Leadership and Operations Management Report: Starbucks Analysis

This report delves into the operations management of Starbucks, an American coffee company with a global presence. It begins by comparing the roles and responsibilities of leaders and managers within the organization, highlighting their differing focuses and authorities. The report then explores various leadership styles, including situational, systems, and contingency leadership, and how they can be applied to enhance employee engagement, decision-making, and conflict resolution within Starbucks. Furthermore, it examines key approaches to operations management, such as Just-in-Time (JIT) and Total Quality Management (TQM), and how these strategies can be implemented to improve efficiency, reduce waste, and enhance customer service. The report concludes with an overview of external factors that can impact Starbucks' operations and provides recommendations for optimizing operational processes.

Management and operations
Table of Contents

Task 1...............................................................................................................................................3
P1 Covered in PPT .....................................................................................................................3
TASK 2............................................................................................................................................3
P2 Functions of a manager with context to the organisation......................................................3
P3 Situational, Systems and Contingency Leadership ...............................................................4
TASK 3 ...........................................................................................................................................5
P4 Key approaches to operation's management..........................................................................5
P5 Importance of operations management in the store...............................................................6
TASK 4 ...........................................................................................................................................7
P6 Identify external factors that will effect on the operations management for the organisation
.....................................................................................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The area of management which concerns with overall planning, organising the activity
and supervision of the process is known as operations management. It is the administrative
activity which can create the highest amount of efficiency that can be possible in the particular
organisation (Kumar,2012). The report is based of the company known as Starbucks which is an
American coffee company which offer some cold and hot drinks to their customer. It was
founded in year 1971 in Washington, United states by Jerry Baldwin, Zev Siegl, Gordon Bowker
and there are more than 25000 store present globally. The reports will include various
differences between characteristics of leader and a manager and different various types of
leadership theories through which overall performance of the company and the individual can be
improved at an optimal level.
TASK 1
P1 Comparison between leader and manager
Operations management considers the management of all the working operation within
the organisation it includes all the activities regarding the planning, organising, coordinating and
controlling and in the context of production process the manufacturing needs most of the
operation management. The report is considering the company known as Starbucks which is the
company offers different types of beverages and this follow flat type of structure in its
organisation which means managers work on the same level of organisation from this workers
gets motivated as everyone feel same as there criteria of senior and junior (Pinto, 2015).
Leader- An individual person who influences the worker under it to maximize their
efforts for the effective achievement of the goal or a leader is someone who is responsible for
taking the lead when the adverse situation arises in the organisation. A leader can also acts as a
manipulator some time for the worker by transferring the stress of the employee while engaging
then in the creative work this helps in making the worker stress and pressure free for the load of
work(Ravindran, 2016).
Manager- A manager is person who controls the different departments in the
organisation whether it is manufacturing, production or financial or marketing etc.(Oakland,
2014). Manager is the one who is responsible for the training and induction programme for
newer employee’s. The four main functions of the manager are planning, organising, leading

and controlling. The role of a manager is to allocate the duties in the different department
according to the job title and to manage to get the information from all the working department .
The leader and manager of Starbucks have to perform various types of duties and roles as
per various skill and characteristics are as follow(Embrechts, 2015).:
Basis Leader Managers
Focus Leader always focus on the
people under them. In
Starbucks, leader needs to
motivates their workers, so
that they can improve the
productivity of their
work(Thaler, 2016).
Manager is one who generally
focus on the things that are
going to be performed by
different people working in the
organisation. In Starbucks
manager allots the works to the
workers of different
departments.
Roles and responsibilities A leader is responsible for
guiding the individual or group
of worker while its role is to
motivate and manipulate the
workers under him in
Starbucks the leader motivates
the employee by providing the
vision for the future them and
make them feel important and
appreciates them regarding
their good work(Fuchs, 2016).
While the responsibilities of a
manager is to maintain the
statistics, financial,budget
records in the organisation.
While in Starbucks its role is
to provide training to the staff
so it can act as a trainer, it can
recruit, supervise and appraise
the staff to increase the
productivity and efficiency.
Authority and power There are less amount of
power given to a leader when
compared to manager. But a
leader has a vision which
makes him to get followed by
other workers. A Leader in
While the manager has a
power to control all the
operation in the company.
They can influence the other
department through the power
of controlling the monetary

Starbucks have the authority to
give the right direction to the
workers regarding best usage
of the available resources
under them, to motivate them
regarding limiting the wastage
of material used in preparing
product.
measures. In Starbucks the
manager have authority and
power to eliminate the
particular product of the
company which is not getting
success in the long run of the
company
TASK 2
P2 Role of the leader and function of a manager.
In different types of organisation the manager have to handle the various types of situation so
that they can attain the goal of the company. In Starbucks the company offers different types of
product due to which complex situation arises while handling the tasks during the work and
hence this can impact the working activities of an organisation and the different situation can
appear in the business which are employee engagement, decision making and conflict resolution
and manager have to play different role while handling there situation(Kim, 2015).
Employee engagement-The process which shows the engagement and interest of the
particular employee in the particular activity and this is helpful in getting the healthy
environment to work. This also show that how much the worker in committed to its work in an
organisation. In Starbucks the engagement of employee helps in proper planning of the activity
for the current and future working as this helps in consideration of those factors which generates
the problem during work. The managers of Starbucks provides the support to their co-workers
and employees by commanding them so that chances of getting errors could becomes less and
is helpful in effective planning of the work(Priest, 2016).
Decision-making-The process of selection of a specific logical choice among the
different available alternatives is known as decision making. In Starbucks through the effective
decision-making the control over the wastage of the resources could be done in as easy and
efficient manner. This also helps the planning of the operation(Kumar, 2015)

