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Management & Operation Approaches -Starbucks

University: University of St Andrews

  • Unit No: 4
  • Level: Post Graduate/University
  • Pages: 15 / Words 3720
  • Paper Type: Assignment
  • Course Code: MGT6206
  • Downloads: 24
Organization Selected : Starbucks

INTRODUCTION

Operations management is basically business practices administration to create high efficiency possible in an organization. Starbucks is an American coffee company or courthouse chain. They started their business in Washington in 1971. They operate globally with almost 20,200 locations worldwide. They produce coffee beverages, smoothies, tea, baked goods, sandwiches etc. with almost 238,000 employees working for them globally. They deliver the highest quality coffee in the world. They made their expansion in British Colombia in 1980. This report will lay emphasis on different roles and characters of leader and managers, how role of leader and function of a manager is applied in different situational context, different theories and models of leadership like situational leadership, system and contingency leadership will be explained. Key approaches to operation management, and the role of leaders and managers, importance of value of operations management in achieving business objectives, and factors within business environment that impact operational management and decision making by leaders and managers will be explained(Auh and et.al., 2016) . All these factors will be explained by Starbucks as an example.

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LO1

P1 Define And Compare Different Roles And Characteristics Of A Leader And Managers.

Leader

Manager

A person who has a capability to influence their subordinates for achieving a specific objective is known as leader.

A person who has the capability to manage an organization and has responsibility of directing, planning, controlling and coordinating is known as a manager.

Leaders aim is growth and development and seek strategy, vision and execution

Managers aim is to attain required results and seek tasks, goals and projects..

Leaders create a vision. They create a picture of what they want to achieve and is possible, engage and inspire their subordinates for turning that picture into reality. They inspire people into participating into bigger projects.

Managers focuses on measuring, setting and achieving goals. They try to control the situation to achieve their goals or objectives.

Leader's approach is to set directions.

Manager's approach is to plan details.

Leader always think of innovation. They always bring changes even if things are working smoothly they think of a better way forward. They always think that changes create waves.

Managers always stick with refined systems, structures, and process to make things way better than they are.

Leaders are unique. They work actively and are self aware of their work to build differentiated and unique personal brand. They are transparent and authentic.

Managers always copy the behaviour and competencies they learn and adopt others leadership style instead of defining it.

Leaders always take risk and try new different things even if they fail miserably. They always think failure is a step towards success.

Managers always try to minimize risk. They always try to avoid or control any problem thy have instead of facing it.

Leaders intentionally do what they want to do and try to stay motivated for their goals even without receiving any appreciation or rewards.

Managers always work and think on short term goals seeking rewards and regular appreciation or acknowledgement.

Leaders always try to learn something new everyday so they don't fall behind. They are always curious to learn new thing in this ever changing world.

Manager always work on the same existing path which made them successful by bringing perfection in their skills and by adopting already proven behaviour.

Leaders always focus on people to build relationship. They always know their stakeholders and spend their time with them.

Managers always build process and system. They always focus on necessary structure to achieve or set goals.

Leaders coach the people who are with them to find answers. They are always optimistic about their peoples potential.

Managers directly direct their subordinates, guide them and assign them tasks and way to accomplish them.

Leaders have people who follow then as their fans who follow them. Their people always help them to achieve goals in fact increase their credibility and visibility(Algahtani., 2014).

Managers have staff or employees who follow their directions and seek for pleasing their boss.

They always seek effectiveness

They always seek for efficiency.

They have transformational style

They have transactional style.

They use conflict as an asset

They always try to avoid conflicts.

They always facilitate decisions

They always make decisions.

For leaders people are always more important than task

For managers task is always more important than people.

Leaders have lateral thinking

Managers have linear thinking

They always seek guidelines from inside

They always sense or seek external data

Leaders have soft leadership skills

Managers have hard management skills

LO2

P2 Role Of A Leader And Functions Of A Manager apply In Different Situational Contexts.

Functions of a manager in different situational context with example.

