Leadership and Operations at Starbucks: A Detailed Analysis Report

This report provides a comprehensive analysis of Starbucks' management and operations. It explores the roles and characteristics of managers and leaders within the company, examining how they navigate challenges and implement plans. The report delves into various leadership theories, including situational, system, and contingency leadership, illustrating their application within Starbucks. Key approaches to operational management, such as Total Quality Management (TQM), Just-in-Time (JIT), and the Kaizen theory, are discussed, highlighting their importance in achieving business objectives. Furthermore, the report examines the impact of the business environment on operational management and decision-making, considering factors that influence Starbucks' strategies. Overall, the report offers valuable insights into the operational and leadership dynamics of a global coffeehouse chain.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P2 Role of leader and function of manager............................................................................1
P3 Different leadership theory and model of approach..........................................................2
TASK 3............................................................................................................................................3
P4 Key approaches for operation management and role of leader and manager...................3
P5 Importance and value of operation management in achieving business objectives..........4
Importance and value of operation management....................................................................5
TASK 4............................................................................................................................................6
P6: Factors within business environment which impact upon operational management and
decision making by leaders and manager...............................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Management and operation is defined as the process through which materials and
resources are converted into semi-finished and finished products or services. The main aim of
this process is to acquire maximum profitability for the organisation through manufacturing
products according to the customers demand. To perform effective operations it is require by an
organisation to manage their activities which helps them to formulate their products according to
satisfy customers expectations. The present assignment is written in context of Starbucks which
operates coffee house chain. It operates in more than 30,000 locations. They offers different
products to customers that includes Coffee beverages, smoothies, tea, baked goods, sandwiches
etc. In this assignment roles and characteristic of manager and leaders in context of Starbucks is
covered. Along with these importance of management and leadership theories will be discussed
that relates with operations of organisation is discussed. At last impact of business environment
on decision of leader and leader is explained in report.
TASK 1
Covered in PPT
TASK 2
P2 Role of leader and function of manager
Manager and leader of Starbucks are responsible to attain the desire goals. For these they
face different challenge that helps to deal with different situations which is mention as below.
Example 1
Implementing plans and policy- It is necessary for an organisation to implement
effective plans in the organisation to complete their goals within predetermine period. In
difficult situation such as lack of resources it is essential for organisation to take suggestion from
experienced persons. For this context manager helps Starbucks to utilize their resources in
optimum way like they reduces overhead cost that increases cost of production department, this
helps organisation to generate more revenue by reducing their expenses. Similarly when
organisation has not enough resources to complete their goals then employees feel demotivated.
In such situations leader interact with employees and find out problems that reduces productivity
and motivate them to generate positive outcome in their performance.
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Example 2
Executing new project- Starbucks is operating their business at global level which
determines that management face different challenges in establishing new project. Like the
recent issue faced by managers and leader is that there is conflict among existing and new
employees. It results that it plans for new project will not implement in appropriate way so for
this manager delegates duties to each of them on individually basis due to which it is for
organisation to carry out activities of organisation. While in these leaders motivate employees by
resolving conflicts of employees that create positive results for organisation. Along with these
they trained employees to work effectively in teams through providing training session to all
employees (Glukhov and Balashova, 2015).
P3 Different leadership theory and model of approach
Several theory of leadership are implemented by managers and leaders of Starbucks to
ensure completion of activities in appropriate manner. Some theories of leadership along with the
role of leaders and manager is given below:
Situational leadership- According to this theory it is stated that there is no particular
leadership style through which manager and leader implement their goals in the organisation. As
for organisation each activity is different from each other which determines that all functions
produces different results. So they are required to modify their leadership style according to the
situation which considers that they manage each function of organisation properly. The leaders
are required to improve their working style in order to attain organisational goal through most
appropriate manner. Similarly manager of an organisation perform their roles through predicting
situation of organisation. In situation most appropriate style is implemented by management to
complete their task. Example- they execute democratic leadership style which helps them to
employees to solve their issue as per their convenience (Han and et. al., 2017).
System leadership theory- System theory express that business organisation regards all
the employees of an organisation as a single entity. Leaders and manager implement this theory
in order to establish new plans and policy in the organisation which consider to improves all the
overall productivity of organisation. Leaders uses this theory to attain organisational goals within
pre-determined period. Moreover this theory helps manager to attain the expertise in doing a
particular activity by repeating and performing it several times.
