Analysis of Leadership, Management, and Operations at Starbucks

This report provides an in-depth analysis of leadership and management within the context of Starbucks Corporation. It begins by comparing the distinct roles and characteristics of leaders and managers, followed by an examination of how these roles apply in various situations, such as responding to competitor strategies, managing increased costs, and enhancing productivity. The report then delves into different leadership theories, including situational, system, and contingency approaches, providing practical examples. Furthermore, it explores key approaches to operation management, such as Total Quality Management (TQM), Just-in-Time (JIT), and the concept of continuous improvement (Kaizen), highlighting the roles of leaders and managers in each. The report concludes by emphasizing the importance and value of operation management in achieving business objectives, and also considers factors within the business environment that impact operational management and decision-making.

Management and Operations

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
P1: Compare the different roles and characteristics of a leader and manager............................3
Task 2...............................................................................................................................................5
P2: How the role of a leader and the function of a manager apply in different situation..........5
P3: Different theories and models of approach including situational, system and contingency
theory...........................................................................................................................................6
Task 3...............................................................................................................................................7
P4: Key approaches to operation management and the role that leaders and managers play ....7
P5: Importance and value of operations management in achieving business objectives............8
Task 4...............................................................................................................................................9
P6: Factors within the business environment that impact upon operational management and
decision making..........................................................................................................................9
Conclusion.....................................................................................................................................10
References .....................................................................................................................................11

Introduction
Operation management plays an important part in the success of any organization. Operation
management refers to planning, organizing, and monitoring the business activities to improve
profitability of the company. In other words, properly use of resources which includes
technology, workforce, materials etc so to increase the effectivity and productivity of the
company. In this report Starbucks Corporation is taken into consideration. It is a coffee house
chain which headquarters in Washington United States of America. Starbucks has more than 500
stores in the UK itself. Roles and responsibilities of leaders and manager will be discuss with
functional examples.
Task 1
P1: Compare the different roles and characteristics of a leader and manager
Manager and leader is an important part of the organization as their work is to lead and
manage the workforce according to their skills and competencies. Manager is an individual
whose role is to manage the group or staff of the organization so to attain maximum productivity.
Different functions of the manager are discussed below,
Strategy implementation: The work of top management of Starbucks is to make the
strategy and role of a manager is to implement pre set strategy on daily life so to make the best
out of it. As it is one of the most difficult task where manager have to manage hundreds of staff
at the same time.
Managing coordination among staff: Company can only attain their goals and objective
if all the employees are working in a coordination. It can only accomplish if manager is
successful to manage the peace and harmony of the working environment. Each employees are
interdependent on each other and they should work together to achieve a common purpose of the
company in which they are working.
Information dissemination: Manager works as a bridge between the top management
and employees. Starbucks manager work is to dissemination of information like rules and
regulations to employees so that they will work accordingly. If employees are having any
complain regarding the work timing or condition then manager should share this information on
the behalf of employees to the top management. Manager can broadcast the information through
circulars, meetings or through calls.

Leader is an individual who influences the company to achieve their pre set goals by
motivating them regularly. Different types of role and characteristics of a leader is explain
below,
Make vision: Vision of any company should be crystal clear then only future strategies
would be made. Starbucks leader should make their company vision according to resources
available in the company and how they can achieve it to gain the competitive advantage.
Motivate and inspire: Motivation is important for the employees to perform with their
full potential. They should regularly motivate them with the help of positive or negative
reinforcement so that employees would work hard to achieve their assigned goals.
Decision making skills: An effective leader should take the decision after analysing all
the pros and cons of after impact of the decision. Starbucks leader should make the decision in
consideration of all the resources that company have and how it would be fully utilized so to
increase the efficiency of the organization.
Comparison between leader and manager
Leader Manager
Leader work is to set the direction of the
Starbucks.
Manager work is to implement the plan made
by the leader on the workforce of the
Starbucks.
Leader role is to plan different strategies of the
organization.
Manager role is to motivate and inspire the
employees to achieve their pre set goals which
would help them to attain purpose of the
company.
Characteristics of a leader and manager.
Focus: Leader of Starbucks should made their strategies and policies according to the
vision of the company. Manager should focus on implementing the strategy made by the leader.
Innovative thinking: Leader and manager should be innovative as it will help them to
tackle different type of situations without affecting the productivity of the an organization. Other
than that, it will assist them to innovate their products and make it unique which would help the
company to gain the competitive advantage over others.

