Leadership and Operations Management Analysis: Starbucks Case Study

This report provides a comprehensive analysis of leadership and management practices within Starbucks. It begins by comparing the distinct roles and characteristics of leaders and managers, emphasizing their importance in driving organizational success. The report then delves into the practical application of these roles across various organizational contexts, highlighting decision-making processes, delegation of authority, and employee engagement strategies. Furthermore, it explores the implementation of different leadership theories and models, such as situational and system leadership, to effectively manage employees. The report also examines key approaches to operational management and the crucial role of leaders in this domain, including assessing environmental factors that impact operational management and the value of operations management. Through a detailed examination of these elements, the report aims to provide insights into how Starbucks can enhance its management and leadership strategies to achieve its goals.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Comparing the different roles and characteristics of a leader and a manager.......................1
TASK 2............................................................................................................................................3
P2 Application of role of a leader and Function of a manager in various organisational context
.....................................................................................................................................................3
P3 Application of various theories and models...........................................................................4
TASK 3............................................................................................................................................5
P4 Key approaches of operational management and role played by leader in that.....................5
P5 Importance and value of operations management.................................................................7
TASK 4............................................................................................................................................8
P6 Assessment of factors of environment that impact operational management .......................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Management and operations are the significant factors that help in conducting the
activities in an effective manner. It comes under the concept of operations management. It is an
area where the production of goods and services takes place. Here, the managers are playing a
very important role where they have to effectively manage the all the business operations so that
then aims and objectives of company is achieved (Botton, Cavalletto, and Marmeggi, 2013).
They should be efficient so that they provide solution of all the problems related to management
and operations. So, both leaders and managers are very crucial for the company as they guide the
employees to do their work in an efficient manner. The company that has been referred here is
Starbucks. It an American coffee company and a coffee house chain. It is also a supplier of
smoothies, tea, baked goods, sandwiches etc. This report will discuss about various roles that a
leader plays and the functions of managers in various organisational context. Along with this, the
basic understanding about the relationship between leadership and management in a
contemporary business environment will be discussed in this report.
TASK 1
P1 Comparing the different roles and characteristics of a leader and a manager
Starbucks is also growing in the market at a very fast rate and the reason behind this is
their services which they give to their customer along with the taste and quality of products. But
if they will also work on their making their management and leadership more strong then they
will be able to achieve much more high position in marketplace.
A manage can be defined as a person who is having a very crucial position in the
company. They are having so man y big responsibilities onto them like managing all the
operations so that work will be completed on time. They are also required to act like a friend,
philosopher and guide to the employees so that they get close to employees and know all their
issues and worries so that it can be removed later on (Expósito and et. al., 2016). They provide
directions to employees so hat they can perform their work in an effective and correct manner.
ROLE OF A MANAGER :
 DEVELOPING TEAMS – The person who is managing the stores of Starbucks is
required to make sure that the employees are working in the correct manner and also as a
team as well. Working in teams is very important for them because then only they will be
able to handle all the customers who visit the store in an effective manner.
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 MANAGING PERFORMANCES – This is also a major role that is played by managers
of any company as they have to make sure that the staff members are working in a right
direction and competing the goals and objectives if company as well. This will help the
company in understanding the flaws and effectiveness present inside an employee (Eyal
and Haim, Clarizen Ltd., 2014).
 RECRUITING CORRECT PEOPLE – Managers are having the responsibility of
recruiting employees for the company as well. They are required to choose the best
employees for the company so that they contribute in growth of the company. For this,
managers are required to follow the whole recruitment process so that right person is
selected for the job.
CHARACTERISTICS OF MANAGER:
 EFFECTIVE COMMUNICATION – It is very important for the manager to have god
communication skills so that they can interact with the employees and know their issues.
It is very necessary for managers to develop a bond with the staff as well whole
management because then only the employees will follow the rules made by managers
and the work environment would be effective.
 STRONG KNOWLEDGE – Managers are also required to guide the employees and shw
them direction to work so it is very essential that they are having good skills and
knowledge about the work that is going on in the company so that they can guide the
employees in a correct manner.
