Management And Operation - Starbucks

Management
And
Operation

Table of Contents
INTRODUCTION ..........................................................................................................................3
Task 1...............................................................................................................................................3
Covered in PowerPoint...........................................................................................................3
TASK 2............................................................................................................................................3
P2: Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts..................................................................................................3
P3: Apply different theories and models of approach, including situational leadership, systems
leadership and contingency....................................................................................................4
TASK 3............................................................................................................................................8
P4.key approaches to operations management and the role that leaders and managers play. 8
P5. importance and value of operations management in achieving business objectives. ...10
Task 4.............................................................................................................................................11
P6: Assess the factors within the business environment that impact upon operational
management and decision-making by leaders and managers...............................................11
CONCLUSION .............................................................................................................................12
REFERENCE.................................................................................................................................14

INTRODUCTION
Operation management is defined as the process which is used by an organisation to
make a plan for managing the production process and services which are going to be offer to the
customers. This operation management work effectively for organisation in term transfer the
finished goods into raw material. This operation management also work effectively in term of
providing good quality of a product to its customers. Manager and leader play important role in
managing the operation. In this context, leader play a role of implementing ideas into a reality.
A Manager role is to planning in the organisation. This present report is based on Starbucks
organisation which is an American coffee company. Starbucks was founded in 1971 and the
company operates over 30,000 location worldwide. In this present report study will take place in
order to understand role of manager and leader and also how they apply it in different situation.
Along with this, different theories and approaches of leadership and management will mentioned
in this report. Further, explaining key operations of an organisation and how they are helpful for
them in achieving their goals and objectives(White, P. R., 2016). At last, a study will take place
on factors that can affect the decision making of a leader and manager.
Task 1
Covered in PowerPoint
TASK 2
P2: Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts
Situational analysis helps the business to analysis where they are standing and which
business strategies they should follow to progress further. In context of Starbucks, they needs to
analysis the situation first and then take decision according to that. There are various type of
situations which might arise in the Starbucks which are as follow:-
 Stable situation – It can be defined by the policies of an organisation. In context of
Starbucks, their policies will not be change very quickly according to the situation. It can
be understand by the example of appraisal policies, it is not possible for them to increase
their employees salary very quickly. In this case the manager and leaders play a crucial
role. In this situation a manager will decide that how much hike in the salary they should

give to the employees. On the other hand, a leader plays the role of motivator in this
situation they motivate the employees for doing great work so they can also get appraisal.
 Moderate situation – This situation can be understood by the changing in the technology
of an organisation. In case of Starbucks, they have to change their technology after
inventing a new technology. If Starbucks is not able to changing their technology
according to the situation so they can not compete with their competitors which leads
them to in a downfall position. In this situation, managers make plan about which
technology will be perfect for increase their productivity whereas leaders motivate
employees to accept new technology and provide them a better training for telling them
that how to use that technology and how much it is beneficial for the organisation so they
can support for adopting new technology.
 Fast changing situation– This situation can be understood by the changing in the
customer needs. It is the only situation when a company have to change their policies
very quickly according to their customer needs. As Starbucks is serving coffee to their
customer, so if the customer wants to change their priority in the coffee taste then they
have to change it according to the customer needs. So, the Starbucks is able to sustain in
the market and enables to beat their competitors. If this situation will arise in the
starbucks then manager and leader plays a crucial role. In this case manager have to
leading and controlling towards accomplishing the customers needs. On the other hand,
leaders will guide and motivate the employees that which things they should produce to
enhance their customers satisfaction.
P3: Apply different theories and models of approach, including situational leadership, systems
leadership and contingency
Leadership, it can be defined by the capacity of a company's management to influence
and guide the organization members. In context of Starbucks, in this company the managers and
leaders are set out a high effort level in the organization. They are always able to inspires their
employee to do hard work so they can act towards achieving the organizations goals and
objectives. There are some leadership styles which are followed by the Starbucks to achieve its
goals -
 Situational leadership – It is a very effective leadership style which used for evaluates
existing work environment and the needs of the organization. In Starbucks, this strategy

