Management and Operations (Project 2): Starbucks Report

This report provides a comprehensive analysis of operations management, focusing on key approaches, the roles of leaders and managers, and the impact of the business environment. Using Starbucks as a case study, the report examines planning, total quality management, and just-in-time inventory strategies. It explores the value of operations management in terms of waste minimization, profit maximization, and consumer satisfaction. The report also delves into internal factors like customers, employees, and suppliers, as well as external factors such as legal, political, and technological influences. A critical evaluation of these factors is presented, highlighting their effects on business operations and the importance of strategic planning. The analysis underscores how effective operations management and leadership contribute to a company's success and competitive advantage in the market.

MANAGEMENT
AND
OPERATIONS
(Project 2)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 3 ...........................................................................................................................................1
P4 Key approaches related to operations management and the role played by leaders and boss
.....................................................................................................................................................1
P5 Value and importance of operations management.................................................................2
M3 Boss and Managers can boost OM effectiveness.................................................................3
TASK 4............................................................................................................................................4
P6 Factors in business environment that impact on operational management...........................4
M4 Factors effecting business environment...............................................................................5
D2 Critically evaluation of factors affecting operations management .......................................5
CONCLUSION ..............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management and operations are activities which are performed at work places in order to
achieve higher profitability and market shares. Employees should be aware about their roles and
then they should develop plan in order to achieve their overall targets (Moghaddam, Seifi and
Niknam, 2012). Managerial qualities are important factors in order to make business operates its
activities run in systematic and planned ways. Activities should be managed in effectual ways in
order to achieve success for firms. The undermentioned report is based on values of operations in
order to achieve all business objectives and goals, role played by mangers and leaders in
different business environment.
TASK 3
P4 Key approaches related to operations management and the role played by leaders and boss
Operational management are important factors which are valuable in order to execute all
business operations in effective and planned ways by which firms can achieve success in their
operations. Activities should be planned according to which workers which be carrying their
operations in order to achieve their targets. Starbucks are providing quality products to their
clients in order to maintain loyal customers and establish strong positions at market places.
Planning is valuable factors as it results in development of innovative ideas by which firms can
achieve success in their operations (Mohammadi Soleymani and Mozafari, 2014). Managers are
working in order to make their employees use their skills and capabilities in order to achieve
success for overall business.
The role played by boss and managers are evaluated below as:
Planning: This is the first step where mangers are developing plans how activities will be
carried out effectively in order to achieve goals in desired time frames. If individual have a
desire to start up their own business then they have to make plan as from where they will be
getting raw materials, their suppliers who will be their potential buyers etc. At Starbucks plans
are mainly developed by top level authorities who are involved in monitoring business
operations in order to achieve success in their business and enhancing their growth ratios.
Managing: This factor is related with establishing coordination among different business
activities as employees are given guidance in order to carry out all business operations in right
paths by which firms can achieve success in their operations. Plans are developed in order to
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solve any issue which may arise at work place this result in ensuring cooperation thus
establishment of healthy and positive working environment.
Total quality management: This is most vital factors in order to focus on quality factors
of products thus retaining loyal customers who will enhance their profitability ratios. The main
aim of this factor is linked with enhancing quality of products in order to achieve satisfied
customers and this is long term process which are applied by Starbucks. The firms are offering
high quality coffee to all their clients thus their sales ratios are greatly enhanced. It results in
gaining competitive advantages by differentiating products from rivalry business as quality is
being focused.
Just in time: This is basically evaluated as an inventory strategy which are developed in
order to enhance working efficiency of employees and reduce all the waste factors as only those
goods will be needed which are useful for the production process thus it helps in reducing the
cost of inventory. This concept requires that all producers should analyse demands factor in the
economy accurately.
Coordinating: This factor states that employers should maintain good relations with all
their employees as it helps in systematic flow of work at Starbucks. Coordination is vital factor
in order to maintain positive environment at work places thus achieving growth and development
for firms (Nakayama and Bucks, 2012).