 GOOD EXPERIENCE – If the manager is having good experience then they will be able
to handle all the work in a better manner as they know that what is right and wrong for
the company . Also they will be able to connect with the employees in a short span of
time only. Experience is always beneficial.
Leaders are also a very important part of the company as they play a very crucial role in
developing an employee and making them more productive (Handschin and Petroianu, 2012).
The roles and characteristics of leaders in Starbucks are:-
ROLE OF A LEADER:
 Act as a Representative – Leaders are also called as a representative of the company as
they represent the company in any event that is happening outside the work environment.
They go to such events and tries to make a make an image of the company.
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 Act as a Friend, philosopher and guide – Leaders are required to motivate, guide and
develop the employees so for this they need to be more close to the employees so that
they can understand them and know their weaknesses so that it can be corrected
(Johnstone, 2016).
CHARACTERISTICS OF A LEADER:
 VISION – It is very important for the leaders tom have a strong vision because then only
they will be able to guide the employees in correct direction. They should know that by
going into which direction, goals of company will be achieved.
 INFLUENCING -It is essential that the leaders should be influential but not a ruler
because then only they will be able to guide the employees in a corrective manner.
TASK 2
P2 Application of role of a leader and Function of a manager in various organisational context
Every company wants that they have a strong workforce that can handle all the issues
that comes in their way while doing the operations of the company. For this they need to gave a
good leaders and managers inside the organisation which guides the employees in the right
direction so that they achieve the goals of the company. This will also help in enhancing the
skills and capabilities which will later on increase their productivity as well.
Leaders and managers are required to have a play their roles in an effective manner so
that they are able to complete all the objectives of business successfully. The various roles and
functions played by leaders and managers in various situations are:-
PROCESS OF DECISION MAKING – It is a very important part of the company and
the managers and leaders are also required to take part in this process. The managers should
make sure that the employees also take part on this prog4ramme and share their views. This will
make the employees more connected with the organisation and they will feel motivated as well.
In case of Starbucks, the management should take the suggestions of employees before launching
new products in their shop. The staff members should be involved while making plans for the
company. This will definitely help the company in getting successful in marketplace (Liu, Yin
and Fu, 2011).
DELEGATING AUTHORITIES – It is very essential for the company to make sure
that there is equality at workplace so that the employees are able to work in a better manner. If
the employees will be treated equally then it will make the work environment healthy as the
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employees will work with each other peacefully and most important thing is that they will be
satisfied. Starbucks is required to develop plans in order to give responsibilities to the employees
and explaining them their roles as well (Mendis, Muttaqi and Perera, 2014). Thus, in this way
management will be able to execute all the operations in a systematic manner. Here the managers
plays the role of delegating the authority and the leaders role is to guide the employees for
completing the work assigned to them. Leaders should make sure that the employees work with
full dedication and use their full potential in order to achieve their targets in the company . This
will make them more competent.
EMPLOYEE ENGAGEMENT – Employees are considered as an asset for the
companies because without them no operation can be completed. They are recruited by the
managers and then these managers only provide them various tasks which they have to complete
so as to achieve the goals of the company. It is very essential that the employees work with each
other harmoniously so that the work environment remains good. Both managers and leaders are
required to maintain a good bond with the employees so that they can understand them and know
the problems they are facing in the company so that it can be reduced.
TRAINING AND DEVELOPMENT – It is the basic requirement for every employee
and the companies are required to organise good training and development programmes for the
employees. Through this, the employees are made familiar with the type of work they have to do
in the company. This will help them in executing the work in an more effective manner. If the
managers are having the strong relation with the employees then they will be able to know that
which skills are required to be learned by employees for executing their work in a more better
manner (Moghaddam, Seifi and Niknam, 2012).