motivates the leaders and managers of Starbucks to conducting their activities according
to the situation which helps them to influence their employees. This theory helps them to
evaluating the situations which might arise in the organization so they can changing their
needs and strategies according to that situation. This will help them to increase their sales
and brand value so they enables to achieve a great profit.
Strength and weakness of situational leadership:-
Strengths Weakness
 This theory is both simple to
understand and somewhat fairly
instinctive to generally supervisors.
 It creates a situation where employees
of the Starbucks feel comfortable with
their job responsibilities.
 It is very flexible approach, which
create various difficulties for the
Starbucks.
 This is based on situation so it is
basically depend on the skills level of
the leader of the Starbucks. Because it
is hard do survive in the constantly
changing situations and understand
what people need.

Systems leadership – This leadership approach motivates the leader and managers to create that
conditions where the members of an organizations can work productively according to their
potential. In the case of Starbucks, this theory motivates them to do efficiently work across
boundaries with the support of group of people and the staff. It also helps leaders to predict
people's behaviors in the organization( Gerasimo and Gerasimov2015)By adopting this strategy
Starbucks can develop new behaviors and new ways of working, creating a better learning
systems, a culture of transparency, and adopt better ways doing things. There are some strengths
and weakness of this theory which are given below:-
Strengths Weaknesses
 This theory is focus on achieving the both
the employees and Starbucks goals.
 It develops coordination between the
leaders and employees of the Starbucks.
 This theory may not be always
practical and lead to delays in
decision making which creates
problem for the manager of the
Starbucks.
 It is suitable only for the big,
complex, and open systems
organisation.
 Contingency leadership – This theory contends that there is no single method which is
best fit for the certain situations. There are various factors which effects the leadership
styles that includes different tasks, the personality of a leader, and the group of the people
with whom they are working. In context of Starbucks, this theory helps them to know
different situations and which method will be fit according to that situation. Leaders and
managers needs to be follow those methods which is best fit according to the situation. It
will help Starbucks to increase their overall performance and also increase their brand
value. There are some strengths and weakness of this theory which are given below:-
Strengths Weaknesses
 It helps the managers and leaders of
Starbucks to enhance their leadership
and decision making skills.This
 This approach is complex approach
which sometimes create problem for the
leader and managers of the Starbucks.It

leadership is dynamic in the nature. So,
it allows the leaders and managers to
change the policies according to the
situations.
is reactive in nature, so sometimes
handing the situations become hard for
the manager of the compa

Analysis- It is understood by analysis all the above situation that Starbucks should choose
that strategy which is best fit for them. Every leadership has some strength and weaknesses so
Starbucks should aware about all this. Moreover, for adopting these strategies Starbucks needs to
evaluating their organisation situations then adopt these leadership in their organization.
TASK 3
P4.key approaches to operations management and the role that leaders and managers play.
Operation management has its different function which transfer the raw material into a finished
goods. Operational management provide the base of transforming the good to its customers. In
term of capacity management it is refer as act of ensuring a business maximizes its potential
activities and production output . Operational management design the whole production.
Six sigma: six sigma is defined as quality management methodology which is effective
improve the current processes of production by eliminating defects. This six sigma was
trademarked by Motorola in 1993. Model were employed by company to reduce the level of
defects in their production. In Starbucks with the increasing in the cost and ever increasing in
competition, organisation must look fort method to increase efficiency(ohnstone, S., 2015)( In
this context when manager of Starbucks apply this in its organisation than it is effective in term
of improve efficiency through identification of resources and minimize the variation within a
process. The each step of six sigma include the particular improvement which work effectively
for organisation. In organization when there is more use of old machine is present than its
require high amount of cost then six sigma work effectively in reducing the cost. This six sigma
include minimizing in process cycle and scrap of generated by a process. This six sigma model
is in control the cost in organization. At the time transforming raw material into finished goods
this model work effectively in reducing the cost. This is effective in increasing in customers
satisfaction and this is effective in reduction in the number of factory defects. In six sigma
leader and manager play various role in which leaders set business objective and the role of six
sigma is to achieve those goals. Leader create an environment which is enable in success this
include goals , measures, coaching and communication among others. Role of manager will be
follow the action plan which is given by the leader. In this the role of manager is to assign

