Management and Operations at Starbucks: A Comprehensive Report

This report provides a detailed analysis of Starbucks' operations management, focusing on key approaches, the roles of leaders and managers, and factors impacting the business environment. It explores various operational management strategies such as Total Quality Management (TQM), Just-In-Time, Lean Production, Continuous Improvement, Six Sigma, and queuing, highlighting their significance in achieving business objectives. The report examines the importance of effective management in minimizing waste, maximizing profit, and enhancing customer satisfaction. Furthermore, it discusses how leaders and managers can improve operational efficiency and analyzes the internal and external factors influencing organizational management and decision-making within Starbucks. The report concludes with an evaluation of how these factors impact the business environment and the wider community, providing a comprehensive overview of Starbucks' operational strategies and challenges.

Management and Operation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 3............................................................................................................................................1
P4 Key approaches to operations management and the role that leaders and managers play.....1
P5 Importance and value of operations management in achieving business objectives.............2
M3 How leaders and managers of Starbucks can improve efficiencies of operational
management................................................................................................................................3
TASK 4............................................................................................................................................3
P6 Factors within the business environment that impact upon organizational management and
decision making by leaders and managers..................................................................................4
M4 How these various factors affect the business environment and wider community of
Starbucks.....................................................................................................................................5
D2 Application of operations management and factors that impact on the wider business
environment ................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
.........................................................................................................................................................7

INTRODUCTION
Management and operation is an essential process of designing and regulating all the
production activities which aid in fulfilling customer’s demand in an effective manner. Mainly, it
is an effective activity in which they convert input into output by using better quality of raw
material, labour, capital and many more (Operations and Project Management (OPM), 2017).
The main function of operation and management is to use raw material for producing finished
goods for their target customers in order to get higher satisfaction. Present report is based on
Starbucks which is an American coffee company as well as coffee house which provides high
quality drinks to their customers. They operate business at various locations in which they offer
their products to large number of customers. In this report, various key approaches of operation
management and role of manager and leader are mentioned. Various factors are also discussed
here which help in achieving the organizational goals in an appropriate manner.
TASK 3
P4 Key approaches to operations management and the role that leaders and managers play
Operation management is more important for the Starbucks to attain the higher success.
This process related to the planning and designing activities of the business which helps
improving the overall performance of the business in effective manner. For managing all the
operation company required skills and experienced manager who easily manage all the activities
of the business to achieve the organizational goals in appropriate manner. Planning: One of the important process of the Starbucks for achieve their overall target
in appropriate time period. Before operating any kind of task and activities planing
process is more important and it should be clear and systematic so that employees easily
focus on their target. It is important duty of manager of the Starbucks to make and
execute a plan to get higher success. Managing: In business organization all the workers comes together and work as a team
to achieve the target of the company (Bainton and et. al., 2011). For this it is important
duty of the manager to manage them effectively and also motivate them to perform their
task in better manner which helps in achieving the positive results.
 Controlling: Better coordination is more important for the company to attain the higher
success. For this manager play important role because they manage and bring effective
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coordination among all the activities and its employees so that they easily attain the
positive results.
In this there are some key approaches of operation management which helps in managing all the
operational activities in effective manner (Chaouachi and et. al., 2013). All these are define the
better target in order to get effective success at market place. All key approaches are as follows: Total quality management (TQM): It define effective management quality which is
maintain by the employees to improve the standard of the operational activities. One of
the main purpose of TQM is to reducing all the conflict situation in the production
process and also cut down the operational cost. For this training is one of he important
requirement of the company to maintain this process effectively. Just- In- Time: This approach is related to the inventory in which the company easily
improve their employees performance and also reduce the chances of wastage of the
resources. This strategies helps in identifying the customers demand in effective manner
so that Starbucks improve their product quality. In this, it is managers duty to make as
well as design better production process so that they manufacture quality services for
their customers at affordable price (Fang and et. al., 2012). With the help of this approach
company cut-down their production cost. Lean production: It is an effective and systematic techniques which is used by the
company to reduce the wastage of the resources in the production process. It helps in
maintain the quality standard of the products and services in order to satisfy customers
needs in effective manner. Continuous improvement: It is one of the effective approach which is used by Starbucks
to improve their regular activities of the production process. By this company easily
produce quality products to their customers and satisfy them accordingly. Basically this
approach helps in improving the products, process and services which leads in reducing
the wastage within the manufacturing activities. It helps in improving the overall
productivity of the company at market place. One of the main aim of using this approach
is to eliminating al the issues by effectively examine the whole process. Six Sigma: It is an also effective and improvement tools which focus on service quality
that offer to the customers in order to get their satisfaction. With the help of this
Starbucks easily improve their overall performance and also reduce variation within the
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process. It helps in encouraging the employee morale at the workplace and also leads in
attaining higher profitability at market place.
