Analysis of Operations Management and Leadership at Starbucks

This report provides a detailed analysis of Starbucks' operations management and leadership, exploring key approaches, the roles of leaders and managers, and the importance of operational effectiveness. It examines various tools and techniques such as total quality management and just-in-time inventory, highlighting their impact on consumer satisfaction, waste minimization, and profit maximization. The report also delves into internal and external factors within the business environment affecting operational management, including customers, employees, suppliers, legal, political, and technological factors. It critically evaluates these factors, emphasizing their influence on Starbucks' strategic decision-making and overall business performance. The report concludes by summarizing the key findings and implications for effective operations management within the context of the Starbucks business model.

MANAGEMENT
AND
OPERATIONS
(Project 2)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 3 ...........................................................................................................................................1
P4) Key approaches to operations management and the role played by leaders and managers. 1
P5 Importance and value of operations management.................................................................2
M3 Leader and managers can boosting OM effectiveness.........................................................3
TASK 4............................................................................................................................................4
P6 Factors with in business environment that affect on operational management.....................4
M4 Different factors effecting business environment.................................................................5
D2 Critically evaluation of factors affecting operations management .......................................5
CONCLUSION ..............................................................................................................................6
REFERENCE ..................................................................................................................................8

INTRODUCTION
Management and operations are valuable task for all business in order to run all their
activities in effective and planned ways. Activities are executed with the help of ensuring
effective coordination between various department like finance, human resources, operations,
research and development thus business can achieve success in their operations. The operational
department are playing an important role in order to manage all the people, resources which are
available and these should be effectively utilised, adopting new technologies and other elements
which are useful for business operations (De Roover, 2017). The report contains the study about
importance of operational functions by which firms can achieve all business goals and
objectives, applications of various theories and models which can be applied in business
operations and also the factors which are essential for business operations.
TASK 3
P4) Key approaches to operations management and the role played by leaders and managers
Operational management are important tool for every business as they are valuable factor
in order to manage working of business in effectual and planned ways. There are different
activities combined in order to execute working in effectual and planned ways so that firms can
easily achieve success in their operations. Starbucks are offering quality products to their
customers in order to enhance their sales ratios and retain loyal customers who will enhance their
profitability factors. Plans are made in order to generate innovative ideas by which Starbucks can
enhance their profitability factors. The role played by mangers and leaders at Starbucks are
effective in order to execute all business operations in effective and planned ways. The role
played at business organisations by mangers are described below as:
Planning: This is an important process which is executed by mangers who are involved
in performing business activities (De Vries and Huijsman, 2011). If person is making plans in
order to start business operations then all the activities had to be executed in proper directions.
Effective development of plans are valuable in order to organise all business operations in
planned and systematic ways. Plans should be developed by all the higher authorities who are
involved in business operations in order to achieve higher profitability and growth.
Managing: Mangers at work place are playing the role of guide as they are directing
employees in order to carry out all their business operations in right direction thus achieving
growth for firms. Managers are playing an important role in order to make effective execute all
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business operations by which they can achieve success in their operations. Mangers at Starbucks
are focused towards establishing coordination among various business activities by which they
can achieve growth.
Total quality management: This is the most essential tools which are used by mangers at
work place in order to carry out their business operations in systematic and planned ways. In this
modern age customers are mostly focused towards purchasing quality products rather then
analysing its price. Starbucks are mainly focused on providing quality coffee products in order to
retain loyalty aspects of their customers. This is an important tool for all business as it helps
them to develop competitive advantages by selling products which are different from their
rivalry business.
Just in time: This is an important tool for those business who are dealing in inventory
sectors as it helps in effectively removing all the waste factors from business organisations thus
there quality can be raised. This results in gaining attention of buyers thus there sales ratios will
be enhanced. Starbucks are developing efforts in order to provide quality services to clients in
specified time durations thus gaining loyal and satisfied customers.
Coordinating: This is an important function which are performed by leaders at market
place in order to establish good coordination among mangers and employees thus development
of healthy environment at work places. Good relations are valuable factors in order to execute all
business operations in specified time (Dekker, Bloemhof and Mallidis, 2012).
