Airport Demand Management Strategy

This assignment requires students to explore the operations research and economics perspectives of airport demand management. Based on the provided references, including Odoni (2016), Hitt et al. (2016), Jacobs et al. (2014), and Slack (2015), you are tasked with developing a strategy to manage airport demand effectively. Consider the potential synergies between operations research methods and economic principles, and propose a strategy that balances operational efficiency and economic viability.

Unit 4: MO

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT 1......................................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The different roles and characteristics of leader and manager..............................................1
1.2 Analysing and differentiating role and function of leaders and managers by using different
theories and examples from Starbucks........................................................................................3
TASK 2............................................................................................................................................3
1.1 Role of leader and function of manager apply in different situational context of Starbucks3
1.2 Applying different leadership theories and models of approach within context of
Starbucks.....................................................................................................................................4
1.3 Strength and Weakness.........................................................................................................4
PROJECT 2......................................................................................................................................5
TASK 1............................................................................................................................................5
2.1 Key approaches to operation management and the roles played by leader and manager at
Starbucks.....................................................................................................................................5
2.2 The importance of operation management............................................................................6
2.3 Evaluating ways through which leaders and managers of Starbucks can improve
efficiencies..................................................................................................................................7
TASK 3............................................................................................................................................8
3.1 The factors of business environment that affects the management of Starbucks..................8
3.2 Analysing factors affecting business environment and wider community of Starbucks......9
3.3 Evaluating application of operation management...............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Management and operation are the essential part and functions of the business
organisation. Without precise management and appropriate operation, no business organisation
will able to accomplish greater heights and success (Abou-Senna and et.al., 2018). In accordance
with this context, the following report will help in demonstrating the different aspects of
management and operational functions. The difference between the role of leader and function of
manager will be analysed in this report. The role of leader and manager applied in context of
Starbucks. The report will further aid in demonstrating an appreciation of the role of leader and
managers play in the operations function of Starbucks. The key approaches to operation
management and importance of operation management will be assessed in this assignment. The
factors within the business environment in which Starbucks operates that influences the decision
making by leaders and manager will be assessed in this assignment. Eventually an analyses of
these factors that affects the business environment and wider community of Starbucks will be
made in this report.
PROJECT 1
TASK 1
1.1 The different roles and characteristics of leader and manager
Defining role and function of leader and manager
Leader: A leader is the person who guides and motivates his or her team in the right way and in
the right directions so that the common goals and objectives of the organisation can be attained
effectively and efficiently (Baxley and et.al., 2016).
Role and characteristics of leader Representative of organisation: The role of leader is to represent the organisation in each
and every sector where the organisation operates. For example, the role of leader in
Starbucks is to represent its management in different coffee competition. Helper and guider: A leader is the person who has many followers. It is because of his or
her attitude and behaviour. The role of leader is to provide precise guidance to the
employees who faced one or many issue in the organisation (Carnes, Hitt and Xu, 2016).
For example, the team leader at Starbucks provides helps to every employee working in
the organisation.
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 Motivator: The role of leader is to motivate the employees and provide them effective
counselling. At Starbucks, the team leader holds frequents motivational session in order
to boost up the motivation of employees.
Manager: A manager is an entity in the organisation who is responsible for controlling or
administering organisational activities and employees (Gillen, Jacquillat and Odoni, 2016).
Manager posses the crucial function in the organisation, which is to manage and monitor the day
to day activities of organisation.
Function of Manager Planning: Planning is the preliminary and crucial function of manager. Here manager
prepare precise plan by considering the future uncertainties (Hitt, Carnes and Xu, 2016).
For example, the function of manager of Starbucks is to plan to gain competitive
advantages. Organising: Organising is the organisational activities in right manner is another
function of manager (Jacobs, Chase and Lummus, 2014). Here manager appropriately
organise the organisational activities. Staffing: Hiring and allocating employees according to their right place according to
their skills and competencies is the important function played by the leader (Raz, Druehl
and Blass, 2017).
 Controlling: Controlling the employees so that the discipline in the organisation can be
maintained is function which has been assigned to the manager.
