A Case Study: Evaluating Leadership Impact on Starbucks' Performance

This research project critically evaluates the impact of leadership on the sales, performance, and operations of Starbucks, serving as a comprehensive case study. The report begins with an introduction outlining the research background, rationale, aims, objectives, and research questions, alongside a Gantt chart for project management. Chapter 2 provides a literature review, exploring the effectiveness of leadership in organizations, Starbucks' performance in the international market, and the specific impact of leadership on sales, performance, and operations. The methodology, detailed in Chapter 3, covers the research design, approach, philosophy, data collection techniques, and sampling and data analysis methods. Chapter 4 presents the data analysis, and Chapter 5 concludes with findings, conclusions, and recommendations, offering insights into enhancing Starbucks' performance through effective leadership strategies. The research underscores the importance of leadership in driving organizational success, particularly within a global context, and provides actionable recommendations for improvement.

RESEARCH PROJECT

Contents
CHAPTER 1 - INTRODUCTION...........................................................................................................................2
1.1 Overview.................................................................................................................................................3
1.2 Background of the research.....................................................................................................................3
1.3 Rationale of research...............................................................................................................................5
1.4 Aims and Objectives...............................................................................................................................5
1.5 Research questions..................................................................................................................................5
1.6 Gantt chart...............................................................................................................................................6
CHAPTER 2 – LITERATURE REVIEW................................................................................................................7
2.1 Effectiveness of leadership in organisation.............................................................................................7
2.2 Performance, sales and operation of Starbucks in international market.................................................7
2.3 Impact of leadership on sales, performance and operation.....................................................................8
CHAPTER 3 – RESEARCH METHODOLOGY....................................................................................................9
3.1 Overview.................................................................................................................................................9
3.2 Research design.......................................................................................................................................9
3.3 Research approach..................................................................................................................................9
3.4 Research philosophy...............................................................................................................................9
3.5 Data collection technique........................................................................................................................9
3.6 Sampling technique...............................................................................................................................10
3.7 Data analysis.........................................................................................................................................10
CHAPTER 4 – DATA ANALYSIS.......................................................................................................................11
CHAPTER 5 – FINDINGS, CONCLUSION AND RECOMMENDATIONS.....................................................16
5.1 Findings.................................................................................................................................................16
5.2 Conclusion.............................................................................................................................................16
5.3 Recommendations ................................................................................................................................16
...............................................................................................................................................................................19

CHAPTER 1 - INTRODUCTION
TITLE: To critically evaluate the impact of leadership on sales, performance and
operation of firm: A case study based on Starbucks.
1.1 Overview
Research is a systematic approach which is helpful companies to increase stock of
knowledge and improve performance as well. Researches are able to solve new and existing
problems and get best possible outcomes as well. These projects are helpful to develop
knowledge on any specific reason. Various types of methods are used by them in order to
identify current market demand and needs of their customers. The present report is based on
Starbucks which is a biggest coffee chain in all over the world. Different methods are used by
this organization such as face to face interviews and interaction with their targeted audiences
and try to provide best quality of goods and services to them (Alberts and Altmann, 2012).
Quantitative and qualitative methods are mainly used in the research projects. They need to
attract large number of customers through offer best quality of products to them.
Starbucks provides the largest coffee chain. This company leads to improve the
satisfaction of the customer and it also improves then productivity of the company. Research
is very important to know about the company there is a need to identify the problems
regarding the research and after that formulate the research specification. The role of research
is very important in the organisation. For the better productivity it is necessary to formulate
the research specifications (Bell, 2014). This company's methodology is face to face
interaction. This company deals in both quantitative and the qualitative methods. These both
methods help the company to provide the necessary information and the data which is
required. In the quantitative research data is measured in terms of numbers and the quantity.
the data is collected through the interpretation, from structured interviews by description,
surveys and from the secondary data. In this method the data is analysis through the simple
graphs and the data is shown by the testes. It is unstructured or the semi- structured method.
And in the qualitative method of research, the data is collected through personal observation,
in-depth interviews. So these methods help to the company for the data analysis and to
formulate the research specifications.

