Starbucks: Operational Approaches, Leadership and Management Report

This report provides an in-depth analysis of Starbucks' operations management, focusing on key approaches, the roles of leaders and managers, and factors influencing the business environment. It explores various operational management techniques such as Six Sigma, Kaizen, Total Quality Manage...Read More

MANAGEMENT
AND OPERATION
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................2
P4 Key approaches to operations management and roles played by leaders and managers.......2
P5 Significance of operations management in achieving business objectives............................4
M3 Ways in which leaders and managers can improve the efficiency of operations
management................................................................................................................................4
P 6 Factors within the business environment in which Starbucks operates................................1
M4 Affect of factors on the business environment and wider community,................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
1

INTRODUCTION
A business comprises of numerous operations and in order to achieve the desired goals,
effective management of them is needed (Oelze and et.al., 2016). Operations management is the
administration of the business tasks in a manner that brings efficiency to the overall organisation.
In the present report, the key approaches of this management are explained along with their
importance. Further, various methods that can improve the efficiency of these functions are
discussed. In addition to this, this study covers the wider environmental factors that can impact
upon the business.
The present piece of work revolves around the Starbucks. The selected organisation is a
big name in global business world and hence, effective operation management should be
performed by the leaders and managers of the firm.
P4 Key approaches to operations management and roles played by leaders and managers.
Operation management helps in increasing the work efficiency. In context to Starbucks,
this strategy keeps a significant place. There are various approaches of managing operations,
some common among them involves six sigma tool, quick development, Kaizen, Total Quality
Management, etc. These tools helps in managing raw material, labour, process, quality, etc.
Importance of using these methods are explained below:
Six sigma tool: There is a set of tools that are present in this approach. These tactics are mainly
focused on managing quality of the business operations. Thus, Starbucks can use this approach in
enhancing the quality of the products and the services buy working on the internal factors. The
evaluation of operations using this tool is based on the trending charts, defect calculations and
other ratios. It helps in achieving stable and predictable process results Petroni, A. and et.al.,
2017Besides this, it helps in measuring, analysing, improving and monitoring the business
functions. There is one more benefit of using six sigma tool and that s ensuring sustainable
development. There are various advantages of using this technique such as it eliminates the
wastage within the manufacturing process. In addition to the above benefits, six sigma tool
renders clear focus on attaining the measurable and quantifiable returns from a project. Also, it
helps in increasing concentration on effective and strong management. There are two methods of
applying six sigma tools to the business operations and they are DMAIC (Define measure
analyse improve control) and DMADV (Define measure analyse design verify). All these
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operations defining goals, measuring effectiveness, analysing work effectiveness, improving the
lacking factors, etc. are demanded to be performed by the leaders and managers.
Kaizen: This tool stands for consistent development of the operations of the organisation.
Starbucks can take assistance of this technique in maintaining the effectiveness in the process. It
influence entities to change for better. Under this, the less or ineffective existing practices are
replaced with the effective ones. There are certain guiding principle of this technique such as
good processes bring good outcomes, speaking with data and managing with facts, etc. There are
two type of Kaizen approaches namely flow and process. This tool also encourages team work
which is beneficial for every business type. For this, leaders and managers are suppose to
perform continuous monitoring of the organisational functions.
Total Quality management: This covers all the factors that constituents in overall management
of an organisation. There are eight principles of this tool. It is highly customer focused and also
controls the external factors for bringing effectiveness to the operations of the entity. Starbucks
can make best use of it in increasing the market sales (Chmura, Wey, and Blumstein, 2016).The
principles covered in it are customer satisfaction, total employee involvement, process-centred,
integrated system, strategic & systematic approach, continuous improvement, fact-based decision
making and effective communication. Leaders and managers are required to perform these
activities. Combination of these processes assures the total quality management of the functions
of Starbucks and will benefit the business value.
Quick development: This technique is useful in increasing the productivity of organisation by
working on the products and services that are being offered to the customers. For this, Starbucks'
leaders are required to render effective training to the employees to treat customers in effective
manner. Also, managers should ensure the completion of same in time. This is the most effective
approach of operation management for the selected firm which highly revolves around customers
and possess direct contact with them. Henceforth, leaders and managers should understand their
roles and responsibilities in implementation of this tool.
Thus, these are the most common tactics to bring operational management on the
organisation. Starbucks can make good use of these tools in achieving the higher profitability by
getting all the work managed (Cote, 2017).
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P5 Significance of operations management in achieving business objectives.
In order to bring success to a business, it is necessary to get all the objectives fulfilled.
These aims are dependent of the operations of the entity. In context to Starbucks,
implementation of total quality management, six sigma tools, quick development,. etc. helps in
gaining the desired results (Shi and et.al, 2016). For effective running of a business, operational
management is required. There are various advantages of applying these functions. Significance
of it is as follows:
 Total quality approach: This feature will help in increasing the quality of the services.
Also, eight principles of the total quality management considers every business activity
that can lead to bring efficiency in the operations. Thus, in this way, business objectives
can be gained using this technique.
 Improved productivity: The techniques used for management of the operation are highly
focused on the productivity of the business. There are many tools that are used for
production, development department that ensures the appropriate generation of products
and services that can boost the company sales (Robinson and et. al, 2016). Henceforth,
the productivity is increased.
 Time-effectiveness: Operations management allows to work on segregated tasks to
achieve the business objectives. These divided activities are easy to perform. Further,
time limit associated with each of the activity bring time-effectiveness in the business
operations. Thus, objective of organisation can be achieved sooner by using operation
management.