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Contingency leadership theory- Contingency theory was developed by Fiedler in the
year 1964. This theory is considered to measure the capability of leaders for taking nominal
decision in dynamic situation. It helps them to analysis and evaluates the implement appropriate
leadership style which governs that theories are universal approach that helps to manage their
goals to attain organisational goals in desired manner. To initiate new project in the
organisational activities it is essential for manager to recruit skilled employees through which
they produce goods in effective manner. Similarly leaders implement people oriented style
through which they inspire employees to complete their work with full potential. These helps
management to accomplish personal and professional goals for the organisation (Morelli, 2011).
According to the above discussed theory leaders & managers of Starbucks deal with
different situation in organisation. Like for situation 1-Both of them implement situational
leadership to attain their goals through cost effective way which signifies that profits are crucial
part for organisation. Further for situation 2, contingency theory helps them to implement
flexible policy for the organisation that helps them to adopt changes quickly within appropriate
manner.
TASK 3
P4 Key approaches for operation management and role of leader and manager
Both manager and leader plays an essential role in an organisation that helps them to
achieve more success for the organisation. In context of Starbucks some approaches of
operational management is as follow:
Total quality management- This is an effective approach for the organisation as it
increases the total performance of functions and operations that are performed by workforce. The
major intention of Starbucks in order executes TQM in organisation to increase the satisfaction
of employees. For this manager check the quality of all resources which determines that they
provide inferior quality products to customers. While leaders build friendly relation with all
stakeholders which helps to increases the goodwill of organisation.
Just in time- It is an essential approach for the organisation through which they meet the
requirement and needs of customers in proper time manner. With the implement of this approach
manager analyse the inventory situation which is required by customers to complete their
objective with utilising all resources of organisation. In this situation it is the role of leader to
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complete their goals by influencing employees to complete their resources within the resources
that are available with them in present situation. Along with this it also helps Starbucks to reduce
wastage of inventory that helps to decrease production cost also.
Kaizen theory- This is an approach that is based on continuous plan which determines
that it relates with the facts that are used by organisation in order to increase efficiency of their
activities. According to this approach it is easy for Starbucks to sustain in market for longer
period. It determines that this approach work on cooperation and commitment which it totally
different from other approaches. So it easy for organisation to complete their goals with
implementing radical changes in their structure such as effective strategy, appropriate framework
etc.
Manager and leaders of Starbucks executing above discussed practices for their business
operations which helps them to gain effective results. Like TQM helps an manager and leader to
ensure that they produce good quality products in order to satisfy the needs and demand of
customers. While KAIZEN model helps them to gain maximum benefits thorough offering
effective products in the market (Nayak, 2015).
P5 Importance and value of operation management in achieving business objectives
Operations management:
Operations management is directly related to the business which involves planning,
organising, developing, distributing, and supervising. All these operational activities are
conducted to achieve objectives of the organisation. In context of Starbucks, they can smoothly
run their business by adopting all these activities. With the help of these activities, they can
better use of its sources and can improve their overall productivity. Some of the approaches of
operations management are listed below:- Behavioural approach – This approach focuses on human behaviour in respect of both
social and physiological aspects. In respect of Starbucks, they always motivates their
employees by creating a great environment in their organisation. They are believing on
that if manager provides their employees positive surroundings then organisational
productivity and profitability will automatically increase (Tristancho and Gutiérrez,
2012).
 Situational approach – This approach plays a very important role in an organisation.
This theory helps the manager and leader to examine the situation in effective manner
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through which organisation goals are easily accomplished. In context of Starbucks, the
manger of Starbucks follow various concepts, principles, and techniques to take decision
according to the situation. By adopting this theory they can find their problems situation,
influential factors, and possible alternatives in respect of production. This will help them
to take decisions according to the situation so they can achieve their targets and goals
easily (Situational Leadership, 2019).
Importance and value of operation management
Operations management is very crucial part for managing large companies and running
them successfully. In Starbucks, operational management helps them to focus on managing the
process of produce and distribute products and service so that they can earn profitable outputs. It
is also helps them to achieve it objectives of making profit and increase the brand value.