Comparing role of leader and function of manager
Role of leader Function of manager
A leader focuses on people The function of manager is to focus on
process and procedure (Slack, 2015).
A leader envisions The function of manager is precise
administration
A leader project measure (Yang, 2016). The function of manager is to measure
projection (Radnor and et.al., 2015).
A leader ensures that the right things are being
done.
A manager ensures the rules are followed in
the organisation.
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A leader empowers and inspires innovation. Manager magnifies corporate policies and
procedures.
1.2 Analysing and differentiating role and function of leaders and managers by using different
theories and examples from Starbucks. Leadership theories: Leaders can be seen in every organisation and every leader has one
or many similarities and differences. Researchers proposed several leadership theories
and concepts in their research (Schönsleben, 2016). Trait theory of leadership proposed in
mid 20th century by researchers connotes that a leader is either born or made with certain
qualities or traits. At Starbucks leaders are made as management identifies certain
qualities and skills which enables a person into an effective leader.
 Function of manager: In an organisation, manager has many functions. In this context,
philosophers and researchers analysed the function of manager in different organisation
and proposed some theories out of that (Chevalier and et.al., 2015). The Scientific Theory
of Management is most precise one which was proposed by F.W. Taylor. In this the
manager needs to apply the scientific principles in order increase the effectiveness in the
organisation.
TASK 2
1.1 Role of leader and function of manager apply in different situational context of Starbucks
Role of leader and function of manager applied at Starbucks
As Starbucks is one of the most renowned coffee shop in the locality. The manager and leader
both play important role and both posses essential functions that helps the organisation to
accomplish their desired goals and objectives effectively and efficiently (Burgess, Fowler,
Minowitz and Neudorff, 2016). In this context, the role of leader and function of manager
applied in different situation context at Starbucks is described below:
The role of leader is to guide and helps the co-workers and his or her assigned team so that they
can work in right directions and in right manner.
The role of team leader is to motivate and influence his or her team so that their morale and
commitment towards the organisation became more robust.
The role of team leader is to represent the Starbucks at both national and international level so
that brand reputation and goodwill can be enhanced.
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The function of manager is to hire and train the existing staff so that their skills, knowledge and
competencies can be enhanced.
The function of the manager of Starbucks is to plan for situations and to gain the competitive
advantages within the sector.
In order to reduce the conflicts and disputes, the manager at Starbucks has been assigned with
the function to organise each and every activity in the precise manner.
1.2 Applying different leadership theories and models of approach within context of Starbucks
Leadership is the action of leading a group of people in an organisation in the right path
and in the right direction so that the organisation will able to attain its goals and objectives
(Abou-Senna and et.al., 2018). There are various leadership theories proposed by the researchers
and philosophers which helps the management of today's organisation to improve the leadership
styles and approaches. In this context the different leadership theories used within Starbucks is
jotted below:
Situational Leadership: Situational leadership theory is developed by Paul Hersey and Ken
Blanchard in 1969. It is an adjustive style that leader and managers adapts in themselves in order
to lead their employees and subordinates (Baxley and et.al., 2016). In situational leadership, the
leader at Starbucks change his or her leadership style in the way so that the situation can be
handle precisely and efficiently. In situational leadership, the style may change continually to
meet the needs of others in the organization based on the situation.
System Leadership: In system leadership theory, the leaders consider the organisation as the
system and make effective measures to translate his or her awareness towards the complexities of
the organisation (Carnes, Hitt and Xu, 2016). Leaders focus on the employees performance and
make necessary steps in order to build their motivation. In order to accomplish the goals and
objectives of Starbucks, the team leader follows the system leadership theory.
Contingency Leadership: A contingency theory is the theory that connotes that there is no best
way to organise corporation or to lead a company. It implies that in order to lead and manage
people in organisation, there is no best possible way to lead the employees in the organisation
(Gillen, Jacquillat and Odoni, 2016). It means, the leader at the Starbucks, changes the leadership
style so that they can lead the employees in the organisation effectively and efficiently.