P5 Value and importance of operations management
Management and operations are valuable factors in order to execute working in
systematic and planned ways by which firms which achieve prosperity in their business
operations. Operational management are vital task in order to gain all business goals and
objectives. The importance of operations are described below as:
Wastage Minimisation: The main business of stark-bucks are dealing in coffee products
and they have made plans in order to minimise all their waste products and this can be achieved
if innovative ideas are executed in order to make reduction in waste products. This result in
gaining loyal customers who will purchase their products and enhance their sales and profit
ratios (Niknam, Meymand and Mojarrad, 2011). The available resources in economy have to be
used in effective ways in order to achieve growth.
Profit maximisation: Starbucks have developed strong images at work places as they are
offering quality coffee products to all their customers. This is valuable factor in order to enhance
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their profit ratios. If the activities are organised in systematic ways then cost which is incurred on
operations will be reduced. This results in earning high profits for business as high cost will not
be incurred on business operations.
Consumer satisfaction: This is one of the most vital factors firms as they should focus on
retaining satisfied customers who will enhance their sales ratios. Starbucks are mainly operating
in coffee products and they are offering quality products to all their clients in order to attract
more customers thus they will earn high profitability. This is also one of the important factors in
order to establish good image at market places. If the activities are executed in planned ways
then it results in establishing effective management at Starbucks.
Improving quality standard: The quality of products can be improved if firms focusing
on reducing their waste factors in order to save cost of operations (Neck and Manz, 2010).
Products should be manufactured after analysing needs and wants of all their customers in order
to satisfy them. This is an important aspect in order to retain customers who will buy their
goods.
Enhancing Goodwill: The goodwill can be enhanced if they are focusing on reducing the
cost of operations. This is valuable factors in order to develop strong image at market areas thus
their activities can be easily expanded all around the globe. Starbucks have established strong
images which results in enhancing their profitability factors.
M3 Boss and Managers can boost OM effectiveness
Leaders and Managers at work place are playing most effective role in order to establish
coordination among various businesses operations. This helps in achieving all their defined
objectives and goals. Cooperation results in executing all business operations in systematic ways
in order to earn higher profits. There are various tools of quality management like jut in time
which are used in order to reduce waste products thus saving their cost of operations. This factor
is applied at work place then it results in executing working in systematic and planned ways in
order to achieve success in their business operations. This is an important factors at Starbucks as
it results in maximising quality of products thus retaining loyal customers who will increase their
sales. If the working is completed by using advancement in technologies then it results in
increasing production capacity by employees.
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TASK 4
P6 Factors in business environment that impact on operational management
The business environment consist of two factors in which activities are operating like
internal and external factors (White, 2016). They are affecting business activities thus measures
should be adopted in order to manage operations in systematic and planned ways.
Internal factor: These factors are operating inside the business and they are always
having impacts on the decision-making methods which are adopted by firms. These factors
includes the following elements which are evaluated below as:
Customers: These are the main elements who are valuable in order to maximise sales and
profitability ratios of firms. The employees should manufacture quality products in order to
satisfy all their customers thus retaining them for long time at work places. This is vital task as it
helps in establishing competitive advantages at market areas as they are focusing on quality
factors. Starbucks have gained loyal customers who are using their coffee items.
Employees: These are main players of industry as they are using their skills and
capabilities in order to develop new and innovative methods by which their operations can be
easily extended at market places (Pinkerton, 2011). If there is any new technology implemented
at Starbucks then employees should be provided training so they can easily achieve their targets
which have been allotted to them.
Society: All the operations should be executed in ethical so they will not affect the
society. It is the sole responsibilities of managers in order to follow all rules and regulations
which are beneficial for society. Starbucks are providing quality coffee products to all their
customers thus all the people of society are living in friendly manner while establishing
cooperation with one another.
Suppliers: These are those elements on which working of the whole organisation is
dependent. They are supplying raw materials as inputs which have to be transformed into
finished products in order to satisfy their customers. Starbucks can achieve success and growth
in their operations if their achieve success in maintaining strong relations with all their potential
customers (Rani and Moreira, 2010). If the raw products are offered at lower prices then it results
in minimising the cost which are occurred on producing the final products.
