Starbucks Report: Leadership, Management, and Operational Analysis

This report provides a detailed analysis of leadership and management practices at Starbucks. It begins by differentiating between the roles of a leader and a manager, outlining their respective functions within the organization. The report then explores various leadership theories, including contingency, system, and situational leadership, evaluating their strengths and weaknesses. It further examines the application of operational management principles within Starbucks, highlighting the impact of the external business environment. The report uses situational examples, such as customer service issues and inventory management challenges, to illustrate how leadership and management strategies are applied in practice. The report emphasizes situational leadership as a suitable approach for Starbucks and concludes with an overview of how effective leadership contributes to the company's overall success and operational efficiency. This report provides insights into how Starbucks operates and deals with real-world business problems.

Management and Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
2.1Role of a leader and function of a manager.......................................................................1
2.2 Apply different theories and models of approaches and their strengths and weakness.. .3
2.3 Key approaches of operation management and role of leader and manager....................5
TASK 3............................................................................................................................................9
3.1 Impact of external business environment on operational management............................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation management can be refer to the administration of distinct business activities to
create more efficiency within a company which is concerned with transforming labour and
material into services and goods in order to maximise the benefits of organisation (Al Harbi,
2018) It can define as culmination and coordination of initial undertakings of business which
results in attaining objectives and goals of company. Starbucks Cor. is a coffeehouse chain and
American coffee company which was founded in Seattle, Washington initially in 1971. The
organisation operates their business in 28,218 places worldwide and is one of the largest coffee
chains. In this report, differentiation between manager functions and role of a leader will be
elaborated. Different leadership theories will be identified in the report. An appreciation of
manager and leader’s role in functioning operations will be mentioned along with relationship
between management and leadership within a contemporary business environment. Importance
of operation management will also be done in the report along with identification of different
approaches associated with this. Starbucks’s leader are Zev Siegal, Jerry Baldwin and Gordon
Bowker. The company has employed manager for each division situated in the different
countries, regions and stores. Basically, both consist of different traits and roles which is
differentiated below in table to understand more coherently:
TASK 1
Covered in PPT
TASK 2
2.1Role of a leader and function of a manager
Management can refer to set of principles associated to the functions of organising,
directing, planning and controlling and can simply be stated as these principles application in
harnessing financial, physical, informational and human resources effectively and efficiently to
meet goals of company (Chouksey and Sirsikar 2016). Manager of Starbucks is responsible for
administrating numerous practices of organisation. They are tasked with inspiring and leading
their team who perform under them. The core functions of manager are planning, coordinating,
controlling, directing. Another function for which Starbucks manager is accountable for is
staffing. Here are elaborated these functions in brief:
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Planning: This is the most requisite functions of manager of Starbucks where they assess
the goals of organisation then determine a course in order to meet success. This evaluates
company’s existing goals and activities and schedules them which can lead to meet the target.
Leader whereas are responsible to identify the conflicts and resolve which are affecting the
organisation’s core.
Organising: This function carries resources altogether to meet the objectives introduce in
the initial planning function (De and Das 2015.). These resources comprise personnel material
financial backing etc. For example; manager of Starbucks company organizes the activities, align
those to certain personnel and effectively delegate tasks so as to move efficiently toward to meet
goal.
Staffing: It is the managers of Starbucks who encounter the staffing need as well as
ensure require talent to serve the work requirements(Pathan 2017). Once this is structured, leader
work for professional development, monitoring performance and setting core functions of those
personnel of Starbucks. For example manager of the Starbucks company encounter the need of
candidate requirement for the job vacancy available in the company so as to recruit the talented
staff for the company.
Directing: This is one of the core functions in which manager of Starbucks determine
what needs to be done and what are the responsibilities of personnel. This need leader to provide
suitable orders and need to set path to meet the determined target.(Verma 2017) For example; as
per the leader’s guidance, Starbucks’s manager direct practices and sub-ordinates and ensure
proper motivation to personnel is given or not. Thus it will helps in meeting the target aims and
objectives on preset time schedule.