1.2 Background of the research
After conduction research projects companies are have to set their target then start
research accordingly. Members of Starbucks company have to set their own target and
perform them in effective manner. They have to frame various types of plans and strategies
and implement them according to the requirement (Meyer and et. al., 2012). Researchers
mainly follow the set of procedures which help them to attain their set of target and
objectives as well. In modern world, large number of organization are use various types
research methods in order to identify current market demand of their goods and services
among people and provide them in market according to the taste and nature of their targeted
audiences. They have to use effective techniques which are helpful of offer best possible
outcome to them. Through research they need to gather information and also identify market
demand (O'Leary, 2013).
 In this company there are some factors that are used for the selection of the research
report. These factors are:
 Availability of data- In this company the sufficient and the proper data available
which is helpful in doing the research. Company helps to the researcher for giving the
data for the research (Biruk, 2012).
 Availability of money- This company provides the proper availability of money. The
company supply the proper funding to the researcher. And the researcher used this
money in research from the different-different areas and from the different-different
methods. Money is paid to the researcher for the interviews and for the large scale
surveys.
 Manpower availability- In this company there is a proper manpower availability
which helps in the research.
 Top management support- This company provider their proper support to the
researchers (Convertino and et. al., 2011). Top management helps the research in
giving some data and any kind of support which is required to the researchers.
 Proper skills of the researcher available- The researchers is well skilled in this
organisation and the skills and the ability required for the research, which presents in
them whether it is technical skill, communication skills, conceptual skills and the
having the knowledge regarding the research.

 Ensure project schedule- The schedule time of the project to be properly insured in
this organisation.
1.3 Rationale of research
The main rationale of this research is to get knowledge about the main role of
leadership and its impact on performance, operations and sales of Starbucks. It is helpful in
enhance my skills, capabilities and knowledge about specific research topic. Under this
research, discussion will be based on the specific topic of research like impact of leadership
on performance and sales. Leadership plays a necessary role in an organisation for enhancing
productivity and attain business objectives in a detailed manner.
1.4 Aims and Objectives
Aim: To critically evaluate the impact of leadership on sales, performance and
operation of Starbucks.
Objectives-
 To identify the effectiveness leadership in organisation.
 To analyse the performance, sales and operation of the Starbucks in international
market.
 To determine the impact of leadership on sales, performance and operation of
Starbucks.
 To recommend some of the ways so that performance of Starbucks can be enhanced.
1.5 Research questions
 Q1. What is concept of leadership?
 Q2. How performance of the organisation can be measured in more effective
manner?
 Q3. How leadership is helpful for company?
 Q4. What is the relationship between leadership of firm and performance of
firm?
1.6 Gantt chart
Gantt Chart is determine as a horizontal chart that is formulated in order to have a
control in production process. It is simple version that are developed or created on graph

paper with the help of project management application such as Microsoft Project or excel.
Thus, Gantt chart assist firm in having a proper idea of conducting activities.

CHAPTER 2 – LITERATURE REVIEW
2.1 Effectiveness of leadership in organisation
Leadership refers to an action of leading persons or firm. It is setting new vision or
direction for group which they follow. On the basis of view point of Bell, 2014 it has been
stated that Leader is a thing or an individual that holds dominant position and able to exercise
more control over others. Leader guide or direct the team members so that they can work in a
systematic manner without arise nay conflict at workplace. Leader motivates team members
by appraise them about their work and activities, leaders should know about the needs and
wants of employees and along with attain organisation al objectives, it should fulfil needs of
consumers in a significant manner. In a business firm, leader set clear vision and goal or
company, guide staff members and motivate them with the help of work process and develop
morale. It is a responsibility of leader to guide employees state them easiest way to conduct
the business activities in a significant manner. Motivation is an easiest way to retain
employees at work place. If they will be motivated then they will focus toward attaining set
objectives of firm and will be retain at workplace for long period of time.
Effective leaders show their presence in an organisation by encouraging and inspiring
the workforce. Loyal employees who are committed towards their work expect that their
leaders in order to attain goals will provide a clear vision about the organisation's strategic
direction. Other than this, an effective leader show their consistency while making any kind
of decisions in response to problems and issues. Use of clear communication process is the
basic quality that is being incorporated by a leader. Therefore, some of the basic qualities are
mentioned below and these are effective in nature for the company:
Motivation: Most of the leaders are charismatic in nature and they use this for
accomplishing job task by giving inspirational speech regarding company's vision in detail.
This, will gradually increase and motivates workers so as to work hard in attaining goals and
objectives because when superiors show their personal commitment than it motivates team
members as well to work hard and show their innovative approaches so as to solve problems
and issues in an effective manner. In addition to this, in order to keep employees motivated
leaders give incentives to workers in terms of bonuses, financial rewards for increasing
production.