External factors: These factors are always operating outside the work places and these
are never under control of authorities which are available at work place. These factors are useful
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in order to reflect position of business at market places and strategies by which they can easily
accomplish competitive advantages.
Legal factors: These factors compose of plans and policies which are developed by
business in order to enhance their financial aspects. The process of litigation compose of
mangers and authorities who are working at top level. This is mainly affecting positions of
business at market places, their profitability and revenue factors. Starbucks had to make
strategies in order to carry out all their business operations in systematic and planned ways thus
gaining success for firms.
Political factor: It is also an external factor as taxation policies are never under the under
the control of business. If the taxation policies enacted by the government are high then it result
in affecting sales and profitability factors of business. People are mainly buying goods from
those firms who ensure quality and price in their products (Shuxin, 2011). Employees had to
develop innovative ideas in order to minimise their cost of production thus satisfying their
customers.
Technological factor: The products developed by Starbucks should be manufactured
according to new technologies this is beneficial in order to satisfy customers thus they will
purchase the products and increase their profit and sales ratios.
M4 Factors effecting business environment
It is very vital factor for firms in order to develop plans by which their operations will be
executed in planned ways in order to attain growth in their operations. Activities which are
operating in environment can have both positive and negative impacts thus it can affect choices
of customers. The internal factors are composed on inside elements like customers, suppliers and
external factors are political & technological factors as they are valuable in order to analyse the
current positions of business at market places.
D2 Critically evaluation of factors affecting operations management
According to the view points of Smith, (2010), The factors which are operating in the
environment like internal and external factors are adversely affecting business operations.
Managers should develop plans in order to evaluate all elements by which Starbucks are not able
to achieve success in their business operations. This results in development of healthy working
environment and employees will easily achieve all their targets in effectual and planned ways.
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CONCLUSION
The above report state that operations and management are vital factors in order to make
organisation run its activities in systematic ways thus achievement of growth for firms. The
factors which are operating in environment like internal and external are greatly affecting
business operations and plans should be developed in order to resolve them thus firms will
achieve success in their operations. Quality tools like Just in time are useful in order to minimise
all the waste factors thus Starbucks can easily reduce their cost of operations.
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REFERENCES
Book and Journals
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management of microgrid including wind, photovoltaic, micro-turbine, fuel cell and
energy storage devices. International Journal of Electrical Power & Energy Systems. 54.
pp.525-535.
Nakayama, F.S. and Bucks, D.A. eds., 2012. Trickle irrigation for crop production: design,
operation and management (Vol. 9). Elsevier.
Neck, C.P. and Manz, C.C., 2010. Mastering self-leadership: Empowering yourself for personal
excellence. Pearson.
Niknam, T., Meymand, H.Z. and Mojarrad, H.D., 2011. An efficient algorithm for multi-
objective optimal operation management of distribution network considering fuel cell
power plants. Energy. 36(1). pp.119-132.
Pinkerton, E. ed., 2011. Co-operative management of local fisheries: new directions for
improved management and community development. UBC Press.
Rani, D. and Moreira, M.M., 2010. Simulation–optimization modeling: a survey and potential
application in reservoir systems operation. Water resources management, 24(6),
pp.1107-1138.
Shuxin, A., 2011. The Management and Operation Mechanism of Overseas Think Tank and Its
Enlightenment to China [J]. Contemporary Economy & Management. 5. p.021.
Smith, K.A., Rahn, C.D. and Wang, C.Y., 2010. Model-based electrochemical estimation and
constraint management for pulse operation of lithium ion batteries. IEEE Transactions
on Control Systems Technology. 18(3). pp.654-663.
White, P.R., 2016. Public transport: its planning, management and operation. Routledge.
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<http://www.hse.gov.uk/pUbns/priced/microbiologyiac.pdf>.
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