Analysis of Leadership and Management in Starbucks Operations Report

This report provides an in-depth analysis of leadership and management within Starbucks, examining the roles of leaders and managers, and comparing different operational approaches. The report explores key approaches such as Six Sigma, lean production, and total quality management, and evaluates how these approaches impact the efficiency of the business. It also assesses the components within the business environment, including customers, employees, suppliers, and governmental factors, and their impact on management operations and decision-making. The report highlights the importance of operational management in achieving business objectives and suggests ways in which leaders and managers can improve the efficiency of operational management within Starbucks. The analysis also covers the application of different leadership styles, such as transformational leadership, and how they can influence business outcomes. Overall, the report provides a comprehensive overview of the management and operational strategies employed by Starbucks.

Management and
Operation

Table of Contents
PROJECT 2......................................................................................................................................3
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
2.1 Explanation about the key approaches to operation and management and role of the leader
and manger plays in Starbucks...............................................................................................3
2.2 Explanation of the importance and value of operation management in achieving business
objectives................................................................................................................................5
2.3 Evaluation of how leader and manager of the Starbucks can improve efficiency of
operational management.........................................................................................................6
TASK 3............................................................................................................................................6
3.1&3.2 & M4 Assessment of the components within the business environment in the
Starbucks which impact upon management operation and decision making by leader and
manager .................................................................................................................................6
3.3 Evaluation of application of operation management D2................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

PROJECT 2
INTRODUCTION
In order to conduct the management and operation in an organisation in excellent manner,
manager and leader play a very essential role in order to achieve the desired objective within a
specific time period. With help of manager and leader organisation can able to develop an
effective policy, practices and strategy. In the present report, management and leadership
concept and related theories has been systematically discussed with respect of Starbuck
company. It is an American coffee company which have main aim to produce and deliver high
quality of product and services. With help of this assignment, role of manager and function of
leader in the organisation can effectively discuss.
TASK 1
2.1 Explanation about the key approaches to operation and management and role of the leader
and manger plays in Starbucks
In an organisation, operation and management plays a very crucial role by which
company can produce the high level of product and services. In a simple words, it can be said
that it is a function which is responsible for manage and coordinate the resources which is
required to produce commodities of the company. The main aim of this operation and
management function in the organisation is to transform the input into the company's products
and services. In the Starbuck, operation management can help in large manner because cited
venture produces the high quality of coffee products for its customer so with help of this
function, cited venture can able to control, direct, dead the business activities related to operation
and production so as wastage can overcome and quality can improve. Thus, it can be said that
operation management can assist in developing competitive advantage and brand image in the
market. Following are some approaches of the operation management and role of leader and
manager in this aspect by which quality and efficiency of the business can improve-
Six Sigma- This is one of the most effective approach by which manufacturing and production
activities can be organised in an effective manner. The major objective of this approach of
management and operation is to improve the quality and potentiality of product and services. In
this aspect, wastage of the production and manufacturing can get eliminated by which quality of
the services can automatically improve. Leaders and managers monitor and evaluate the entire

procedure of operation management by which all function and activities can effectively conduct
in the company. Starbuck can improve its quality of services in the production and
manufacturing. Furthermore, it can easily overcome wastage and additional cost in these aspects.
Illustration 1: Six sigma
(Source: What Is Six Sigma? 2017)
Lean Production- Lean production is another one of the significant aspect in the operation
management which can aid in improving quality and performance of the business by overcome
the wastage and unused material. Starbuck can able to improve its quality and productivity by
eliminating the wastage and additional cost of its product and services (Iqbal and Sharma, 2012).
Total quality management- Total quality management is another one of the most significant
aspect in the operation management which helps to the company in improving its quality and
efficiency by eliminating additional cost and wastage. In this aspect, all member of the
organisation equally participating in the purpose to improve quality and productivity of the
services and products. In this aspect, with help of this application organisational culture, system,
structure can improve. Total productive maintenance is another name of the total quality
management. Starbuck’s managers and leaders influences to participate all functional department
members in the improvement of the business activities and services.

