Analysis of Leadership and Operational Management at Starbucks

This report provides a comprehensive analysis of leadership and operational management within Starbucks. It begins by examining the roles and characteristics of managers and leaders, differentiating their responsibilities in various situations, and exploring different leadership theories and models such as situational, systematic, and contingency leadership. The report then delves into key approaches to operational management, highlighting the roles of leaders and managers in achieving business objectives, and considering the impact of the business environment on operational decision-making. The report also discusses how Starbucks can use different leadership styles and approaches to improve its market position and customer satisfaction, covering strategic marketing, technology adoption, and supply chain management. Overall, the report provides a detailed overview of leadership principles and operational strategies applied within a real-world business context, offering valuable insights for students of management and leadership.

Management & Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
A. Roles and characteristics of manager and leaders..................................................................3
B. Examination of role of a leader and function of the manager in different situation...............5
C. Theories and models of leadership approach.........................................................................6
TASK 2............................................................................................................................................7
Key approaches to operation management and the role that leaders and managers play...........7
B. Importance and value of operation management in achieving business objectives...............9
C. Factors within the business environment that impact upon operational management and
decision-making........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Leadership plays a prominent role in the success of each and every business unit in the
world. They provide vision and long term objectives and motivate their subordinates to achieve
these goals and objectives. A leader is a person who has effective control over organisational
functions and management in the long run (Arnason, 2009). This report is based on Starbucks
which is a well-known brand and leading fast food chain in the United Kingdom. This report
analyses and evaluates their various concepts and approaches of leadership and ways in which
these theories can help to make their business successful in the near future. It also explains the
operational and management role of leader within organisation to accomplish organisational
goals and objectives.
TASK 1
A. Roles and characteristics of manager and leaders.
There are different roles and responsibilities which are performed by the manager and
leader in an organisation. They provide strategic direction to their business and make strategies
in long run (Baldwin, Allen and Ridgway, 2010). The role of a manager and leader in a firm is
having a great significance because they are responsible towards all strategic and operational
decision-making within organisation. Starbucks is a large corporation which operates their
business operations across the United Kingdom. Therefore, they are having various managers at
different levels and departments. There are following roles which are played by the manager or
leader:
Roles and responsibilities towards organisation
A manager of Starbucks is playing various roles which are given as below:
Planning: This is one of the major functions for a manager to make an effective long term plan
to attain growth and development in business unit (Bendoly, Donohue and Schultz, 2006). As a
manager of Starbucks, the main role is to maintaining strong growth in the market. They are
responsible of identify high value new opportunities in United Kingdom and other part of the
world. Apart form that focus and research and development which can help to transformational
innovation in the market.
Organizing: To organize different teams and allot them required resources which can support
their business strategies and plans is another important function of a manager. For example,

Starbucks wants to open a new food centre in colleges and universities. Their manager is
required to provide all resources like man, machine and finance.
Staffing: Human resources are the valuable assets for each and every business organisation
especially in the service industry (De Neufville, and at. el., 2013). Manager of Starbucks is
required to plan their HR functions such as recruitment, selection, training, etc. for their staff.
Leading: A leader is required to do more than a plan and organizing to attain organisational
goals. A firm can not operate their business operations without effective leadership. Therefore, it
is the responsibility of manager in Starbucks to lead and provide right direction.
Controlling: Effective control is essential to maintain discipline within organisation in order to
control all business activities (Grunig, 2013).
Roles and responsibilities towards employees
It is the role of a manager to maintain healthy relations with their employees because they
contribute in achieving the organisational goals. It is the responsibility of leader to share
company’s vision with their team that can help to increase their motivation level and feel more
attached with the business example. For example, Starbucks wants to increase their sales by 20%
in the next three years. If manager can share this information with their team and staff, they can
try to increase their productivity and performance (Kuruppuarachchi and Perera, 2010). Further,
they should provide training and development to their staff members over a period of time which
can help to enhance their knowledge and skills.
Roles and responsibilities towards customers:
Customer is the king of market and therefore, each and every business organisation is required to
provide products and services according to their needs. Manager in Starbucks is responsible to
provide quality products and services to its customers. For this, they can make an effective
customer feedback programme which can help to identify current and changing needs of their
customers (Russell and Taylor-Iii, 2008). It can help to improve their products and also, to
increase customer satisfaction level which can lead to increase their profitability and customer
loyalty.
Roles and responsibilities towards government:
Government is a key stakeholder in the business and therefore, it is the responsibility of a
manager to follow all government policies and legislations effectively. There are various laws
regarding operating a business ethically such as labour laws, environmental laws, tax laws and so