Controlling: This refers to all the procedure which leader creates need proper control to
success. For example; Starbucks’s manager monitor worker to examine the set standard;
compare anomalies metric and by measuring actual performance with the standard performance.
Thus it will helps in achieving better outcome for the company.
Situational examples
Decision Making: A customer of Starbucks purchased coffee which later he realised was
not made in fresh milk. He got sick and major infection on his body. In this situation, this is
essential to undertaken accurate decision by Starbucks (Foroughi 2018). Manager in this context
is responsible for managing the situation and controlling the negative consequences that can arise
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due to this case. Manager of Starbucks apologised to consumer and provide a refund of amount
along with undertaking all medical expenses that consumer faced with due to infection issue. On
the other hand, leader is accountable for examine the issues and make certain from where the
problem arise so it can be prevented in the future context.
Inventory Management: Starbucks is facing lack of inventories in their UK stores which
is leading to dissatisfaction among service users. In this case, if inventory is needed and
organisation is not able to manage the resource, manager will plan and organise the required
resources so that proper finished goods can be delivered to their consumers. On the other hand,
leader is this case will require ascertaining whether all the management is being properly
functions. Leader has vital role to create a proper structure of management and manage the
supply chain so that further such issues won’t emerge in Starbucks again.
2.2 Apply different theories and models of approaches and their strengths and weakness
There are numerous leadership theories which can be utilised by Starbucks in order to
perform better and gain efficient outcomes. Here are discussed some of those:
Contingency Leadership Theory: Fiedler in 1951 given the concept of contingency
leadership theory which initially focuses on how the conditional variables communicate with
behaviour and personality of leader (Gonçalves and Cavique 2017). This concept is reflection of
behaviour and personality (trait-theory orientated) and styles of leaderships are usually constant.
Hence, the model states that a leader needs to change the style of leadership as per different
situation faced by organisation in present environment in order to maximise the productivity of
firm. This theory grounds on the empirical research which made it sustain to this era.
System Leadership:
System leadership method enables the organisation leader for developing the condition
where people at each level can perform productively to their best potential. This utilise sound
principles in regard of human behaviour to develop good leadership models, systems design,
organisation strategy and social procedure. This theory was initially given by author which
basically assists to create efficient and more influencing system which drives creative behaviour
and direct to better realisation of purpose of company.
Situational Leadership: This model was given by Ken Blanchard and Paul Hersey in
1969 published with the name of Life cycle Theory of Leadership which was later changed as the
situational leadership theory. Despite other contingency theories, this is utilised to identify which
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kind of style matches the condition in order to maximise the performance of organisation. In this,
the manager and leader of firm must employ the style essential to the situation to suit the level of
development of followers which they are trying to affect. For example; if in an Starbucks
company there take place an increase in employee turnover then in that case manager of the
company should try to retain them by adopting democratic leadership style. As this style states
that the leader should allow their subordinates to takes their decision by their own so that become
independent in decision making. Thus, it will help the company in accomplishing organizational
goals on specified time schedule.
Hence, this can be comprehend after analysing these different leadership approaches that
situational leadership style is more suitable as per the working vision and environment of
organisation as this support better productivity of performed operation. This lays emphasise on
different leadership styles beside on focusing over one typical techniques of leading.
Strengths and weakness of different leadership approaches
Situational leadership: This model of situational leadership can refer to the management
style which manager of Starbucks can opt (Islam 2016). This suggests perceiving requirement to
adapt to quick situation and undertake two factors in to account; complexity of task and maturely
of performing worker Here are discussed some basic advantages and disadvantages of this style:
For example; Starbucks company should uses supportive leadership style in case when the
employees doesn't feel like to work for an organization. As this style of leadership will help in
supporting and motivating the workforce so that they can accomplish organizational goals. This
in turn will result into major strength for the company. Whereas, in case if the company uses
autocratic leadership style means to get work done from workers forcefully then in that case it
may result in employee turnover which will turn into a weakness for the company. Thus, the
manager of the company should uses the leadership style as per the situation demand so that
organization can be processed smoothly in order to achieve target aims and objectives.
