Leadership and Operational Strategies at Starbucks: A Report

This report provides a comprehensive analysis of management and operations within Starbucks, a prominent American coffee company. The introduction highlights the significance of effective leadership and management in driving organizational growth, emphasizing the distinct roles of leaders and managers and the importance of situational leadership. Task 1 delves into the roles of leaders and managers at Starbucks, exploring leadership theories such as trait theory, behavioral theory, and situational leadership models. The report also examines the strengths and weaknesses of situational leadership and its application within Starbucks. Task 2 focuses on operations management, including the systems approach and the crucial role of communication. It underscores the importance of operation management in Starbucks for adapting to market expectations and enhancing efficiency, covering product design and the roles of managers and leaders in operational improvements. Finally, the report suggests corrective actions for managers and leaders to enhance operational efficiency, including improved planning, information access, business process development, supply chain improvements, and employee training. Overall, the report offers a detailed overview of the leadership and operational strategies employed by Starbucks.

MANAGEMENT
AND OPERATIONS
IN STARBUCKS

TABLE OF CONTENT
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1....................................................................................................................................................3
1.2....................................................................................................................................................4
1.3....................................................................................................................................................4
1.4....................................................................................................................................................5
TASK 2.................................................................................................................................................5
2.1....................................................................................................................................................5
2.2....................................................................................................................................................6
2.3 ...................................................................................................................................................6
TASK 3.................................................................................................................................................7
3.1....................................................................................................................................................7
3.2....................................................................................................................................................7
2.4....................................................................................................................................................8
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9

INTRODUCTION
Management and operations is considered to be integral part within the business as it is
associated with growth of organization. Further, it is well known fact that for smooth functioning of
business operations it is must to appoint effective leaders who can easily manage team of large
number of individuals with the motive to accomplish organizational goals. Attributes which are
present in leader and manager differs from each other where both carry out the assigned duties and
responsibilities as per their capabilities. Apart from this, the leadership style employed within the
workplace depends on situations where every style is undertaken as per condition present within the
workplace (Kerzner, 2013). The present study being carried out is based on Starbucks which is a
American coffee company founded in 1971. Business is considered to be main representative of
second wave coffee. Company is famous worldwide for range of products it offers to its target
market. Various tasks have been covered in the study which involves role of leader and function of
manager, theories and approaches linked with leadership etc.
TASK 1
1.1
Leaders working in Starbucks have to perform large number of functions so that business
performance can be enhanced easily. Further, the key attributes present within leaders allow them to
focus on the actual needs of the business. Communicator is one of the major role played by leader
within Starbucks for instance for smooth functioning of business operations leader communicates
with other employees so that customers of Starbucks can be served in better manner. Another role
played is thinker where strategic thinking allows effective leader to carry out business operations of
Starbucks in proper manner (Paryani, 2011). Through this role leader of company understand the
strength along with weaknesses of its internal operations and they are managed accordingly. Role of
decision maker is played by leader within Starbucks where different decisions are taken by them for
welfare of company for instance in Starbucks decision is taken for delivering training to the
workplace so that employees can serve customers in better manner.
On the other hand role of manager is also crucial within Starbucks. Planning is one of the
most important role played by manager where manager of the business are indulged into practices
of preparing various plans so that goals of enterprise can be accomplished efficiently. For instance
manager within Starbucks prepare plan for enhancing sales of the business which takes place
through quality improvement in product range etc. Organizing is also one of the basic function of
management of Starbucks where they organize key activities of the business through assigning
work and granting authority. So, in this way role of leader and function of manager within
Starbucks are totally different.