Task 2
P2: How the role of a leader and the function of a manager apply in different situation
Due to competitive market, the decision taken by a manager and leader should be
dynamic and properly analysed so that decision would fit into any situation arises in future.
Company should prepare themselves from uncertainty that may arise in future (Jacobs, Chase
and Lummus, 2014). Different types of situation are discussed below,
Strategies against competitor: Starbucks has different and big competitors like CCD,
Costa Coffee. All the competitors are trying to gain the competitive advantage by providing
unique products with attractive strategies. Starbucks leader should analyse and monitor the
external environment regularly as it will help the understand their strategies. After analysing
leader should make the strategies which can compete with the external environment and help the
Starbucks to gain the top position. Manager role is to implement the strategies by assigning
different task to different employees according to their skills and competencies. As it will
motivate the employees to work harder thus helping the Starbucks to gain the competitive
advantages.
Increased cost of purchase and production: In the food industry, competitive
advantage is gain by the company who has lower prices than its competitor with better quality.
Leader role is to find out the vendor who supplies the raw material at lower cost and which
technology company would use to decrease the cost of production. Manager role is to motivate
the employees on a regular basis by giving bonus or incentives for their good performance. Other
than that manager should try to eliminate the resistance to change among the employees by
helping them with their work so that employees would achieve their goals with high efficiency.
Policies to enhance the productivity: If the working environment of the Starbucks is
healthy than it automatically motivates employees to work harder and achieve maximum
productivity. Manager role is to make the policies which could motivate the employees like
improving the working environment, new technologies while working, leaves flexible workplace
etc. Leader should opt a participative style as it will motivate the employees to work with full
commitment. Effective interpersonal skills is required in this situation (Ahuja, 2017)

P3: Different theories and models of approach including situational, system and contingency
theory
Three different types of theories to leadership are explained below with functional
example,
Situational approach: This theory states that decision taken by the leader is according to
the situation they are facing. This kind of approach is important at the time of critical situation
where fast decision should be taken by the manager or leader.
Situation: Due to global warming, the temperature of the London has increased dramatically due
to which the sales of hot coffee is reduced to a certain level. Now its leader responsibilities to
change their strategy and start making cold coffee to retain the customer thus saves the company
from loss. Manager role is to motivate the employees working there and try to clear the hurdles
that might be raised in the path of employee's. Continuous motivation is required by the manager
as it helps the employees to work harder (Ferguson and et. al., 2017).
System leadership: In this type of leadership, the decision taken by the leaders force the
employees at all level to work with their full efficiency. It helps all the employees to increase
their productivity which leads to increase in overall efficiency of the company. The
interdependencies between the employees is high which helps them to adopt the situations
according to the requirements.
Contingency leadership: Contingency leadership is used when the situation arises is
unexpected. It explains that there is no best way to organize the company instead handling the
company is depend upon the situation which may arise in the future. Leaders should opt their
leadership style according to the situation they are facing (Brandenburg and et. al., 2014).
Situation: Starbucks faced low sales in the law quarter due to online platform. All their
competitors was selling their different types of products online so that they can cpture more
market hence increase in profitablity of the company. Starbucks leaders and manager have
analysed this situation and to compete with them, they have also started selling their products
online with low price than its competitor. There main aim is to capture more market rather than
improving the profit. Leader vision is to acquire and retain the customer first and then earn from
providing products on a regular basis.

Task 3
P4: Key approaches to operation management and the role that leaders and managers play
Total quality management: Idea behind TQM approach is to create and maintain the
quality of the product organization is offering. This approach is based on elements which are
described below,
Customer requirement: Customer satisfaction is the key factor in the success of the
organization. Starbucks leader should regularly conduct survey so that needs and wants of the
customer would be satisfy by providing the product accordingly. Manager role is to analyse the
feedback and grievance submitted by the customers and send them to leader so that new product
would be made according to the requirements of the customer (Turner, 2014).
Continuous improvement: Starbucks leaders should regularly upgrade and improve
their quality of product they are offering by setting the standards of the quality. It will them to
provide the best quality of coffee and snacks to the customer. Thus it will help the Starbucks to
increase their profitablity over time.
Involvement of employees: Its manager responsibilities to take employees feedback
regularly and if they are facing the problem due to old technology that it should be changed. It
would help the Starbucks to motivate their employees. Employees opinions should be taken by
the leader as they are the who are offering foods to customer and they have better knowledge of
needs of the customer as compare to leader or manager.
Just in time approach
In this approach, main aim is to save the inventory cost by acquiring raw materials at the
time of production and provide finished goods for sales in just in time. Inventory cost is reduce
in this approach which leads to increase in profitablity of the Starbucks. The role of leaders and
manager is to make the estimate of the footfalls in the future and order their raw materials
according to that. Different types of techniques used in the JIT approach is Minimum order
quantity, economic order quantity (Fernie and Sparks, 2014).
Concept of continuous improvement( Kaizen):
Kaizen approach is focus on continuous improvement of business practices of an
organization through change. Starbucks main aim is to improve the products they are offering in
regular basis so that company can gain the competitive advantage on the basis of quality. Leader

