Consultancy Project for Hospitality Management: Starbucks Report

This report is a consultancy project analyzing the managerial challenges faced by Starbucks within the hospitality sector. It begins with an introduction to the hospitality industry and provides an overview of Starbucks, an American coffee company with a global presence. The main body of the report identifies key challenges, including skilled labor shortages and the need for regular innovation in response to customer demands, such as free Wi-Fi and updated technology within the cafes. The report then critically analyzes management theory, specifically highlighting the Scientific Management theory and its application in resolving issues related to production and control. The report also touches upon the autocratic management style employed by Starbucks. The report further discusses how to address the managerial problems. It suggests exercising initiative and taking responsibility for outcomes. The conclusion emphasizes the importance of providing excellent services to satisfy customer demands and sustain competitiveness in the hospitality business. The report also references relevant books and journals.

Consultancy Project
for Hospitality
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Range of managerial challenges within hospitality sector......................................................1
2. Critically analyse management theory, analyse and interpret a variety of complex industry-
specific managerial problems and issues ...................................................................................1
3. Exercise initiative and take responsibility for the outcomes of their decision, or proposed
action and to evaluate the impact of these outcomes in a real-life context.................................2
CONCLUSION................................................................................................................................3
REFFERNCES.................................................................................................................................4

INTRODUCTION
Hospitality is a broad category of service industry which includes lodging, food and
beverage service, event planning and theme parks, transportation and travelling field within the
tourism industry (Ahmad, Bakar and Ahmad, 2018). This project is based on the Starbucks
organisation. It is an American coffee company and a coffee house chain which operates
approximately 30, 000 locations worldwide. This project will throw lights on solving the
management issues by the use of appropriate theory. Apart from this discusses range of
managerial challenges within the hospitality sector.
MAIN BODY
1. Range of managerial challenges within hospitality sector
Starbucks is part of Hospitality sector which is broad category of industries which poses
necessary several challenges which the respective organisation faces. These are discussed as
follows-
 Skilled Labour Shortage - This is one the major problem which is associated in hiring
the best skilled labour so as to perform activities of Starbucks in a effective manner and
provide satisfactory services to the customers. This creates problem for the manager at
the Starbucks to get skilled labour as well as increase training cost for the organisation.
 Regular innovation- This is the one of the management issues within the Starbucks
which is part of hospitality industry. With the increase in technology customers starts
demanding free Wi-Fi, flat screen TV and music facilities under the coffee which rely
heavy cost for the Starbucks and they have to increase price of their offerings (Bowie and
et. al., 2016).
These are the major managerial challenges which is been faced by the Starbucks and
organisation needs to taker effective decisions so as to sustain in this competitive global
environment and increase reputation for the company.
2. Critically analyse management theory, analyse and interpret a variety of complex industry-
specific managerial problems and issues
In order to address the specific managerial challenges which is been faced by the
Starbucks such as skilled labour shortage as well as the problem associated with innovation in
the Cafe. These are the major issues to which necessary actions should be taken in order to
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enhance the image of the company. These problems can be solved by Scientific Management
theory which states with the increase in the companies and industries, it led to numerous
problems in production and control. This type of method is used for solving management
problems. This management theory help in resolving issues find within organisation. On the
other hand, implementation of respective theory result in consuming extra time. Apart from this,
in Starbucks autocratic management style follow in which manager take decisions unilaterally
without involving subordinates. In this staff members have to follow decision which are taken by
higher authority or manager of respective organisation. For instance, decision related to change
in customer taste and preferences as well as modification within offerings are taken by higher
level authority of Starbucks. The specific organisation faces the following issues which are
discussed below-
 Regular Innovation- With the increase awareness about the advancement in technology
customers inside the cafe require Wi-Fi, music TV facilities so to enjoy while drinking
coffee. Therefore it is the responsibility of the management of the Starbucks to innovate
the facilities inside the cafe and meet the requirement of the customers. This will assist
the respective organisation in attracting more customers and which leads to the
enhancement of profits (Bradbury and O'Boyle, 2017).
 Skilled Labour Shortage- This bis one of the management problem associated with
hiring the trained candidates, otherwise it leads to increase in the enhancement of profits.
It is the responsibility of the manager within the Starbucks to hire qualified candidates as
