Role of Leaders and Managers in Operations Management - Starbucks

This report analyzes the role of leaders and managers in operations management at Starbucks. It discusses the key approaches to operations management, such as transformation of raw materials, process design, logistics and inventory management, capacity management, scheduling, total quality management, just-in-time, and continuous improvement. It also highlights the importance and value of operations management in achieving business objectives.

Management and
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in ppt........................................................................................................................1
TASK 2............................................................................................................................................1
P2 Role of leader and function of manager in various situations...........................................1
P3: Apply different theories and models of approach, including situational leadership, systems
leadership and contingency....................................................................................................3
TASK 3............................................................................................................................................4
P4 Key approaches to operations management and role of leader and manager...................4
P5 Importance and value of operations management in attaining business objectives..........7
TASK 4............................................................................................................................................7
P6 Assess factors in business environment impact on operational management and decision
making....................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Operations management is a business practise that is aimed at creating business practises
that is aimed at achievement of highest efficiency level in the organisation. This process is
related with conversion of raw materials and & labour in goods and services for the purpose of
maximization of organisation profitability. Starbucks is a chain of coffee houses and its
headquarters are present in Seattle, Washington it is operating across 30,000 locations across
world in 70 countries (Gölzer and Fritzsche, , 2017). They are serving hot, cold drinks, whole
bean coffee, frappuccino beverages. Present report is based on analysing the role of leaders,
functions of managers in different situations. Further there is analysis of key approaches to
operations management. There is analysis of value and importance of operations management
with the assessment of factors of business environment and its impact on operational
management in business.
TASK 1
Covered in ppt
TASK 2
P2 Role of leader and function of manager in various situations.
In organisations the situations are never constant they are changing very fast according to
the dynamic external factors and also internal factors. There is need to make a detailed
evaluation of such changing situations and the role of leaders and managers in handling such
instances. For Starbucks such situations are discussed below:
New product launch: Starbucks is willing to launch new coffee products that includes coffee
with golden turmeric, double caffeine. Generally, new product launch involves lot of planning
and work that has to be planned and performed by management.
Role of leader: In new product launch leaders are motivating their team members is to
communicate the main vision behind launch of new product (Leadership Development: The Case
of Starbucks, 2020).
Function of manager: In this situation managers in Starbucks are working towards identifying
the new product development process that is starting with development of idea, implementation,
execution and further assisting in the market.
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Crisis management: It is the aspect of managing crisis so that such crisis does not affect the
performance of the organisation. In Starbucks leaders and managers may be facing crisis
situation that has lead to dissatisfaction among their workforce as they assumed that top
management is involved in some discriminatory practises (Abbas, 2020).
Role of leader: Leader in Starbucks are working towards developing their employees to
advocate in this situation of difficulty. CEO Johnson has been quick enough to send apology
directly to all their employees so that they are made clear that Starbucks is working firmly
against discriminatory practises (How Starbucks highlighted five of the new rules of crisis
management, 2020).
Function of manager: Managers in Starbucks are working towards implementation of plan to
manage the situation of crisis by focussing on different functions that includes planning the crisis
management, organizing of managers responsibilities, delegation of tasks and controlling the
functions.
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P3: Apply different theories and models of approach, including situational leadership, systems
leadership and contingency.
Situational approach towards leadership represents that a leader does not belong to the
best style or a type of leader they should become. Leaders have to act as per the situation
prevailing before them. As per the theory, situational leaders are known for the flexibility they
possess. Therefore leader in Starbucks is selecting the best alternative which is suitable for them
as per the situational variables (Barnes, 2018).
Role of a Leader : A good leader is someone who is able stand in the crowd by making
the necessary changes required in order to succeed in the long run. In the current times,
Starbucks has managed to cope up with the up-gradation in the technological by advancing itself
through the use of e-commerce operators (Psomas and Antony, 2017). Starbucks, being highly
growing coffee-house based company was facing many troubles due to the occurrence of
pandemic. In order to survive in the market, Starbucks promoted its online services with the help
of its strategic team. This technique turned out to be beneficial for both company and the
customers.
