Starbucks Operational Management Factors

This assignment delves into the operational management strategies employed by Starbucks. It explores both internal factors such as employees, suppliers, and customers, as well as external factors including legal, technological, political, and environmental influences. The analysis aims to understand how these factors impact Starbucks' decision-making processes and overall operational efficiency.

Management and
Operations
(Project 2)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 3............................................................................................................................................1
(P4) Important approaches to operational management and the role played by leaders and
managers.................................................................................................................................1
P5. Importance and value of operations management............................................................2
M3 ..........................................................................................................................................4
TASK 4............................................................................................................................................5
P6. Factors in the business environment that impact operational management.....................5
M4 & D2.................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Management and operations can be considered as an important activity for all the
business which are prevailing in the market. Activities concerned with these are implemented
with the help of the coordination between the various areas of the companies like finance, human
resource, operation research and development. With this the company can achieve the business
goals and objectives in quick time (De Roover, 2017). The other role of the operational
department to ensure that all the resources and people are managed in a way that they yields
effective results. This can be done through adopting various creative and unique way of doing
work with the help of new technologies and tools. This whole report will be dealing with certain
key studies of operational functions through which more productivity and profitability can be
achieved by Starbucks. Other than this other theories and models will be discussed at the same
time through applying it in the various situations of Starbucks.
TASK 3
(P4) Important approaches to operational management and the role played by leaders and
managers.
Operational management can be considered as a valuable tool for any business as through
it various types of work can be managed through certain proper planning process. In the process
of implementing any task various operations are combined in a way that it achieve the goals and
targets easily. In order to increase sales and bring sustain more customer Starbucks is ensuring
that they offer quality food items which brings both these advantages and help them in increasing
their profitability ratio. The roles and duties performed by managers and leaders at Starbucks are
effective in order to implement all the business activities in effective and planned way. Below
mentioned are the certain roles which are played at the business firms by the managers and that
are as follows:-
Planning:- There are managers at Starbucks who has been assigned the responsibility of
planning certain business activities so that business goals can be achieved in time. Any person
who is looking forward to make plans so that they can start the business operations so for that all
the activities has to be executed in proper manner giving them right directions (De Vries and
Huijsman, 2011). An effective plan is necessary if all the business operation has to be planned in
systematic ways. If they have aimed for higher profitability and productivity all the higher
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personnel who has all the powers in the decision making has to involve themselves in developing
any plan.
Managing:- It is the manager in the company who play the duty of guiding and coaching
the employees in a way that they can easily carry out the business operations in proper direction
thus bringing new profits to the company. For effectiveness of any business operation managers
can be called as the backbone for this so it can be said that they are the important tool for success
of the company. It is through their efforts that bring coordination between the employees and the
tasks which has to be performed.
Total Quality Management:- It can be said that this is the most effective and useful tool
which are used by the manager at the Starbucks so that all the things can be done in systematic
way. It is has been analysed that now a days the customer during any purchase focus on the
quality of the products they are buying rather than the price of the products (Dekker, Bloemhof
and Mallidis, 2012) . Starbucks is emphasising on delivering quality coffee products so that they
easily sustain the customers as well as attract the consumers of the rivals. This is the best way to
gain competitive advantage over the opponents who are also in the same business of coffee
cafe's.
Just in Time:- It is also an important tool for all the business who are in inventory
segment thus helping them in obstructing all the time consuming elements from the businesses so
that the quality can be increased. The sale of the products will reach to a new height as they are
gaining attention of the customer towards their products which they are offering. Starbucks has
been putting hard efforts so that they can give quality products to the clients in certain promised
time period which brings customer satisfaction.
Coordinating:- This is a crucial functions which is handed in the hands of leaders at
Starbucks and with this the leaders can bring coordination between the managers and employees
thus helping them in creating a healthy environment at the work place. This is necessary as it is
said that for the business operations to be executed in better way there should be good relation
between all the people who are part of this.