well as provide necessary trainings to enhance their skills . This makes the employees to
provide standardised services to the customers and meet their satisfaction level and
enhances brand image of the company.
This theory of management formulated by Fred fiedler that describe traits of a leader that
directly influence their behaviour and tactics in positive way. According to him some kind of
leadership traits that helps in dealing some kind of situations that arise in organization. In that
case organization have to adopt various tools and techniques to manage properly organizational
activities. An leader have to be efficient to adopt a best management style that suits with
organizational situation. The main concept behind that theory that not a single management
approach not fit for every organization and for every situation. There are various kinds of
internal and external factors that helps in choosing the best and appropriate approach in context
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of an organization. It helps in identification of three important variables that influence
organizational structure that are size of organization, technology that employed and style of
leadership are important factors.
Manager of Starbucks is using transactional management style which mainly focus on
positive rewards like bonuses, incentives as well as stock options which utilise utilise for
improving performance of their staff members. As with continuous work after sometime staff
member get demotivated in that situation manager of Starbucks have to utilise this management
style and motivate them for improving there performance again.
3. Exercise initiative and take responsibility for the outcomes of their decision, or proposed
action and to evaluate the impact of these outcomes in a real-life context
In context to the above discussed Managerial problems of the Starbucks, it is the
responsibility of the manager to exercise initiative and take responsibility for the better outcome.
As Scientific Management improves the efficiency of the organisation and would help to solve
the management problems. It includes Standardisation of the working condition which ensures
that proper lighting, ventilation and temperature are perfect within the organisation as well as
establishes standard of performance which enable the employees within the Starbucks to perform
effectively and attain the desired results (Olsen and Trono, 2018).
Project is based on addressing the managerial challenges which the Starbucks is currently
facing. Proper innovation should be done in the cafe so as to attract customers on a larger scale
as well as proper and sufficient skilled employees should be filled within the organisation so as
to execute the task in a proper manner. This project requirement can be fulfilled at a time period
of 6 months. This would help the organisation in performing project activities in a proper
manner.
As with the help of this theory it will assist the respective organisation to hire and
maintain skilled workers within the organisation by providing necessary trainings and issues
related with the innovation can be also be resolves as this focuses on maintain standardisation of
the working conditions. In context to the Starbucks manger should take effective decisions on a
timely manner and conducts the business activities. Innovation and use of modern technology
inside the Starbucks cafe will enhances brand image of the organisation and assist in targeting
larger share of the market. Along with this quality of the Coffee should be maintained within the
organisation so that customers are satisfied and leads to repeated purchase. This would enhance
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the brand image of the organisation and resolves al the managerial issues associated with the
respective hospitality industry. Moreover Starbucks could add taste to the coffee according to the
requirement of the customers which results in heavy demand and will lead to huge profits for the
Starbucks organisation.
CONCLUSION
From the above report it has been concluded that proper services should be provided
hospitality sector organisation so as to fulfil the customers demands and provides long term
experience to them. It is therefore necessary for the organisations success and to remain
sustainable in this competitive business environment. As company is facing managerial issues it
is the responsibility of the manager to take appropriate actions and decisions which leads to
success of organisation and assist in targeting large number of customers. Moreover effective use
of management theory should be selected by the managers so as to resolve the issues.
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REFFERNCES
Books and Journals
Ahmad, S.Z., Bakar, A.R.A. and Ahmad, N., 2018. An evaluation of teaching methods of
entrepreneurship in hospitality and tourism programs. The International Journal of
Management Education. 16(1). pp.14-25.
Bowie and et. al., 2016. Hospitality marketing. Routledge.
Bradbury, T. and O'Boyle, I. Eds., 2017. Understanding Sport Management: International
Perspectives. Taylor & Francis.
Olsen, D.H. and Trono, A. eds., 2018. Religious Pilgrimage Routes and Trails: Sustainable
Development and Management. CABI.
Samaraweera, A., Senaratne, S. and Sandanayake, Y.G., 2018. Nature of construction project
cultures in the public sector: case studies in Sri Lanka. Built Environment Project and
Asset Management. 8(5). pp.557-568.
Taheri, B., O’Gorman, K. and Baxter, I., 2016. Contemporary issues in museums and heritage
marketing management: introduction to the special issue.
Talón-Ballestero and et.al., 2018. Using big data from customer relationship management
information systems to determine the client profile in the hotel sector. Tourism
Management. 68. pp.187-197.
Viglia, G., Pelloia, M. and Buhalis, D., 2018. Information Technology in Hospitality Education.
In Innovation in Hospitality Education (pp. 87-100). Springer, Cham.
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