Comprehensive Analysis of Starbucks Operations and Management

This report provides a comprehensive analysis of Starbucks' operations and management, examining the roles of leaders and managers within the company. It begins with an introduction to operations and management, highlighting their importance in maximizing organizational profit, and then focuses on Starbucks as a case study. The report details the roles of leaders and managers, differentiating between their functions and responsibilities, and explores various leadership styles, including transformational and transactional leadership, as well as hard and soft management skills. It then delves into situational leadership, systems leadership, and contingency theory, providing insights into how these models apply to Starbucks. The report also covers key approaches to operations management, such as total quality management, and emphasizes the significance of operations management in achieving business objectives. Finally, it discusses the factors within the business environment that impact operational management and decision-making, offering a well-rounded perspective on Starbucks' operational strategies and leadership practices.

Management & Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Role of a leader and function of a manager.........................................................................1
TASK 2............................................................................................................................................3
P2.Roles of a leader and function of a manger in different situation .........................................3
P3.Different theories and models of approach, including situational leadership, systems
leadership and contingency ........................................................................................................4
TASK 3............................................................................................................................................6
P4. Key approaches to operations management and the roles that leaders and managers play. .6
P5 Importance and value of operations management in achieving business objectives.............8
TASK 4..........................................................................................................................................10
P6.Factors within the business environment that impact upon operational management and
decision making........................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Operation and management is the administration of business practices which crate the
high level efficiency within the organisation. It focus on converting materials and labour into
goods or services which help in maximize the profit of an organization. It is an area where an
organisation concerned with controlling and designing the process of production of goods and
services. Management is the control of a business or other organisation and a tool or technique
which help in managing the organisation's factors (Alderton and Saieva, 2013). This report is
based on the operation and management of Starbucks company. It is an American coffee
company and coffee house chain which founded in 1971. This company operates its business in
28,218 locations worldwide. Starbucks offer a renege of exceptional products like coffee,
handcrafted Beverages, mugs & accessories, packaged goods, books & gifts, baked pastries,
sandwiches, salads & grain bowls, oatmeal, yogurt parfaits and fruit cups. It have tow types of
products like coffee & tea which the customer use in home and second is ready to Drink like
bottled frappuccino or coffee drinks etc.
TASK 1
P1. Role of a leader and function of a manager
Leader and Manager
A leader is a person who sets clear vision for an organisation, influence the employees
and employers for achieving the organisational goals and hold some dominant or superior power
by which he can motivate the people within the organisation.
Manager is a person who manager all the functions within the organisation and in charge
of a certain group of tasks. He responsible for controlling and managing an organisation and help
in decision making or support the employees and employers (Brown and Bessant, 2013).
Role of a leader
A leader is a important factor of an organisation which help in managing and proper
running of the company. The leader of Starbucks plays some important roles in the growth of
Starbucks, they are as follows:
Setting goals- A leader is help in setting the goals and leading the every function of the
organisation in a proper way so that company achieve growth.
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Initiating action- In the organisation they their own initiative and they are not depend on
others decisions and judgements. They generate new ideas and decisions which impact positively
on the company.
Co-ordination- They help in the coordination of the company and the employees during
the when they are work in a group towards a common objectives (Burns, 2014).
Direction and motivation- They provide the direction and motivation to the employees
when they are work in a group for achieving desired goals. If any employees feel demotivate the
motivate him so that he can do his work properly.
Management Functions
The major functions that a manager perform in Starbucks for the growth of the company
are as following:
Planning- It is related to the Starbucks success and growth. In the planning, the manger
schedule activities that are help in achieve the goals. This planning can be related to the raw
material, staff or employees and rules & policies.
Organising- It is related to the arrangement of materials and planning of finance or
personal which can help in production. In Starbucks if more raw material is needed but the
company does not have it for production so it is the manger's duty to store extra raw material
which can be use during the time of need.
Controlling-In Starbucks, it is related to measure and report the employees performance
which they are doing for achieving growth. It is process of checking the progress whether it is in
proper way or not in a correct way. It include establishment of standard performance and
corrective action.
Directing- It is the responsibility of the managers to direct their employees and workers
in the company. In Starbucks, it is function for supervising the subordinates when they are work
in a group and perform a task for the growth or achieving the objectives. It can be in the form of
motivation and advice (Chevalier and et. al., 2015).
