Management and Operations - Starbucks Company

Management and
operations

Contents
INTRODUCTION.....................................................................................................................................3
TASK 2....................................................................................................................................................3
P2 Role of a leader and the function of a manager............................................................................3
P3 Theories and model of approach, including situational leadership, system leadership and
contingency.......................................................................................................................................5
TASK 3....................................................................................................................................................7
P5 Importance and value of operations management in achieving business objectives...................7
TASK 4................................................................................................................................................8
P6 Impact of internal factors upon operational management and decision making.........................8
CONCLUSION.........................................................................................................................................9
REFERENCES ........................................................................................................................................10

INTRODUCTION
Management and operations is determined as an area that is related to controlling and
designing of activities that occurs in the process of production or re-evaluating business
operations. In simple terms department of management and operations assist an organization
by providing different kinds of resources through which firm can achieve their goals and
objectives in a speculated period of time (Ale and et. al., 2010). Starbucks is a company
which is taken in this assignment, this company is one of the leading coffee firms in all over
the world and since it is founded it is providing excellent services to its customers. This
report will throw light on the roles and characteristics of leaders and managers by comparing
both of then supported by example as per different circumstances. Other than this, various
leaderships such as situational, system and contingency is explained with the help of theories
and models so that it can be understood in a better manner. Along with this, for attaining
business objectives what is the importance of operation management is mentioned in this
report. At-last various factors that are needed by managers and leaders for effective decision
making is included in this assignment.
TASK 1
This task is based on the role and characteristic of a leader and manager as well in
business organization. As both are play important role in managing and leader ting employees
activities with the aim of attaining set goals and objectives in appropriate manner. In addition
of this, leader and manager both are different from each other because leader is responsible
for leading and coordinating their team member with the aim of making them able to accept
all the challenges in effective manner. On the other side, manager of Starbucks includes
various function like planning, organizing, coordinating, controlling, staffing their workers
and organizational activities to accomplishing set target. This will directly contribute in
attaining higher success at market place.
TASK 2
P2 Role of a leader and the function of a manager
Leader and manager both are play vital role in managing as well as leading all the
workers and activities with the purpose of attaining set goals and objectives in most effective
manner. In context of Starbucks, both manager and leader are responsible for influencing
workers towards the set goals and objectives. This will directly contribute in attaining higher
success. Both have ability to motivate to employees so that they can easily perform their task

and attain positive outcomes. In this context there are some role of leader and function of
manager in Starbucks:
Role of leader:
 Set clear goals and objectives: It is one of the important role of leader of Starbucks in
which they are responsible for establishing goals and objectives with the aim of
improving overall performance of the company and workers as well. In context of
this, leader is responsible foe motivating their workers towards the set goal so that
they can easily attain the same in appropriate manner (Baboli, P.T., and et. al., 2014).
 Create clear vision: it is also another role of leader in which they are responsible for
developing clear vision which support in developing future opportunities. By this
company easily improve their performance level at market place. this will directly
contribute in enhancing productivity level of the company and its workers as well.
 Motivate workers: under this, leader is responsible for encouraging employees
towards the set goals and objectives (Burke, R., 2013). In this leader need to try
motivate their team member so that they can perform their task and activities at
workplace. This will directly contribute in attaining positive outcomes in appropriate
time frame.
Function of manager:
Manager play vital role in business organization as they are responsible for managing
as well as controlling entire activities with the aim of attaining set goals and objectives. This
will contribute in improving overall performance of the company and its employees also. In
this context there are some function of manager on the basis of Henri Fayol. All these are
understood by following points:
Planning: It is more important for manager to prepare and effective plan to perform
task in effective manner. In this manager is responsible for taking right decision within the
company so that they can easily perform activities and attain predetermined goals and
objectives. Without planning, company can fail in managing entire activities.
Organizing: It is also an important function of manager through which they manage
as well as organize all the employees, raw material and other activities in effective manner.
With the help of this, Starbucks can easily be accomplishing set goals and objectives. Mainly

