Applying Leadership and Operations Management to Starbucks UK

This report delves into the realm of leadership and operations management, specifically within the context of Starbucks UK. It begins by examining the roles and functions of leaders and managers in various situational contexts, emphasizing the importance of adapting to fast, moderate, and slow changes within the business environment. The report then explores diverse leadership theories and models, including situational leadership, systems leadership, contingency theory, management by object approach, and chaos theory, assessing their strengths and weaknesses in the Starbucks setting. Furthermore, it explains key approaches to operations management, such as total quality management, just-in-time, Six Sigma, lean production, and continuous improvement, highlighting their significance in improving business efficiency. The report also underscores the importance of operations management in achieving customer satisfaction and optimizing various business processes within Starbucks. The report is a detailed analysis of Starbucks' operational and leadership strategies.

MANAGEMENT AND
OPERATIONS

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
Covered in PPT.........................................................................................................................................3
TASK 2..........................................................................................................................................................3
2.1: Apply roles and functions of a leader and a manager in different situational context of Starbucks
UK............................................................................................................................................................3
2.2: Apply different theories and models of approach along with their weakness and strengths in the
context of Starbucks................................................................................................................................4
2.3: Explain the key approaches to operation management and the importance of operations
management...........................................................................................................................................6
2.4: Factors effecting the operations management and decision making of Starbucks...........................9
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Operations management refers to the Management of the various operations or activities
which are performed by the organizations. Managers and leaders are the most important factors
which drives the operations management process. Managers and leaders are the most important
elements of an organization who are responsible for the growth and success of the firm. In this
report, the taken company is Starbucks which is a food and beverage company with presence in
many countries. This report will cover various roles and functions of managers and leaders and
apply them in various situational context. Different theories of operations management and
various style of leadership which should be followed by the managers and leaders are also will
be discussed. Also the impacts of various factors on the decision making process of managers
and leaders in operations management of an organization.
TASK 1
Covered in PPT
TASK 2
2.1: Apply roles and functions of a leader and a manager in different situational context of
Starbucks UK
Managers and leaders faces various situations in the workplace while performing their
roles and responsibilities for the improved performance and revenue of the company. These
changes must be overcome by the managers and leaders for performing well. These changes are
discussed below:
Fast change: These changes happens at a frequent interval which can hugely impact the
working of the employees and managers of an organisation. These change are technological
changes or either can be policy changes of government. Managers of Starbucks should determine
such changes with the proper interaction among the other employees. This will help the
managers to aware the employees regarding the changes which are taking place presently and
adapt according to the changes (Christopher, 2016).

Moderate change: These changes occurs less frequently in nature and examples of such
changes are the need and demand of the customer and the employee’s. The manager of Starbucks
should determine these changes before these takes place in the market by analysing the trends
and behaviors of customers as well of market. By identifying such changes, managers of
Starbucks can adopt suitable strategies for overcoming them in future.
Slow change: These changes are the changes which occurs very rarely as these changes
are identified by the managers of Starbucks before they start to takes place. These changes can
affect the organisation in a very little manner but can have huge impact on the mind of
customers.
2.2: Apply different theories and models of approach along with their weakness and strengths in
the context of Starbucks
Leadership style are the styles followed by leaders and managers in effectively
overcoming the rising situations in the workplace. It includes of two types which are directive
and supportive. Various types of styles and approaches are used by the Starbucks leaders and
managers in order to perform well in completing their assigned task (Cordray and et. al., 2015).
Situational leadership: It is the style which emphasizes on the qualities and skills which
are exerted by the leaders in different situations for effective results. These is an important style
which ensures that employees are working better and effectively without any hindrance to them.
Starbucks can use this theory for improve.
Strengths: Available in the market from a very long time which is used to train leaders by
the companies.
Weakness: Fewer studies and research are available for justification and adaptation.
Systems leadership: This theory states that the leaders should need to control the
workings of the employees and communicate with them regarding the situations of the company.
Systems Leadership allows the leaders of an organisation to form the conditions where people of
all levels can work productively according to their potential. Starbucks should adopt such theory
for improving the productivity of the employees for enhancing their as well as of organisation’s
performance.