Advantages:
 This is both intuitive and easy to understand to most of the managers.
 This assist in identifying the flexibility needs on the leader’s part to set certain procedure
and rules. This places the relationship between the worker and manager at the management
experience centre.
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Disadvantages:
 This is a model which may not feel intuitive to heavily regimented or task-oriented
managers. Manager of this difficulty in quantifying and defining maturity.
System leadership theory: It enables the organisation leader to create the situation where
people give its best. This theory use holistic approaches for organisation development to
optimise the resources at its best
Advantages:
 This enhances the adaptability of organisation as per environment changes.
 This aims on attaining the overall organisation and individual goals. It focuses on the multiple management dimensions.
Disadvantages:
 Interdependence nature is not defined which can create complexion. This may not always be practical and direct to decision making delays.
Contingency leadership theory: It extend the scope of leadership consideration from
single leading style to keeping the focus on the different styles of leadership as per the demands
of distinct consequences faced by company. In addition to this contingency theory focuses on
how effectiveness of leaders is interdependent upon matching a leader's style as per the right
situation demands. Moreover it can be said that this theory is all about how the leader manage
the changes as per the changes taking place due to circumstances as one size or it can be said that
one style of leadership doesn't fit in all situation. So the manager should change the leadership
style as per the situation so as to run business smoothly. For example: in peak time such week
ends, Christmas festive season, holidays, etc. there is load at workplace, so there are possibilities
of confusion at work place. This affects working style of employees. To deal with this situation,
managers use contingent leadership and they create balance between working style of
employees. If there is lack of leadership, then this affects brand image of Starbucks in industry.
Here are discussed some advantages and disadvantages of this:
Advantage:
 This supplies data which could be utilising to company in improving the profile of
leadership for planning of human resources.
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 This support the flexible management style in which opinion of worker matters and given
priority before making major decisions.
Disadvantage:
 As simple this seems, this leadership theory is too complex to put into practices.
 This theory of leadership is basically reactive in nature which can also create negative
consequences within the work environment.
Therefore, after assessing strengths and weakness of different styles, this is confirmed
that situational leadership techniques is more suitable for Starbucks as this promote better
management and aid in achieving business objectives significantly.
Critical analysis and evaluation of different theories in context of organisation
Chaos theory can be refer to a deterministic dynamics area proposing that apparently
random activities can lead from normal equitation due to their system complexity. In simple
words, this can refer to scientific principles explaining the system unpredictability (Holweg,
2018). Member of Starbucks frequently recreate each member’s role of their team as per the
requirements of team at certain point in order to meet the certain outcome. The most successful
manager and leaders understand that this is not company or person who is more requisite but the
relationship is which is in constant change. Through the assistance of this theory, management
can enable itself better understanding and create more productive environment for worker to
perform operation at its optimum level.