P5 Importance and value of operations management
Management and operations are described as the process which are used in order to carry
out all business activities in effective and planned ways by which firms can gain success in their
operations. This is valuable factor for managers in order to achieve all business goals and
objectives in desired time frames (Galindo and Batta, 2013). The importance and values of
Operational management are evaluated below as:
Wastage Minimisation: Starbucks are running their business operations in beverages
goods such as tea and coffee. They are developing plans in order to reduce waste by
development of innovative ideas thus retaining loyal customers who will buy their products. All
the resources which are available in economy should be utilised in effective and planned ways in
order to achieve success in their operations as waste reduction.
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Profit maximisation: Starbucks have retained their images at market places as they are
offering quality coffee products to their customers. If activities are managed in effective and
planned ways then it results in reduction of cost factors and wastage that may assist in increasing
profitability factors for firms. If they are using advanced technologies then it results in satisfying
needs and wants of customer thus earning higher profitability (Macfarlane, 2011).
Consumer satisfaction: This is an important factor because if customers are satisfied
with the products then they will purchase them thus gaining profits and enhancing their revenues.
The main aim of every business is linked with providing quality products to all customers in
order to enhance their profitability ratios. Starbucks are offering quality coffee products to all
their customers in order to gain competitive advantages. If activities are organised in effective
ways then operations management will be ensured at work places.
Improving quality standard: In order to make improvement in quality of products it is
required by firms to mange all their operations in effective and planned ways. The products are
developed after analysing needs and wants of all their customers in order to offer them goods
according to their choices. This is most vital factors by which company have achieve strong
positions at market places.
Enhancing Goodwill: This is the most vital factor for all firms as they are focused on
establishing good images ta market places by which people can achieve success in their overall
business operations (Goodarzi, Ziaei and Shokri, 2013). This is valuable factor in order to
expand there overall business operations around the globe. Starbucks have build strong images at
market places and there are quality coffee products to their customers.
M3 Leader and managers can boosting OM effectiveness
Managers and Leaders are valuable factor for every business as they are running their
business operations in order to achieve all set gaols and objectives. These persons have
established strong coordination among themselves in order to execute whole business process in
effectual and planned ways (Gunasekaran and Ngai, 2012). There are different tools and
techniques which are used by firms like Just in time, quality management and lean production
which are valuable in order to perform all business operations in effectual and planned ways thus
achieving success in their operations. This is valuable factors for Starbucks as they can easily
increase their quality standards and reducing the cost of production. Firms are executing their
business operations by using advanced technologies thus mangers can increase their efficiency.
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TASK 4
P6 Factors with in business environment that affect on operational management
There are basically two business process which are useful in order to make effective
decisions for Starbucks. This is valuable factor in order to mange all business operations in
effective and planned ways.
Internal factor: These are factors which are evolving inside the business organisations
like Starbucks and they are affecting the decision making process which are organised at work
places. It includes the following aspects as:
Customers: The clients of Starbucks are playing an important role in order to promote
product thus achievement of success for business. They are developing innovative ideas in order
to satisfy customers by developing products according to their choices. Thus firms can easily
achieve competitive gains at market places. They are having clients who are consuming their
coffee products.
Employees: These are described as the blood cell of every business organisations and
they are developing innovative ideas in order to achieve growth and success for business
organisations (Gunasekaran, Irani and Papadopoulos, 2014). Starbucks are providing training to
their employees in order to make them familiar with working environment so they can easily
achieve all their gaols and targets.
Society: It is the duty of all managers in order to execute all business operations in ethical
and planned ways so that organisations can achieve success in their operations. Starbucks are
offering hygiene coffee products to all their customers so that people can lead a happy and
healthy life.
Suppliers: They are major sources of providing raw materials and they are responsible
for increasing or decreasing the cost which is incurred on production process. There should be
strong relations developed by mangers with their suppliers in order to get raw materials at
minimum rates (Li and Feng, 2014). They are having the major responsibilities in order to reduce
cost by purchasing raw materials at low prices.
External factors: These factors are always operating outside the business organisations
and they are effectively managing all the factors which are executing internally. With the help of
these factors company can easily identify there market position by which they can achieve
competitive gains.
