Management and Operations Report: Starbucks Analysis

This report provides a comprehensive analysis of management and operations within Starbucks, a multinational coffeehouse company. It begins by defining and differentiating the roles and characteristics of leaders and managers, emphasizing communication, self-awareness, empathy, and delegation. The report then examines how these roles apply in various business situations, including internal management, conflict resolution, assigning duties, and team management. Different leadership theories and models are explored, including situational leadership, systems leadership, and contingency leadership, highlighting their strengths and weaknesses within the Starbucks context. The report further delves into operational management approaches, such as Six Sigma, and the roles of leaders and managers in implementing them. Finally, it considers the factors within the business environment that impact operational management and decision-making, offering a holistic view of Starbucks' operational strategies. The report concludes with a summary of the findings and a list of references.

Management and Operations
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define and differentiate different roles and characteristics of leaders and managers...........3
TASK 2 ...........................................................................................................................................5
P2 Determine how role of leaders and function of manager apply in different business
situations.....................................................................................................................................5
P3 Determine different theories and models of approach, including situational leadership,
systems leadership and contingency...........................................................................................7
TASK 3 ...........................................................................................................................................8
P4 Determine important approaches to operational management and role that leaders and
managers play..............................................................................................................................8
P5 Determine importance and value of operations management..............................................10
TASK 4..........................................................................................................................................11
Determine factors within the business environment that impact upon operational management
and decision-making by leaders and managers.........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13
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INTRODUCTION
Operational management is the key function concerned with conducting day to day
operation of business. It involves different activities to carry proper functioning of the business
activities. It includes planning, organising and supervision of production and other business
related functions. It is defined by the process transferring input into output, here input can be
human capital, raw material and any other services whereas output refers to products and
services rendered by the company (Bhaumik, 2018). Starbucks is an multinational organisation
famously known for production for coffee house based out UK, founded by Jerry Baldwin, Zev
Siegl and Gordon Bowker. It sells drinks, coffees, snacks, beverages, tea and other edible
products. It produces world famous coffees, capturing large share of market share and brand
value. This report covers role of leader and functions of manager, approaches and importance of
operational management, relationship between leadership and management.
TASK 1
P1 Define and differentiate different roles and characteristics of leaders and managers
Leader is a person who takes charge of influencing and encouraging individuals to work
in a same direction to achieve organisational objectives. Leaders manages individuals in a
direction so that employees work for accomplishing organisational goals. Leader performs
different roles and posses different characteristics for managing organisational functions.
Characteristic of leaders
Communication
Communication is an important aspect for any leader for effectively communicate
organisational goals and objectives to the management. Leaders in Starbucks are responsible for
conveying right message, to right employee at right period of time (Calais and et.al., 2017).
Without organisational communication, employees will be misdirected and result in business
failure.
Self awareness
Self awareness is a characteristic that leader should posses. Leaders should be aware
about the current business situation to take critical decision making. A leader should maintain
workforce diversity to understand human capital and formulate decisions which contributes
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employee engagement. Leader should be aware about changing business environment and take
decisions to cope up with external business challenges.
Role of leaders
Personal and organisational growth
Leaders is responsible for building and developing personal and organisational growth.
Leaders in Starbucks are deployed to performs different functions to coordinate efforts of
individuals and render continuous learning to employees to achieve employee development and
attainment organisational objectives (Chen and et.al., 2020. ).
Delegate duties
Regional leader in Starbucks performs different functions to delegate roles and duties to
employees. A leader should delegate different duties to employees to carry functioning of the
business activities, where employees are well aware about the job they have perform and reduces
the inefficiency at work.
Characteristics of managers
Leadership
Leadership is an important characteristics that mangers should have. Managers at
different organisational level in Starbucks, encourages leadership qualities to direct employees to
work effectively.
Empathy
Empathy is a characteristics which promotes employee well being and safety in the
organisation. Managers should take social concerns of employee so that employee feel
comfortable and positive working environment in the organisation (Choi, Guo and Luo, 2020).
Role of managers
Motivation
In context of Starbucks, managers motivates employees to attain work efficiencies.
Managers uses different motivation tools like reward system which includes incentives and job
appraisals.