 Queuing: It is mathematical tool which is used by the Starbucks within their operational
activities. By this company easily increase the profitability of the company by serving
quality services to its target customers in most effective manner.
Along with this there are some effective role of a leader and manager in operation
management which helps in improving the overall performance of the company. All are as
follows:
Role of leader:
 One of the main role of a manager in Starbucks operational management is to lead their
team members and also pride them better direction so that they effectively done their
task.
 Leaders also responsible for setting all the organizational policies in which employees
employees easily enhance their productivity and also serve quality services to their
customers.
Role of a manager:
 Manager are responsible to manage all the operation management activities in order to
accomplished their target in significant manner.
 They effectively allocate all the work as per employee capabilities which leads in
reducing the cost of the production process.
Hence, all the approaches helps in improving the performance level to the business in
which they effectively serve quality services to their customers and enhance their positive brand
image at market place.
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P5 Importance and value of operations management in achieving business objectives
Operation management is one of the effective processes for company as in these
activities, manager and leader of company manage all business activities as well as maintain
better relations among all employees. Effective management of all operational activities helps in
achieving organizational goals and objectives within stipulated time period. It also contributes in
the overall success of company at market place. Better management improves the quality
performance of employees so that they would perform their tasks in a better way. There are some
importance of operation management in context of Starbucks which are as follows: Helps in minimizing wastage: One of the best advantages of effective management of all
operational activities of company help in reducing the chances of wasting resources. By
using effective activity in production process aid in improving overall performance as
well as standard of the services which is offering by the Starbucks for their customers in
order to get their higher satisfaction (GAO and et. al., 2011). Effective management of
operational activities helps in cutting down the production cost which helps in increasing
profitability of company at market place. Maximize organizational profit: If management of company manages all resources in an
effective manner then they can easily improve their services in order to increase overall
profitability of company. It contributes in reducing the production cost so that company
would offer their products at affordable price in order to enhance sales of Starbucks. Customer’s satisfaction: One of the best importance of management of all operations is
to enhance customer’s satisfaction in a positive way. By delivering quality products to the
customers in order to fulfil their demand and it is possible by the proper management of
all the operational activities of the Starbucks (Moeini, Afshar and Afshar, 2011).
Company focus on their services, for this they determine the customers needs and provide
them accordingly. It aid in achieving the better satisfaction.
 Improve quality standard: Better management of operational activities help in improving
quality standard of the company as well as its products. For this, they deliver high quality
services to their target customers in order to gain higher satisfaction.
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M3 How leaders and managers of Starbucks can improve efficiencies of operational management
Manager and leader both play important role in the operational management in effective
manner. In this the manager of the company manage all the activities as well as employees in
effective manner so that they easily addressed positive outcomes. On the other hand the leader
motivate their employees towards the work so that they perform their best in order to get
effective results. Both are more important part of the company to improve overall efficiency by
providing better facilities to their employees so that they put their best efforts to improve their
productivity and company as well.
TASK 4
P6 Factors within the business environment that impact upon organizational management and
decision making by leaders and managers
Business environment is a combination of internal and external factors which affect the
operations management of company. So that it is more important for company to analysis all the
environment factors effectively in order to maintain the better surrounding with in the business
which helps in decision making process (Peng and et. al., 2015). If environment of business is
effective then company easily operate all their activities to improve quality and take the best
decision which helps in increasing overall performance of company at market place. In
Starbucks, all decisions are taken by the manager and leader which affect its operational process.
All the actions depend on business surroundings. In this, internal and external factors are
mentioned which put a huge impact on the business activities.
Internal factors: These factors exist in business which affect the decision making process of
manager and leader. It defines various elements which are as follows: Customers: Consumers play vital role in the organizational success because they but
company products for fulfilling their demands. They also helps in increasing the
company sale in the market (Qi, Liu and Christofides, 2011). For attain the higher
satisfaction of the customers, it is more important for the Starbucks to deliver quality
products in order to fulfil their needs in appropriate manner. If company failed in
satisfying customers needs so that they reduce their sale as well as profitability level in
the market place.
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 Employees: Workers are the most important part of company as they contribute in
organizational success at market place by performing their work in an effective manner.
They are the backbone of Starbucks. Employees are those persons who put their best
efforts in their business to achieve positive results in an appropriate manner. (Rushton,
Croucher and Baker, 2014). For improve employees performance company organize
better training and development programs which helps in improving the quality standard
so that they perform their task effectively. Effective performance of the employees
contribute in improving the brand image at market place.