P3 Situational, Systems and Contingency Leadership
Situational Leadership: Situational leadership is developed by Paul Hersey and Kenneth
H. Blanchard. In this type of leadership, leaders adjust their working style as per current
situation. It works on the basic principle that the most effective style of leadership can not be
defined. Different characteristics are needed in a leader to handle different situations. Leader is a
person who develops an understanding of situation and analyse it according to which he develops
a pattern of working. In this type of leadership, the behavioural pattern of a leader keeps on
changing as he adapts himself to the various changes occurring in an organisation. Situational
leadership can be most effective in an entity where changes keep on taking place at regular
intervals and requires evolving of a leader as per the change.
For example- if a particular situation arises in Starbucks, the leader or manager channels
the behaviour of employees as per the situation, request engagement from all employees and
gives them the authority to act as per the current scenario so that the organisation as a whole can
adapt to the situation(Oakland, 2014).
Systems Leadership: Developed by Dr Ian MacDonald, this style of leadership links
individual cognition to organisational performance. In this, leaders of an entity create situations
so that employees at all levels of organisation can work in a manner that aims at long term
performance of entity. Here, leaders make the manpower work in a productive manner to their
full potential. In this style, the leader makes use of tools like communication at all levels,
employee feedback to understand the traits of employees in an organisation. This helps the leader
in designing a pattern of working that is suitable for employees working at all levels of an
organisation. Such a working structure that is adaptable for the whole workforce results in
effective and efficient working of the entity with the employees working in a productive to their
full capacity.
For example: the Starbucks consists of numerous employees with different working and
behavioural patterns, so a leadership style designed keeping this in mind acceptable to all the
employees results in enhancing the overall productivity of workforce(LaGanga, 2011).
Contingency Leadership: Also known as Fielder's theory of Contingency, this style of
leadership was developed by Fielder after reading about various styles of leaderships in various
contexts. This style of leadership resembles situational leadership but here, the leadership
emphasizes upon matching the individual behaviour with the right situation. It is a theory that

claims that there is no best way of making decisions, leading a company or organizing a
corporation. Contingency leadership defines situation with the help of three factors. These
factors are leader and follower relationship, task structure and the extent of authority that a leader
exercises over his followers.
For example- In Starbucks, HR department may use the contingency theory to hire the
right people for right job, resolving conflicts between existing workforce, addressing complaints,
and dealing with low productivity of some employees(Laudon, 2016).
Generally, Starbucks use situational style of leadership as the demand for the products of
company keeps on fluctuating due to changes in customer and seasonal preferences. This creates
new situations at regular intervals of time requiring the working pattern to be matched as per the
situation.
TASK 3
P4 Key approaches to operation's management
Operation management is an administration of business practices to produce and create
high level of an efficiency and productivity within an organisation. It is basically taken up with
converting raw materials and manpower efforts into final output and commodities to increase the
profitability of a company. Approach to operation management is very important to understand
because it will helps the organisation to understand any kind of problems and issues occurring
into the operational process. In context with Starbucks, it is easy to understand the approaches
regarding the operational aspects and will helpful in suggesting best suitable models to the
Starbucks. These are as follows:
Just-in-time - JIT is an inventory and production control system in which material would
be purchased and converted into final units of products with the purpose of meeting actual
demand of customer. It is basically consider as the strategy to have favourable increase in the
efficiency and productivity and it leads to decrease in the waste during production of good and
services and decreasing inventory costs. In context with Starbucks, company needs to control the
wastage of their coffee related items in order to save carrying and storing cost. It would be an
initiative or decision to lower down the price of the coffee of Starbucks as a result of lower down
the production costs and expenses.

