Leadership and Management in Operations: Starbucks Case Study Report

This report delves into the realms of leadership and operations management, utilizing Starbucks as a focal point for analysis. The report begins by examining how leadership and management roles apply in different situational contexts, exploring scenarios such as managing complex situations and launching new products. It then applies various leadership theories and models, including situational, system, and contingency leadership, assessing their respective strengths and weaknesses. The core of the report focuses on operations management, explaining key approaches like Total Quality Management, Lean Production, and Six Sigma, alongside the roles of leaders and managers in implementing these approaches. It highlights the significance and value of operations management and evaluates how leaders and managers can enhance operational efficiencies to meet business objectives. Finally, the report assesses factors within the business environment that impact operational management and decision-making, concluding with a comprehensive overview of the discussed concepts.

Management &
Operations

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 2............................................................................................................................................4
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts. .....................................................................................................4
P3 Apply different theories and models of approach..................................................................5
M2: Assess the strengths and weaknesses of different approaches to situations within the work
environment.................................................................................................................................6
D1:Critically analyse and evaluate the different theories and approaches to leadership in given
contexts.......................................................................................................................................7
TASK 3............................................................................................................................................7
P4. Explain the key approaches to operations management and the role that leaders and
managers play..............................................................................................................................7
P5. Explain the significance and value of operations management............................................8
M3: Evaluate how leaders and managers can improve efficiencies of operational management
to successfully meet business objectives.....................................................................................9
D2:Critically evaluate application of operations management and factors that impact on the
wider business environment......................................................................................................10
TASK 4..........................................................................................................................................10
P6. Assess the factors within the business environment that impact upon operational
management and decision-making............................................................................................10
CONCLUSION .............................................................................................................................11
REFERNCES:................................................................................................................................12
Books and Journals:..................................................................................................................12

INTRODUCTION
Operations and Management is one of the important function of management. It is seen
that the managers and the leaders of an organisation plays a vital role in success of the
organisation (Babich and Kouvelis, 2018). As all the important task are carried out by the
managers and leaders. This report is based on Starbucks which is an American multinational
chain of coffee houses and roastery reserves. The company has its headquarters in Seattle,
Washington. The role of leader and manager in different situations is discussed in the report.
There is discussion related to importance of operations management in an organisation. There is
is discussion related to various approaches to operations management. The evaluation of the
factors that impact the decision-making by manager and leader.
MAIN BODY
TASK 2
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts.
There are various situations that arise in the organisation. The leader and manager play a
vital role in solving those complex situations and solve those situations.
Situation 1: Effective management of complex situation
There are situation when the things get complex. There are conflicts among the
employees and they are not able to solve them by their own. As the world is dynamic and there
are various problems that are faced by business (Han, Caldwell and Ghadge, 2020). In Starbucks
also there are times when the situation get complex and all this impacts the sales of the
organisation. This may decrease the profitability position of Starbucks.
Role of a leader:
The leader plays a vital role in understanding the situation and take measures to take company
out of the complexities. The role of leader in this situation as follow:
 The leader of Starbucks first analyse the situation and identify the reason of complexity
with patience. Then the leader identify the alternatives and work on them to get the
solution to come out of complex situation. The leader takes effective decision to console the situation and then take measures so
that the situation is not repeated in future.

Functions of manager
The manager also helps to find solution of problems that are faced by the company or in industry
to know how the deal with the situation. The function of manger in such complex situations are
mentioned below:
 The manager first check if such situation has occurs in past. Then they take measures to
solve the problem that is faced by the organisation. The manager of Starbucks leads team and take care of motivation of the employees. As if
employees will feel demotivated then it will not be possible to come out of the situation.
Situation 2: New product launch
It is important situation for a company when they launch a new product. There is
requirement of hard work as well as proper coordination among all the employees of the
organisation (Visvikis, and Panayides, 2017). As successful launch of product is prominent for
Starbucks. The role of leader and manager in the case of new product launch are mentioned
below:
Role of a leader
 The leader assures that the information related new product is floated in the market and
all the people are aware about the new product launch. They also take care of pre-launch and post-launch of the product. As it is important to
have details related to all the events.
Functions of manager
 There are several functions that are conducted by the manager of the company such as
checking the package, deciding the cost, deciding the promotional strategies, the sales
and the margins of the product.
 The task is to manage the employees and check if the things are going as they were
planned The identify the gaps and take measures to fill them. All this helps to
successfully launch the product.
P3 Apply different theories and models of approach
The business faces various situations that are different from each other. It is important to
be prepared for the situation and deal with it effectively. In relation to Starbucks they also face
various problems and then identify the solutions so that the same problem do not arise in future.

