Report on Operations Management and Business Performance at Starbucks

This report provides a comprehensive analysis of Starbucks' operations management, focusing on key approaches such as Business Process Redesign (BPR), Six Sigma, and Lean Manufacturing. It examines the importance of operations management in achieving business objectives, highlighting the crucial roles of leaders and managers in enhancing efficiencies and service quality. The report also explores the impact of various business environmental factors, both internal and external, on Starbucks' operational management, including profitability, marketability, and competitiveness. Furthermore, it emphasizes the significance of analyzing these factors for informed decision-making, identifying strengths and weaknesses, and adapting to changing market dynamics. The report concludes with a critical evaluation of applying operations management principles and the challenges associated with maintaining business performance amidst uncertainties, while also recognizing the opportunities for improvement through technological advancements and customer-centric strategies.

MANAGEMENT AND
OPERATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
2.1) (P4) Key approaches of operations and management..........................................................1
2.2) (P5) Importance of operations management in achieving business objectives of Starbucks
.....................................................................................................................................................3
2.3) (M3) Significance of leader and managers of Starbucks for improving its efficiencies.....4
TASK 3............................................................................................................................................4
3.1) (P6) Business environmental factors' impact on operational management for Starbucks...4
3.2) (M4) Importance of analysing factors on business performance of Starbucks....................5
3.3) (D2) Critical evaluation of applying operations management and factors' impact on
business operations of Starbucks................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................9

ILLUSTRATION INDEX
Illustration 1: Business operations...................................................................................................3

INTRODUCTION
Management and operations is an effective approach for managing entire business
operations and decision-making. The present report is based on understanding key approaches of
operations and management as of decision making by leader and manager of Starbucks.
Including this, significance of operations management for managing overall business activities
can be identified which are related with further implementations. In addition to this,
environmental factors and their impact on business performance will be discussed by which
variety of ideas can be generated to make appropriate decisions for the company's effectiveness.
TASK 1
2.1) (P4) Key approaches of operations and management
Operations management is considered as key tool for managing entire business
operations and improving its efficiency in all terms. In this process, leader and manager of the
company play crucial role for organisation's effectiveness and increasing its efficiency (Avolio
and et.al., 2013). Besides this, it is efficient for controlling over excess production and
maintaining entire business operations effectively. Along with this, variety of ideas are generated
regarding improving quality services and enhancing its efficiency on larger scale. With the help
of using these approaches, increasing efficiencies and quality in coffee can be identified on
which further business operations are impacted positively. However, key approaches of
operations management can be understood in context to management of business operations of
Starbucks as:
 Business process redesign (BPR) approach:
In this approach, integrated business operations are analysed including production and
distribution system, workers' performance, demand and supply of goods and services and so on.
However, it is required for manager of Starbucks to identify all these factors for proper
management and appropriate decision-making process. In accordance to this, strengths and
weaknesses of the enterprise is analysed for maintaining balance and increasing its efficiency.
On the basis of analysing these activities, strategy and objectives are set (Bolman and Deal,
2014). Thus, leader builds team of workers and implements plan to achieve its goals. Hence,
with the coordination of both leader and manager, effective management of entire business
activities can be done effectively.
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 Six Sigma:
This management operation approach is effective for improving quality of coffee and
services of Starbucks. In accordance to this, demand for coffee and customers' views are
analysed by manager for decision making process (Dinh and et.al., 2014). Besides this, for
improving quality as well variety in it, new technologies are adopted by which it can increase its
efficiency at maximum level. Hence, six sigma approach is beneficial for maximizing customers'
satisfaction level with products and services of Starbucks.
 Lean manufacturing approach:
Under this operation management approach, wastages of resources and fund are to
reduced impacts for systematic management of Starbucks' business operations. Including this, it
is for maintaining balance between demand and supply of goods and services (Falola, Osibanjo
and Ojo, 2014). Moreover, productivity and profitability of the coffee shop can be increased as
well proper management of all business operations. However, appropriate decisions are made
regarding what quantity and quality of resources are required for producing services efficiently.
It is useful for eliminating wastages and proper use of resources and funds regarding business
operations of Starbucks.
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2.2) (P5) Importance of operations management in achieving business objectives of Starbucks
Leader and manager of Starbucks play effective role in achieving business objectives of
Starbucks (Grohar, DiCroce and Langan, 2016). However, for management of integrated
operations approaches are applied which impact on decision making and further business
operations. In this regard, importance of operation management for management of coffee shop
and its operations can be understood as:
 Integrated management of business:
Under operation management approaches, integrated management of all operations is
identified. However, it is to create balance between production and distribution of goods and
services, employees' performance, maintaining demand and supply and so on (Hallinger and
Chen, 2015). Therefore, entire business operations can be managed effectively.
 Enhancing productivity and efficiency of Starbucks:
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Illustration 1: Business operations
(Source: Operations Management, 2016).