1.2
Different theories of leadership are being present with the help of which employees within
Starbucks can be managed easily. Further, modern trait theory which is employed within company
proposes that individual emerge as leader across variety of situation and the range of traits
associated with leader involve adjustment, intelligence, extroversion, openness to experience etc.
Apart from this, behavioural theory is also undertaken within Starbucks which states that leaders
must have strong personality along with this positive attitude within the workplace allows to
conduct overall operations of business in proper manner. Situational leadership model is generally
regarded to be most recognized (Starbucks Coffee’s Operations Management: 10 Decisions,
Productivity, 2015). It takes into consideration four core competencies which are diagnosed, adapt,
communicate and advance. Diagnose is linked with the situation which is being influenced, adapt is
linked with adjusting behaviour in response to contingencies, communicate with linked with
interacting with others and advance is to manage the movement. For instance leaders in Starbucks
represents all the competencies where communication with other members takes place properly,
conditions within company are diagnosed so as to find favourable result. Systems leadership is
another type of model which is being undertaken within Starbucks which represents that different
systems are employed for welfare of the business. Contingency theory of leadership is also regarded
to be effective where as per this theory leadership style is fixed and it is possible to measure the
same with the help of scale which is regarded as least preferred co worker (Christopher, 2016). So,
in this way these are some of the different type of theories linked with leadership.
1.3
Situational leadership is regarded as one of the key approach to leadership which highlights
that there is no single best leadership. Further, leaders working in Starbucks adjust style as per the
situation including employees, working environment etc. Different strengths of situational leaders
are present where major one is that it allows in imparting training to other leaders, it is a kind of
practical approach which can be easily understood. The overall perspective linked with situational
leadership highlights how leader acts in order to accomplish leadership effectiveness and focuses on
the flexibility of the leader (Hill and Hill, 2012). On the other hand some weaknesses of this
leadership is also present which includes it ignores difference in between male and female
managers, individuals can divert attention away from long term strategies and politics. These are
some of the main pros and cons associated with situational leadership in Starbucks. In Starbucks
different types of situations are being faced and due to this basic reason it is necessary to adopt
appropriate style so that need of every individual can be satisfied efficiently as per business aim.
For instance in case if internal conflicts are present within Starbucks then in such case this style is
undertaken where all the internal challenges are tackled in proper manner. Without undertaking this

style it is not at all possible to manage different individuals within the workplace and it can have
adverse impact on the performance of enterprise.
1.4
Different theories along with approaches to leadership are being present which highlights the
attributes of leader and the way through which they deal with different conditions within the
company. Situational leadership theory is effective when flexibility is present and existing work
environment is easily adopted by the leader within Starbucks (Case Study: Starbucks Coffee, 2010).
Further, individual focuses on modifying the style of management to suit with the requirement of
business. One of the keys to situational leadership is adaptability where leaders within Starbucks
adopt all the situations easily and they do not resist to change. Apart from this, it is well known fact
that Starbucks carries out all the operations on wider basis due to which situation within business
keeps on changing rapidly. Therefore, to deal with the same this style is regarded to be most
relevant. Moreover, task oriented leadership is also effective which Starbucks must employ
necessarily where they focus on completing job. Main focus is on tasks that have to be
accomplished and this type of style emphasizes on plans, schedules, structure etc. The main
elements of this leadership also involves prioritizing goals, reviewing major tasks, setting
schedules, development of detailed plans etc. (Jones and Robinson, 2012). So task oriented or
relationship leadership is also regarded to be effective in every possible manner where it encourages
staff members to participate in the business affairs and this becomes one of the reasons behind
success of business in the market. Starbucks can easily focus on development of effective leaders
through which workforce of the business can be easily managed and it can easily act as
development tool for the enterprise.
TASK 2
2.1
Operation management is linked with managing key activities of the business so that
operations can be carried out efficiently. Further, Starbucks carries out different type of operations
with the motive to serve its customers in better manner. Systems approach to operation management
where the entire business is treated as system and it can be closed or open. In case of Starbucks
business can easily apply this theory closed system is not at all influenced by environment and in
case of open system it takes into consideration three main elements. Starbuck receives resources
such as work of staff member, equipment etc in the form of input and they are transformed into
throughputs which is yielded into output. All the inputs within Starbucks are considered to be most
crucial which involve managerial skills, capital etc. Further, the transformation process takes place
with the help of input present which delivers proper output and is regarded to be effective for
organization in every possible manner (Haksever and Render, 2013). Communication process in the

