Analyzing Starbucks' Operational Management and Business Objectives

This report provides a comprehensive analysis of Starbucks' operation management, exploring key approaches, the roles of leaders and managers, and the importance of operational efficiency in achieving business objectives. It delves into how Starbucks attracts customers through its products, services, and employee-oriented culture. The report examines the factors within the business environment, both internal and external, that impact operational management and decision-making, including technological advancements, customer needs, and financial resources. It further assesses how these factors affect the business environment and the wider community, considering social, political, and legal influences. The study emphasizes the critical role of operation management in achieving organizational success and maintaining a competitive position in the market, highlighting the strategies employed by Starbucks to adapt to changes and meet customer expectations effectively.

Operation
management

Table of Contents
INTRODUCTION : ........................................................................................................................1
Task 1 :.............................................................................................................................................1
2.1 Explain the approaches to operations management and the role that mangers and leaders
play in Starbucks ........................................................................................................................1
2.2 Explain the importance of operation management in achieving business objectives with
the example of Starbucks............................................................................................................3
2.3 How leaders and managers helps to improve efficiencies of operational management to
successfully meet business objectives.........................................................................................4
Task 3 :.............................................................................................................................................5
3.1 Assess the factors within the business environment in which Starbucks operates that
impact upon operational management and decision-making by leaders and managers..............5
3.2 How these different factors affect the business environment and wider community of
Starbucks ....................................................................................................................................6
Conclusion : ....................................................................................................................................7
REFERENCES : .............................................................................................................................8

INTRODUCTION :
Operation management refers to the business administration to create the highest level of
efficiency in the business to create maximum profit, operation management is the key point in
the business to create maximum return. This process concerned with converting materials and
labour into goods and services. Operation management team manage the balance between costs
and revenue of the organisation. And helps to achieve the organisation goal.
This project contains many topics of operations management like key approaches to
operations management and the role of leaders, importance values of operation management to
achieving business objectives, how leaders and managers helps in the organisation, how different
factors affect the business organisation.
In this project contain the business operations of Starbucks company which is an
American coffee company. How Starbucks operates its activity and earn maximum revenue what
is their strategies and techniques to attract customers.
Task 1 :
2.1 Explain the approaches to operations management and the role that mangers and leaders play
in Starbucks
Starbucks company provide coffee products and cafe services throughout the world to the
coffee customers. It sells high quality of coffee with premium teas hot and cold. They also offer
various types of sodas and juices pastries and sweets. These are the approaches from which they
attract number of the customers. The main key approach is a friendly environment in the
company to deal with the customers. The main features of Starbucks are :
 Employee Leadership : Starbucks has an employee oriented company they
provide many facilities to the employee and maintain good relationship between
subordinates.(Mohammadi, Soleymani and Mozafari 2014.) This feature of
Starbucks explain the healthy environment of the organisation. This approach
helps to maintain employee retain every supervisor and subordinates helps each
other and give positive suggestion to every one. Because employees is the person

who directly contact with the customers so that employee should feel free and
happy to motivate in the work who care about customers.
 Starbucks operation management approach is to maintain good relations with the
customers because the customers is the king of the market. Operation department
always take care about the things going on in the company to maintain the
working environment. Operation management is the essential part in the company
to hold all functions properly.(Zhang, Shah and Papageorgiou 2013.) Mangers
and leaders always contribute their part and helps to complete the target and
motivate to others. The key responsibility of leader is to create positive ad
motivated environment among employees check who is doing good and bad.
Leaders always motivated to their subordinates to give best output. And the
managers' responsibility to take care of the team helps employees to take better
decision give proper guidance to complete the task. This approaches of operation
management helps to keep environment good and calm.
 Operation management includes all the factors of production by which company
produce goods and services. In operation management it is the responsibility of
operation manger to keep changes of technology and keep up growing so that
company match the expectations of the customers. Technology factor always
depend upon the current trends how thing goes change how the organisation make
new method of working so that comp-any compete with the customers. Operation
management of Starbucks is explained the new trend of coffee this is not a cup of
coffee it is Starbucks coffee which is different from others.
 Operation management plans and approaches of Starbucks is always towards its
customers and its employees for the employees they provide well furnished
environment and for employees there is a various products and services for
example Starbucks coffee at various flavours and also they give its coffee
machine to the corporate offices, restaurants. In colleges, hotels. So this is the
plans by which company sells its product and services and earn maximum profit.

