Management and Operations - Starbucks Assignment

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
Covered in PPT...........................................................................................................................1
Task2................................................................................................................................................1
P2 Role of leader and function of a manager apply in different situational context...................1
P3 Situational, system and contingency leadership ...................................................................3
Task3................................................................................................................................................5
P4 Key approaches of operation management............................................................................5
P5 Importance of operations management for attaining business objectives.............................7
TASK 4............................................................................................................................................8
P6. Factors within business environment that influence operational management and decision-
making by leaders and manager..................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Management and operation is the area of management that considers designing and
controlling process of production in order to manage the day to day activities. Operation is the
major function in business entity that help to manage supply chain, marketing, human resource
and marketing in order to increase the business activities. Management is relates with planning,
organising, staffing and controlling the business function within organisation (Arghode,
Sundaralingam and Joshi, 2016). The main aim of this report is to make understand about
management and operation and how it help business to achieve goals and objectives. To
understand this, Starbucks UK has been taken which is one of the largest organisations establishd
in UK. It execute its business all over the world. The present report will covered different topics
such as role of a leader and manager apply in different situational context, different theories and
models of approaches including situational leadership, system leadership and contingency and
hey approaches to operation management that help to improve efficiencies of operational
management. Moreover, report will covered environmental factors which impacts on the
operational management and decision making.
Task 1
Covered in PPT
Task2
P2 Role of leader and function of a manager apply in different situational context
Leader and manager are essential for the organisation who understand the needs of
customers in order to increase the business functions by completing the task. Such as the
manager of Starbucks make plans and introduce from new services within organisation which
influences customers. Managers are required in organisation for example, manager make plans
and evaluates the performance of employees that help to work effectively. Leaders are required
to understand the problems of employees and provide them best guidance to complete the
particular objects (Correa-Florez and others, 2018).
Starbucks is facing low productivity and profitability because lack of customers and
conflicts among employees. It is facing low number of customer because are unable to
understand customer's needs and demands. In this situation manager and leader perform different
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function and role in Starbucks. The manager and leaders plays different role and function within
Starbucks such as:
Role of leader
 Leader play an important role as motivator in which the leader of Starbucks motivate the
motivate the employees that help to complete the task.
 Another role is performed by Starbucks leader to solve the situation that is leader set the
clear vision that influences employees to understand and accept the future state of
company.
 Leader also play a role of guider in which they provide guidance to employees of
Starbucks how to work and can accept new technology within industry.
Function of a manager
To solve above discussed situation the function of managers are defined as:
Planning: Manger of Starbucks make plans to introduce from new services that help to
influence customers. To increase the productivity and solving conflicts issues manager of
Starbucks will make solid planning that will help to share the problems and get the solution.
Manager will evaluate employee's performance and would provide appraisal in order to attract
people (Hasibuan and others, 2018).
Organising: Manager perform this function to organise the workplace for maintaining
effective performance all employees. To solve this problem manager organises the work place
and handles the situation by listening of both parties.
Controlling: The manager of Starbucks controls internal and external functions by
evaluating performance. They analysis the factors which affect the business and introduce new
services that will help to attract the customers.
Coordination: In this function the manager of Starbucks coordinates with employees and
leaders that help to understand the problems and make business decision collectively. This
function help to increase the number of customers.
Above mentioned role of leader and function of manager help Starbucks to set the goals
and achieve them by providing proper guidance and motivation to its employees. As motivation
will help to increase the productivity and profitability. Manger of Starbucks focus on planning,
organising, controlling and coordinating that help to achieve the decided goals or objectives.
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P3 Situational, system and contingency leadership
Situational Leadership: Situational leadership theory is developed by Paul Hersey and
Ken Blanchard. This leadership style is an adaptive style that allows the leader to change its
leading style according to the situation. In today's world, leaders are supposed to behave like a
mentor not like a boss. Leaders have to adopt a leadership style according to the task behaviour
and potential of his or her followers that are the employees of the organization. According to the
theory, a leader is responsible to manage balance between task behaviour (organization) and
relationship behaviour (workforce). Starbucks Corporation which is as American coffee
company and coffee house chain can adopt this method of leadership in its organization because
so many companies are in favour in this leadership style now a days (Jin and others, 2015). The
company can receive so many advantages with this style like:
 This leadership style provides training and development opportunities to each employee.