on. Starbucks is needed to pay their tax on time to government which can help in the growth and
development of country (Souer and et. al., 2008).
Responsibility towards Suppliers:
Suppliers are those who provide raw materials and components for their products. The manager
of Starbucks provide payment on time and maintain their relation which can help it in the long
run.
B. Examination of role of a leader and function of the manager in different situation.
Starbucks is one of the leading coffee chain in United Kingdom, they operate their store
in various cities which can provide high quality products to its loyal customers (Tang and Musa,
2011). Today, coffee sectors is more competitive, because there are large number of companies
such as McDonald's, Gloria Jeans, Caribou Coffee, CCD and so on. These firms are provide
tough competition in the market which can leads to reducing their sales volume and profitability.
Therefore, it is the responsibilities of company manager is to provide strategic and competitive
advantage over its rival companies. They required to make effective marketing strategies and
plan which can help to maintain their profit and sales in the market. Apart form that, they also
responsible to expand their business operation in other parts of the world. For example, it they
feels that their profits is going down, they can focus on product development and market
diversification which can help to boost their sales (Van Mieghem and Allon, 2008). They can
also focus on fast food which is a good opportunity for them and it may successful due to its
brand image and market share. They can provide fast food using competitive pricing strategies,
helps to increase their market share in the country. Customer needs are change over a period of
time, manager is to take feedback and conduct customer survey and try to know their current and
changing needs. It can help to develop their products and product range in to the market. They
can also provide offers to its existing customers which can increase their sales. They also inspire
their staff members towards attaining firm target for they can provide various tools like monetary
and non monetary (Walker, Di Sisto and McBain, 2008).
Manager also focus on use of technology in the organisation such as automation, use of
social media, online ordering etc. If firms can use automatic machine for producing their
products can reducing operational cost and increase their revenue. Promotion is playing a
significant role in promoting their products and services. There are various tools and techniques
to promote their brand such as electronic media, print media and social media (Nath, Nachiappan

and Ramanathan, 2010). Use of social media in promotion is transformation change in the
marketing strategies of the company. Social media includes Facebook, You Tube, Instagram,
Twitter, Yahoo, world press and so on. These platforms can be to promote firm product and
services in a effectively. Starbucks is having online website for ordering products form their
customers. There are various customers who are not willing to come at coffee store, firm can
deliver product at their home and office (Peng and Lai, 2012). Manager also make sure that their
raw material should be qualitative and match their standards. For that they can communicate
directly for their suppliers regarding the quality of raw materials. Starbucks is one of the famous
brand name in coffee store, therefore they requires to maintain their quality standards which can
help to satisfy customer satisfaction level.
C. Theories and models of leadership approach.
There are various theories and approaches of leadership which can be used in different
situation be an organisation. These theories can be:
Situational Leadership: This is one of the approach which is believed that to make change in
leadership according to the requirement of an organisation (Richey and et. al., 2010). Starbucks
is an multinational firm and they are facing various situations is different part of the world. They
needs to require to make changes according to the situation. The business organisation is offer
coffee and small range of fast food which is required to analyses the actual demand of their
customer. For example, Starbucks is provide quick breakfast to its customers, but now they are
required to focusing on lunch and dinner which can help to increase market share and customer
range (Sarkis, Zhu and Lai, 2011). Leaders have to ensure that they increase customers without
compromising with quality. They have to make their efforts to increase their sales and so they
can use discount prices and other promotional schemes they can offer wide range of products
which can attract their customers and increase their sale. This leadership theory is easy to use by
the organisation. All leaders know their needs and apply the correct leadership style in a
situation. In this theory they can change their management style once they feel fit or comfortable.
These type of leaders can divert focus form long term goals and objectives (Subramanian and
Ramanathan, 2012).
Systematic Leadership: This is another important approach which is applied to the overall
organisational system. In this theory leader have to control and manage all components of a
business unit. Organisational system is operated at different levels in the company which is