2.3 Key approaches of operation management and role of leader and manager
Operation management can refer to administration of business activities to develop high
efficiency level of organisation which is mainly concerned with organising planning, supervising
in relation of manufacturing, production and service provision. Starbucks require opting different
operation management approaches in order to achieve their business objectives and meet the
better productive outcomes. Operation management involves maintaining procedure through
which labour, raw material energy are covered into services and goods. Starbucks is the
organisation which has good brand image in industry business business operations planned and
organised in appropriate and relevant manner. For instance: they use strategies which are
relevant for improving quality of coffee, quick and relevant services, etc. Here are discussed
some of the key approaches of operations management approaches mentioned as below:
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 Six Sigma: This is statistical-based disciplined and data-drive technique and continuous
development methodology for segregating defects in a service, process or product. This is
one of the fundamental operation management approaches first employed by Motorola in
1980 which was based on fundamental of quality management. In this sigma represents
Starbucks’s population standard deviation i.e. a measure of the data variations set
collection about procedure (Karre and Ramsauer2018). Starbucks can trim out their
expenditures and can efficiently get the productive outcome through optimum utilisation
of different resources of organisation. Just-in-Time: This inventory framework can be referring to the administration strategy
which allocates the orders of raw material from different suppliers as per the production
schedule. Organisations utilise this strategy of inventory in order to increase the
production and inventory efficiencies and reduce the waste amount through receiving
products only as company require them in order to use the production procedure that
decrease the cost of inventory. This technique needs producers for the demand forecast
accurately (Song, 2018). The supply system of JIT inventory framework is a shift away
from different JIT strategies in which producers manage large inventories to have enough
services or products in order to absorb maximum product market demand. Starbucks can
employ JIT inventory management as that which have control on various merits over
traditional techniques. This method can help the company in cutting the warehouse needs
and reduce the extra expenditure form the organisation.
For instance: There is more demand of coffee at weekends, Sundays, New Year Eve,
Christmas eve, etc. because there is more rush of consumer. At this time, just in time technique is
used which helps to satisfy consumer need on time. When consumer gets instant order then
satisfaction level increase. Hence with the help of Just In time approach operations of Starbucks
such as production, purchasing, etc. helps to reduce waiting time of consumer.
 Total Quality Management: this describes the approach of management to long-term
accomplishment of firm through providing consumer satisfaction. In this, entire firm
members engage in the improving products, services, procedure and culture in which they
perform their worker. Hence, simply, it can be defined as the management framework for
a consumer-focused enterprise which include entire worker in the continual development
(Chase, 2016).This optimises the effective communication, strategy and data to integrate
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the quality disciplines into activities and culture of the firm. Starbucks can use this
approach to be more consumer-focused and better employee engagement in the procedure
of organisation. Through this, fact-based decision making can be done by company and a
sustainable business performance can be established by the organisation (Maull, 2015).
Hence, this can be state from the above discussed study of different applications of
approaches that TQM is one of the most suitable and appropriate approach that Starbucks can
optimise in order to meet their outcome. This can not only help in employee participation,
employee motivation and better productivity but also can aid in managing better quality of
service which organisation provide as the company is service based. This is suitable according to
need of enterprise that can reduce the conflicts arise due to the quality of product.
How these improve efficiencies of operational management to successfully meet
business objectives TQM: Through emphasise the focus on quality of service and creating value-added
products and service, this approach can maximise the satisfaction of consumers. This also
stimulate worker to participate the work activities and procedure that is organised in the
company. Hence, this can affirm that this overall enhance the efficiency of operation by
giving better operations productivity in company (Lummus, 2014). Just-in-Time: Cutting the expenses of extra production and by providing material
required at the time, this approach allows the organisation to optimally organise and
utilise resources within Starbucks. Hence, this approach is assisting for a company at its
best providing better efficiency of operations. Six Sigma: Also known for its lean production of organisation, this allows Starbucks to
operate functions by making optimum expenses, waste utilisation and keeping the
expenses cutting from Starbucks. Henceforth, this can be claimed that better operation
can be organised by firm through making use of resources at its best.
Importance of operation management in achieving business objectives
Operation management can be stated as the administration of business activities for
ascertaining maximum efficiency within a business organisation. These cover entire operations
performed in day-to-day routines along with their maintenance and management of firm
procedure. The key aim of the operation manager is to ascertain proper delivery of services of
Starbucks at time and to successfully turn entire raw material into finished services. Hence, this
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can be claimed that operation management play vital role in the functioning of organisation.