Transformational and Transactional leadership
Transformational leadership is a protective leadership and in this leadership leader work
for changing the organisational culture through implement new ideas. And the leader motivate
his employees by encouraging to provide work according their interests.
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Transnational leadership is a responsive leadership. The leader do work according the
organisational culture. In this leadership the employees achieve their objectives by punishments
or rewards which are set by their leaders according their leader.
Hard management skills and soft leadership skills
Hard management skills- Hard management skills are as follows which are important for a
manger within Starbucks.
Functional Knowledge- In Starbucks a manager should have knowledge of the
discipline, technical skills and other knowledge which help in proper running of an organisation
(Chiarini and Vagnoni, 2015).
Organisation system knowledge- A manger of Starbucks should make some rules or
policies which can manage and running the system properly like resources, strategies, money etc.
Planning knowledge- In Starbucks a manger make some plan for the growth of the
organisation. This planning can be related with policies or rules and planning of a path which is
beneficial for the vision and mission of the organisation.
Soft leadership skills- These leadership silks are important for a leader in Starbucks. They are as
follows:
Teamwork- A leader should provide teamwork to its employees because in this work
they are interact with others and the leader also communicate with them. In team work new ideas
generate and knowledge are transfer which is helpful for Starbucks growth.
Decision making-This help in achieving objectives related top Starbucks growth. By
using this skill, the leader can take decision in the negative situation (Dekker, Bloemhof and
Mallidis, 2012).
Problem solving- By using this skill a leader can solve the issues which are rise in
Starbucks. This skill can be use in solving the conflicts which are arise in the company during
the team work.
TASK 2
P2.Roles of a leader and function of a manger in different situation
Situation Role of Leader Role of Manager
Change in management If in Starbucks there are any
change occurs related to rules
A manager in Starbucks
analyse the environment and
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or regulations, policies or
procedures and others. Then a
leader influence and motivate
to its employees to adept
them .
trying to know the reason of
change which is come in the
management. And mange the
rules and policies essay so that
employees accept them
positively.
Conflict within the
organisation
In the organisation if the
conflicts are arise when the
employees are work in a group
or team. In Starbucks, a leader
should use its problem solving
skill and communicate with
them and find out the reason of
that problem or solve that
(Galindo and Batta, 2013).
The manger can solve this
problem by arrange a meting,
involve everyone and hear
them. He follow rules and
solve the problem and he
collaborate with the team to
provide solution and provide
guidelines to them so that this
problem not be occur again.
P3.Different theories and models of approach, including situational leadership, systems
leadership and contingency
Hersey and Blanchard's Situational Leadership Theory
This leadership theory says that there is not any single leadership style is best which can
be follow in follow by Starbucks in different situation. This theory is refereed by Hersey and
Blanchard's to solve the situational problems. There are four leadership style, they are as follows:
Telling (S1)– In this style the leadership style in Starbucks, a leader take decision
according the situation and communicate them within the organisation. This is an directive and
authoritative approach. He tell his employees and employer what they should do and how they
can do that (Haksever and Render, 2013).
Selling (S2)- These styles of leader in Starbucks, generate objectives and roles for
employees and employers and the employees or employers are free to give their ideas or
suggestions.
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Participating (S3)- This style leaders participate in the decision making process. In
Starbucks, the leader works with the team member to encourage and support them so that they
can take decision together according the situation (Hillier and Price, 2013).
Delegating (S4)- These leaders are provide guidelines to the employees and employers
which can help in solving the problem. In Starbucks, these leaders are responsible for their teams
and provide help in decision making.
Maturity levels – There are four levels of maturity within this theory. They are as
follows:
M1- In this levels, there are lack of knowledge and skills in team members to complete
the task.
M2- The team members are able to handle situation but there are lack of ability.
M3- In this level, the team members have skills and ability but they are not interested to
take responsibility.
M4- The team members are skilled well and have ability for completing the task or
handle the situation.
System Leadership
This theory is given by Rensis Likert and this theory involves four systems, they are as
following:
Exploitative- In this leader are not concerned for the employees and not more
communicate with the employees so the change of conflicts and threats are high.
Benevolent- In this system in Starbucks, the leader use rewards to encourage and
motivate the employees so that the sub ordinates concern for the organisation growth.
Consultative- The leader carefully listen the ideas of employees and employers and the
leader take higher level responsibilities which are beneficial for the growth of Starbucks such as
team work , communication and inspire for goals (Jacobs, Chase and Lummus, 2014).