Operation management approach is for enhancing productivity and profit level of
Starbucks. In this regard, different ideas are generated for encouraging customers towards variety
in coffee and better customer dealing services. Moreover, it is linked with sustaining its market
position for longer time period and expansion of business on large scale (Karyono and Sutanto,
2016). Therefore, managers focus on bringing innovations in coffee and its services. In addition
to this, advertising techniques are also determined for encouraging customers in wide range
which influences productivity and profitability of the entity efficiently.
 Optimum utilization of resources and fund:
Manager of Starbucks makes decisions for using resources and fund influences its
productivity and profit level. It is helpful for reducing wastages and using material for preparing
and producing coffee in appropriate quantity. However, leader coordinates with manager and
effective strategies are prepared for using resources and fund adequately (Meuser and et.al.,
2016). Thus, optimum utilization of resources and fund for coffee and its services is able for
managing them and further implementations efficiently.
2.3) (M3) Significance of leader and managers of Starbucks for improving its efficiencies
It is recognised that coordination of leader and manager is effective for improving
efficiencies and quality services of Starbucks. In this regard, they made decisions for using
resources and funds appropriately. Moreover, actual position and business performance of the
entity is identified on which decisions are made for future implementations (Nahavandi, 2016).
Therefore, manager and leader play effective role to achieve its effectiveness and improving
efficiency at maximum level.
TASK 3
3.1) (P6) Business environmental factors' impact on operational management for Starbucks
Business environmental factors are both controllable and uncontrollable which impact on
further operations and their management. In this regard, management of its operations and other
factors get impacted including profitability, marketability and competitiveness (Nohri and et.al.,
2013). However, it is helpful to analyse these factors by which appropriate decisions are made
for Starbucks. Moreover, its demand and supply for goods and services as well environment of
entity get affected. In this regard, internal factors are controllable as management of resources
and fund, workers' performance and others. While, on the other hand, external environmental
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factors include political, socio-economic, legal and technological factors. Thus, analyses of these
factors is needed for decision making regarding future business operations for Starbucks.
Therefore, strength and weakness of organisation is recognised which is for maintaining
and increasing strength as well reducing the occurred issues. On behalf of this, proper balance of
management in respect of production and distribution system, demand and supply of coffee and
its services etc are analysed. Including this, various tools are recognised for effectiveness of
coffee shop and its management. Apart from this, it is helpful for improving business
performance and its further operations (Price and Weiss, 2013). In addition to this, business
performance is analysed in respect of different factors such as; customer satisfaction level,
variety in coffee, demand for services and so on. However, due to changes in environmental
factors, business performance get affected also generate variety of ideas for increasing its
efficiencies. For example; decreasing interest rates influences financial position of Starbucks
positively. While, increasing this rate affect its monetary position as adversely.
Similarly, due to differences in attitude, interests of customers, demand for coffee and
services affected both increasingly and decreasingly. However, for adopting new technologies,
quality of products and services are improved which reflected on customers' interests and their
loyalty with it. Besides this, due to changes in legal rules and obligations as well government
policies impact on business operations (Răducan and Răducan, 2014). In accordance to this, it is
recognised that changes in environmental factors impact on business performance of the entity.
Therefore, decision making related to business activities is done for which different ideas are
generated for their improvements and effectiveness.
3.2) (M4) Importance of analysing factors on business performance of Starbucks
Analysing business performance of Starbucks is effective for decision making and
achieving its effectiveness. In this regard, actual business performance of Starbucks is identified
for managing entire business operations and improving its efficiencies. In addition to this,
occurred issues of the entity can be reduced as well variety in coffee will identify (Renz, 2016).
It influences demand for coffee and market position of the entity. Along with this, it is beneficial
for encouraging customers towards variety of coffee and its services. It influences productivity
and profitability of the coffee shop and its development. In accordance to this, significance of
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analysing business environmental factors for business performance of Starbucks can be