Below are mentioned some of necessities of Starbucks: Process Design: This is one of the core values of operation management as it is helpful
for Starbucks’s procedure design. This function to manage the production and assist in
creating administration procedure and policies in order to meet outcome within
determined period of time. Therefore, this is significant for Starbucks to have effective
operation management (Islam 2016). By managing strategic procedure, production can
be done is efficient manner and Starbucks can accomplish their standard outcome in an
effective manner. Transformation of Raw Material into Finished Goods: This is the core functions of
operation management which makes it significant for an organisation so as Starbucks.
The restaurant needs this in order to prepare finished goods through designing the
procedure of production and supply management within the company. Henceforth,
operation management has vital importance within the company. By delivering proper
services and products on the time, operation management aid Starbucks can managing
their reputation and attaining their standard outcome in significant manner. Starbucks
deals in coffee segment they have to collect good quality coffee beans and then convert it
to consumer to consume. Capacity Management: Through managing operation and opting better approach of
operation management, the company can manage their organisation’s capacity and render
better services within firm. Hence, this is also fundamental for capacity administration of
enterprise. Through producing materials and services more than its capacity, Starbucks
can achieve their determined goals and objectives. Managers of Starbucks has to use
different approach such as proper communication channel which helps to maintain
operations. For contingent situation, managers has to plan operations in advance. This
helps to maintain their capacity and they are able to satisfy consumer demand on time.
 Distribution system and Control: Operation management is responsible for performing
the actions related to distribution framework of Starbucks and controlling those practices
efficiently. This determines the distribution chain, sales division, suppliers and other
related activities within Starbucks. Through creating disciplined framework, Starbucks
can attain the set targets and objectives of organisation successfully.
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Hence, this can be claimed form the above report that Starbucks can manage their
operations in more disciplined manner (Karre and Ramsauer 2018). A business like Starbucks
can attain their business objectives and meet standard outcome set by worker through the
assistance of proper operation management which is why proper administration is essential for a
company to meet outcome.
TASK 3
3.1 Impact of external business environment on operational management
The extrinsic determine which can influence operational management are:
Political: This determinants consist of politics of a nation in which an organisation
operating their business. If political situation emerge in United Kingdom due to imbalance in
political condition, Starbucks need to manage their operation management (Mine 2016). If a
nation increases their responsibilities on the provided Starbucks’s products which will emphasise
the product cost. It will lead to emergence of price and reduce the operation and administration
of Starbucks.
Economic: In this, economical condition of UK will be undertaken which is delicate due
to imbalance in political conditions. As Starbucks deal with luxury food service which cost
higher, company can face negative consequences as the purchasing power of products will be
decreased. The outcome of constant reduce in the organisational productivity,
Social: These determinants influence the factor in which family, wealth, religion,
lifestyle etc is outline as the key consideration. As Starbucks deals more luxury food services.
Therefore, it is essential for Starbucks to keep attention on numerous social factors such as
religious factors of consumer otherwise company might face negative consequences.
Technological: Starbucks have just opted new digital kiosks which have emphasised
their demand among consumer as this allow customer more convenient shopping. Hence, this has
positive influence on the operations and productivity of whole enterprise (Neerackal 2015).
CONCLUSION
According to me it can be concluded that is essential to manage the operations and
management and related practices within an organisation to perform effectively. Leader and
manager are distinct individuals of organisation who perform different roles and duties.
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 Being leader I am responsible for directing, leading and guiding firm itself by providing
vision and creative ideas where manager is accountable for performing numerous
functions including organising, leading, directing, controlling etc.
 As per me, there are numerous leadership styles such as situational, contingency and
systematic leadership etc. that can opted by a company as per the consequences and
according environment. All of these leadership styles have their pros and cons on the
basis of which company employ it on the grounds of requirements and organisational
consequences.
 As per my opinion in order to manage operations, it is essential for firm to identify
suitable approach of operation management such as total quality management, Just in
Time, Kaizen and many more which is employed as per the requirement. Henceforth, this
can also state that operation management is also requisite for better work productivity,
resource management. and various other practices.
 Thus, I can conclude that operation management assist company in achieving business
objectives and also aid in achieving task successfully.
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