it is related with well structured activities this will directly contributing in achieving goals. In
this, manager evaluate all the activities and also distribute task and duties to workers as per
their abilities. This will enhance the overall performance of the company at market place.
Staffing: Under this function, manager hire skilled and capable manpower with the
purpose of manage entire activities among them. Along with this, manager of Starbucks is
also responsible for selecting best employees as per the vacant place in organization. By this
they can easily execute allotted task in systematic manner (Casolino, G.M., and et. al., 2012).
In this context, manager also provide better training and development programmes to workers
in which employees can easily increase their performance at workplace. With the assistance
of this, company can easily enhance their productivity level.
Directing: This function is coming after organizing workers at workplace. In this
manager of Starbucks is responsible for influencing, motivating, guiding employees so that
they can easily perform their task and attain set goals and objectives. Along with this,
manager also provide guidance at the time of executing allotted task. With they help of this
they easily increase the chances of attain positive results.
Controlling: This type of function related with controlling all the task in systematic way.
Mainly, manager of Starbucks is responsible for ensuring that all the activities are effectively
formulated (Chen, C., and et. al., 2011). With the assistance of this, company can easily
attain set target. For example, Starbucks manager evaluate that manufacturing process can be
effectively done. As all the activities required proper time and standard in which manager
control and manage. This will increase the chances of attaining desirable goals in stipulate
time frame.
All these are appropriate function of manager through which company improve their
productivity level at market place. In this employee also measure their overall performance at
workplace.
P3 Theories and model of approach, including situational leadership, system leadership and
contingency
Company’s performance depends upon how effective managers and leaders are and how
properly they are playing their roles and responsibility for providing some kinds of benefits to its
company. A person possess effective leadership qualities can help him/her in influencing others such
as team mates in order to get appropriate outcomes in return. Therefore, to improve the skills and
knowledge superiors conduct training and development programs so that the same can be enhanced
which will further assist employees in performing their future activities (Handschin, E. and

Petroianu, A., 2012). In relation with Starbucks for operating business they have adopted different
theories and these are explained below for better understanding:
Situational Leadership Theory: This theory explains that managers, leaders or other
superiors should motivate workers for performing their job as per different circumstances so that
better outcomes can be gained. For example: Starbucks is going through decrease in sales and their
services are also not appropriate. As a result, customers prefer other brands thus, for this situation
manager can use democratic leadership style in order to analyze in what areas they are lagging behind
and had to work for increasing its sales. This will ultimately create a sense of belongingness and
employees will perform their task for better outcomes. Therefore, situational leadership theory can aid
company in taking effective decision in difficult circumstances.
Strengths Weaknesses
With the help of this theory managers and
leaders can interact with its team mates
effective which can gradually show a path for
overcoming from any kind of situation
(Lindström, J. and et. al., 2012).
Sometimes for increasing the sales and
profitability company can use aggressive form
as a result, it can work as a negative factor can
company can loss their loyal employees.
Contingency leadership theory: According to this theory there are no absolute method of
performing task or activity instead sometimes company had to rely on internal and external
factors depends upon situations. Therefore, for overcoming with this situation Starbucks must
hire employees who are skilled enough in performing their activities in a better manner. Thus,
as per contingency leadership theory leaders apply leadership styles of their choices
according to the situations.
Strengths Weaknesses
This is an effective leadership theory as for a
time being it assist leaders to choose their own
leadership style in order to work as per
different circumstances so that appropriate
result can be gained.
This can limit the thinking of a person as their
creativity is not given importance. As a result,
it can have a negative impact on the
performance of an individual.
System leadership theory: Every business has a systematic procedure of operating
its activities and in this relation managers and leaders help the firm in doing so. Both make