The various approaches and theories that are important and play a vital role in an organisation
are as follows:
Situational leadership: As per this theory it can be said that the leader reacts in different
ways in different situation. The action of leader depends on the situation. As not all the situations
are same, there need of different actions and solutions in different situation. In relation to
Starbucks the leader knows that the all the employees are different and the leader assign the work
according to their capacity and capability (Leiras and et.al., 2019). The best leadership style is to
be flexible and working as per the situation.
System leadership: A systematic procedure is followed by the leader to complete the task
and achieve the goals and objectives. There are various frameworks that are included in this
theory that are recruiting, promotions, employee development, delivery of products and services,
etc. There are system that are followed by the leader to work upon. All these important points are
discussed with the employees and they are also given he responsibilities that they have to follow
in a systematic manner. Inn regard to Starbucks the leader communicate the employees about the
situation and the way that will help them to work effectively.

Contingency leadership: This theory says that the success of leader depends on the
situation which means not the same style is sufficient to deal with every situation hat arise. It is
believed that a leader may be effective in one situation and at the same time the individual may
be ineffective in the other situation. This means the efficiency of leader is contingent and
depends on the situation that is going on (Krenczyk and et.al., 2018). The leader of TESCO
understand the fact take care that ll the situations are different and they have to deal with the
situations in a different way for their success ass well as growth of the organisation.
M2: Assess the strengths and weaknesses of different approaches to situations within the work
environment.
The strength and weakness of each approach is mentioned below:
Situational leadership
Strength: This is flexible style that is followed by the leaders. This helps the leader to
take decision as per the situation.
Weaknesses: The focus of this theory is on present and not on the future and long term
needs.
System leadership
Strength: The leader always follows a systematic manner to lead the team, there are more
chances of achieving the goals and objectives effectively.
Weaknesses: It is seen that it is not always system and rules that are important to lead a
team. There is requirement of flexibility as well.
Contingency leadership
Strength: This theory helps in effective decision making. This is an effective way of
leadership.
Weaknesses: As per this theory the leader is effective in one situation and ineffective in
other which is a drawback of this theory.
D1:Critically analyse and evaluate the different theories and approaches to leadership in given
contexts.
All the three theories are discussed above along with their strengths and weakness. It can
be said that systematic leadership follows systems and steps to complete the task and that lacks
flexibility. In regard to contingency theory the leader is effective in one situation and may be
ineffective in other (Hasle, Madsen and Hansen, 2021). So it is analysed that situational theory is

better and is used by Starbucks. As situational theory of leadership helps the leader to take
decision according to situation and that helps the organisation to achieve success.
TASK 3
P4. Explain the key approaches to operations management and the role that leaders and managers
play
Operations management is an important function of management. As all the important
functions like manufacturing, production and delivery of goods and services come under the
operation manager. The success of an organisation depends on how effectively the the operations
are managed by the leader and manager of the organisation. The key approaches that help and
support operations and management are mentioned below:
Total quality management: This approach focuses on long term success of organisation.
As the focus is to enhance the quality of goods and services offered by the company. The aim is
to focus on the customers and satisfy the needs and wants of customers (Haksever and Render,
2017). All the employees of the organisation are also made aware about the approach used by
company so that they can also work to provide quality products. In relation to Starbucks the
company knows the importance of quality management and provide quality goods and services
to customers. This helps to attract more customers and retain them in the organisation.

Lean production: The aim of lean production is to minimise the waste and make efforts
to improve the quality of products and services that are offered by the company. It is applied in
all the aspects of operation and management. Along with that lean management focus to cut the
cost of the product and provide better quality to the customers. This approach helps Starbucks to
minimise the waste and achieve economies of scale. This helps the company to earn more profits
and become successful.
Six Sigma: It is a method that is used by organisation to improve the capability of the
business process. It helps to enhance the performance of the organisation. The task is to enhance
the profitability of the organisation reducing the defects. The employees are also motivated and
the task is to maintain overall quality of the product. In relation to Starbucks the company uses
six sigma and it helps to enhance the profitability position of the company.