Strengths: It is helpful for increase the organisation’s flexibility to adapt to environmental
changes. The focus of this approach is on accomplishing the individual’s goals as well as of the
organisation.
Weakness: Due to less practical in nature, it results in delays often. Less applicable on
small organisation.
Contingency theory: It stresses on the importance of the leader's behavior and
the condition in which that leader operates. Two styles of leadership are task oriented and
relationship oriented.
Task oriented are the individuals who performs their task for achieving their goals
regardless of organisation’s goals. This people works for enhancing their own skills and
knowledge and doesn’t support much to their colleagues. Starbucks should choose such quality
people as managers as they should need to done their work in any way. Their work is the work
of organization itself (Deresky, 2017).
Relationship oriented are the people who communicates with other peoples of
organization and develops a mutual understanding and trust with them. Such people are better
leader. Starbucks should hire such people for leaders as these people has good communication
skills and are helpful for providing motivation to the other employees.
Strengths: It has widened the scope of leadership by focusing on understanding of
individuals. It is the best leadership style which emphasize on the importance of a leader's style
to choose according the demands of various situations.
Weakness: It failed to explain why leaders with confident leadership styles are operative
in some situations but not in others. It is often criticized for LPC scale validity which doesn’t
correlate with other leadership styles (Grant, Wong and Trautrims, 2017).
Management by object approach: It is helpful in bringing motivation between the
workforces with the feeling that they are being valued by the organisation which can bring
efficiency in their working behavior. Managers and leaders of Starbucks can use this approach
for providing motivation to the workers in order to improve their skills. Managers and leaders

should need to provide additional benefits such as pensions and medical to the employees and
other such as incentives and monetary benefit on performance basis.
Chaos theory: It is focused on the changes that takes place in the market and the
response of the leaders and the manager to the changes accordingly and help the organization in
achieving the growth. Leaders and managers of Starbucks should adopt this theory to identify the
changes before the time and provide suitable strategies and guidelines to the employees for
encouraging them to work more efficiently by adopting the changes.
2.3: Explain the key approaches to operation management and the importance of operations
management
Concept of operations management is one of the important part of an organisation as this
manage all the activities which are carried out for production of products and services and for
improving the quality of overall process. Both leaders and managers play an essential role in a
company as these are the ones who ensures effective accomplishment of various methodologies
of operation management and at the same time help in attaining the business goals. Main role of
operation management is to improve productivity of the organisation with the help of available
resources (Haimes, 2015). Various approaches of operation management are used by companies
which are given below:
Total quality management: This approach of operation management is consists of
monitoring and controlling all vital process of the company for maintaining, creating,
implementing the quality standards and quality control of products and services for providing
excellent quality based products to the customers. Main aim of this method is to improve
performance and quality of all processes which are performed by the organisation for meeting
the expectations of its target end users and can retain them for long time period for sustaining in
this highly competitive industry. This approach is based on seven principles such as customer
focus, people involvement, strong leadership, systematic approach, continuous improvement,
proper decision making and a good relationship with suppliers and distributors.
Just in time: This is another approach of operation management which helps in
declining the wastes and improve the efficiency by providing the goods according to the demand
and needs of customers. It is helpful for production process in order to reduce the inventory cost.
One of the main advantage of this approach is that it helps the Starbucks in reducing the storage