1.3 Strength and Weakness
Situational Leadership Theory
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 Strength: The strength of situational leadership theory is that it helps the leaders to adapt
with new situations and formulate new and effective styles that helps the organisation and
employees to focus on the right path (Hitt, Carnes and Xu, 2016). The style of leadership
changes as per the situation and it assists the leaders to influence the employees more
precisely and appropriately. Weaknesses: The situational leadership theory is not meant for long term planning and
strategies (Jacobs, Chase and Lummus, 2014). Further, it impacts on the behaviour of
employees as well. If the leader frequently change his or her leadership style, it creates
confusion and chaos in the organisation.
System Leadership Theory Strength: System theory of leadership helps in providing effective control which is very
helpful for managing and controlling employees (Raz, Druehl and Blass, 2017). System
leadership approach focus on final outcomes and provides effective strategies and plans
for decision making within Starbucks. Weakness: As compared to other approaches, it is considered as conceptual and not able
to define difference in the system.
Contingency Leadership Theory Strength: Contingency leadership theory enables the the leaders to evolve different
leadership styles which can be used at different situations so that the problem and issues
can be resolved in best and efficient manner (Radnor and et.al., 2015).
 Weaknesses: As there is no best permanent way, the leader needs to change his or her
style frequently, that impacts negatively on his or her performance and also creates
confusions within the employees (Burgess, Fowler, Minowitz and Neudorff, 2016).
PROJECT 2
TASK 1
2.1 Key approaches to operation management and the roles played by leader and manager at
Starbucks
Operations management refers to the administration of business practices to create the
highest level of efficiency possible within an organization (Jacobs, Chase and Lummus, 2014).
In accordance with this context, the key approaches to the operation management applied at
Starbucks with role of leaders and managers is described below:
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 Six Sigma: Six sigma is the methodology used by the management of Starbucks in order
to improve the quality of business operations by obliterating the errors and defects
(Heizer, 2016). It helps in reducing the cost and helps in saving time and efforts of the
organisation. In order to stand in the competitive environment, six sigma approach to
operation management is very effective and efficient tool. It contains five step
methodology which is known as DMAIC (Yang, 2016). It stands for Define, Measure,
Analyse, Improve and Control. With the helps of these tools, the management of
Starbucks able to accomplish their desired goals and objectives. Total Quality Management: Total quality management is the process of maintaining the
overall quality of the organisation (Radnor and et.al., 2015). In this approach of operation
management, the manager focuses on overall quality of the organisation in order to
improve it and enhance it adequately.
Role of leader and manager played in Starbucks
 The role of leader is to guide and helps the co-workers and his or her assigned team so
that they can work in right directions and in right manner (Chen, 2017).
 The role of team leader is to motivate and influence his or her team so that their morale
and commitment towards the organisation became more robust.
 The role of team leader is to represent the Starbucks at both national and international
level so that brand reputation and goodwill can be enhanced (Gillen, Jacquillat and
Odoni, 2016).
 The role of manager is to hire and train the existing staff so that their skills, knowledge
and competencies can be enhanced.
 The role of the manager of Starbucks is to plan for situations and to gain the competitive
advantages within the sector.
 In order to reduce the conflicts and disputes, the manager at Starbucks has been assigned
with the duty to organise each and every activity in the precise manner.
2.2 The importance of operation management
Operation management is the essential part of the business organisation. Operation
management is the set of management activities which involved planning, organising, controlling
and directing (Chevalier and et.al., 2015). In simple terms, operation management refers to the
effective and efficient management of day to day business operations. In today's world, there are
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many forms of business organisation can be seen. From small scale business to large and gigantic
business empire. They have different types of operations and they use different operation
approach in order to manage them effectively (Slack, 2015). In accordance with this context, the
importance of operation management is described below: Helps in Reducing Cost: Operation management helps in reducing the cost of the
organisation. By being efficient, the operation management helps in reducing the overall
cost of products and services that incurred in the organisation efficiently (Burgess,
Fowler, Minowitz and Neudorff, 2016). For example, at Starbucks, with the helps of
proper planning and organising, the operation management able to minimise the cost of
inputs. Helps in increasing revenue: By enhancing the satisfaction among customers, the
operation management in the organisation can enlarge the revenue and promulgates its
reputation efficiently (Wu, 2016). For example, by providing effective quality of products
to the customers, the management of Starbucks were able to increase their revenue and
was able to accomplish their aim and objective effectively. Minimising the amount of investment:By proper allocation and use of resources, the
operation management can reduce the amount of investment or capital employed (Raz,
Druehl and Blass, 2017). For example, at Starbucks, the management efficiently plan and
allocates the existing resources and use them in optimum way, so that aim and objectives
can be achieved easily.