required to manage by an appropriate leadership style. There are various components of this
system which include policies, processes, practices and people (Tang and Musa, 2011). In this
approach the role of leader having a great significance , because manager is responsible to
maintaining and managing coordination between all elements of the organisation. They are
required to set their target market and analyse the best tools of promotions and after it they have
to make a healthy advertising campaign which is having a brief of their product and their
features. manager is to ensure that what are their priorities and increase in sale is the biggest
priories for the company and they have to increase their sales any how (Taticchi, Tonelli and
Cagnazzo, 2010).
Contingency Leadership: In this approach is depends on the environmental factors and manager
are to be used an appropriate leadership style on the basis of situational. This theory is based on
various factors such as relationship, task and power of a leader. For example, if relationship is
sound between manager and their staff and he get respect and support form their team members
in any situation. Task which is given by manager to its team members in a structured manner and
use their power in a appropriate way (Tummala and Schoenherr, 2011). Starbucks is also focused
on the relationship which should be stronger and it can leads to increase the performance and
productivity of the company. Success of the this leadership theory is depends on the
contingencies which can be team members and task which is given to them.
TASK 2
Key approaches to operation management and the role that leaders and managers play.
Operation management is refers to converting raw material in to finished products by
using labour and other resources with highest level of efficiency and overcome the cost of
production. The role of operation manager is ensure that effective use of organisational resources
and increasing the profit of the company (Wu and Pagell, 2011). Starbucks manager is ensure
that all operational activities of the business is helpful in achieving firm target. There are various
approaches in operation management where the role manager is significant as given below:
Design of Goods and Services: Manager of Starbucks can focus on the goods and services which
offered to its customers. There are wide range of products such as sandwich, coffee, popcorns,
water, drinks, nutrition etc (Yang, Hong and Modi, 2011). They requires to set the standard of
quality products which can be provide competitive advantage for the company over its rival

firms. These strategies can help to provide uniqueness and differentiate their products form
other. Manager ensure that there is no space for compromising in the quality standards. Apart
form that they also provide economic meal and breakfast for middle class families which can
attract a large number of customer (Nath, Nachiappan and Ramanathan, 2010).
Quality Management: This is another approach which is used in operation management is
focusing on quality of products and services. To maintain the quality standards they requires to
choose an appropriate suppliers which provide good quality food material. Manager can use
various strategies for choosing an appropriate suppliers which can help to improve their product
quality at the minimum price, for example, they can import coffee beans form other countries
like India China where price is lower, it can help to reducing their cost of production and
increase their profitability which is a core objective of any business unit (Peng and Lai, 2012).
Process and Capacity Design: The higher management of the company can concentrate of the
process and capacity design which is provide competitive advantage to Starbucks. The
operational manager can uses the appropriate system which can help to manage their operational
efficiency and ensure the productivity. The can uses the maximum utilization of their resources,
so that they can reduces their operational cost (Richey and et. al., 2010). The main objective for
this approach is to maintain the cost effectiveness and efficient workflow in the company.
Location Strategy: Location is store played a significant part of overall marketing strategies of
the company. Operational manager of Starbucks is more concerned about the location, because it
can provide strategic advantage to the business over its rival firms. They select those area which
are more populated and strategically located such as urban centres. They can also choose college
and university campus, market, mall and so on. These operational strategies helps to increase
their sales volume and attract a large number of customers such as upper and middle class. The
decision making regarding location also based on the target market which can provide more
scope to increase their market share (Sarkis, Zhu and Lai, 2011).
Supply Chain Management: Supply chain management is another important approach in
operation management. It can help to develop a value chain of the company and give competitive
superiority. Supply chain help to get row material and other components form its suppliers at the
right time. For that they can contact large number of suppliers and maintain the supply of
product in the store (Subramanian and Ramanathan, 2012). The biggest advantage of this

strategy is that, it can reduce the bargaining power of its suppliers and make a proper and
effective supply of raw material in the organisation.
Effective maintenance: It is the responsibilities of operational manager that to make sure
effective maintenance of their overall system within the organisation over a period of time. It can
help to improve company system and process which can enhance efficiency and productivity.
Focus on Human Resource: Human resource is the valuable asset for the company, because they
help to attaining the organisational goals and objectives. Starbucks requires that to provide
effective training and development session to its staff over a period of time (Tang and Musa,
2011). It can help to improve their skills and capabilities which can help to increase firm
performance and efficiency as compare to its competitors.
Layout Design and Strategy: The layout design of Starbucks cafés maximizes workflow
efficiency. It also supports a warm and friendly ambiance to match firm organizational culture.
This layout strategy does not maximize space utilization for tables and seats because Starbucks’
focus is on premium customer experience, which involves higher prices for more leg space in the
cafés (Taticchi, Tonelli and Cagnazzo, 2010). In this decision area of operations management,
Starbucks prioritizes customer experience over space utilization.
B. Importance and value of operation management in achieving business objectives.
Operations management is related with the effective administration and management of
business activities which can help to improve product quality and reducing the cost of
production. It is converting raw material and labour in to finished product and services at the
minimum cost (Taticchi, Tonelli and Cagnazzo, 2010). There are following importance for
Starbucks as given below:
Adding value in the supply chain: It is important for a company that they can get their raw
material on the right time. Therefore, it requires an effective supply chain management which
can provide their good at the right time and deliver to its end customers. If a product can not
reach at the right time to its customer, it can impact firm image in the market. Therefore,
manager are more concerned on the appropriate supply chain within the organisation (Tummala
and Schoenherr, 2011). Further, they have ton pay payment on time to its suppliers, so that they
can provide raw material on right time to the firm.
Improve productivity and efficiency: Operation management helps to make production process
easy to operate and provide cost effective solution to the business unit. An effective OM system