 This method is so flexible and adapting for the leaders as well as organization.
 This kind of leadership helps to create a comfortable work environment and makes team
work better.
There are so many benefits to adapt situational leadership style but Starbucks Corporation
also have to face some issue in order to follow this style. The company can deny with this
method because:
 This leadership style focuses only on the short term needs of the organization and
employees, long term view is neglected.
 This style may create confusion and conflicts within the organization.
Systems Leadership: Systems leadership is a traditional leadership style which is
developed by the Ian Macdonald. In this style of leadership leader has to organize and maintain
good human relationship and organizational strategies. It uses basic principles to boost the
performance of the followers in order to achieve the purpose of the organization. Leaders are
supposed to create an environment in the organization so that people can work with productivity.
According to this approach, no one is leader and no one is follower. The motivation is self driven
by the individual. People come together and motivate each other to achieve a common
organizational goal (Jung, Lee and Park 2014). Starbucks Corporation can accept this style of
leadership to motivate the employees working with it. The benefits that may be achieved by
adapting this style are:
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 This style increases the morale and confidence of the employees.
 This leadership style is comprehensive and all the concepts are connected.
 This method improves productivity by saving communication time.
Systems leadership approach have some disadvantages that make it unapproachable in
favour of Starbucks Corporation. These weaknesses are:
 This approach may cause a delay in decision making process.
 The definition of self dependent or inter dependent is not clear.
 Lack of external motivation and guidance can affect the performance of the employees.
Contingency Leadership: Contingency leadership theory says that there is no single
effective way to lead the followers. It means the success of leadership depends on the way how a
leader behave and react in a particular situation. This method approaches that instead of
changing the leadership style, change the way to lead your group or team. According to the
theory, a leader should be put in a situation that matches his or her leadership style. Success or
failure of any leadership style based on the the situations. Starbucks Corporation may adopt
contingency leadership style because it has some attributes that may cause benefits to the
company (Kim and others, 2014). These advantages are:
 This method is dynamic in nature and allows the management to make the changes
according to the situations.
 This approach provide freedom to employees so that they can share their thoughts and
ideas.
 Contingency leadership method enhance the leadership and decision making power of the
managers.
Although contingency leadership style is providing a lot of advantages to the Starbucks
Corporation yet it has some inherent problems or disadvantages with it that can create problems
for the company. These disadvantages are:
 An individual manager or leader is not able to handle the issues in different situations.
 It is easy to suggest but very difficult to change the style or structure constantly according
to the situations.
 Leader has to think about all the possible solutions according to the situation which is
stressful and time consuming.
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After analysing the organizational structure of the Starbucks Corporation and advantages
and disadvantages of different leadership styles, it is clear that the organization's objective is to
provide the stress free environment and freedom of thoughts to its employees. Company also
have management and leadership expertise that can handle the situations very well. Hence the
company may adopt the Contingency leadership style within it (Li, Zhou and Shi, 2014).
Task3
P4 Key approaches of operation management
Operation management is the influencing process that contains movement of products
and services from one place to another place. In other words, the purchasing and selling of goods
and services are considered as operation management. It is used to maximize the outcome from
business activities. In Starbucks, managers focuses on operation management that help to
complete the objects in certain period of time. It involves management practices, procedure of
transforming raw material in to finished goods for the end user or consumer. The main purpose
of business concern is to reduce the wastages of resources that processes to raising the profit. For
instance, the manager of Starbucks make healthy, tasty and delicious coffee that attract
customers. It uses this process to improve the efficiency and effectiveness in order to maintain
the customer loyalty. It help to manage proper coordination between organisation and customers.
The Starbucks carried two types of operation function such as:
Production: This function is used to convert the raw material in to finished goods in
order to increase the productivity. Such as manager of Starbucks convert the raw material in to
making delicious coffee that help to influence customers.