 Basis for innovation: Operation management provides the basis for innovation by
building a solid base of operation and knowledge (Baxley and et.al., 2016). In order to
sustain in the competitive environment, it is very important and crucial for the business
organisation to innovate new products and services. This will aid in enhancing the
customer experience and business productivity and profitability can be increased
efficiently.
2.3 Evaluating ways through which leaders and managers of Starbucks can improve efficiencies
A leader is the person who guides and motivates his or her team in the right way and in
the right directions so that the common goals and objectives of the organisation can be attained
effectively and efficiently and a manager is an entity in the organisation who is responsible for
controlling or administering organisational activities and employees (Mateo, 2016). Manager
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posses the crucial function in the organisation, which is to manage and monitor the day to day
activities of organisation. Both the entities are are important for the growth and development of
the organisation. The ways through which the manager and leader can improve the operational
management to meet the business objectives of Starbucks are listed below: Working together: Team leader and manager are essential pillars at Starbucks that helps
in managing and guiding the employees in the organisation towards right directions. By
working together as a team, both the leader and manager will able to accomplish the aim
and objective of the Starbucks. The benefits in working together are immense and it will
help them to understand each other adequately (Haksever and Render, 2018). In this way,
the management of Starbucks will able to improve the effectiveness in their operational
management. Focusing on core issues: There are one or more issues that can be identified in the
organisation which can disturb the whole operations of the company and become barrier
in achieving goals and objectives (Mitsuo and et.al., 2014). Thus, by focusing on the core
issues at Starbucks, the manager and leader will able to make possible solution for it and
will be able to eliminate the issue permanently.
 Developing new ideas: By developing new ideas that will enhance the business
performance of Starbucks, the manager and leader will be able to improve the efficiencies
in the operational management and thus, will be able to accomplish the desired goals and
objectives of the organisation.
TASK 3
3.1 The factors of business environment that affects the management of Starbucks
Business environment greatly affects the decision making process taken by leaders and
managers at Starbucks. The factors of business environment that affects the decision making
process is described below:
Internal Environment Factors Financial Factors: Financial factor greatly impacts on the decision making process taken
by leaders and managers (Abou-Senna and et.al., 2018). In order to formulate effective
and efficient decision, the manager and leader needs to focus on the financial position of
Starbucks.
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 Human Resource: Human resource are the manpower that is employed in the
organisation. This factor influence the decision making process of leader and manager as
they needs to understand the needs and expectations of every employee in order to
improve the corporate culture at Starbucks. Corporate Culture: Organisational corporate culture impacts greatly. The decision made
by leader and manager needs to consider the corporate culture of the Starbucks. It is very
important for them to maintain the positive corporate culture so that motivation and
morale of employees can be enhanced (Carnes, Hitt and Xu, 2016).
External Environment Factors Political Factor: The political factor plays an important role in formulation of policies
and procedures in the organisation. Thus, the leader and manager needs to consider the
procedure and regulations formulated by the government of country and then make
decisions. Economical Factor: Changes in interest rates, taxation has impact on financial
operations and capital investments (Schönsleben, 2016). By considering all these factors,
the leaders and manager needs to formulate effective and precise decisions so that the
organisational goals and objectives can be accomplished. Social Factor: societal taste and preferences are changing rapidly. This factor greatly
influences the decision making process of leaders and managers at Starbucks. Technological Factor: In the era of globalisation and digitisation, new and advance
technologies are evolving day by day that helps in reducing the efforts and cost to the
organisation (Hitt, Carnes and Xu, 2016). Technological factors greatly influences the
decision making process of the leader and manager at Starbucks. Environmental Factor: In order to protect the environment and natural resources, it is
very important for the decision makers of the organisation to formulate effective policies
that helps in preservation of natural environment. These factors influences the decision
making process of leaders and managers at Starbucks.