P3 Application of various theories and models
If the companies want to do leadership in an effective manner then they will have to
make use of various theories and models made for the leaders. These should be implemented in
the workplace so that the employees can be managed in a better manner. The various theories are
as follows :-
 Situational leadership
 System leadership
 Contingency leadership
 Behavioural leadership
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SITUATIONAL LEADERSHIP -
This theory was developed by Dr. Paul Hersey in 1960. it is the mostly used leadership
theory by the leaders so as to manage the employees of the company. Through this, the
employees are able to understand their skills in various situations which happens inside the
company and try to make it better. In Starbucks, if leaders will implement situational leadership
then the chances of getting successful in market will increase (Moghaddam and et. al., 2011).
This theory is also helpful to managers in knowing various situations in a better manner so that
they can implement their plans and policies accordingly.
This theory is having both positive and negative sides. The positive sides is that it helps
in inspiring employees and increase their motivational level and also making the employees
more involved in the management. Its negative side is that the employees sometimes can not
cope up with the change in plan made by the managers according to the situation.
SYSTEM LEADERSHIP THEORY:
It is the another approach of leadership theories. This theory is basically applied at the
workplace so as to resolve all the problems present there and issues that have the possibiity to
arise at anytime and the employer doesn't know how to handle it. Here, the managers are
required to make effective plans so that they can come out of this situation and make the work
environment healthy. The leaders choose system approaches to resolve the problems so as to
ensure effective growth and development. These system is also called as Radicals as it is solving
the problems that the workers are facing inside the company.
CONTINGENCY THEORY OF LEADERSHIP -
This is also a highly used theory of leadership. This approach says that there is no best
way to handle a particular situation in the company. Everything is dependent on the leader and
his skill of taking correct decision at such situations. So, the leaders have to select a strategy that
they think is fitting best in the situation so as to improve it (Mohammadi and et. al., 2013). This
is also the reason why managers are required to have both leadership and management skills so
that they can handle all these emergency situations in a more effective manner. Its main
concentration is on the leader's attributes and the condition in which the leader is working.
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TASK 3
P4 Key approaches of operational management and role played by leader in that
In the current business environment. Managing the operation of the companies is
considered as one of the most critical issue. Since operations are considered as a key to achieve
in any organisation so it needs to be managed as well as handled by strong management so that
they achieve the goals and objectives in a very efficient manner (Nakamura and et. al., 2015).
Operational management consists of planning, process management, staffing, monitoring,
making control over the product, service and employees. These functions help the companies in
knowing their efficiency level so that they can achieve more and more sales. Several skills are
required to be present in an operational manager. They are as follows :-
 They should have strong leadership skills so that they can manage all the employees in a
very efficient manner.
 They should be able to make strong bond with the staff members so that they can
understand them really well.
 They should be able to manage the performance of employees as well and their where
they need improvements.
 If there is need for training and development programmes then they should be able to
implement it successfully and develop the employees.
The various approaches are as follows :-
 Top-Down strategic approach – It says that the management of Starbucks should have
good information about the goals and objectives of the company so that they can make
their employees understand it. This approach aims to make the employees more task
oriented so as to achieve the goals in a better manner and strive to achieve cooperation
and coordination as well. In this, managers from top level to bottom level work together
but in some cases, top level manages guides bottom level managers as well.
 Bottom-Up Approach – Here, it is described that before taking any decision ,
management team have to share their plans in front of employees and ask their reviews
on it. This will help in making the relationship better between employer and employee
(Ruiz-Alvarez and et. al., 2012). This strategy should also be implemented in Starbucks
as it will help in developing a good bond between the employer and employee.
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 Market Requirement Approach – This approach suggests that the managers should
analyse that what the market requires and then make their plans accordingly (Shuxin,
2011). So, in Starbucks also the management should first understand that what type of
coffee is liked by the customers or what type of taste people are having in coffee and then
produce their coffee according to it.
 Resource Capabilities Approaches – This approach helps in analysing the capacity
ODF all the resources that is present in business like Human resources, supply chain
management etc. So, managers need to understand the availability of resources in
company so that they do not face any problem ion producing their goods and services.
Starbucks is producing their own coffee and having their own farms where they grow
their own coffee.