This is the best approach of Starbucks to identify customer wants and then create
the best product and services to satisfied them with the help of new technologies.
 The operation team of Starbucks know very well that how to impress the
customers and how to give services in which sense but it is the big responsibility
of operation manager to control the uncertain situations and prevent unwanted
activities in the company.(Korschun Bhattacharya and Swain 2014) On the
other hand the sources or a raw material which is required by the company during
the production of goods and services this is also the part of operation management
to maintain the records and utilise the resources in efficient manner.
 In the operation department the last thing is that how to approach new talent or
skills in the company. Leaders and managers take this responsibility to manage or
to lead the employees and helps to increase their productivity also listen to every
employees issue.
2.2 Explain the importance of operation management in achieving business objectives with the
example of Starbucks.
Operation management is a very complex process includes planning organising leading
and controlling. It is the backbone of the company who take care of all the activities going on in
the organisation. This process has changed according to the needs and wants of the customers.
Company invest very huge amount of fund in the operations' activities so they expect good profit
and full-fill customer needs. (Vlachos Panagopoulos and Rapp 2013.)Operation management
improves quality of goods and services and growing company growth. In operation management
there is a one operation manager who take care of all things and check the activities on regular
basis weather raw material has come or not or if any financial resources is required in any
activity so these are the responsibility of operation manager to helps in the company growth. For
example Starbucks company it's an American company who provide coffee and other services to
the customers. Starbucks known for its great product and services. There are many key features
of Starbucks by which they get maximum profit first is their quality of product & services,
location, infrastructure, Product design, human resource, supply chain management, maintenance

etc. these are the operation management approaches which helps company to achieve objectives
in impressive manner.
 To achieving the target of the company it is very important to make high-grade
business plans and make the best strategies to achieve that plan so in that case it is
very important to take all the operational activities properly.
 Operation management helps to arrange all the required resources in the business
like Human resources, financial resources, Technological resources, these all
factors are needed to accomplish final objective of the company so operation
management is very crucial to achieving organisation objectives. Example
Starbucks have the good human resource, financial resource attractive technology,
 Operations of the company create different values and methods to achieve the
objective. Operation plays a very important role to contribute towards the overall
success of the organisation.
 A good operation management set the benchmark for the competitors and helps to
maintain the position in the minds of customers.
 Operation management helps to create new ideas of product expansion for the
growth of company. And identify the current market situation customer needs and
requirements. Efficiency and effectiveness of the organisation is depended upon
the operation management. Managing operations is all about taking a right
decision.
 Operations department also developed new product and services according to the
customers. In other words operations are involved in each departments.
2.3 How leaders and managers helps to improve efficiencies of operational management to
successfully meet business objectives.

In operation management every employee should keep the environment positive and
enthusiastic. Each department of the company involves some operational activities on regular
basis like In production department production manager is responsible to take care of all the
activities and make sure about the quality level of the products and services and in the same hand
human resource department where employees get hired on the basis requirement in the company.
Sop all the department have their own mangers and leaders to guide their team workers. In each
company there must be a good manger who manage the things and take good decision in respect
of the company. (Wong and Laschinger 2013.)A good leader always take company to higher
position by its creativity, hard-working, and good leadership power. For example In Starbucks
company there are good leaders
Who give suggestions and motivate employees for their work and managers who manage things
and guide their subordinates for better performance a good manager always listen to the
employee issue and helps to give the best solutions so that they generate passion among
employees for better production and they provide training to new employees.
Task 3 :
3.1 Assess the factors within the business environment in which Starbucks operates that impact
upon operational management and decision-making by leaders and managers
In business environment there are many factors who impact on the business like external
factors and internal factors. External factors includes suppliers, customers, competitors,
technological, social, legal factors an in internal factors includes employees
Financial factors, human resource factors, and technological factors.
 In the business there are many types of employees working and every individual have
their own perception and their own way of going the things so sometimes to match the
ideas it is very difficult to explain the methods. (Goetsch and Davis 2014.)And due to
lack of training and development employees fails to reach the target. And sometimes it
may difficult for managers to explain the strategies.

 In the company the most essential part is financial resources which affect company's
growth this factor affect operation management to achieve the target.
 The main factor is technological factor. Technology is the feature by which company
utilise to form good quality of product and services. In operation department to complete
their work on time it needs the best technique to compete with the competitors. This
factor may also affect the working condition in the business.
 Customer is the key feature of the business growth it is necessary to compete with their
needs due to this reason sometimes company fails to reach the customer requirements.
3.2 How these different factors affect the business environment and wider community of
Starbucks
All environmental factor affects company directly or indirectly there are many factors are
present in the environment like social political, legal, technological. Like social factors these
factors may change the buying habits of the customers. Reducing the purchasing power and
needs as well.(Tang and Lo 2013) These factors are depended upon the family. Friends,
colleagues, neighbours etc. For example Starbucks this coffee producing company attracts young
generation customers who love to drink coffee on the other hand Starbucks also give their coffee
machine in offices, colleges, hotels so the conclusion is they attract number of customers and
earn maximum profit. All the other factors affect organisation environment through positively or
negatively. Legal factors also affect companies growth by changing rules and regulations and
policies. Due to these changes companies need to change in their prices sometimes they give
negative result or positive as well. In the organisation internal factors also may harm to the
company goals by giving wrong strategies, wrong execution, lack of seriousness among
employees these factors harm the company's growth. For example Starbucks always adopt
innovative services for their customers after identifying the external and internal environment.

Conclusion :
From the above report summarised that how operation management is necessary in the
organisation to full fill their targets. Every organisation creates a strategy to compete the target
and earn maximum profit. Operation management involves all the day to day activity which is
required in the company and every company depends on its operation management.

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