P5. Importance and value of operations management.
Management and operations can be defined as the procedures through business activities
can be carried out in effective and planned way and this way the organisation will able to attain
the goals which they have set during the planning process. This can be considered as a valuable
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factor for managers as it supports them in doing thing in right manner with proper time. The
importance and values of operation management are analysed below:-
Wastage Minimisation:- Starbucks is a brand which deals in delivering beverages
related to coffee and tea. They are looking forward to develop a plan which will ensure that there
is minimum wastage and this can be done through introducing innovative ideas thus retaining
loyal customers who will buy their products (Galindo and Batta, 2013). For this to be happen it is
necessary that all the resources which are available with the company is utilised in better way so
that it gives maximum output. To ensure that there is no wastage of the resources it is ensured
that all the business activities where there is utilization of the resources is done with the help of a
plan. Such thing at the right time gives effective results.
Profit Maximisation:- Starbucks as been successful in improving their image and put
efforts to retain their position in the market. They know that if all the operations are managed in
effective and planned way then there is no doubt of the fact that there will be effective results
and there will be sudden increase in the profitability of Starbucks (Hammill and Tanner, 2011).
With the use of modern technologies and tools customer satisfaction can be gained thus bringing
higher profitability.
Customer Satisfaction:- This is the most important factor on which the success of the
company is deepened on as if the customer will be satisfied then he or she will come again to
their cafe to consume coffee or other beverages. Directly or indirectly the aim of every
businesses is to deliver quality products to their potential customers in order to increase the
profitably of the company. This has also helping them in gaining competitive advantage.
Improving Quality Standard:- To bring improvement in the quality of the products it is
necessary that the organisation manages their operations in effective and planned way. All the
products made by Starbucks are developed after analysing the needs and wants of the consumer
in order to offer them goods according to the needs of the customers (Macfarlane, 2011). . If
they have to make sure that they hold the position at better place they have to work on this kind
of factor.
Enhancing Goodwill:- Every business in the market aims at increasing their brand value
thus creating creditability in the minds of the people, such thing will ensure success and
development of all the organisation. If Starbucks has gained success in developing better
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goodwill then they can expand their business activities all overall the world where they don't
have any existence.
M3
Managers and leaders are the two person in any organisation without contribution of
whom no business can properly function their business activities. With the help of these two
people all the business goals and objectives can be easily achieved in time. It is the coordination
between both of them that all the operations are implemented in effective and planned way. Just
in time, quality management and lean production are considered some of the tools and
techniques in perform the business activities in a planned way with the help of proper action
plan. Such factors helps Starbucks increase the quality standards and reduce the cost of
production. Firms are also using modern technological devices to increase their effectiveness.
There are some objectives of Starbucks that is made by their mangers as well as leaders :
 To earn large income so that they can gain maximum profit
 To offer best quality product to their customer so that they maintain loyal relationship
with them.
 Maintaining themselves as one of the most popular and respected brands in the globe
Some of the ways of that can be taken by leaders and managers in order to improve the
efficiencies of operational management are stated below :
 Leaders are responsible for directing the whole team members in right way so that they
can perform well and contribute in achieving targets of venture.
 Leaders also used to motivate their group members so that they get inspire and
concentrate better on their aims and objectives.
 Operation manger has one of the obligation of analysing work functions and determining
what equipments would improve the productivity. This involves their decision – making
as employers decide what equipments they are needed to change in order to upgrade their
efficiency. They would design a budget for enforcing modifications and then submit the
information to the executive team for consideration.
 Operational mangers also work with the human resources department as well as
departmental employers for developing more efficient ways to perform their tasks.
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 Leaders used to organise training activities and try to train their members in best possible
way so that they gain experiences and do not face any kind of problems while doing their
work.
Thus, it can be said that leaders and mangers are contributing at their best in attaining the
objectives of organisation.
TASK 4
P6. Factors in the business environment that impact operational management.
