services in the spa and massage industry. If by any chance the operations manager made the wrong decisions, especially pertaining the role of management information and reporting systems, as well as, supply chain management, then the business would lose its overall goal and objective in the new market of London. A recent study (Handfield, 2011) found that this would be especially due to aggressive competition presented by established spas and massage centres already in existence within the city of London, which play a role similar to that the Thai Day Spa intended to perform in its new market The decisions made by the operations manager were very instrumental in the development of the company’s strategies of the company, as well as, enable the spa to create a niche within the market of London. The manager in charge of operations made the right decision to adopt an online platform in the management information and reporting systems because this move opened for the company a wide range of opportunities available through the online network. A study by Power (2002) established that the decision by the operations manager to adopt global supply chains in their supply chain management structures also brought about significant gains in the achievement of its goals and objectives Figure 1: Abraham Maslow’s Hierarchy of Needs Theory Reference List Balch, J. (1977) MIRS Management Information Reporting System: Submitted ... In Partial Fulfillment ... Master Of Health Services Administration. Michigan: University Of Michigan. Bardi, E., Coyle, J. Gibson, B., Langley, C., Novack, R. (2008) Supply Chain Management: A Logistics Perspective. Stamford, Connecticut: Cengage Learning. Bolton, W. (1994) Production Planning and Control. London: Longman Scientific & Technical. Brown, S. 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