P5 Importance and value of operations management
Operational management is considered as a very process in achieving the goals and
objectives of every company. In order to achieve these, operational managers has to take care
that ye are fulfilling the demands of he customers and supplying goods and services as per their
likes and dislikes only. So, if Starbucks wants to make their place in the market successfully then
they will have to design an effective management structure which will be implemented in the
whole organisation and also recruit efficient staff as well. This will help them in executing their
goals and achieving their leadership skills as well. The importance and values of operational
management of Starbucks is as follows :-
 It is very helpful while taking decisions in case of emergencies.
 This also helps in achieving the budgets in a perfect manner.
 It is effective in increasing the production level of business as well.
 It helps in making the staff members efficient and improving their performance as well.
 This helps in making the relationship better between employees and management.
 It also helps in understanding the capacity of organisation for keeping the resources
which will be used to produce the products and provide services (Strande and Brdjanovic,
2014).
The policies and strategies which are used by Starbucks are very effective in fulfilling the
needs of employees so that they can help in achieving the goals of company. Starbucks is very
famous for its quality and thus should continuously try to develop it so as to increase their
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market share. The factors that will help in understanding the importance and value of operational
management are :-
 Capacity Management – In this process, the company is required to manage its
resources in such a manner that it does not include much cost (White, 2016). This
responsibility is given to operational manager to make sure that all the resources are
being used in an appropriate manner and is not wasted. This will help in making the
company more productive.
 Quality Control – Starbucks is successful in market just because of the taste and quality
they provide. If they will not take care about their quality then they may loose their
uniqueness and customer base as well. So, they are required to take extra care of the
products they are providing to their customers.
 Customer Satisfaction - Starbucks is providing services in their best manner to the
customers and this is reason also the customers visit the coffee house again and again.
TASK 4
P6 Assessment of factors of environment that impact operational management
Starbucks is growing slowly and slowly in the market and are opening their stores all
over. If they will manage their work in a proper manner then they can achieve the goals and
objectives very easily within time. The various functions that are performed in Starbucks by
managers are :-
BASIS ROLE OF MANAGER
PLANNING Here, the managers have to do proper planning and also choose a
leadership approach so that they can achieve their goals and objectives in
an effective manner . Through this, they will be able to understand the
needs and demand of market very easily.
STAFFING This role is also performed by managers. In this, they are required to
recruit the employees which suits the best in the job role. This will help
in completing the objectives in more effective manner.
ORGANISING Starbucks have to complete the activities properly and make sure that the
employees are working in a correct directions. This will help them in
accomplishing the targets effectively.
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DIRECTING AND
CONTROLLING
In Starbucks, managers are required to direct and guide the employee in
right direction so that they manage their work in an appropriate manner
and have good control over them as well.
Apart from this, another method that is applied here are PESTLE. So, the factors are as follows:-
 Political – It is the responsibility of Starbucks that they follow that policies made by the
country in which they are working. These are like tax rate, export and import etc. this will
help them in performing in a more effective manner as they will not have to face any kind
of issues.
 Economical- Here, Starbucks is required to make sure that they are putting the prices of
their products as per the economy of the country. If the economy is strong then they can
put prices and vice-versa.
 Social - Starbucks should make sure that they are doing CSR activities in the country
they are working. This will help them in getting connected with the society.
 Technological - Starbucks have to use new technologies in their operation through which
they can gain the advantage of competitive market.
 Legal – People who are managing Starbucks have to make sure that they understand all
the legal matters so that they can face it when such situation is arise (Botton, Cavalletto,
and Marmeggi, 2013).
 Environmental – Starbucks have to make sure that they are making strategies that suits
the environment very well otherwise they may loose their customers.
CONCLUSION
From the above report, it can be concluded that managing the operations of the company
is very important so that they can achieve their goals and objectives in an effective manner. Here,
both leaders and managers are playing a very important role as they provide guidance to
employees in performing their work in a most effective manner. This report discussed about
different roles played by manager and leader while managing the business activities, various
theories used by them to manage the work operations, key approaches used by them in
operational management and the importance of operational management in achieving business
objectives.
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