2.2 Explanation of the importance and value of operation management in achieving business
objectives
As per the above discussion it has been ascertained that operation management helps to the
organisation in improving quality and efficiency of the product and services. By use of several
approaches of the mentioned concept like total quality management, lean production, six sigma
etc company can improve quality and productivity of activities and services of business and also
overcome additional cost and wastage (Ghosh, 2015). Starbuck have major objective is to deliver
high quality of coffee to its customer and gain high market share. For attaining this objective,
cited venture uses several approaches of the operation and management and its leader and
manager also contributes effective efforts in the business unit. Thus, it can be said that operation
management is one of the most significant aspect by which corporation can improve its quality
and overcome wastage by controlling and monitoring entire activities of business. In order to
make operation of business successfully and impressive, leader of company can adopt
transformational leadership style. According to this leadership style, leader create an inspiring
vision of the future and motivate people to buy into and deliver the vision. Furthermore, in this
style leader work with subordinates to identify needed changes, creating a vision to guide the
change through inspiration and executing the change. While Starbucks uses these approaches of
the operation and management then its product that is coffee's quality will automatically
improve. Following are some benefits of the operation and management in order to attain its
objectives-
Reduce wastage- Starbuck have major purpose is to improving the quality of coffee product and
attract the large numbers of customer. It wanted to become the number one retailer of coffee in
the world so it makes several efforts to attain its objective. By use of several methods and
approaches of operation and management company can easily improve the quality and efficiency
of services and attain its target within time period (Hogan and Coote, 2014). The major
advantage of the operation and management is that it aids in overcome the wastage and cost of
the production and manufacturing activities. The approaches of management and operation helps
in eliminating the cost and wastages of the services by improving quality and efficiency so that it
can be said that operation and management helps to the company in attaining its objective within
a time period.

Assist in deliver impressive customer satisfaction by make the fastest process of business-
Another significance of the operation management is that it helps in assisting in delivering
effective customer satisfaction because with help of these approaches company can able to
improve its speed of business activities and process. By user of several approaches of the
management and operation company can able to overcome the additional cost and wastage by
which speed of business process can automatically improve. This thing can help in deliver
effective services to the customer through which their satisfaction level can automatically
improve.
Enhance of the quality of product and services- There are several approaches of the operation
and management such as lean production, total quality management, six sigma etc. These all
approach have major objective is to improve the quality of business activities and services by
eliminating the cost and wastage (Khan, Asghar and Zaheer, 2014). Thus, it can be said that in
the Starbuck company, operation management helps to business in improving quality of product
and services.
2.3 Evaluation of how leader and manager of the Starbucks can improve efficiency of
operational management
In the Starbuck, manager and leader can improve the efficiency of the operation
management by their supervision and monitoring. Manager has main role to evaluate the
performance of business and develop such impressive practices and policies which helps to
company in attaining its objective. (Mahembe and Engelbrecht, 2014) On the other hand leader
can improve the efficiency of operation management by effective motivation of employees,
supervision, monitoring, evaluation and controlling function and activities of organisation. With
help of leader and manager within the company, firm can take the effective business decision
through which it can gain effective outcome
TASK 3
3.1&3.2 & M4 Assessment of the components within the business environment in the Starbucks
which impact upon management operation and decision making by leader and manager
In order to survive in the competitive business environment it is very important for the business
enterprise to analyse its various components. Business environment is consisted with internal and
external component which directly and indirectly affect business activities and functions
(Randeree and Chaudhry, 2012). In the context of business environment, stakeholder analysis is