space so that goods can be stored only on the times of need for saving the huge cost of storage.
This approach also supports in reducing the raw material as goods are only taken when
necessary. With the help of this approach Starbucks can improve business efficiency and can
offer its quality products to its customers at less and reasonable prices (Laudon and Laudon,
2016).
Six Sigma: This approach of operation management helps in removing defects from all
functions which help in offering good and attractive featured products and services to the
customers. With the help of this approach Starbucks can achieve customer satisfaction by
providing defect free quality products for sustaining and retaining them for long run in the
market. In this way, Starbucks can improve return on its asset, prevent defects and achieve its
organizational goals and objectives easily and efficiently.
Lean production: This is an organized approach of operation management which help in
eliminating the business waste of production process for improving the quality of services and
products which are provided by the company to its end users for generating more profit and
revenue. It also reduces the unnecessary use of manpower and will also enhance the efficiency of
company to improve their market share and position. Further, this also helps in dealing with
various issues of workers, provide better working environment and enhancing the productivity of
workers.
Continuous improvement: This approach can be applied at workplace in order to
improve the quality of every function, process and departments exists in the company for
producing goods and services. Its main aim is to reduce waste by improve processes and
activities of the company. This approach is based on five principles which are given such as set
in order, standardize, sustain, shine and sort. By implementing this approach at workplace
Starbucks can develop team work and can achieve the high level of quality and innovation (Penn
and Pennix, 2017).
All these are the approaches of operation management by which Starbucks can improve their
business efficiency for satisfaction of the company as well of the customers. This will help the
Starbucks in achieving their targets easily in a predetermined time.
Importance of operations management

Operation management is concerned with the designing and controlling of production
process and re-designing of various operations in merchandises and services. It is the
management of production process in which inputs such as raw materials, labor, and energy
which is then converted into output such as goods and services. It is concerned with plan,
supervise and organizes the manufacturing, production or service supplies. It is often called as
supply chain management. It is the management of business processes for achieving the highest
level of efficiency in the organisation. Starbucks should also adopt proper operation management
in order to improve the efficiency of their various processes for providing the quality based
finished product and services. The importance of operations management in Starbucks is as
follows:
Customer satisfaction: Customer satisfaction is necessary for an organisation for
ensuring their products are meeting with the requirements of the customers. The main aim of
operations management is to provide highest quality based products and services to the end users
for fulfilling the needs and requirements of the market as well as of the customers for achieving
the organizational goals. It is the responsibility of Starbucks to fulfill the demands of customers
through their best products for achieving the customer satisfaction (Prashar, 2015).
Inventory management: It is same as just in time approach which is helpful for ordering
the raw materials which are required by the production department. It reduces the wastage of
resources and only required stocks are used by the company in production. The operation
management manages every available inventory in organisation efficiently. Starbucks operation
manager do their roles accordingly and efficiently for the growth of the company.
Reduce wastage of resources: The wastage of business processes can be reduced by six
sigma and lean management for different resources. It helps Starbucks in minimizing the wastage
through these techniques. It will help in enhancing the profitability of company. Starbucks uses
such approaches for minimizing their business wastage and improve profits.
Providence of long term benefits: The operation management assist companies to
provide additional benefits to their end users and workers. It also helps in delivering products on
right time. By application of operation management, operating cost can be reduced and
customers can purchase the product at reasonable price. This form positive impact and brand
image for product of the company. Starbucks also provide benefits such as offers, discounts,

coupons, incentives etc. to customers and workers for retaining them for long term (Pundi and et.
al., 2015).
These are the some from various other importance of operations management. Operation
management improves overall productivity, focused on using resources efficiently manner to
achieve the organizational goals. It also handles various issues such as designing, maintenance
and activities of systems used for the production of products and services. Thus, Starbucks
should adequately use operations management properly in order to increase the growth and
reducing the use of sustainable resources.
2.4: Factors effecting the operations management and decision making of Starbucks
There are various external environmental factors which effect the company’s operations
and decision making process. It is necessary for Starbucks to determine such impact of external
elements to avoid problems in future. The factors affecting operations management are: political,
economic, legal, social, technological and environmental. These also affects the decision making
of manager. These factors are explained below:
Political Factors: It is the interference of government in the operations of company by
various laws like political stability, labor, tariffs etc. The government has huge impact on
infrastructure, sales and profit of company. Starbucks influences the government for tax
reduction and permission for expanding their operations. Starbucks managers and leaders should
analyses such laws before entering into market as changes in these factors can adversely effects
the performance of the firm (Ronen, Pliskin and Pass, 2012)
Economic Factors: These factors affect the operations up to huge extent. Factors such as
interest rates, inflation, exchange and economic growth are coming under economic factors. The
positive aspect of recession in UK helps Starbucks to increase the output as customers prefer to
eat on the go when they are hungry. Starbucks managers should take care of prices of their
products and set them according to the economic stability of people otherwise company can face
huge loss in the UK market (Shirae, and et. al.,2015).
Social Factors: It affects the demands and need for products of company and their
operations. The factors such as age distribution, safety, health consciousness, population growth
rate etc. are the factors which greatly affects the business and its operations. According to the