 Suppliers: One of the important factors within the business is their suppliers so that they
get quality raw material from their suppliers in which they easily produce effective
products at affordable price. In this important responsibility of the company to select the
best supplies who supply quality raw material at minimum cost so that company easily
achieve higher profitability with in the business.
External factors: These types of factors are uncontrollable because it defines outsider of the
business but it directly impact on the organizational performance. Thus, it is more important for
Starbucks to analyse all the factors effectively. These factors include various elements which are
as follows: Legal factors: These factors are set by the government of UK which have to follow by
the company to maintain their business in effective manner (Witt, Brooke and Buckley,
2013). If company do not follow the polices so that they face many problems and also
reduce their productivity at market place. With the helps of these factors company
maintain positive work environment which aid in increasing the quality standard of the
company in appropriate manner. Political factors: In today's market political factors are contentiously changed which
directly affect the business environment in positive and negative manner. It also affect the
decision making process of the manage and leaders. So that it is important responsibility
for the company to formulate all the ethical rules and regulation of the government in
their organizational activities in order to maintain the effective environment.
 Technological factors: These factors play important role in success of the company
(GAO and et. al., 2011). If Starbucks use new and advanced technologies in their
operational activities so that they deliver quality products and services in front of large
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number audience which helps in increasing the profitability level at market place. By
using all these effective technologies Starbucks easily reduce their production cost and
offer quality services at affordable prise which helps in improving the company
productivity. One of the best advantage of using better technologies in their
organizational is to capture larger market share form its rivals. It also affect the decision
making process which take by the manage and leader to run their business effectively.
M4 How these various factors affect the business environment and wider community of
Starbucks
Micro and macro factors play important role in the business environment. Both are helps
in achieving overall goals and objectives of the company in appropriate manner. For maintain the
effective business environment, it is more important for the company to analysis effectively
which helps in improving the company performance at market place (Chaouachi and et. al.,
2013). These factors also aid in satisfying customers demand by proving and identifying their
requirements.
D2 Application of operations management and factors that impact on the wider business
environment
According to Tang and Musa, (2011) operations management is more important for the
company to manage all the production activities effectively and also aid in achieving the
organizational goals and objectives in appropriate time period. With the help of these Starbucks
convert their raw material into finished goods which helps in fulfilling the customers demand in
effective manner by delivering quality services.
CONCLUSION
From the above mentioned report, it can be concluded that operation management is an
effective process in which manager and leader play an important role in order to manage all
activities effectively. It also define various importance are also define which helps in achieving
the organizational goals and objectives in appropriate manner. Various factors also impact on the
business environment and also affect on the decision making process which taken by the
manager and leaders within the business. Along with this operations management application is
also helps in managing all the process of production and operation activities in effective manner
which improve the overall performance of the company.
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REFERENCES
Books and journals
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heritage management in the context of a gold-mining operation. International Journal
of Cultural Property. 18(1). pp.81-110.
Chaouachi, A. and et. al., 2013. Multiobjective intelligent energy management for a microgrid.
IEEE Transactions on Industrial Electronics. 60(4). pp.1688-1699.
Fang, H. and et. al., 2012. Flood management selections for the Yangtze River midstream after
the Three Gorges Project operation. Journal of hydrology. 432. pp.1-11.
GAO, Y. H. and et. al., 2011. Standardized process management of operation dressing supply [J].
Chinese Journal of Nosocomiology. 4. p.060.
Moeini, R., Afshar, A. and Afshar, M. H., 2011. Fuzzy rule-based model for hydropower
reservoirs operation. International Journal of Electrical Power & Energy Systems.
33(2). pp.171-178.
Peng, C. and et. al., 2015. Uncertainty management in power system operation. CSEE Journal of
Power and Energy Systems. 1(1). pp.28-35.
Qi, W., Liu, J. and Christofides, P. D., 2011. A distributed control framework for smart grid
development: Energy/water system optimal operation and electric grid integration.
Journal of Process Control. 21(10). pp.1504-1516.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Tang, O. and Musa, S. N., 2011. Identifying risk issues and research advancements in supply
chain risk management. International journal of production economics. 133(1). pp.25-
34.
Witt, S. F., Brooke, M. Z. and Buckley, P. J., 2013. The Management of International Tourism
(RLE Tourism). Routledge.
Online
Operations and Project Management (OPM). 2017. [Online] Available through:
<https://www.beds.ac.uk/research-ref/bmri/centres/bisc/okm>. [Accessed on 7th
November 2017].
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