Role of a Manager: To manage a organization in the most efficient manner there is need
a responsible manager to act on its behalf. Therefore, in Starbucks managers are focused on
providing the quality, healthy and safe products to its customers. So, as per the need of
customers, managers are assuming the responsibility of providing healthy products to their
consumers in case of present instances of Covid-19 (Erjavec and Trkman, 2020). In the same
manner, they are also motivating their employees to provide effective results by encouraging
them to achieve the set target.
Systems approach towards leadership is a technique that ensures an appropriate
environment is created by leaders in organisation so that productivity can be maintained at all the
levels. Here leaders focuses on principles which describes human habits in order to develop
organisational strategies, systems design and so on. So, this approach puts weightage on the
potential of the employees to work effectively.
Role of a Leader : A leader has a duty to manage all the tasks of the company in an
effective manner so that none of them get affected by the other. Starbucks appointed Kevin
Johnson as the chief executive officer with effect from April, 2017. The change in the leadership
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was conducted in order to increase productivity of the organization. It reflects that he possess
that qualities of a leader where he can manage various segments of a company efficiently. A
good leader is more productivity-oriented rather than profit-oriented.
Role of a Manager : The role of a manager is to manage the employees in such a manner
which will reflect their potential to achieve set outcomes. Starbucks has maintained a level of
managing the efficiency of its workers which will reflect the best possible results.
Contingency approach towards leadership reflects that there is no such skill or
leadership style which will be suited in every situations. There may arise a contingencies in the
way of a leader which might reduce the efficiency of a leader (Chary, 2017). As various
researchers mentioned that the leadership is not about qualities in a leader, but to maintain right
balance between all the factors relevant in order to become a leader. These factors can be
behaviours, needs as well as context of the leadership.
Role of a Leader : A leader is required to sustain in the contingencies before the
company in other to sustain in the market. Here the company has made various changes in their
policies in order to survive well in the industry. There is major competition in the market in
relation to the coffee shop industry. So, in order to manage somehow the leader has made efforts
for sustainability of the company.
Role of a Manager : At the time of scarcity of raw materials in the market due to Covid-
19, it is a major issue to be handled by the manager in order to overcome the survival issues.
Therefore, a manager is required to make necessary steps in order to manage the requirements of
raw materials for the need of manufacturing and production of products.
TASK 3
P4 Key approaches to operations management and role of leader and manager
Operations management involves various activities and functions that are to be performed
for the purpose of achievement of their laid goals. Such operations are very important for the
purpose of achievement of such laid objectives. In Starbucks, there are some of the key functions
that have to be achieved as mentioned below:
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 Transformation of raw material into finished goods – In this operation function for
Starbucks the leaders are focussing with use of coffee beans that are roasted which is
allowing to use a holistic approach to ethically source the highest quality coffee.
Role of leaders: In this leader in Starbucks are working to significantly reduce the
environmental footprint through energy, recycling and water conversazione in order to focus on
sustainable development.
Function of manager: Manager are working towards designing strategies so that staff can
be motivated to ensure that there is smooth conversion of raw materials to finished products. Process design: in this Starbucks is working on three elements that is creation of service
bundle that is offering of explicit service with higher reliability and quick assistance.
Role of leaders: Leaders are ensuring that service matrix is properly implemented across
various functional levels in the organisation. Such as if customers want the service package then
there has to be use of standard with options by use of moderated repeatable sequence (Reid and
Sanders, 2019).
Function of managers: Managers are working to providing training with deployment
maps. These maps are denoting the way each individual has to be placed at floors. So that there
can be handling of Confusion with use of different acronyms.
 Logistics and inventory management: Starbucks has simplified the supply chain
process by leaving only necessary roles in major four functional groups that influences
planning, sourcing, making and delivering.
Role of leaders: leaders in Starbucks is working towards each functional group to look
for improvement areas by identification of the way quality cam be improved by analysing the
metrics like cost, productivity, safety and savings.
Function of managers: Managers are working to ensure that there is proper inventory
management by use of vertical integration in supply chain process in each step of this process
(Gibson and Parkman, 2018). Capacity management:Capacity management in Starbucks is concerned with focussing
on managing process. Where all operations are focussed on the process of input,
transformation and generation of require output. It is also regarded as “demand
management” (Analysis the operations management of Starbucks, 2020).
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Role of leaders: In managing of capacity leaders are working towards defining of
products according to the forecasts made of customers order and market demands.