need and wants of customer, products of Starbucks should be produced and sold. The sales of
products depend upon such factors and managers should act accordingly.
Technological Factors: These are factors associated with the technological changes
which effects the productivity of company as per their rivals. It includes factors such as
automation, R&D, technology incentives, new ideas etc. It determines the barriers for entry,
influencing decisions. Managers of Starbucks should need to adopt such changes otherwise
competitors can take advantage of these factors and company can face loss.
Legal Factors: These laws can affect the operations, demand for products and costs. The
factors under legal are health and safety, antitrust, discrimination and consumer law. Increase in
tax rate can heavily effect the operations of the company. All legal laws must be followed by
company for surviving in the market. Managers and leaders of Starbucks must follow these rules
otherwise company can face issues in expansion of activities and operations.
Environmental Factors: These factors are associated with the environment laws and
regulations for maintaining the environment safety and sustainability. Factors such as climate,
weather, change are must not be harmed by the company in their process. Managers of Starbucks
must ensure that these laws are followed accordingly as if company will not follow these rules
than government can take strict legal action and even customers will also criticize the company
for harming the environment.
Decision making is a process of taking judgements for the welfare of the company which
are taken by the managers and leaders of company. There are various factors which influence
decision making process of managers. It is important for managers to identify and inspect each
element for making new and better strategic decisions. With the help of evaluation of every
factors, strengths and weakness of the company can be identified. By evaluation of such factors
manager of Starbucks can easily make better decision. Such elements restrict manager to work
effectively and efficiently in performing their task. It also impacts on resources of the firm, poor
decision making results in loss of profit whereas good decision can improve the productivity of
the organization (Wensveen, 2018). These decisions must be made keeping in mind about the
effects of the decision on the performance and productivity of the company and good decision
can leads to more customer base.

CONCLUSION
From the above report, it can be stated that operation management help in improving the
efficiency and profitability of the company. Both leader and manager are essential persons for
the organisation for effectively achieving the organizational goals. There are several functions of
manager which support in improving efficiency and effectiveness of Starbucks along with profits
and sustainability. There is various leadership style followed by leaders of Starbucks for
improving the qualities among managers and leaders. As there is various approach of operation
management such as six sigma, lean management, just in time etc. help in reducing the waste and
improving quality and quantity of goods and services. It also contributes in getting maximum
profit and sustainability. The operation manager has different role and responsibilities for
accomplishing the goals and objectives. This report has discussed about the importance of
operations management for product improvement, quality maintaining. This report also discussed
the effect of PESTEL on operations management and such elements also helps in decision
making of managers.

REFERENCES
Books and Journals
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Cordray, C., and et. al., 2015. Self-configuring network management system. U.S. Patent
9,077,611.
Deresky, H., 2017. International management: Managing across borders and cultures. Pearson
Education India.
Grant, D.B., Wong, C.Y. and Trautrims, A., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Haimes, Y. Y., 2015. Risk modeling, assessment, and management. John Wiley & Sons.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Penn, I. A. and Pennix, G. B., 2017. Records management handbook. Routledge.
Prashar, A., 2015. Assessing the flipped classroom in operations management: A pilot
study. Journal of Education for Business. 90(3). pp.126-138.
Pundi, K. N., and et. al., 2015. 40-year follow-up after the Fontan operation: long-term outcomes
of 1,052 patients. Journal of the American College of Cardiology. 66(15). pp.1700-
1710.
Ronen, B., Pliskin, J.S. and Pass, S., 2012. Focused operations management for health services
organizations. John Wiley & Sons.
Shirae, T., and et. al., 2015. Operation management device and method for job continuation
using a virtual machine. U.S. Patent 9,069,597.
Wensveen, J., 2018. Air transportation: A management perspective. Routledge.