Total quality management - It is a continuous and definite process of detecting and
removing or eliminating any kind of error in the manufacturing and supply chain management
process. It has taken into consideration with the purpose of improving customer service, quality
management and ensure faster recovery of the company's expenses. It aims at making production
process more accurate and proper so as to ensure effective production of goods or service. In
context with Starbucks, Company needs to know their coffee making process in order to realize
any kind of wastage to save costs and expenses(Russo, 2011).
Kaizan - It is also known as continuous improvement approach. In this approach, worker
are responsible for any kind of gap or insufficiency within the production process. Kaizan is aims
at improvement in the production process, worker's safety, waste reduction etc. It is important to
adopt this strategy to ensure continual improvement and measurement in the production process
of the company. In context with Starbucks, there is an opportunity for the company to bring
continuous improvement and reduction of wastage to save resources and costs for the company.
After such explanation, it is cleared that Starbucks uses total quality management(TQM)
approach in order to improve the production efficiency and regulate waste management to save
costs and resources for the company(Mollenkopf, 2014).
P5 Importance of operations management in the store
Operation management is the process of basic managerial function which includes
planning, organizing, staffing, supervising and controlling the production and manufacturing
process. The main aim of the store manager in the Starbucks is to maintain the regular functions
such as providing coffee's to the coffee buyer's, improve customer satisfaction level, manpower
regulation and customer engagement in the company's store. Role of manager or leader would
play an accurate role in true management and operation in the Starbucks store's. In context with
Starbucks, there are various importance of an operation management in the coffee giant's store.
These are as follows:
Quality management - This is the prime importance of an operational manager as OM
plays an effective role in maintenance of better quality of raw materials to avoid any kind of the
wastage and damage to serve accurate quality of the commodities to the customers. It is
advisable that Starbucks must use “Six Sigma Approach” to ensure efficient manpower resource,
quality and continuous improvement in the store. It will results in the great brand value and
image of the Starbucks(D. A., 2014).

Inventory management - Store manager plays an significant role in the overall carrying
and maintenance of the inventory and products in the store. That person needs to take care of
daily ordering, carrying and storing of the inventory in order to record the actual value and
validity of the inventory for the further production process. Role of the store manger or leader in
context with the Starbucks is to take care of flow of resources or goods into the final process of
coffee's making.
Customer satisfaction - The main duty of the store manager is to deliver maximum
satisfaction level to the customer by serving, taking feedback and views and listen to their actual
wants or needs. In context with Starbucks, it is crucial for store and their worker's to ensure that
they should offer best quality of coffee to the customer and take their feedbacks to improve
service more and profitable for the company. Here, “Best quality service” means exceeding the
expectation level of the customer that they expect or desires. Most company suffers from this
issue, which effects their efficiency and profitability. So, this is important for the Starbucks and
every company to serve best quality that is more than the expectation of the customers.
The Role of the manager or leader is to make sure that operations management in any
company whether Starbucks, duties and responsibilities of them must results in the efficiency
and profitability to the company and ensure that customer satisfaction should be the main priority
of the Starbucks manager's. “Six sigma approach” is the most suitable approach that operation
manager should take for proper quality and inventory management in the Starbucks.
TASK 4
P6 Identify external factors that will effect on the operations management for the organisation
Operation management can influence the overall efficiency and productivity of the
company. It is important to understand the present trends running in the concept of operation
management which will helpful in the effective regulation and conduction of the operation in an
organisation. It can be influenced by both internal and external factors. Let's talk about external
factors which can influence the decision making of the Starbucks. These are as follows:
Economic environment - This factor plays a crucial role in the operation aspects of the
company. It has been observed that various sudden or instant changes in demand and supply can
impact on capacity, utilization of the resources and productivity etc. of the Starbucks. Demand

and supply never always goes frequent or equal, it effects with the ups-downs in the market. Also
, changes in financial factor can impact on investment generation for the Starbucks.
Technological change - Up-gradation in the technology can effect the processes of the
company. If Starbucks will adopt new technology, there is maximum chances that huge cost of
implementation would effect the profitability of the company. This can impact the stability of the
company. Positive things is that new technology can results in increase in the product life cycle
of the Starbucks company(Lai, 2012).
Legal and environmental change – The legal factors such as legislation can impact the
production capacity of the company. It can create new challenges for the Starbucks to function in
the market. Strict acquisition policies, loan recovery, government interfere etc can slowdown the
activities of the company and have major impact Starbucks functioning and productivity both.
All these discussed factors can impact decision making of the store manager in the huge
ways. If legal regulation are strict, it would break down the freedom of the Starbucks to operate
and function independently. These factors can be converted into decision making by making
strong external affair policies for the Starbucks, involvement of updated technology and training
and development to the manpower of an Starbucks. Financial factors such as increase in the
interest rates, financial crisis and restriction in the loan generation can effect the functioning abd
decision making of the Starbucks(Peng, 2016).

CONCLUSION
From the above report, it is concluded that management and operation plays an important
role in the productivity and efficiency of the company. Effective roles and characteristics of
manager and leader enhances the structure and function of the company in the field of operation
and also apart from it. According to the Fayol, manager is the one who executes and implement
policies and regulation for the organisation and responsible for the decision making process of
the company. Inventory management is very important for the company's store to reducing the
extra cost for the procurement of the commodities. Role of store manager is consist of manager
as well as leader which influences the worker of the team-mates in the organisation. Leader and
manager is both sits at superior level who is responsible for the profitability and productivity of
the company. Legal and technological factors can effect the customer engagement and
profitability of the company.

REFERENCES
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Online
What is Operations Management?. 2014. [Online]. Available through:
<https://www.topmba.com/mba-programs/what-operations-management>.