Function of managers: Starbucks are working to use a algorithm that is named as
thousand dollar consumption algorithm that is required to calculated the safety material
consumption. This model is properly implemented by managers across all their outlets to make
short term forecasts of the material consumption. Scheduling: Starbucks is working towards managing store management to schedule all
the working 14 days in advance. This software prevents managers from booking
employees to work shots less than 8 hours breaks in between.
Role of leaders: Leaders are working towards providing employees all the notices and
information in advance so that they are able to determine their scheduling practises. There is also
emphasis on use of call schedules to employees.
Function of managers: Managers are working to organize all the internal store schedules.
In this all the grievances or complaints of employees at store level has to be dealt so that there
can be no confusion regarding the way work is being scheduled for employees.
Total Quality Management (TQM): In this approach leaders at Starbucks are willing to motivate
their employees by offering them with monetary and non monetary incentives so that they are
able to adhere to the laid quality standards. Managers are focusing on the expansion of the
product portfolio by use of strategic quality ideas that can lead to enhancing the satisfaction level
of their customers.
Just in time –It is a operations management approach where the aim is to reduce or eliminate
wastage and there is optimum utilisation of resources. Leaders in Starbucks are Managers in this
approach have to focus on managing the supply of raw materials in such a way that there is no
piled up stock of products instead there has to be serving of units according to the requirements
only. Managers are using a disciplined approach to manage the core markets of order supplies
on everyday basis so that there is timely order fulfilment (He, Mak and Rong, 2019).
Continuous improvement (Kaizen): It is a strategy that is adopted by Starbucks where it is used
as a strategy for employees at all levels in the organisation to ensure that product quality is
continuity improved. In Starbucks leaders are working together with staff with proactive
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situation to achieve incremental improvements in the manufacturing process. Managers are
using a sense of collective talent to create a powerful engine for improvement process.
P5 Importance and value of operations management in attaining business objectives
Operations management is related to business activities to create higher efficiency in the
overall functions. Management in organisation is working towards conversion of raw materials
in final products.
Fulfilment of customer demand: For the purpose of managing respective operations of
a company it is very necessary to enhance the quality offered to customers. In case of Starbucks
this approach is used by leaders for the purpose of laying down of quality standards that can
assist the respective employees to get a overview of the laid standard which have to be achieved.
Managers are working towards ensuring that the work has to be performed by whole staff in
such a manner that laid standards are timely achieved. They are working according to the laid
mission and vision of Starbucks
Managing of higher quality: Starbucks business has been linked to 10 best decisions of
operations management where there is emphasis on 10 differentiates of operation's according to
use of farmer equity program in the supply chain process. Leaders are working towards
designing of the goods and services by premium design by application of differentiation generic
strategy. Managers are towards process and capacity design where the process is to enhance the
premium quality of business.
From the above mentioned aspects it can be said that managers or leaders of chosen firm
direct employees with maintaining quality of products. During production process of
organisation in order to leaders effectively managing leaders in order to attained organisation
goal and objectives . Quality management is essential for each and every organisation in order tp
successfully operating business operation and function..leaders and mangers utilised various tool
and techniques in order to managing business activity and operations due to earning more profits
for company.
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TASK 4
P6 Assess factors in business environment impact on operational management and decision
making
Presently there is analysis of the relationship between leadership & Management that exist
between culture, values, ethics and sustainability.
Corporate social responsibility: The CSR practises of Starbucks is based on three pillars that is
ethical sourcing, community and the environment.
Role of leaders: CEO Johnson of Starbucks is working towards launching of a
transformation agenda that is aimed at investing in people. There have been series of initiatives
that are launched in the aligned that is people centred and community focussed.
Function of managers: Managers in this approach are working towards launching all t
he practises on part of operations of the organisation. Such as planning of training opportunities
for youth by launching of community centric initiatives (HOW STARBUCKS IS MAKING AN
IMPACT, 2015).
Culture: Starbucks is focusing to develop values aimed at reducing environment
wastage. The leaders are committed to use anatomy of cup that is paper based cups that are made
up of 10 percent post consumer recycled content. Managers are establishing working
relationship between employer and employees to develop a high work culture amongst the
employees (Starbucks Organizational Culture, 2020).