For the effective decision making at Starbucks can look for two useful business process
and that are as follows:-
Internal Factors:- These are the factors which are directly part of the organisation and
exist in the organisation itself thus they are affecting the decision making at the organisation at
large level. Some of the internal factors are as follows:-
 Consumers:- The consumers of Starbucks holds a key value in the success of their
business. The management of the company needs to ensure that the customer satisfaction
is gained by them as through this only there business is totally depended on. For this they
are trying to bring innovative ideas in order to satisfy them thus giving them quality
products according to their will and choices (Goodarzi, Ziaei and Shokri, 2013). It is their
efforts that attracts consumers to try their coffee.
 Employees:- They are considered as the assets for the company so it is necessary that
they are satisfied from the management of the organisation. It is their contribution and
efforts which helps Starbucks in improving their brand image and bring more
productivity and profitability. The management should know how to manage them and at
the same time proper training is given to them thus ensuring that employees gives their
full efforts in the task given to them (Gunasekaran and Ngai, 2012).
 Society:- It is the responsibility of the managers to make sure that all the things or
activities which are performed by them is done through keeping ethical values in mind.
With the business activities they ensure that all the coffee products bring happiness and
healthy life in to the society.
 Suppliers:- They are the people who provide raw material to Starbucks so that they can
make their final products. They are also responsible for increase or decrease in the cost
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which is incurred during the production procedure. So it can be said that the suppliers
have power in their hand to control the business operation so it is the duty of the
management to make sure that they have better relation with the supplies (Gunasekaran,
Irani and Papadopoulos, 2014). At the same time they should only take raw materials
from the suppliers who are offering quality products in best prices which directly impacts
their profit margins.
External Factors:- They are the components of the business on which companies has
less control and some of them are as follows:-
 Legal Factors:- They are the ethics and legislation framed by the government of the
country where Starbucks is operating their business. It is the duty of the management to
make sure that they abide all the laws concerned with their business.
 Political Factors:- Starbucks has faced decrease in the sales due to modification in the
taxation policies by the government. In order to again gain their position they are
focusing on delivery quality coffee at suitable prices (Li and Feng, 2014).
 Technological Factors:- It is the duty of Starbucks company to include modern
technological advancement in their business thus this will bring efficiency at the cost
incurred in the production process will suddenly decrease.
M4 & D2
All the activities in the business might have either positive or negative impact on the
purchasing decision of the buyer. Internal and external factors both need to be considered while
framing business strategies. Internal may consists of employees, suppliers, consumers and etc.
while external consists of the political, environment, social, technological and etc. Different
factors have different effects on the operational management. Some of those influences are
mentioned below :
 Legal factors includes government body that imposes various types of norms or
legislations such as laws related to working hours, wages, etc. These are made in favour
of workers and offers them some fundamental rights. This impacts positively on the
operations of organisation as it provide satisfaction to the work force.
 Technological factors also improves the performance rate of Starbucks as modern
machineries assists in manufacturing the products and services at rapid rate. This
increases the productivity as well as profitability level of organisation.
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 Political factors negatively impacts on the functioning of venture as government impose
high rate of taxation. Due to this large sum of money on Starbucks goes only in paying
such taxes.
 Customers are the base of every organisation so the cited firm need to manufacture their
products and services as per the demands and requirements of civilians in order to full -
fill their needs and seek attention of large number of consumers towards their offering.
 Employees also plays a very important role in management of operations as they are the
only one who performs all the operations and achieve aims and objectives of venture. If
their performance will better then fruitful result would come but when they do not focus
on their job roles, quality of deliverable services get decreases. So, it can be said that they
are impacting positively as well as negatively on operation management.
CONCLUSION
From the above report it can be summarised that operational management is the
important tool in order to implement all the business activities in better way. It is the
coordination between managers and leaders that help the organisation in increasing their
productivity and profitability. There are certain quality management tools which needs to be
pondered upon to see better outcomes.
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REFERENCES
Books and Journal
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