Participative- This system is based on trust and confidence of employees for this the
leader provide goal based rewards and provide team work goer the growth of the company.
Contingency Theory
It is a leadership theory which was one of the first situational leadership theories. It is
given by Fred. E. Fiedler in 1960. He suggest in his theory that there are two types of leadership
one is task oriented and another is people oriented.
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Task oriented- In Starbucks, the task oriented leaders are those who are focus on their
task or goals and objectives which they set for achieve their goals. They need possess the ability
to hand out punishments or rewards. This type of leader are not care and believe in relationship
building. They only focus on goal, creating plan and following them to achieve goals.
People oriented- These leaders are focus on creating a workplace where the employees
trust their leader and feel loyalty for the business. These leader focus on creating better business
by new ideas and innovation. They promote their employees and provide team feedback so that
they can know about their work (Peng and Lai, 2012).
TASK 3
P4. Key approaches to operations management and the roles that leaders and managers play
Management approaches
Total quality management- In Starbucks it is an process which help in improving
internal processes and increasing customer satisfaction there are some principles within this
approach.
Customer focused- In Starbucks the customer are focused on the quality of the products.
And this principle is also focus on improvement quality of the organisation environment.
Total employee involvement- In Starbucks it is related to total employees of the
organisation that they are participating in the work which are done for achieving a common goal.
Strategic and systematic approach- This approach is related to achieving organisational
vision, mission and goals. Starbucks make strategic plan and follow them systematically so that
it can help in achieving organisational.
Continual improvement- In this Starbucks, create improvement in both analytical and
creative level for more competitive and effective.
Communications- It involves strategies, methods and skills. During the time when any
change in occurs within the organisation, it plays a important role in motivate employees and
maintain the environment of the organisation (Radnor and et. al., 2015).
Time inventory- This is a methodology that is developed by Taiichi Ohno in 1960. It
help in business of Starbucks in reducing waste in production. It identifies and introduces with
the hidden problems of inventory. It protect a company from using more inventory and provide
them security from unnecessary production.
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The main objective of it is to decrease the holdings and improve and increase all the cost
which are related to the production. The successful time inventory is depends on that how a
manufacturer manages its suppliers. In Starbucks continuous improvement is related to the
improvement of the production system and in that problems which are generating during the time
of production and dos not add value in the product (Singhal and Singhal, 2012). It control the
quality of waste. There are various types of waste like; waste from product defect, transportation
waste, inventory waste, waste of time and waste from over production. It can be reduce by using
and follow some factors such as by reducing buffer inventory, by searching reliable suppliers, by
reducing purchasing cost and improving material handling.
Continuous improvement- It is a improvement, model that given by Kaizen. It is and
ongoing process which help in improving processes, services and products. It focus on that
activities which are help in the improvement of the product and service. There are three types of
waste in lean:
Muda- In this there are seven waste. These seven waste are related to waste transport,
waste from inventory, waste from motion, waste from waiting, waste from overproduction, waste
from defats and waste from over processing.
Mura- There are waste of unevenness. In Starbucks, it is related to remove unnecessary
production. If the worker produce more products in first week then they do not focus on meeting
targets and component storage.
Muri- It include the waste of overburden. In Starbucks the waste can be occur by lack of
proper tools and equipments, lack of proper maintenance, poor communication routes, not proper
training and fluctuation of the demand (Subramanian and Ramanathan, 2012).
Theories of operation and operation management
The theories of operation and operation management is as following:
Six Sigma Theory- It is a techniques and tools which help in reducing defects and
process differentiation. This techniques including improvement and and measurement in
production activities. These tools use by Starbucks for increasing competition and efficiency.
There are some steps that how six sigma implement. They are following:
Define- This related to the problems which are occurs in production project of Starbucks.
They should contain a clear and concise description of the problem which are address the project.
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Measure- In this step, the major aspects are measure in the current process of the
production.
Analyse- In it the da66ta should be analysed which help in find the routes which are the
reason of the defects.
Improve- In it improvement can be done in the production process by following different
strategies and techniques which help in the improvement of the production.
Control- The objective of the control is to support and maintain production. By
controlling on extra production the organisation can remove waste and extra production which
help in save inventory and other resources (Wong and et. al., 2012).