Better quality: This is used to provide better quality of products and services which
influence the clients and they consume more and more products. Such as the manager of
Starbucks are conscious about customer health. They prepared healthy and tasty coffee in order
to increase the profitability and sustain in competition.
Theories of operation management
In present, there are various approaches that is used to enhance the productivity and
operational activity. It help to achieve goals and objectives of organisation which is decided by
managers of Starbucks. For example, the manager of Starbucks has decided to increase the sale
20% by 2020. In this situation the manager need to focus on operation management and try to
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introduce from new service such as home delivery of coffee, produce new flavour of coffee etc.
which is important to achieve the goals. By doing such customer will attracts more and they will
get more products and services from this organisation. As result customer will increase and
profitability will also increase with the help of operation management. The description of
approaches are given as:
Six sigma: It is a statical approach which is used to identify the defaults and errors in
production process. In Starbucks, managers can use this approach to identify the errors or
mistake while making coffee. The manager evaluate the employee's performance and address the
problems which is arising within organisation. This is most influencing theory which help
Starbucks to enhance the efficiency and increase the productivity that leads to attain the
objectives. By using this approach managers defines problems and get the solution. It help to
evaluate the individual performance that helps to improve efficiency of operation management in
Starbucks. There are various types of functions that are executed by Starbucks UK. One of them
is control and distribution system. Under this system organisation follows appropriate
distribution channel for the purpose of delivering its products and services. Six sigma theory is
used by the organisation for the purpose of analysing problems in distribution system. With the
help of it manager and leader of the organisation identify the problem of weak distribution
channel. It also guides them to find best suitable option to deal with the problem by formulating
different solutions.
For example, manager of Starbucks has focused that market has saturated from one
flavour. So in this situation manager and leader will produce new product and new flavour of
coffee that will help to improve the efficiency and organisation can attain objectives (Manzini
and others, 2018).
Key approaches
Just in time: This approach is totally relied on managing the stock within organisation
that help to improve the productivity. It help to resolve the issues such as lack of material,
mistake in placing the next order and proper care of raw material. The manager of Starbucks can
use this approach in order to reduce the wastage of resources within entity. This is important in
manufacturing and production company that can be used to analyse the demand and maintain the
stock level.
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Starbucks can use this approach for increasing the efficiency such as it maintain the stock
and prepared coffee according to customer demand. By reducing the waste and managing the
wastage manager of Starbucks can increase the profitability and productivity. It is beneficial for
Starbucks like it can save the raw material for long period that will help to save the cost which
can be fluctuate. So by using Just in time approach manager can improve the efficiency that help
to accomplish the objectives (Mazidi and others, 2017).
Just in time approach is used by leaders and managers of Starbucks UK for the purpose of
reducing the time which is taken by them to deliver the products to clients. It helps them to
assess all the problems that are affecting the organisation. Afterwards they apply just in time to
analyse the issue of late delivery of items to clients. With the help of this approach this problem
is resolved by the managers and leaders to reducing time which is taken by them to deliver
coffee.
Total quality management: This means company uses this approach in order to
maintain the quality of product and services. It affect the business such as Starbucks offers better
quality and delicious coffee that influences the customer and increase the brand image within
organisation.
Starbucks make sure that customers are loyal for brand and product image that provides
better quality of coffee. It is very important for organisation to improve their quality and
efficiency by adopting this theory that help to define the defects which can be removed. Herein,
the manager and leader of Starbucks play a role of motivator and plan executor who make plans
to improve the quality of product and services by providing training and development to
employees that help to enhance the skills. By providing training employees of Starbucks can
aware from techniques which is needed to improve the quality. As result Starbucks can attain the
goals and objectives by using total quality management approach.
P5 Importance of operations management for attaining business objectives
Operation management is important as it help to operate the business activities by
focusing on manufacturing and distributing services. The manager of business organisation
understand the demand of customer and manufacture that kind of products in order to increase
the profitability. The main object of Starbucks is to increase the number of customer by
providing high quality of products. For this manager of Starbucks uses operation management
which is more important to increase the profitability.