Training
Managers gives training and development programmes to employees to improve
employee performance. training is been given to employees who are new to the organisation,
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while joining new product or to employees whose performance does not matches the standard
(Erjavec and Trkman, 2020).
Supervision
A manager supervises the employees, by overseeing the job performed by each
employee. Starbucks follows a hierarchical structure in organisation for chain of command,
where mangers delegates roles and responsibilities to subordinates and monitors performance to
check the effectiveness of objective achieved.
TASK 2
P2 Determine how role of leaders and function of manager apply in different business situations
Leaders and managers performs different roles and functions at business situations. It is
the ethical responsibility of manger and leaders to promotes employee engagement accumulates
efforts of different individuals to achieve business objectives. Starbucks allots manager and
leader to monitor subordinate performs and performs different functioning. Some roles of leaders
and functions of managers are been discussed below:
Internal management
Internal management involves stabilising business environment to promote functioning
and coordination of different business functions. Leader control workforce diversity and smooth
communication to ensure productivity in business objectives. Starbucks allots leaders to maintain
and manage the flow of transparency and accountability in business activity. Managers
implement strategic decisions and ensures the achievement of organisational objectives.
Starbucks is an international brand with large number of employees deployed. So, it becomes
difficult for managers and leaders to manage workforce diversity in the organisation. Manager
and leaders at different level and of different projects are manages internal workforce to ensure
smooth functioning of business activities (Grover, Kar and Dwivedi, 2020).
Internal conflicts
Managers in Starbucks are responsible to maintain workplace management. Managers
conduct informal meets and formal general meeting to build effective communication and
accountability of different business events. Employees gives their opinion in formulating future
business plan which helps to value employee position and respects in the organisation, it also
develops friendly relationship and cooperation in the organisation. Internal conflicts leads to
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inefficiency and loose the organisational direction of achieving objectives. leaders promotes
internal management to achieve productivity and efficiency of work. Internal conflicts develops
the gap of communication which crashes organisational objectives (Haksever and Render, 2017).
Leaders are deployed in different teams to monitor the subordinates and maintains discipline in
workplace to resolves internal conflict among the employees which disrupts productivity of
employees in the organisation.
Assigning duties
Managers are responsible in Starbucks for assigns and delegates roles and duties to
employees. Manager formulates strategic business decisions in accordance of business goals,
delegates job task to different management levels. They deploys teams and group to assign group
target. Different teams are been divided with specific target which promotes easy division of
work among employees. While assigning roles and duties to employees it is crucial to realise
areas of job interest of each employees. When leaders get the specific targets from manager, it is
sole function of leaders to divide the job role in accordance of skills ascertained by different
individuals. Employees who posses different skills and knowledge are given the relevant job
roles. Leaders assign duties to employees to promote division and delegation of work. Different
job roles are dividing into finance, sales, customer services etc. to perform different functions
effectively (Hazen and et.al., 2018).
Team management
In Starbucks, teams are been divided to promote division of work, different teams are
divided as finance, marketing, sales and other teams to organisational objectives. Managers
allots these teams in accordance different organisation and deploys leaders for each team.
Leaders manages team to coordinate efforts of different individuals and develop group goals. It
promotes communication, and teamwork to achieve organisation objectives.
Thus, Manager and leaders ascertain positive working environment in the organisation,
managers takes issues of each employee to develop fair working environment in the organisation.
Managers and leaders in Starbucks promotes ethical working environment in organisation.
Internal conflicts negatively impacts business objectives, maintaining positive environment
becomes crucial for manger and leaders to develop workforce stability and business growth.
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P3 Determine different theories and models of approach, including situational leadership,
systems leadership and contingency
Leadership encourages employees to work effectively and proactively to attain
organisational objectives. Leaders affects employee behaviour and contributes to positive
working environment (Holweg and et.al., 2018). Leaders uses different approaches and theories
that matches to respective organisational environment. Some leadership approaches and theories
are discussed as:
Situational leadership
Situational leadership is a leadership approach which defines the relationship and
behaviour of subordinates and leader at different business events. Leaders applies this leadership
approach to adapt in accordance of working environment. Leader modifies their leadership styles
in accordance of the changes in the business environment and employee behaviour. Situational
leadership includes four styles based on employee behaviour which are discussed below:
 Telling: Subordinates have not skills to accomplish task but they are proactive to
perform task.