Lean Production- Lean production or lean manufacturing is approach used by
management which focuses on cutting out waste, whilst ensuring quality. It is methodology
which focuses on minimizing waste within manufacturing systems along with maximizing
productivity. It can be applied to all business aspect from design, production to distribution. This
theory is derived from Toyota Production System (TPS). In late 2001 and early 2008 Starbucks
faces challenges in history where sales had slowed down, stock was tumbling and customer visits
declined. So it uses lean production in its organisation in order to maximum productivity,
minimize wastage and customer satisfaction. At Starbucks, lean provides store partner with
better training and tools, improves store design. Thus, above are main reason for using lean
production at organisation.
Queueing Theory- Queueing theory was designed by Agner Krarup Erlang for
describing Copenhagen telephone exchange. It is the mathematical study of waiting in lines
which is operation research branch because outcomes are used for making business decisions
about resources needed to provide service. Here, queues are control within system of
management and design. This was applied in traffic engineering, factories, telecommunication,
computing, shops, project management, hospitals. Starbucks uses such theory for taking effective
decision to achieve maximum output with minimum cost. Thus, it is very easy to analyses
because of mathematical data used in work (Jacobs, Chase and Lummus, 2014).
P5 Importance and value of operations management in achieving business objectives
Operation Management is process which involves planning, managing, organising,
controlling and supervising manufacturing processes and production. Major aim is to check
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timely delivery of products and successfully converting raw materials to finished goods. Its
importance and value at Starbucks for achieving business objectives are described below:
Design of goods and services- Starbucks focuses premium design for goods and services.
This premium character is linked with differentiation generic strategy (Peng and Lai, 2012). It
reflects goodwill and image of firm in market. For this area, operation management prefer best
design for their products to attract large number of customers which leads to achievement of goal
in terms of profits and productivity.
Managing quality- Starbucks prefer premium character for quality management. For
example, company source coffee beans from coffee farmer who follows Starbucks quality
standards. Also, entity buy coffee from farmers certified under the Starbucks Coffee and Farmer
Equity (CAFE) program. Through friendly culture and servant leadership, premium quality is
ensured. High quality leads to achieving final goal and standard of organisation align with brand
image.
Control and distribution systems- It is system for plant or process which consists of large
number of control loops in which controller are distributed throughout system. Starbucks
requires effective control and distribution system for running of firm. All process are controlled
effectively and efficiently in order to achieve business objectives. Thus, it also assist in reduction
of wastage, issues declines and productivity increment.
Capacity management- It is practice of right sizing resources for meeting current and
future requirements. It is also considered as proactive approach for organisation. Starbucks need
to know about requirements of resources such as coffees, manpower and accordingly manages. It
is very importance function of Starbucks to manages exact capacity required for particular place
or shop and delivered. Thus, this business can reach their set objective by effective management.
Logistics and inventory management-
Inventory management at Starbucks is connected with facilities and firm's supply chain.
Inventory management at cafes involves manual monitoring and office automation. The supply
hubs automation is used more at Starbucks. Main aim is to minimize stock out and check
continuous supply of beans to cafes for coffee. It is addressed through focusing on supply
adequacy and automation (Radnor and et. al., 201)
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Apart from this above, operation management improve overall productivity, managing
various activities which took place in firm and achievement of business objectives effectively by
following all norm and principles.
TASK 4
P6.Factors within the business environment that impact upon operational management and
decision making
Factors of business environment
There are two types of factors which impact upon operational management and decision
making. These factors are creating impact on decision making and operational management on
leaders and manager which are as follow:
Internal factors
These are the factors which exist within the organisation and directly affect it (Singhal
and Singhal, 2012). There are some internal factors:
Value system- It defines the culture and the norms of the business. It is explained that
which kind of the framework a business follow and the each employees of the employees of the
company have doing their works in the limits of the framework or according the organisations
law. According a leader the employees of the Starbucks should follow the act and polices and
doing their work because they are not doing their work according that it create impact on the
decision making power of a leader and manager.
Missions and objectives- There are various policies and rules within an organisation
according a manger Starbucks have a mission and objectives if the company have not good
policies and plan then it can be achieve its goal. If the company make a mission which can be
possible to achieve that impact the decision making of the leader and manager and affected the
operational management.
Financial factors- In Starbucks it is related to financial policies, financial position and
capital structure. This can be affect the performance of the business and it also affect the decision
making power of the leader and manager (Subramanian and Ramanathan, 2012).
External Factors
These are the factors which affect the Starbucks from outside. These factors are as
follows:
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