management of operation plays crucial role where proper communication takes place in between the
individuals who are associated with business. So, this builds internal strength of Starbucks where
operations can be carried out efficiently. Role of managers and leaders within Starbucks are crucial
where they are indulge into practices of implementing different systems with the help of which
operations can be carried out in proper manner. This directly allows in accomplishment of desired
goals and objectives. Absence of efficient leaders can surely have adverse impact on company
especially while managing operations.
2.2
Operation management is considered to be most important within Starbucks as through this
business can easily make changes in its internal operations as per expectations of the target market.
Further, it directly allows in accomplishing desired objectives and leads to fruitful results. Starbucks
is a large coffee chain where different types of operations are conducted by business and its
management is must for company. It is linked with conversion of raw material into finished product
for attaining goals of organization. Further, through this concept overall efficiency of Starbucks can
be enhanced easily and it can lead to optimum utilization of the resources which are crucial for the
business. Starbuck offers different type of coffee to its target market and due to this reason business
is required to focus on enhancing its efficiency for reducing cost and increasing profitability. The
concept of operation management also takes into consideration designing of products where each
and every product is developed as per the customer requirement and this in turn acts as development
tool for the business (Geereddy, 2012). Without presence of effective operation management
strategy no business can survive in the market for instance in Starbucks top officials hold
responsibility for operation management where they mainly focus on providing convenience to the
target market as per their actual need. Therefore, with the help of this it can be clearly stated that
concept of operation management is highly important for Starbucks where business efficiency can
be enhanced and this can allow in gaining competitive edge.
2.3
In order to efficiently carry out operations of Starbucks it is the moral responsibility of
managers and leaders to take some corrective actions. Further, for improvement purpose proper
planning is required where business can develop various stages and through this it is possible to
focus on the key operations which are crucial for organization. It is required for managers of
Starbucks to provide staff members with consistent access to information. In case if crucial
information is being shared with them on continuous basis then in such case they will prefer to
carry out the assigned responsibilities efficiently. This can be favourable for enterprise in every
possible manner. Apart from this, development of effective business process can be undertaken
within Starbucks where different processes can be built by conducting research in the market.

Making improvement in the supply chain practices of business can be beneficial where Starbuck is
required to identify the main loophole present in supply chain and its improvement can bring
favourable results for enterprise (Hill, Jones and Schilling, 2014). Apart from this, it is the moral
duty of leaders in Starbucks to deliver training to the employees so that they can efficiently carry
out assigned operations. It can deliver favourable results for the business in terms of high
profitability level and market share. Further, for operation development Starbucks is required to
make its internal operations flexible where through these changes can be easily made as per the
nature of operation and it can act as development tool for the business.
TASK 3
3.1
Different factors are present in the business environment of Starbucks that can directly
influence the operational management of business. Technology is one of the most crucial factors
present in external business environment which changes over a period of time. Further, in case if
Starbucks has employed advanced tools for conducting its overall operations then in such case
operation management function of business is influenced. On the basis of this manager along with
leaders are required to take actions so that operations can be aligned with the new tools. This
external factor directly influences overall operation of the business being carried out where
modification in the operation management process is must. Another factor is innovation where in
case when new method linked with operation management is introduced then Starbucks is required
to adopt the same. Innovation in the field of operation management is must so that cost associated
with the business can be saved easily (Mathew, 2014). Therefore, this factor can bring change in the
operation management practices of Starbucks and its consideration can bring large number of
change in the practices of business. Another factor is taste in requirement of target market where its
consideration influences operation management of company.
3.2
Innovation and technology are the two foremost referrals as a mean of intervening the
business environment and wider community of Starbucks. In context to which, the technical factors
can largely affect the existent state of operation in Starbucks where they are hereby required to
adopt newer method of fabricating their products that will evidently save their time and cost of
production. Apart from this, they will also be able to reflect more creativity in their working
procedural as a mean of serving the clients with more innovative outlook. Innovation is thereby
referred to be an interlinked term of technology where this will tend to attract more number of
consumers towards them. Starbucks is however required to make a primary analysis of their active
contenders to ascertain their work formulations to pioneer something new in the marketplace. This
is connected to yet another discovered factor of marketing where they can hereby make a pivotal