Values: Starbucks has always adhered to provide best service. It worked in a manner to
search ways for the growth of corporation. The active Leaders of the company are very much
devoted for accountability and reliability of company. Managers are mostly concerned with the
productivity of the company in order to satisfy customer's wants & needs.
Ethics: Starbucks is attentive in the field of developing relevant ethical decision making
in order to safeguard its reputation between customers. The leaders are working by applying the
best policies and regulations for the welfare of the employees. Whereas managers are focused in
motivating the employees by making them follow the policies of the company in a way to
achieve the goals.
Sustainability: Starbucks has been known for developing best quality coffee across the
world. Therefore Leaders are promoting the company by eliminating the use of greenhouse
gasses it has been releasing over the years. The Managers are responsible for operational level
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activities by developing awareness among the employees of the company in this regard (Gupta
and Gupta, 2019).
Relationship with stakeholders: Starbucks being one of the best coffee company
which is headquartered in Seattle, Washington is following its business ethics and compliances
program in order to maintain good relationship with stakeholders of company. Therefore,
leaders and managers both have emphasized in meeting the needs and interests of the
stakeholders in order to maintain higher level integrity of the company .
Meeting stakeholder expectations : Starbucks is always been devoted towards the
interests and needs of the stakeholders as it is only only profit making company but also a social
person. Leaders are following the approaches such as corporate social responsibility and other
programs developed in favour of meeting the expectations of the stakeholders. Managers are
accountable for productivity of activities in order to provide profitability to the stakeholders of
the company in the long run (Slack, 2018).
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CONCLUSION
It can be concluded from the above discussed aspects that is very important for business
to focus on their operational and management aspect as part of responsibility of leader's &
managers at same time. There are several key operational areas that have to be focussed in order
to minimize the weak functioning areas. In organisations for proper operations management it is
critical that managers and leaders are performing the functioning of guiding employees by
providing them with the right direction, support and resources to work according to laid
objectives. There are certain critical situations that require more attention to enhance the present
productivity level. Different leadership styles like situational, contingency and system are
assisting in maintaining the overall productivity of organisation.
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REFERENCES
Books and Journals
Gölzer, P. and Fritzsche, A., 2017. Data-driven operations management: organisational
implications of the digital transformation in industrial practice. Production Planning &
Control, 28(16), pp.1332-1343.\
Barnes, D., 2018. Operations Management. Macmillan International Higher Education.
Erjavec, J. and Trkman, P., 2020. Behavioural operations management-identification of its
research program. International Journal of Services and Operations Management, 36(1),
pp.42-71.
Chary, S.N., 2017. Production and operations management. McGraw Hill Education.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality perspectives.
Routledge.s
He, L., Mak, H.Y. and Rong, Y., 2019. Operations management of vehicle sharing systems.
In Sharing Economy (pp. 461-484). Springer, Cham.
Gupta, M. and Gupta, S., 2019. Influence of national cultures on operations management and
supply chain management practices—a research agenda. Production and Operations
Management, 28(11), pp.2681-2698.
Slack, N., 2018. Essentials of operations management. Pearson UK.
Abbas, J., 2020. Impact of total quality management on corporate green performance through the
mediating role of corporate social responsibility. Journal of Cleaner Production, 242,
p.118458.
Psomas, E. and Antony, J., 2017. Total quality management elements and results in higher
education institutions. Quality Assurance in Education.
Online
Leadership Development: The Case of Starbucks, 2020 [online], Available
through<https://open.lib.umn.edu/organizationalbehavior/chapter/12-7-leadership-development-
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How Starbucks highlighted five of the new rules of crisis management, 2020[online], Available
through<https://www.rockdovesolutions.com/blog/how-starbucks-highlighted-five-of-the-new-
rules-of-crisis-management>
Service Process Design, 2020[online], Available
through<http://team1starbucks.blogspot.com/2010/10/service-process-design.html>
Analysis the operations management of Starbucks, 2020 [online], Available
through<https://studymoose.com/analysis-the-operations-management-of-starbucks-essay>
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HOW STARBUCKS IS MAKING AN IMPACT, 2015 [online], Available through<
https://www.whywhisper.co/the-blog/2015/9/24/corporate-social-responsibility-how-starbucks-
is-making-an-impact>
Starbucks Organizational Culture, 2020[online], Available
through<https://sites.google.com/site/cultureofcoffeeant3150project/description/organizational-
culture>
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