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Importance of six sigma, total quality and Just in time approach
In Context to Starbucks the importance and value of operation management is stated as:
Design of goods and services: Starbucks emphasis on premium design of its products
and services which influences customers. The importance of operation and management in
Starbucks is defined as managers ensures proper quality of products which reflects company's
high end brand image. It is relates with Just in time approach as it help Starbucks to produce the
designing products in less times or given time period (Vladimirovich and Viktorovna, 2016).
Quality management: Total quality management approach is important in Starbucks it
uses premium character in quality management and provide best products. For example,
Starbucks carefully sources its coffee beans from farmer of coffee that comply with its quality
standard.
Cost effective: It is related with six sigma approach that help to define the errors and
mistake in order to reduce the wastes and maximize the profitability. The manager of Starbucks
uses six sigma approach that help to save the cost of raw material in operation management
process.
Value for operation management
Starbucks uses different types of operational management approach such as six sigma,
total quality management and Just in time that help to improve the efficiency in operation and
accomplish the goals or objectives. Operation management is valuable for Starbucks as it can
increase the productivity by providing training to employees. By using six sigma approach
Starbucks's manager can identify the errors and can address the problem. By using total quality
approach it can maintain the quality of products that help to increase the customer's interest.
Moreover, by using Just in time approach it can reduce the cost of wastage and maximize the
productivity.
TASK 4
P6. Factors within business environment that influence operational management and decision-
making by leaders and manager
In business industry, there are number of factors which affect the business environment
and business decision in Starbucks (Nassiri and others, 2016). It involves internal and external
factors which is discussed as:
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Internal factors: It involves such factors which arises within organisation. The internal
factor of Starbucks are defined as:
Employees: This is most important factor which influence the operation management
and decision making in Starbucks company. For example, the manager of Starbucks recruits
skilled and experienced person and will provide training who can accept the challenges. Leaders
will motivates the staff to complete the task which is assigned by managers. By getting goals and
training employees can increases the productivity and profitability that help to achieve goals by
making effective decision.
Corporate culture: This affect the business decision and objectives such as In
Starbucks, manager make decision to increase the productivity by introducing new flavour of
coffee. Leader will provide a guidance to employee how to complete this task. In this factor it
affects decision such as Starbucks give opportunities to its staff for enhancing skills and
competencies. It help to accept the changing culture and environment by making decision
(Wakui and others, 2016).
External factors
Political: Starbucks offers delicious coffee across the UK by following government
policies. If policies has been changes then it impacts on Starbucks manager and leader's decision
such as it has to follow new government that may be costly for organisation. As result low profit
margin and less productivity due to changing in import export rates.
Economical: Starbucks is following the inflation rate that may impacts on manager's
decision for example, if inflation rate has been increased then manager need to pay high amount
on hiring the employees or purchasing raw material. In this situation manager will make decision
to fire the employees that will reduce the productivity and profitability due to changes in
inflation rate (Xenos and others, 2016).
Social: Starbucks focuses on customer needs and wants that influences the customers. It
influences operation management and decision making of manager such as if the taste of people
has been changes then Starbucks manager need to bring new innovation that will help to increase
the customers. It may be costly for Starbucks's manager or leader to innovate new product or
services and introduce it.
Technological: Technology is changing rapidly which influences operation management
and decisions of manager and leader within Starbucks company. For instance, Starbucks's
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manager are planning to bring new technology that is book through mobile and payment. For this
it need to hire advanced skilled employees who can accept this technology easily. It may be
expensive for Starbucks because it has to spent amount on research and development and hiring
the technical person (Zare and others, 2016).
CONCLUSION
From the above report it can be concluded that operation and management is important
and valuable for organisation as it help to perform day to day activities. It manager evaluate he
performance and control the function which relates to business. Leader plays essential role as
motivator and guide the employees to work efficiently in order to achieve objectives. Internal
factor and external factor influences the operation management and decision of leader and
managers within organisation.
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