 Selling: Selling involves when employees have specific skills of assigned job role but
are demotivated to perform different task.
 Participating: Participating involves where employees are highly experienced and skilled
but are not willing to put efforts to perform different task.
 Delegating: Delegating involves where employees are highly skilled and efficient and
enthusiastically completes the assigned task.
Strengths: Situational leadership in Starbucks helps to adapt to changes in the business
environment, it helps to delegate job role in accordance of the skills of employees which
determines efficiency of work by understanding employee behaviour.
Weaknesses: Situational leadership in Starbucks creates difficulty of a manager to understand the
behaviour of each employee and measure the efficiency of performance (J Childe, 2017).
System leadership
System leadership involves cooperation and collaboration with different department,
organisation to implement strategic decision making. It involves establishing solutions of
different organisational problems and challenges. Leaders take collective decisions by seeing the
capabilities of inter departments to external business challenges.
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Strengths: System leadership used by leaders in Starbucks provides analytical solution for
external business problems, it helps to builds decisions and plans by taking concerns from inter
departments, it helps to develop an expert solution from different department of an organisation.
Weaknesses: System leadership in Starbucks leads to consumes huge time and efforts and creates
confusion and chaos as different solution from organisational department renders solution which
may or may not effective for a specific teams.
Contingency leadership
Contingency approach defines where different leadership styles is ineffective to different
business situation. it involves where leadership styles depends on business events. same leaders
can be effective and ineffective in different business situation based on the are of job interest. It
takes proper analysation and building planning and decision for each situations(Jabbour, Song
and Godinho Filho, 2020).
Strengths: contingency leadership in Starbucks provides evaluation of each business event to
adopt flexible leadership styles which suits organisation objectives. It helps to render solution of
each external events, where leaders adapts themselves in external business situation to attain
organisational success.
Weaknesses: The weakness of contingency leadership used in Starbucks results inefficiency of
leaders in different business environment. Leaders performs roles and duties which matches
his/her skills set, completely depending on business situation rather then the skills and
knowledge of leaders results in wrong solution.
TASK 3
P4 Determine important approaches to operational management and role that leaders and
managers play
Approaches of operational management involves building efficiency in business
activities. To improve the business functions Starbucks uses different operational management
approaches to capture market share and continue business growth in the international market. It
involves different strategies for profit maximisation and optimum use of resources to achieve the
quality of conducting business activities (Kumar, Mookerjee and Shubham, 2018). Managers and
leaders uses human capital workforce to achieve business success. Different approaches used by
managers and leaders for operational management in Starbucks are stated below:
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Six sigma
Six sigma is coined around improving the quality of products, services and procedures. In
context of Starbucks, for meeting continuous needs of market demand, it uses six sigma to
optimum utilisation of resources and cutting down the use of unwanted resources and production
process which will reduce complexity of work. It involves different steps to clean and maintain
the daily used physical objects and arrange the different process by clearly stating which is
easily understood by different individuals, leaders also arrange daily used objects in a way which
reduces confusion and time for the purpose to simply the process of production (Liu and et.al.,
2019).
Lean manufacturing
Lean manufacturing involves removing wasteful resources in manufacturing process.
Starbucks uses lean manufacturing to build efficiency of task by systematic process of
performing different task. It reduces the complexity in production activities and achieve
productivity. Waste is considered anything which does not contributes to business activities. It
helps to add value, improves the quality of products and services, save cost of production and
promotes economical production activities (Plaskova, Prodanova and Reshetov, 2020).
Business process redesign
Business process redesign involves around developing business strategies to improve
business performance and management of activities in production. Managers and leaders in
Starbucks uses business process redesign for the purpose of eliminating or removing the process
which does not suit the specific business environment. Leaders restructures and redesigns
business plans and policies of different business challenges to achieve organisational objective.
different business situation involves increase in supply, customer services and other business
events, for different business situations leaders redesign business plans which best suit business
objectives.
Kaizan approach
Kaizan is a Javanese word, which means improvement. Kaizan approach is used by
business to improve the process, procedures to develop quality products and services. Kaizan
approach is used by Starbucks for the major objective to reduces and remove the wasteful
process to achieve efficiency of work. It is a continuous process of bringing and implementing
new changes in the production process to achieve efficiency and productivity.