very significant which help in taking the correct business decision. While leader and manger of
the corporation takes any business decision then they have to consider participation and
contribution of the stakeholder. They are major components of the business environment.
Starbuck company have to understand the contribution of these components while they take any
business decision. These components are as follows-
Customer- Customer is major element in the micro business environment which are directly and
indirectly affected by the company's decision making. While any changes occurs in the business
activities and services of Starbucks then customer can highly influence. They want high quality
of product and services from company in fair and reasonable process. If company takes any
decision in product prices, features, distribution etc then customer can affected. It I great
responsibility of leader and manager to take consideration about the customer participation while
they take any decision. According to their requirement the product should deliver in the market.
Further, this stakeholder are interested in knowing product information like price, discount,
feature, offers etc. So that company should always provide right information to them so as they
can make their purchase decision. It can be said that the operation decision of business is largely
depends upon the customer.
Employees- Personnels is another major element of the micro business environment which can
highly influence by business activities and decision. They required fair wages, salary, working
condition, practices, policies, incentive, fringe benefits etc. While leader and managers makes
any changes in the norms, regulation , policies and system then it is great responsibility of them
to take participation of employees.
Suppliers- In the Starbucks company, suppliers are those people who delivers the raw material
and semi finished good to the company (Dong and Huang, 2013). They are also affected if leader
and manager makes any change and take the decision about the business activities and function.
Suppliers desires effective order of raw material and semi finished good and they also want
payment on the time. If manager and leader takes any decision of the business activities then
they should take the participation of suppliers.
Government- Government is another major element of the business environment who is
interested in acknowledging actual financial condition of the organisation. Starbucks have to
follow imposed taxation norms and policies which is developed by government. While manger
and leaders takes any decision about the business system and function then they have to take

consideration of government. While firm take any decision about the business activities, system ,
process and function then governmental rules, regulation, policies practices, legislation and code
of conduct largely affect the organisation.
Macro business environment component
Following are some components of the macro business environment which can also influence the
decision of leader and manager of Starbucks company-
Political and Legal- Starbuck activities can affected by political and legal component which
includes, taxation policies, norms, legislation, regulation etc (Pestle analysis, 2017). While
leader and manager takes any decision of business activities then they have to focus on political
and legal factors.
Illustration 2: Pestle analysis
Source:Pestle analysis, 2017.

Social and cultural- This factor is related to the customer taste, preferences, culture,
background, education, occupation, income level etc. If manager of Starbuck makes any changes
in the product and services then they have to focus on the social and cultural factor of the
business environment (Arnulf and et.al., 2014).
Technological- In every department of the organisation like marketing, operation, human
resource, finance required technology so this factor can affect the decision of business activities
and function.
Economical- This factor includes the economical condition of the country such as inflation,
recession, interest rate etc (Antony, 2014). Manager and leader have to focus the economic
condition of the country while they take any business decision.
Environmental- While manager and leader takes any business decision then they have focus on
the natural factor of business environment because production and manufacturing activities can
largely affected by natural component.
3.3 Evaluation of application of operation management D2
Operation management have various kinds of the application and approaches such as six
sigma, total quality management, queuing theory etc. These applications can assist to the
company in identifying the issue and problem in the system and business process. This helps in
improving quality and efficiency of the business activities and services by eliminating cost and
wastages. Starbuck can improve its efficiency and quality by use of these applications.
Social and cultural factors is major element of business environment which affect the
company activities and function in large manner (Agarwal and et.al., 2012). While manager and
leader takes any decision related to process, features of the product and services then they have
to consider social factors such as customer region, culture, age, education, preferences, taste, life
style etc.
CONCLUSION
From this entire report it has been concluded that operation and management have several
approaches and application which help in improving quality and efficiency of business services
and activities. Starbuck can improve its product quality by applies these approaches of operation
management in its business such as six sigma, total quality management, lean production etc. It

has been also concluded that leader and manger have to consider various micro and macro
component of business environment while they take any business decision.
REFERENCES
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Online

What Is Six Sigma?, 2017. [Online]. Available through:<https://www.isixsigma.com/new-to-six-
sigma/getting-started/what-six-sigma/>.
Pestle analysis, 2017. [Online]. Available through:<http://study.com/academy/lesson/what-is-
pestle-analysis-definition-examples.html>.