M3 Ways in which leaders and managers can improve the efficiency of operations management.
There are various method which can account in improving the efficiency of operations
management. Some of them are as follows:
 Effective planning: It is foremost duty of a manager to perform effective and detailed
planning of the business operations. It also includes segregation of tasks, assigning of
activities, allocation of resources and effective budgeting (Needham and et. al, 2017).
 Process control: Leaders and mangers are required to possess an ability to control the
process so that the methods of achieving the goals can be altered of found to be
ineffective. This will help in performing right activities and thus, efficiency of operations
management will improve.
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 Effective training and development: Leaders are required to plan relevant training and
development programmes for the employees to develop essential skills in them.
 Guiding and coaching: In operation of business management, various action are required
to be performed. Hence, leaders and managers should guide the employees. This will
assist in improving the performance of workers which will directly impact upon the
efficiency of operations management.
 Communication: Communication maintains clarity and transparency needed in the
business operations. This reduces the number of errors and ensure effective management.
 Involvement in decision-making process: It s very necessary to involve all the employees
in the decision-making procedures. It will not only helps in obtaining large number of
ideas. It will further help in motivating workers by stating their importance to them. This
motivation will then allow them to work with dedication (Michailidou and et. al, 2016).
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P 6 Factors within the business environment in which Starbucks operates.
In accordance with the operational activities in an organisation there will be various
factors which has impacts over decision making and the activities of the firm. Hence, in
accordance with the operation performances operated by Starbucks which in turn helps the firm
in fetching the maximum consumer attention as well as fruitful investor from the stakeholders
(Factors Affecting Decision Making, 2017). Thus, the operating managers of the firm are tends to
improve the productivity as well as satisfying the large numbers of buyers in context with
designing the products on the basis of their choice and preferences. Hence, there can be various
factors which are influencing the decision making such as:
Social and Cultural variations: In accordance with the changers in the cultural or social
environment the operational decisions were highly influenced. However, Starbucks operated in
various countries and have highly influence by the various cultural obstacles (Yang and and et.
al, 2016).Hence, it can be said that the firm has various consumers or suppliers which belongs to
different locality to build up the favourable coordination with them there is need to develop a
fruitful relationship which in turn provide the adequate information relevant to their choices and
preferences.
Work environment: Operational managers in Starbucks will be influenced with the work
environment and the work conditions. Hence, at the time of high workload or the raise in the
demand for products the organisation would not found the effective solution for making the
adequate decisions as well as their main attention would be over producing the large numbers of
units as well as increasing pricing of such product and services (Richardson, Leeuw and Dullaert,
2016).
Leadership: Influences in the internal environment of the organisation will be based on
the leadership techniques such as the leaders is not capable of delivering these thoughts and
vision in the corrective manner. Thus, the individual will not able to have the adequate guidance
and that will reflect in the poor operational performance. Thus, due to such obstacles Strabucks
will have reduction in the business efficiency as well as poor operational management will affect
the profitability of the firm.
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M4 Affect of factors on the business environment and wider community,
Decision making is the prime requirement of the business in order to have the effective
operational activities in long run. Hence, in context with the various factors which are affecting
the managers in proper decision making Starbucks and other companies which in turn distracts
them in making the adequate policy and procedure. Thus, it can be said that the decision making
must be based on the improving the operational activities of the firm. However, this will help in
increasing the productivity and work efficiency of the workforce (Hayes, 2017). Hence, there
will be various cultural variations which affects leader or professional to transfer the thought or
vision to its employees. Thus, in order with having better execution in the firm there is need to
develop the effective policies and build up the favourable workplace environment which in turn
helps professionals in having adequate knowledge regarding such managerial issues.
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CONCLUSION
In the present report, the significance of operations management in organisations have
been discussed. Besides this, various approaches of the management are also explained in this
undertaking so that Starbucks can implement the best suited of them. Further, methods in which
leaders and managers can increase the efficiency of operations are explained. There are
numerous factors which affect the effectiveness of the selected firm, hence, these factors have
been identified in the present study.
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REFERENCES
Books and Journals
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vigilance to internal state and environmental variables in yellow-bellied marmots
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Cote, R., 2017. A Comparison of Leadership Theories in an Organizational Environment.
International Journal of Business Administration. 8(5). p.28.
Hayes, J., 2017. Operational decision-making in high-hazard organizations: drawing a line in
the sand. CRC Press.
Michailidou, A. V.,and et.al, 2016. Green tourism supply chain management based on life cycle
impact assessment. European Journal of Environmental Sciences.6(1).
Needham, M. D. and et.al, 2017. Manta ray tourism: interpersonal and social values conflicts,
sanctions, and management. Journal of Sustainable Tourism.pp.1-18.
Oelze, N. and et.al., 2016. Sustainable development in supply chain management: The role of
organizational learning for policy implementation. Business Strategy and the
Environment 25(4). pp.241-260.
Petroni, A. and et.al., 2017. World class manufacturing in make-to-order batch-production
SMEs: an exploratory analysis in northern Italy. International Journal of Business
Excellence.11(2). pp.241-275.
Richardson, D.A., Leeuw, S. and Dullaert, W., 2016. Factors affecting global inventory
prepositioning locations in humanitarian operations—a delphi study. Journal of Business
Logistics. 37(1). pp.59-74.
Robinson, P. and et.al, 2016. Operations management in the travel industry. CABI.
Shi, Y. and et.al, 2016. Tourism Supply Chain Coordination with Price Discount and Quantity
Flexibility Contracts. In Proceedings of the 22nd International Conference on Industrial
Engineering and Engineering Management 2015 (pp. 229-240). Atlantis Press.
Yang, S. and and et.al, 2016. strategy choice in tourism supply chains for package holidays: a
game-theoretic approach.
Online
Factors Affecting Decision Making. 2017. [Online]. [Available through]
:<https://www.dlsweb.rmit.edu.au/toolbox/leadership/toolbox/ip/ip_c15.html>. [Accessed on 30th
October. 2017].
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