proper role and responsibility to the right candidate according to the their skills. Leader should
use the proper way in which they can easily transfer their raw material into finished goods.
lean production: lean production defines as approach to management that is work
effectively in term of cutting out the wastage in organisation at the time of ensuring the quality.
In Starbucks when manger apply this theory than its work in a proper to reducing the wastage.
This approach is applied to each and every aspects of organisation inform design of production
to distribute that production the main focus of this approach is to reduce the cost by reducing in
wastage in distribution system. This will make the business more efficient and responsiveness to
market needs. In this context it effective in cutting out the wastage this works in proper
manner at the time of distributing the product as help to improve the profit margins. It is the duty
of manager to distribute in a proper which reduce the wastage. Leader should control the loading
and unloading in appropriate manner. This approach sets out to cut or minimise activities that do
not add value to the production process, such as holding stock, repairing faulty product and
unnecessary movement of people and product around the business. In lean production leader
guide its employee and direct them that how they can save the time in an effective manner. In
Starbucks leader motivates its employee to achieve desired out come. Leader play an
appropriate role in term of making making the right strategy to achieve to achieve the
organisation objective. The role of manager in this is to build or make the system and process.
Manager focus on the whole structure which is required to set the objective in organisation.
While applying this lean production in organisation manager apply its managerial function of
coordinating all this plan(Higgins,2012)
Approaches of operation management
Total quality management:
This total quality management is a continue process which reduces the error and
improve the experience of its customer. The main aim of total quality management is to maintain
the over all quality of product and service. Its focus on internal guidelines and process standard
reduce error. This approach is effective in term of producing quality product at the time of
transferring raw material into finished goods. The role of leader is motivate its employee by
providing them proper training and satisfy the customer. Manager duty is manage process of
producing the goods.

P5. importance and value of operations management in achieving business objectives.
TQM: in this context, in operations management, there is presence of safety in which
Starbucks maintained the good quality. When Starbucks use total quality management than
this will attract more customers. This TQM play an essential role in term of attracting more
customers in organisation. Maintaining good quality create good value in the mind of customer.
effective This work effectively for consumers to retain for the long period of time with brand
which is considered as centre objective of business because with this Starbucks is capable to
maintain long term impedance in industry(OHiggins, 2015)
Lean production- Customer satisfaction work as a important key in which business can
be in long term. When all the departments are alert about their business operations, then they
performs activities in good order and consumer's wasting time gets decreased. In organization
over stock is present and there is no use of that stock than lean production work effectively in
term of reducing the wastage. By applying total quality management activity Starbucks
provides consumers what they need. Therefore with the help of operations management,
consumers acquire sanctification which maintaining good brand image and loyalty of Starbucks
in consumer's mind.
Six sigma: The value of six sigma in operation management is determined in the way it
contributes in the success of the organisation regarding enhancement of revenue. Operations
management mention to perform in a way from which the quality of product is Starbucks is the
organisation having good brand image, so they are price maker. When is an organization more
uses of old machine present than its require high amount of finance at this time lean production
work effectively in term of reducing the cost. By applying total quality management in
Starbucks its create good image of the organization in the mind of customers. So there is increase
in revenues of Starbucks. This is because of providing best quality products to consumers as per
their preferences. Therefore with the help of operations management business objective of
increment in revenue can be achieved.
Therefore it is clear that with the help of operations management, it is effortless to
maintain good brand image in the organisation which effective in maintain the long term
relations with consumers. Here is the existence of duplication of activities gets cut down which