Moreover, there are some importance of operation management in respect to achieve their goals:- Product quality – As Starbucks is dealing in the clothes, gifts, home furnishing, foods, so
they are always aware about their product quality. The Starbucks is succeeding in the
market because of its operational management which is responsible for quality
management. Operational management motivates them to produce that products which is
complete with quality, reliability, and durability. Customer satisfaction – It is prior factor of any business, because without provide
satisfaction to its customers a business can not succeed. With the help of quality
management, Starbucks always keeps their eyes on its products quality so they can
achieve their goals and fulfil their objectives. By improving the quality of the products
they can satisfied their customers and can increase their sales and profitability as well as.
 Revenue increased – Revenue will automatically increase when customers are satisfied
with companies products. In the Starbucks, they are serving their customer with high
qualified products, this give them a positive reputation across the market. This reputation
will inspire various customers to purchase their products which helps them to expand
their market share and also helps them to grow in the market (Wen-chao, Fan and Wen-
wen, 2012).
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TASK 4
P6: Factors within business environment which impact upon operational management and
decision making by leaders and manager
Business environment – It is defined by the sum of all the internal and external factors
which might be affect the overall performance and sustainability of the business. These factors
include employees, customers needs, supply and demand, management, activities by government
innovation in technology and many others. Business environmental helps Starbucks to identifies
threats as well as opportunities. As Starbucks have to face tuff competition in market so these
factors helps them to find out all the information about internal and external factors. This will
help them to create their market strategies according to these factors and helps to increase their
sales and profitability. Corporate social responsibility - Corporate social responsibility is a concept that helps a
business to maintaining a balance in the economic, social, and environmental
imperatives. In context of Starbucks, they operate their activities to sell their products as
well as to fullish the responsibility towards the social welfare. They are always taking
care of its social duties by doing various activities which includes charity for the society,
issues relevant to the climate changes,industrial waste management, ethic trading and
many others. By taking care social responsibility managers of Starbucks can increase
their brand value and can attract their customer and investors (XIANG and et. al., 2013). Culture – Culture is a key element in business which can leave affect on the strategic
direction of an organisation. In the business, culture can be understand by the values,
visions, working style, beliefs, and habit of an organisation. In case of Starbucks culture
can influences their managers decisions, management, and all the business activities in
every step of production. A manger needs to understand the culture of the people with
whom they are dealing is important to succeed in the market and achieving their business
objectives. Ethics – Ethics contains all the values, rules, and principals, which tells the organisations
that how managers and leader required to behave within the business. In case of
Starbucks they tell their employees how to behave in an organisation to achieve a great
profitability. A employees must have some ethics which includes integrity, loyalty,
honestly, respect and concern, fairness, and leadership.
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 Social factors - The social factors is describe by the changing socio culture trends and
people's preferences. In context of Starbucks, for sustaining in the market, they have to
improving their clothing production according to the customers changing tastes. These
factors has also affect on the decision making of managers because if they want to
succeed in the market they have to change their policies, prices, and their market
strategies according to the customer needs and market situations.
 Economic factors - It focus on that factors which can leave direct or indirect long term
effect on the business. There are various economic factors like exchange rates, inflation
rates, interest rates, and unemployment rates. As Starbucks is situated in UK, and at
present economic situation in UK is favourable with low to moderate interest which
creates a positive sign to their business. But on the other hand, manager and leader
should aware about economical changes which might be affect their business in a bad
manner (Yun and et. al., 2018).
CONCLUSION
It has been concluded from the above report that operation management plays a
significant role in the growth and success of an organisation through performing several roles
and responsibilities by leaders and managers such as production of quality products and goods,
managing demand by producing items in large quantity etc. There are different leadership theory
which are essential to adopt by the managers and leaders which includes situational, contingency
theory etc. It also required to use different approaches for operation management such as Sign
Sigma, Total quality Management etc. whose main focuses on enhancing performance level of
employees, quality of products and working of an organisation as a whole. There are various
influencing factors within business environment including political, social, ethical, CSR etc.
which makes huge impact on the decision-making process by leaders and managers thus it drives
them to make corrective actions to bring company ahead than their rivals in the market.
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REFERENCES
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