Team Building: Successful leaders know that in order to function well it is required
that team members work in collaboration. For this, they conduct different kinds of team
building exercise so that each member of the team can feels their contribution that they are
valued in a team. Moreover, if teams are dispersed instead of working together than here
leaders, can use effective communication for increasing mutual understanding so that they
can work for a common goal. For example: Company can use all latest tools and technologies
for performing their activities like web-based conferencing, or leaders with the help of this
can conduct virtual meetings so as to improve interactions.
Change: Change in external environment and market conditions can put an effect on
employees productivity. An effective leader assist employees in making themselves
comfortable in new working environment. For instance, company can install or implement
new and advanced software package through which firm can manage their account
transactions or different activities as well. As a result, company can get better results and
outcomes with the help of these tools and technologies.
Mentoring: An effective leader intellect other people who are working in an
organisation so as to develop their own leadership skills thus, in order to do so, leaders
provide workshops to subordinates for maintaining a healthy environment at workplace and
also to exemplifying the high standards of ethical behaviour.
2.2 Performance, sales and operation of Starbucks in international market
Starbucks is multinational coffee house chain in United States. It is one of the largest
coffee store in all over the world. It operate its business in more than 50 countries. It
provides high-speed wireless internet connections in stores. In other countries, it has big
presence. Currently, it works closely with South, Africa, Asia-Pacific regions and Central
America to assure about quality of its services and products. In international market,
performance of Starbucks is better. In other countries, atmosphere of Starbucks was crafted
after European -style espresso bar. In first quarter of 2018, this coffee company earned 65
percent shares. According to opinion of Healy, 2018 it has been stated that Starbucks beats
esrimate 57 cents earnings per share (EPS) through 8 cents. It represents 27% enhance from
same quarter last year when firm earned the 51 cents per share. China shows significant
potential for the expansion of Starbucks. It operated its business in more than 2800 locations

in China in year 2017 but its plan to have 5000 stores through out 2021 year. At international
expansion, it has been working for more than 30 years.
Starbucks firm developing at great pace and also has been successful in managing its
international operations. It adopted the global practices in an effective manner to great profits
due to opening of new market and opportunities and providing them great revenue potential.
Performance and sales can be linked with one another, in relation with Starbucks,
over the past five years their performance has doubled up in the market area which has
increased its value from $14 billion to $23 billion. Company has now adopted innovative
growth drivers in three aspects Digital, China and Starbucks reserved. In international market
company is thinking of nationwide delivery in China and for this they are conducting
advertisement campaign considering Starbucks' aim and objectives. In China as there are
many companies who are dealing in the same sector thus, firm are facing greater price
competition because of which their sales fell down to 2 percent. Starbucks' success can be
measure through revenues they have generated and according to a study it has been evaluated
that in the year 2017, company has reached to around 22.39 billion U.S. Dollars. Later, after
global expansion Starbucks has reached to approximately two thousand during 2017, totalling
27,339 stores.
In addition to this, Starbucks is expanding its digital relationship as they have
developed an application in which all the details about the products and services are being
shared. Through this, customers can easily order their stuffs and can further pick up from the
nearby store in quick time. Therefore, as company has largest chain around the world which
is assisting them in increasing their performance and sales and thus, it is making them one of
the most valuable fast food brand worldwide.
Henceforth, Starbucks, with the help of established companies in different parts of the
world is gaining profits and this shows the sales and performance level of a company around
the globe.
2.3 Impact of leadership on sales, performance and operation
According to opinion of Meyer and et. al., 2012 it has been stated that Leadership is a
procedure of influence the others at work willingly towards aims of company with
confidence. Leader directs the team members to attain specific goals of Starbucks that set
through top management. Leadership skills that are acquired by an individual are not tangible