can also help to effective utilization of firm resources such as material, man, machine and
capital. Starbucks manager can use innovative technology and automation in production process
help to maintain the create production efficiency and productivity (Wu and Pagell, 2011). They
have to plan new strategies to improve their operations which can help build a positive image in
the market.
To support different functions: It is significance for each and every business entity to make their
operation management effective. Because it can give the strategic advantage over its competitors.
The purpose of the operations strategies can provide a system which can help increase the
efficiency in the production process and maximum utilization of resources (Yang, Hong and
Modi, 2011).
To gain strategic advantage: It is significance for each and every business entity to make their
operation management effective. Because it can give the strategic advantage over its competitors.
The purpose of the operations strategies can provide a system which can help increase the
efficiency in the production process and maximum utilization of resources.
Provide better services to customers: It is important for business unit is to provide better
customer services to their customers (Arnason, 2009). The main objective of all marketing
strategies and operational management is to provide best services to its customers. An effective
operational management ensure the product quality and services to their customers with
minimum cost without compromises with quality and standard.
Value of Operation Management:
OM functions having a great value for each and every business unit. There are few value for
Starbucks in order to improve efficiency and productivity. These are:
 It can help to acquire least cost resources form various part of the world, which can
provide strategic advantage to the company (Baldwin, Allen and Ridgway ,2010). For
example, coffee beans can be imported for Asian countries where cost of materiel is
lower as compare to other part6 of the world.
 Positive brand image also adding the value of the company which can enhance global
reputation as compare to its rival companies.
 Providing differentiate products and services at the premium price also help to increase
their sales and profitability in the market.

 Effectiveness of operational functions has enabled the company to attain differentiation
as against other rivals in the industry (Bendoly, Donohue and Schultz, 2006).
C. Factors within the business environment that impact upon operational management and
decision-making
Business environment having a great influence on business operations of a company. There are
various factors which can affects a business directly or indirectly for the company. There are two
types of factors such as internal and external. Internal factors are under control but external
factors beyond the control (De Neufville and at. el., 2013). There are various factors which can
affect the business operations of Starbucks is given below:
Political factor : This is an important factor which can affects a business directly or indirectly. It
can include political stability in the country. If there are uncertain political environment in the
country, it can reducing the operational capabilities of the company. Additionally, there are
various rules and regulations which can affects the operations of the company. For example
civilian unrest in various middle east countries can reduces the market share of the company
(Grunig, 2013). Apart form that change in government also have an impact on the company,
because new government can change rules and regulation which can affects negatively on the
business operations.
Economical factor: Economic factor are also affects a business because they can financial affects
of the company. For example, increase in the tax rate can reducing the revenue of the company.
Apart from that changes in the various economic elements like interest rate, inflation rate,
unemployment rate and economic growth of that economy can affects the market share and
revenue of the company (Russell and Taylor-Iii, 2008). It can include rate of interest, inflation
rate, employment rate and so on.
Social factor: Social factors also influence the firm directly, it can include consumer income,
culture, consumer trends etc. It can be opportunity for the company, because they offer premium
products to its customer. But organization can make cheaper products to its customers specially
for the middle income classes (Souer and et. al., 2008).
Technological factor : Technological factors also important factors which can affects the
manager decision-making. Starbucks can use new and innovative technology in order to
overcome operational cost of the company. Firms can also adopt new technology in the
production process which can also reducing cost of the product and increase efficiencies and

productivity of the company (Tang and Musa, 2011). They can also provide Wi-Fi services to its
customer in the store which can help tom improve customer satisfaction level.
Environmental factor : Environment having a great impact on today business, because today
customer are more aware towards more conscious about environmental issues. Starbucks
requires to make changes in their operational process which can support the environment and
less impact on the environment. Because these factors having a great impact on the environment
disasters on the coffee produces countries (Taticchi, Tonelli and Cagnazzo, 2010).
Legal factor : laws and legislation also impact the business directly and indirectly. For example
change in the labour laws and other laws can affects their operations. There are various laws
which should be implemented by the firm in order to operate their business ethically. It can also
helps to create and build good image in the society.
CONCLUSION
From the above mentioned report it has been observed that the role of leadership in the
organisation having a great significant. There are various roles and responsibilities which played
by the manager in the company in order to attain firm goal and objective effectively. Apart form
that this report also analysis the leadership approaches which can help to attain firms goals and
targets. Further, this report explained the functions of a manager in to operation management
which can help to adding value for the company.