usage of several selling tactics (Case Study: Starbucks Coffee, 2010). This is basically to address
the factual preferences of the customers by knowing their taste and make accordant products for
them. On such considerable adaptation of work, Starbucks will successfully meet the preferential
petition of their users that involves their broader set of communities as well.
2.4
This is to evaluate the application of operations management in context to the working
procedurals of Starbucks. It is mainly due to their another potentiality of affecting their business
environment along with the influential testimony of the preceding factors. Operations management
is composed of some vital tools of business that are required to be incorporated in Starbucks. A
foremost application is in context to employ the tools of project management. It is where the project
managers of Starbucks are hereby required to spend good amount of time to make considerable
plans to decide each facet of their product lines. This should dignify the identified needs and
demands of the users. This also abides by another strategic proposal of budget to reckon upon a
classified framework of their spendings (Haksever and Render, 2013). Price fixation of the offered
commodities is an integral part of this tool with a foremost intervention of the marketing personnel's
of Starbucks in it. Project scheduling is yet another distinguished tool of operations management in
Starbucks where they are hereby required to fix accordant policies of delivering goods and services
to their clients and users. Quality control and inspection is the most configurable equipment in order
to check the qualitative measures of the offered commodities. All these factors make a substantial
impact on the designed work perspective of Starbucks as a mean of influencing their wider set of
businesses. Undertaking process of operation management will support Starbucks in every possible
manner as through this business can easily manage its crucial operations in effective manner.
Moreover, different factors are being present that have implication on the business environment
where major one is competition and this can prevent business from accomplishing aims and
objectives. Apart from this, political and legal barrier is also one where different barriers required
change in operations of the company. Therefore, business is required to undertake such factors for
its smooth functioning.
CONCLUSION
The above report has concluded some significant means of operations management
in context to Starbucks where it has clearly defined some distinct roles and accountabilities of a
leader and a manager. It was basically to underlay the contemporary means of business operations
with an inclusive role of both these members into the same. With an analogous reference to which,
some extrinsic factors of business has together been conceptualised in the current report by together
defining their actual impact upon the community participants of Starbucks. Technology and
Innovation were the two foremost means of referral that largely tends to work as the two most

influential elements. Study has shown different factors affect productivity of Starbucks such as
technology, competition, legal laws etc. It is necessary required for business to develop effective
strategies so that challenges present in the market can be tackled easily. It is well known fact that
taste along with preference of customers keep on changing rapidly so it is must for business to
comply with the same. Communication process in the management of operation plays crucial role
where proper communication takes place in between the individuals who are associated with
business. Therefore, in this way these are the range of some crucial factors which leaders and
managers of Starbucks are required to undertake for operation management practices. Therefore,
with the help of this it can be clearly stated that concept of operation management is highly
important for Starbucks where business efficiency can be enhanced and this can allow in gaining
competitive edge.

REFERENCES
Books and Journals
Christopher, M., 2016. Logistics & supply chain management. Pearson Higher Ed.
Geereddy, N., 2012. Strategic Analysis Of Starbucks Corporation.
Haksever, C. and Render, B., 2013. Service Management: An Integrated Approach to Supply Chain
Management and Operations. FT Press.
Hill, A. and Hill, T., 2012. Operations management. Palgrave Macmillan.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Jones, P. and Robinson, P., 2012. Operations management. Oxford University Press.
Kerzner, H.R., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Mathew, M., 2014. Strategic Management Analysis Starbucks Corporation.Docs. school
Publications.
Online
Case Study: Starbucks Coffee, 2010. [PDF]. Available through:
<http://www.uhu.es/45122/temas/P&SC/Theme1_StarbucksCoffe_CaseStudy.pdf>.
[Accessed on 26t November 2016].
Paryani, K., Product quality, service reliability and management of operations at Starbucks, 2011.
[PDF]. Available through: <> [Accessed on 26th November 2016].
Starbucks Coffee’s Operations Management: 10 Decisions, Productivity, 2015. [Online]. Available
through: <http://panmore.com/starbucks-coffee-operations-management-10-decisions-areas-
productivity>. [Accessed on 26th November 2016].