because many leaders are born with certain kind of ability. Leaders in an organisation play a
very crucial role as they guide its team member and show them effective path through which
company can achieve its goals and targets. In addition to this, leaders look out for paths
through which objectives of a firm are achieved in speculated time frame. Moreover, leaders
after analysing the performance of workers can implement training and development
programmes. As a result, this will gradually increase performance level of employees.
Therefore, performance and sales can be linked with one another because with the increase in
ability of production company will enable themselves in selling number of goods and
products which will as a result increase its profitability and sales. Henceforth in an
organisation leaders are essential in an organisation and comes under an integral part of a
company.
Leadership style plays a crucial role in providing better guidance to employees so that
they can perform their task in a better manner without any complications. Thus, it is crucial
that leaders choose effective leadership styles in order to improve employee performance. For
example: in order to encourage its workers leader can use participative leadership style for
motivating its employees and for guiding them as well. Moreover, there are some factors that
are to be consider for and these are explained below for a better understanding:
Understanding leadership style: Pared down to basis an individual can be a boss or a
leader and can give directives or order to employees so as to make them work and targets can
be achieved in a speculated time frame. For example: leaders should always use positive
leadership style in order to motivate its employees as a result, it will empower workers in
exceeding their minimal expectations. Whatever work is being done by a leader it provides
greater ability of team members Therefore, in an organisation it will create a positive
environment.
Monitor team on a regular basis: Leader's role is not confined with maintaining
reports but their prime role is to take their team onto next level and this can be done by
monitoring the performance level of each and every employee who is working in this
organisation. Thus, if a leader is engaged with activities his/her team will be able to find out
an effective path for attaining goals and objectives. Moreover, on a continuous basis leader
can communicate with its team mates so that problem or issues can be discussed if there is
something like that. Therefore, through effective monitoring performance of employees can

improve as a result, it will gradually and in an effective manner sales and profitability will be
increase and company can become one of the leading organisation.
Making adjustment as per the requirement: While operating business there can be
many ups and downs which company can face so, an effective leader should manage or adjust
things according to the requirements. For example: leaders can use authoritative leadership
style when company want to increase the sale and profitability in order to sustain in the
market for a longer period of time.
Therefore, leaders of Starbucks can consider all these points and assist firm in
operating their business in an effective manner without any problems and complications.
2.4 Ways through which Starbucks can enhance its performance
According to current market area there are many ways through which company can
improve its performance thus, Starbucks has saw an extensive growth in its loyalty program
and mobile transaction in 2018 in its seconds fiscal quarter. Other than this, company can
think of product innovation in order to gain competitive advantage. For example: Pumpkin
spice latte which is determine as one of the seasonal favourites at Starbucks, firm can think of
making more creatures beverages like this so as to attract large number of customers. As a
result, it will help company in improving its performance. Moreover, Starbucks can formulate
strategies for growth such as increasing number of stores in different locations and for this,
instead of opening dine-in restaurant company can think of or concentrate more on drive-
thrus, in urban as well as rural area. This, company can implement with the purpose of
enhancing firm's store penetration.
In addition to this, Starbucks can think of elevating the coffee experience such as
providing 10 Roasteries where company can offers various types of coffee experience to its
customers along with some foods as well. Therefore, it will assist firm in pulling attention of
maximum number of people towards their organisation. Other than this,, Starbucks, is
planning to launch nitro cold brew in 500 stores in different locations.