leads to maintaining cost and exploding revenue. So organisational main aims is to achieve the
objectives.
Task 4.
P6: Assess the factors within the business environment that impact upon operational
management and decision-making by leaders and managers
Business environment- It is described by the combination of all the internal and external
factors which effects a company's overall performance and sustainability. These factors includes
clients and suppliers, changes in technology, market, social and economic trends and many
others(DKat and NEC Corp 2015). In context of Starbucks, these factors helps them to evaluates
ongoing changes, help them to adapt these changes and also help them to use these factors as
opportunities. As Starbucks have to face tuff competition in market so these factors helps them to
find out all the information about internal and external factors. Some of these factors of the
business environment are explained below:-
 Corporate social responsibility – Corporate social responsibility is the concept that
helps a business to maintaining a balance in the economic, social, and environmental
imperatives. In context of Starbucks, they decided to put resources in its employees and
the societies they work with. They are doing several activities in relation of corporate
social responsibility such as developing community stores, donating money, increasing
employment and so on. This will have positive impact over the operations management
of organisation as allows an organisation to gain the tax relief and subsidies over their
earnings which in turn used for the purpose of expansion of operational capacity of the
organisation by implementing new machineries like RFID etc. The impact of the same is
ascertained upon the decision making of the manager and leader is ascertain from the
point that manager has to confirm all the requirement with higher authorities about the
conversion of earnings into business assets. Leaders have to persuade the working
behaviour of employees and staff to attached towards organisational new programmes.
 Culture - Culture is an effective element in the business which can affect on the strategic
direction of an organisation. In context of Starbucks, they need to understand values,
visions, working style, beliefs, and habit of the organisation. Flat culture is persist with
the organisation. This will have positive impact over the operations as allowed the

employees to wok according to their own norms and beliefs which reduces the chance of
error and aid in optimum utilisation of resource. The manager is this part changes their
decision making and giver more providence of other aspect like Frugal innovation to
attain more operational capacity.
 Ethics - Ethics includes all the rules, values and principals, which helps the organisations
that how to behave in the business. Although, organisational ethics involve several
guidelines and principles that decide the manner in which particular person have to
behave within workplace. In the Starbucks, they are following transparency, integrity,
and compliance in their organisation. These ethics impact employees overall performance
and influence business community in positive manner. It helps them to create better
marketing reputation around the world. The manager and leader also able to create
healthy environment within the organisation and can motivate their employees to increase
their productivity.
 Social factors – These factors have an important impact on the profitability of the
business. Changing social culture and people's preference can effects the businesses.
Customers are preferred to high quality products of organisation. This will build pressure
upon the manager to follow all the steps in operation management to effectively meet
their demands. Leaders also needed to motivate the employees to be more careful while
carrying out their activities while the operate as this will to sustain the same image of
Starbucks.
 Economic factors - The factors related to the economic like tax rate, interest rates, and
unemployment rates can leave directly and indirectly long term effect on the business.
Presence of high flow of cash allows the organisation easily innovate their internal
processes and implement new machineries which help in develop of their operational
efficiency and optimum utilisation of resources. Manager has to ensure that funds are
properly allocated in different offerings and leader build the pathways on the same
process for its effective completion.
CONCLUSION
From the above mentioned report it has been concluded that leader and manager has its
different role and characteristic which work effectively in term of managing the work in an
organisation. Good leader is the person who have good communication skill and good decision

maker. In organisation there are various type of theories and approach uses for work
systematically in organisation. Six sigma approach work effectively in term of reducing the
wastage and this work in reducing the cost of product. In this context there are various factors
within the environment which affect the operational management and decision making by the
leader.

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Online:
WHAT IS TOTAL QUALITY MANAGEMENT, 2019. [Online]. Available through:
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