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Legal factors: These are reflected as plans and policies which are framed by government
bodies in order to maintain their financial positions. It is held by all the legal authorities and
managers because of Litigation process. This results in reducing their brand images, the revenue
factors of business and the financial positions of firms. They had to follow all plans and policies
which are enacted by government in order to successfully execute all their business operations.
Political factor: There are various issues which are currently faced by Starbucks like due
to revise in taxation policy company had faced fall in their sales ratios thus they are not able to
establish strong positions at market places (Hammill and Tanner, 2011). People are consuming
products from those firms who are offering at less prices and which contains quality. In order to
build strong positions firms had to develop innovative ideas in order to satisfy needs of their
clients.
Technological factor: Starbucks should develop their products according to new
technologies in order to satisfy needs and wants of all their potential clients. They had to focus
on quality aspects in build strong positions at market places. This is valuable factors for firms as
they can easily enhance their sales and profitability ratios.
M4 Different factors effecting business environment
In business it is very important factor in order to execute all business operations in
systematic and planned ways by which firm scan gain success in their operations. The activities
can have negative and positive impact on the mind set of buyers. There are two factors which are
reflected in business environment such as internal and external. This is valuable factors for
mangers in order to identify all the internal sources like employees, suppliers, customers etc. The
external factors are useful in order to achieve strong positions at market places and these factors
cannot be controlled by mangers.
D2 Critically evaluation of factors affecting operations management
According to Helleno, (2015). There are internal and external factors and these are
greatly affecting business of Starbucks. Managers should develop plans in order to analyse all
those factors which are having their operation's in wider environment so that activities of
business will not be affected. This is valuable factors for business in order to enhance their sales
and profitability ratios thus achieving success in their business operations.
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CONCLUSION
From the above report it can be stated that operational management are essential tools in
order to execute all business activities in effective and planned ways so firms can easily achieve
success in their operations. Mangers and leaders are having skills and capabilities by which they
can easily achieve organisational gaols and objectives. Various quality management tools have to
be considered by firms like Just in Time as these are essential factors in order to complete
business operations in desired time frame.
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REFERENCE
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De Roover, R., 2017. The Medici bank: its organization, management, operations, and decline.
Pickle Partners Publishing.
De Vries, J. and Huijsman, R., 2011. Supply chain management in health services: an overview.
Supply Chain Management: An International Journal. 16(3). pp.159-165.
Dekker, R., Bloemhof, J. and Mallidis, I., 2012. Operations Research for green logistics–An
overview of aspects, issues, contributions and challenges. European Journal of
Operational Research. 219(3). pp.671-679.
Galindo, G. and Batta, R., 2013. Review of recent developments in OR/MS research in disaster
operations management. European Journal of Operational Research. 230(2). pp.201-
211.
Goodarzi, E., Ziaei, M. and Shokri, N., 2013. Reservoir operation management by optimization
and stochastic simulation. Journal of Water Supply: Research and Technology-Aqua.
62(3). pp.138-154.
Gunasekaran, A. and Ngai, E. W., 2012. The future of operations management: an outlook and
analysis. International Journal of Production Economics. 135(2). pp.687-701.
Gunasekaran, A., Irani, Z. and Papadopoulos, T., 2014. Modelling and analysis of sustainable
operations management: certain investigations for research and applications. Journal of
the Operational Research Society. 65(6). pp.806-823.
Hammill, A. and Tanner, T., 2011. Harmonising climate risk management: Adaptation screening
and assessment tools for development co-operation. (No. 36). OECD Publishing.
Helleno, A.L. and et. al., 2015. Integrating value stream mapping and discrete events simulation
as decision making tools in operation management. The International Journal of
Advanced Manufacturing Technology. 80(5-8). pp.1059-1066.
Li, C. B., Li, P. and Feng, X., 2014. Analysis of wind power generation operation management
risk in China. Renewable Energy. 64. pp.266-275.
Macfarlane, B., 2011. Professors as intellectual leaders: Formation, identity and role. Studies in
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Online
SWOT Analysis, 2017. [Online]. Available through: <http://www.business-to-you.com/swot-
analysis/>. [Accessed on 7th November, 2017].
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