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Reconfigurable manufacturing system
This approach used by leaders and managers in Starbucks involves over bringing changes
in structure and other different components to improve production capabilities and business
functions in order to adapt to external business challenges.
P5 Determine importance and value of operations management
Operational management is defined by design the business functions in a way which
enhance the efficiency of production of goods and services. to manages operational management,
Starbucks deploys operational manager and leaders at different organisational level. Operational
management is a framework which defines that how organisation uses different resources an
conducts business function which will enhance productivity of business functioning (Ravinder
and Kollikkathara, 2017).
Product quality
Operational management involves different function to improve the process of production
and process which helps to achieve the efficiency of work. Operational manager in Starbucks
implement different strategic plans to improve product quality and deploys quality check
manager to check quality of each products offered by the company, it passes through proper
checks stages to ascertain right product quality (Riley and et.al., 2017).
Customer satisfaction
Operational management involves changes and modification of business process to
achieve business efficiency. helps to achieve customer satisfaction by rendering quality products
and services. Starbucks has acquired global market share position by achieving customer
satisfaction. Starbucks adopt economical policies to promote production functions of producing
quality products and services. Manager are responsible for generating new innovative ideas like
serving different flavours of coffee and new delicacies which attracts customers.
Profit maximisation
Operational management helps to attain profit maximisation by improving the quality of
procedures in production activities. Starbucks manages business operation by deploying
operational manages for long term planning of proper functioning of business functions to
achieve productivity by optimum utilisation of resources which helps which saves the cost of
production and generate revenue of the business. operational manager also performs functions to
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implement new innovative product development strategies to which helps to develop strong
market positing and market share.
TASK 4
P6 Determine factors within the business environment that impact upon operational management
and decision-making by leaders and managers.
Business environment is been affected by different internals and external environment
factors, internal factors involves workforce and internal management whereas externals
environment involves various political, legal, cultural, technological, and social factor which
affects the business environment and decision taking abilities of leaders and managers. Some of
these factors are been discussed below:
Social responsibility
It involves taking social responsibilities for society. Business should take concerns of
society to save social cost and ensure other business activities does not harms the social beliefs
of people. Different measures used by Starbucks involves using paper cups to serve coffees to its
customers, it also uses plant based component in its food products to save the social scot and
fulfil social responsibility (Schiavone and Sprenger, 2017).
Stakeholder relationship
Stakeholder involves all those people who are interested in a company. It involves
inventors, lenders, customers etc. Starbucks develop good stakeholder relationship which helps
to build business goodwill in the market globally. Mangers and leaders formulates business
decisions which promotes fair trading relationship with its stakeholders by rendering complete
information in the financial statements. It develops a sense of reliability in market.
Technological factors
Business should implement its business decision and policies in accordance of current
technological changes. In technological advanced era, Starbucks uses different technologically
advanced equipment in order to match current market trend and demand. Starbucks uses Radio
frequency identification device(RFID) for tracking object and people. It places RFID tags the
products to track the object right from the production unit to retail stores (Shevchenko and et.al.,
2018). It uses different technologically advanced tools in order to promote work efficiency and
productivity.
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Internal management
Internals management is an important aspect which ascertains the decision making
abilities of managers. Understanding employee behaviour and employee engagement is an
crucial internal factors. Human resource manger of Starbucks ascertains different employee
engagement policies to enhancing productivity and efficiency of employee performance. Human
resource manger evaluates the performance of each employee by rendering different promotional
tools to apprise the performance of employees and renders training to employees to achieve the
productivity of employees and improve customer services (Slack and Brandon-Jones, 2018).
CONCLUSION
Operational management is termed by designing a framework of business design which states
that different process and procedures which helps business to attain objectives. It involves
continuous process of increasing production efficiency and management of business function.
operation management involves business activities for production of goods and services.
Managers and leaders in an organisation formulates strategic decision to achieve continuous
improvement in business functions. Operation management involves activities to achieve
efficiency which helps to save the cost of production, minimise redundancies in business
functions to achieve profit gaols and productivity.
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