The role of leaders and managers to successfully use these approaches are mentioned below: Provide direction: To use the new approaches there is need of direction. It is seen that the
managers and the leader provide the employees direction in which they have to work. In
Starbucks the manager and leader give the employees training and make them understand
the approach and the benefits associated with the approach. They continuously guide
them and provide them direction in which they have to work so as to achieve the goals
and objectives effectively (Wang, 2019). Also the manner of Starbucks keep on
motivating the employees so that the the can work effectively and efficiently and the
quality of the products offered by the company is maintained.
 Bring excellence: Each and every organisation works to maintain quality of the product
offered by the company. So it is duty of manager as well as leader to bring excellence. It
is important to provide the customers with the best. The leader and manager of Starbucks
assure that the employees work effectively and the customers are getting best quality.
They focus on reducing the waste and making efforts to enhance the quality so that the
company is able achieve the goal of quality management.
P5. Explain the significance and value of operations management
Operations management is the process of converting raw materials into finished goods
and providing them to the end users. It includes effective use of resources so that they can earn
revenues as well as use the resources further. The employees also play a major role as they are
the one responsible for the production process. The effective management of operations is
important and helps the organisation to earn more revenue. The significance and value of
operational management are as follows:
Product/service quality: The first and foremost benefit associate with operational
management is to maintain the quality of good and services. As the organisation makes efforts
and use various approaches that help them to enhance the quality of product offered by the
company. The operational manager of Starbucks take car that the employees are working as per
the standard and that in turn helps the company to provide quality products.
Customer satisfaction: The customers visit the organisation for products. If the company
maintains the quality of products offered by the customers then the customers are attracted
towards the organisation. It is seem that the level of customer satisfaction depends on the quality
of goods and service that are offered by the company (Ozcan, 2017). The operation manager of

Starbucks takes care of the products and services offered by the company to its services. This
helps the company is enhancing the satisfaction level of the customers.
Revenue Increase: As the organisation provides quality food that it also enhancing the
satisfaction level of the customers. It has direct impact the sales of the organisation. In relation
to Starbucks as the company has established a brand position that they offer quality goods and
services the company is able to enhance the revenue and earn more profit.
Competitive advantage: The company that maintains quality and provide good and
effective services to its customers is able to achieve advantage over the competitors. It is seen
that the Starbucks has competitive lead as the manager of the organisation make efforts to
maintain quality of goods and services (Jeffery, 2018).. This is beneficial for the company as
they are able to achieve the goals and objectives successfully.
M3: Evaluate how leaders and managers can improve efficiencies of operational management to
successfully meet business objectives.
The leader and managers know about the employees of the organisation. They are the one
who provide training and development to the employees so that they can work effectively and
achieve all the goals and objectives. By providing them knowledge about the benefits of
operations management the leader and manager of Starbucks help them to achieve the objectives
successfully. The motivate the employees and show them path so that they are able to achieve
the their task effectively and contribute to success of the company as well.
D2:Critically evaluate application of operations management and factors that impact on the wider
business environment.
Operations management is one of the important function in an organisation. It is seen that
if this function is not take care and not use effectively then it may hindrance the growth of the
company. It is important for the operational management to take care of the quality of goods and
services that are offered by the company (Kelliher and McAdam, 2018). By knowing the factors
that may impact the business and getting prepared for them helps the organisation to achieve
success. Overall setting goals and objectives and setting strategies to achieve them helps the
organisation to be successful.

TASK 4
P6. Assess the factors within the business environment that impact upon operational
management and decision-making
There are various factors that have impact on decision-making process of leaders and
managers. The environment is dynamic and it is important to know the factors that have
influence on the organisation. The factors that have impact and are important to know are
mentioned below:
Competitiveness of the marketplace: As the world is turning global the competition is
rising. It is important for the organisation and the managers to take care of the competition and
formulate strategies that will help them to achieve advantage over the competitors. In relation to
Starbucks the company makes efforts to maintain quality to products and service offered by the
company (Samson, 2020) To achieve the goals and objectives it is important to know the
competition -present in the industry and make efforts to achieve advantage over the competitors.
Developments of new technologies: As the technology is growing and update at rapid
speed it is important for a business organisation to use he technology. The decision making of
the leader and manger is based of the new technology. In relation to Starbucks the company uses
latest technology to that helps to gain operational efficiency and achieve success.
Corporate social responsibilities: It is duty or responsibility of the company to take care
of environment as they get the resources from environment. All the companies make efforts to
achieve the goals and objectives by taking care of the environment (Jiang, Shilin and Zhengang,
2017). It is seen that Starbucks provide quality products to its customers and treat the employees
equally so hat they work effectively.
M4: Analyse how these different factors affect the business environment and wider community.
All the factors are important and have direct impact on the performance of the business. It
is vital for an the operational manager to know about the factors that are important and have
impact on the decision making of the company (Kovács and et.al., 2020). The business
environment is diverse and that has impact of the performance of the company. All the external
and internal environmental factors should be studied to take effective decisions.

CONCLUSION
It can be concluded that operation management is vital in an organisation. It is important
for an organisation to manage the quality of goods and services that are offered by them to
enhance the satisfaction level of customers. There are various approaches to operations
management that is used by the company. Various types of leadership strategies are also
mentioned in the report. The ways in which managers and leaders contribute to success of the
organisation is also part of this report. The importance of operations management in achieving
business objectives. There are various factors that impact the decision making of leaders and
managers and those factors are mentioned at the end of the report.