effective strategies and action plan for doing their job effectively. For example: there is a
systematic procedure of collecting coffee beans, than goes through refinery system and so on
(Lisi, 2010). Thus, with the help of systematic leadership theory all these activities can be
managed.
Strengths Weaknesses
It helps managers and leaders in performing
their activities in a systematic manner
according to the plan.
In a systematic process there can be a step
which is useless and add no value to the
product and simply increase the manufacturing
cost. As a result, this can work as a negative
impact on business.
TASK 3
P5 Importance and value of operations management in achieving business objectives
Operation management play vital role in business organization as it converts raw
material intro finished goods that provide customers as per their requirements. With the help
of this, Starbucks can easily attain competitive advantage at market place from its rivals.
Mainly, it provides guidance to the company for modify their plan with the purpose of
produce quality products (Nakayama and Bucks, 2012). Thus, it is important for Starbucks to
manufacture quality products by considering customers taste and preferences. It directly
contributes in increasing profitability level of the company at market place. In this, there are
some importance of operation management in Starbucks. All these can be understood by
following points:
Keep up the quality: For attaining success at market place, customers satisfaction is
important for company to sustain in market place. Thus, Starbucks needs to serve quality
products and services as per customers requirements. With the help of this, company easily
capture larger market share from its rivals and also retain customers for longer period of time.
Reduce wastage: In business organization, operation management consider as an
important activity through which manager of the company easily reduce the wastage by
managing entire material. In this manager of Starbucks evaluate the whole process to ensure
that all the resources are effectively used. This will contribute in reducing the wastage within
the company and at the same time also eliminate all the factors that hamper on business
activities. By this Starbucks can easily increase their profitability level at market place.

Increase workers efficiency: It is also and effective aspect of operation management
in which manager of the company provide appropriate training and development programmes
to their workers so that they can easily perform their task. Along with this, it also contributes
in measuring overall performance as per regular basis which may reduce the chances of
arising any kind of issues within the business.
Optimum utilization of resources: Operation management is essential in organization
because it helps in improving the performance level of the company. In this Starbucks
formulate effective strategies to utilise all the resources in effective way (Neck and Manz,
2010). This will help in increasing the positive performance at market place and at the same
time also capture customers attentions towards its products and services.
All these are major importance of operation management in which Starbucks can
easily improve their overall performance level at market place (Pinkerton, 2011). By these
company can easily produce quality products and services that may capture customers
attention towards its offerings. It helps in capturing larger market share from its rivals.
TASK 4
P6 Impact of internal factors upon operational management and decision making
Every company establishes its business in order to achieve gain maximum benefits
along with providing effective services and facilities to its customers. Therefore, whatever
food and beverages Starbucks is providing is according to the needs and wants of consumer
because of which the company is one of the leading Coffee brands all over the world. Other
than this, there are some factors that can puts an impact on decision making is mentioned
below for better understanding:
Corporate Social Responsibility: Each company has its social responsibility of
doing something good for the society so that it can be raised. For instance: Starbucks is
helping in increasing employment opportunities for people by opening its stores in different
locations. This will not only increase provide skilled person but will enhance the market
value and shares of the company as well.
Sustainability: Company can maintain its sustainability by keeping high its standards
of products and services they are providing to its customers. In order to do the same company
can make use of all the resources that are available to them as it will assist firm in giving
better services. As a result, through this organization can retain its loyal customers for a

longer period of time. Therefore, it will help them in increasing its customer base as
compared to other firms like Costa Coffee.
Stakeholders: In an organization there are many factors that play a crucial role in
providing benefits or competitive advantage thus, Stakeholders are one of them as they invest
with certain amount of funds that can give company better results (White, 2016). Other than
this, they actively participate in decision making process. Stakeholders can be from internal
as well as external element.
Therefore, with the help of above mentioned points it can be understood that
Starbucks has done some kind of changes in their management like included these factors
which is ultimately assisting company in making effective decision for their business
operations. Managers are taking help from Stakeholders for making appropriate strategies so
that these can be implemented in action plan for getting effective outcomes and results.
CONCLUSION
From the above-mentioned report, it has been concluding that management and
operation is one of the important aspect for business organization to produce quality products
with the purpose of attaining higher satisfaction level. In this manager and leader both play
vital role in managing as well as leading all the employees at workplace. With the help of
this, employees can easily attain set goals and objectives. In addition of this, some leadership
approaches are also used by leader for motivating and leading their workers so that they can
easily perform their best and accomplishing positive results. Furthermore, key approaches of
operation management are also contributing in making overall production process more
effective. By this company can easily reduce wastage and at the same time also maximize
profitability level at market place.

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