role is to implement the Kaizen strategy to all organizational level by making different policies
that promotes the Kaizen. Manager role is to implement the policies make by the leader on a
regular basis. They are also responsible for maintaining the quality and standards of the foods
Starbucks is offering.
P5: Importance and value of operations management in achieving business objectives
Operation management helps the company to achieve its objectives through different
ways which are described below,
Control and distribution system: Distribution system is important in operation management as
it helps in reducing the cost price of the product. Distribution of products should be properly
maintained and monitored as it will help them reduce their inventory and production cost of
Starbucks (Schönsleben, 2016).
Transformation of raw material into finished goods and service: Maximum utilisation of
resource helps the company to improve their profitablity. Raw materials are transformed into
finished goods according to the demand of the product. If JIT approach is use in Starbucks then it
will help the company to reduce the wastage, improves the quality of product, inventory cost is
reduced to a certain level etc. This will help the Starbucks to gain the competitive advantage over
others competitors.
Process design: Designing of the production process is important in the operations management.
If Starbucks is using lean management or six sigma techniques in their production process of
coffee or snacks then it will help the company to reduce their cost price which will leads to
positive impact on the balance sheet.
Capacity management: Capacity management helps the company to produce the products
according to the demand rather than on the basis of estimation. If no excess product is made on
the daily basis than Starbucks can save lot of money through saving extra product or raw
material. Other than that, if excess product are made than quality of the food will get hampered
and which will directly affect the goodwill of Starbucks. Capacity management helps the
Starbucks to produce right amount of product at the right time so to reduce the prdocution cost
for excess product (Smith, Maull and CL Ng, 2014).
Logistics and inventory management: With latest logistic and inventory support finished
goods and raw materials will be transport to the store at the right time. If the goods are not
transported to the store at the right time then customer will switch to their competitor which will

hamper their profitablity. So logistics department should be equipped with latest technology and
skills so that product can be supply at the right time. Apart from that distribution channel should
be properly selected as if wrong channel is use by the company then it will incur more cost to
them (Yabuki, NEC, 2014).
Task 4
P6: Factors within the business environment that impact upon operational management and
decision making.
Business environment of Starbucks if affected by many external factors which are
described below,
Customer social responsibility:
It is an approach through which company contributes in the betterment of society .
Starbucks should use washable or recycle dishes so that less harm will be made by the company.
Company should ensure that proper amount of natural resources should be in use by them so that
less pressure will be put in the environment. Starbucks can contribute in CSR by planting plants,
using less electricity, investment on solar panels etc. With good amount of CSR activities,
goodwill of the company is also increase. Other than that more investor are interested in
investing in Starbucks. CSR activities will help the Starbucks in decision making as ethical
decision will be made and decision which are beneficial to the society will be taken (Ravindran,
2016).
Culture:
Culture directly impacts the sales of the company. Starbucks should made their products
according to the culture of the place. For instance, citizens of London don't like to eat spicy or
oily products as they are health conscious, so if Starbucks are providing products which is oily or
spicy in nature than people will switch to other company and their sales will hamper. Starbucks
should make their products and their decision according to the culture of the country they are
operating.
Values:
Values refers to principal of one's behaviour. Values are made according to the
perception and experience the person has in their past. Values plays an important part while
making the product to the customers. For example if Starbucks is selling the beef which are

against the values of some society then customer wont buy the product thus loss for the
Starbucks. But if other society loves to eat beef than this will increase the sales of the product. So
Starbucks should made and modify the taste of their products according to the values customer
are having in the particular place (Greene, and Pierret, 2014).
Ethics:
Ethics is a principles which regulate the behaviour of a person. If the company is doing
their business activities ethically than it will improve the goodwill of the company. Starbucks
should conduct their business ethically by following rules and regulation made by the
government and their personal morale. As it will improve the brand image of the Starbucks and
through this more customers will be attracted. If company is not doing their business ethically
than there is a chances of legal issues which could be faced by the company (Hitt, Xu and
Carnes, 2016).
Conclusion
Leaders and managers are the important key persons in the success of the organization.
Leaders should opt their leadership styles according to the situation they are facing. Company
leader should be dynamic enough to tackle the different situation with the help of different
approaches like situational or contingency. Company should promote TQM in the working
environment as it improve the quality of product they are offering and reduce the wastage to a
certain level which helps the company to increase their profitablity. Other than that Kaizen
should be promote by the company so that regular improvement in the product happens.
Company should invest in CSR activities for the betterment of society which leads to improve in
the goodwill of the company. Product should be made according to the values, ethics and
principles of the product as it enhances the sales of the company.

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