 Legal Factor: In order to sustain in the market economy, the business organisation needs
to comply with certain rules and regulations which are formulated by the government
(Jacobs, Chase and Lummus, 2014). Thus, the decision makers needs to formulate codes
and policies in regards with laws and legislation so that uncertainties can be avoided.
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3.2 Analysing factors affecting business environment and wider community of Starbucks
The environmental factors discussed in the above part impacts on the productivity and
profitability of the organisation. In order to sustain in the competitive environment, the
management of business organisation needs to formulate precise decisions that will helps them to
generate maximum customer base by improving quality of products and services. Both the
internal and external environmental factors greatly influences the decision making policies of the
Starbucks. As the coffee house, the organisation needs to accompanied with certain laws and
legislation related with customer health, environmental protection, etc. Furthermore, in order to
increase the employee retention and satisfaction, the management of the organisation needs to
formulate policies and procedures that aid in maintaining the positive corporate culture in the
company. Internal factors such as financial factors, human resource factors, etc (Heizer, 2016).
affects the organisational decision making policies and procedures. In order to accomplish the
aim and objectives of the organisation, it is very important for the leaders and managers to
consider both the internal and external environment which have direct and indirect influence
towards productivity and profitability of the organisation. The political factor plays an important
role in formulation of policies and procedures in the organisation. Thus, the leader and manager
needs to consider the procedure and regulations formulated by the government of country and
then make decisions. In the era of globalisation and digitisation, new and advance technologies
are evolving day by day that helps in reducing the efforts and cost to the organisation (Yang,
2016). Technological factors greatly influences the decision making process of the leader and
manager at Starbucks.
3.3 Evaluating application of operation management
Operation management is the process of managing the operational activities of the
organisation in effective and efficient manner. In the era characterised by the competition and
globalisation, the management needs to continuously focus on developing new ideas which will
help them to sustain in the competitive environment (Radnor and et.al., 2015). In the above part,
the application or approaches of the operation management which is used at Starbucks has been
discussed. It was identified that the management uses Six Sigma approach and Total quality
management approach of operation management in order to improve and enhance the
productivity and profitability of the organisation. The external and internal environmental factors
impacts on the operation management of Starbucks. By considering the importance of these
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factors, the management formulate precise polices that helps them to sustain in the market
economy of the country. The leader and manager plays crucial role in formulation of policies and
deciding the approach of managing the operations of the organisation. As Starbucks is one of the
most renowned coffee shop in the locality. The manager and leader both play important role and
both posses essential functions that helps the organisation to accomplish their desired goals and
objectives effectively and efficiently (Chen, 2017). Thus, it implies that the management of the
organisation needs to evaluate the operational management application before formulating
decisions. This will helps them to increase the productivity and profitability of the organisation.
CONCLUSION
From the above report it can be understood that operation management is the process of
managing the day to day operation of the business organisation. In this context, the following
assignment shows the operations and management of Starbucks. As Starbucks is one of the most
renowned coffee shop in the locality. The manager and leader both play important role and both
posses essential functions that helps the organisation to accomplish their desired goals and
objectives effectively and efficiently. In this context, the roles of leader and function of manager
has been discussed in this report. Further, the key approaches to the operation management and
the importance of operation management in achieving the organisational goals and objectives has
been assess in this report. The factors within which the business of Starbucks got affected has
been assessed in this assignment.
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REFERENCES
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More Effective Transportation Systems Management and Operations (No. FHWA-HOP-
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Chen, L., 2017. White Privilege in Environmental Policy: An Analysis of Hazardous Waste
Management and Operations in Southeast Los Angeles.
Chevalier, P., and et.al., 2015. Revenue management for operations with urgent
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Radnor, Z.J., and et.al., 2015. Public Service Operations Management: A Research Handbook.
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