understood as:
 Identifying actual performance of entity:
It is recognised that business performance of Starbucks can be identified through
analysing environmental tools. In this regard, several ideas are created for improving qualities
and effectiveness of Starbucks (Schuhmann, Magarian and Huttner, 2014). Moreover, strength
and weakness of entity is recognised for which decisions are made regarding further
implementations and their effectiveness. Hence, actual business performance of the coffee shop
is identified for which effective services can be determined impact on its market position and
competitiveness.
 Reducing weaknesses:
On critical evaluation all positive and negative impacts on business performance of
Starbucks are identified. However, it is effective for reducing occurred issues in terms of
financial and non-economic performances. For example; lack of fund and resources, imbalanced
production and distribution system, poor market position, lack of coordination among workers
etc. It is a tool for maintaining balance between strength and weakness of the coffee shop
(Hallinger and Chen, 2015). Therefore, it is crucial to analyse environmental factors and their
impact on business operations of the entity.
 Enhancing efficiency of Starbucks:
It is identified that analysing environmental factors' impact on business operations of
Starbucks is required for decision making in the future time. However, it is helpful for enhancing
efficiencies and effectiveness of the coffee shop through providing variety of coffee and
increasing customers' interest towards its services at maximum level (Meuser and et.al., 2016).
Therefore, it is recognised that analysing business environmental factors is useful for decision-
making and enhancing efficiency of Starbucks. However, variety of ideas are generated for
further implementations and managing entire business operations effectively.
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3.3) (D2) Critical evaluation of applying operations management and factors' impact on business
operations of Starbucks
Operations management is a useful approach for appropriate planning and decision
making regarding overall management of its operations. In accordance to this, it is benefited for
improving quality services and efficiency of Starbucks. However, proper management of
production and distribution system as well demand and supply can be managed. It is related with
effectiveness of entity and further implementations (Price and Weiss, 2013). In addition to this,
decisions are made appropriately affected business performance and its quality services. On
critical evaluation, it is evaluated that considering each business operation and making decision
for its effectiveness is quite difficult and challenging. However, occurrence of uncertain changes
impact on business performance and its operations adversely. Likewise, it is challenging for
encouraging all workers for better performance and contribution in team building. Therefore, it is
essential to control over these issues and increasing effectiveness of Starbucks.
In addition to this, by adopting new technologies, variety in coffee and improving quality
can be identified. On the basis of this, it is forecast that management of entire business
operations can be identified impacts demand and its effectiveness. Along with this, it will be
effective to increase productivity, profitability and competitiveness of the coffee shop at
maximum level (Renz, 2016). Therefore, it is analysed that entire business operations can be
managed efficiently as well its quality be improved. Hence, operation management and analysing
business operations of Starbucks impact on its effectiveness and further implementations.
CONCLUSION
It is concluded that operation management plays crucial role for managing entire business
operations and increasing effectiveness of Starbucks. In this regard, several approaches of
operations management has been understood impact on further business operations. However,
usefulness of applying these strategies is identified for proper management and increasing its
effectiveness. In addition to this, importance of analysing business environmental factors is
recognised for decision making regarding coffee shop and its operations. Along with this, critical
evaluation on both terms as operations management and identifying environmental factors are
recognised for the entity and management of its operations. Overall, importance of applying
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management operation and recognising environmental factors are determined for further
implementations and decision making to improve its efficiency for further years.
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REFERENCE
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Renz, D.O., 2016. The Jossey-Bass handbook of nonprofit leadership and management. John
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Online
Operations Management. 2016. [Online]. Available through:
<http://www.allsyllabus.com/aj/note/Computer_Science/Operations%20Management/
Lecture%20Notes%20of%20Unit%20-1/Operations%20Management%20and
%20Decision%20Making.php#.WgBdKHV948o>.
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