  • Planning: In this managers seek hoe to achieve the goals. Manager schedule activities for achieving goals. For example if Starbucks wants to increase their coffee sales in UK then first they need to target their customers and analysis their orders and according to those they need to bring changes in their menu accordingly and plan their budget needed to make changes .
  • Organizing: After the plan is made managers need to organize their materials and team for their plan. Like in Starbucks after creating a plan they need to organize that which team is going to work on which aspect to increase their coffee sales.
  • Staffing: After briefing their staff about the work they need to weather they need to appoint new staff to increase their sales or they need to train their current employees to increase their sales. And need to see if financial department needs any more budget allocation for recruiting new staff members.
  • Directing System: Managers need to lead their staff to see what need to be done is a responsibility of managers. Starbucks managers need to train their new employees to analysis the situation and encourage them to deal with the situation(Michelli., 2014).
  • Controlling: After analysing the whole situation managers job is not finished. Like manager of Starbucks need to see weather they have required staff to attend their customers and for that weather have proper financial budget.

Role of a leader

  • Required at all levels: leadership is required at all the functions of management. In Starbucks situation it is important for all the top level management to analyse the situation and make changes in their policies and make plan. In middle level they are required to analyse the situation of increasing the sales of coffe and what course of action is required to increase the sales.
  • Coach potential: Leaders are required to improve ability of all employees to solve the problem and unleash their potential. In Starbucks leaders need to see that what changes are required in employees to increase their sales like if training is required to train the employees then training should be given to all those employees.
  • Take the responsibility: Leader should take the responsibility of any course of action which is done. If Starbucks sales are deceasing then top management leaders should take the responsibility and coordinate with other departments and work accordingly to increase their sales(Harrington, Ottenbacher and Fauser., 2017).
  • Positioning powers: In this powers of a managers is measured to see the number of favourable decisions managers have taken and number of unfavourable decisions they have taken. In Starbucks top management will see weather correct decisions have been taken by the managers to increase sales and they are working in favour of company or because of those decisions sales of company is decreasing.

P3 Applying different theories models of leadership contingencies, situational, and systematic leadership styles.

Operational management refers to the way in which a business manager the resources responsible for creating good or services., machines, people and technology. The main aim, of the operational management is that to control the long term managing task in order to meet out the long term success within the business context. The importance between the role of manager and leaders (Glaser, Stam and Takeuchi, 2016). Further it also explains the differences between the different functions of manager and leaders. However, overall it represents that models and approaches of situational, leadership, systematic leadership and contingency approaches. Besides, study also explained about the external environment which affects the managers and leaders decision making approach.

  • Contingency leadership style : this leadership styles has been based on different leadership styles which is based on different leadership goals and objectives. This theory has concerned with having the leader adapt to a situation, rather the goal is to match the leaders style with a compatible situation (Avgerou and Walsham, eds., 2017). Starbucks needs to maintained the long term goals in order to meet out the long term management task and effective outcome performances. It affects the business idea and new managing successfully business growth for the Starbucks. Contingency leadership style is very much useful in uncertain situation. In this leaders are more task oriented and effective. They performed their best active services to get the best outcome results.This leadership style helps to use create new leadership styles and profile for the organisations.
  • Situational leadership style : Situational leadership is the another kind of leadership style that helps to encourage leaders to take the stock of their team members, weigh the many variables in their workplaces and choose the different opportunity task. These kinds of leadership style under which leaders encourage people and work group targets. Establish rapport and to bring out the best in their people. This leadership style is more flexible to adopt which is based on some specific skill of the leader (Brigham and et.al., 2016). It helps to take the new managing and leading purposeful task. It helps to continue the long term goals and best effective performance making targets. Situational leadership styles based on some situations at different level.This leadership style and managing good behaviour helps to define better targets and goals.
  • Systematic leadership style : Systematic approach helps to change the effective changes within the company environment. It affects the business effective model and goals to get the best target market performance in order to meet out the best target results. Apart from that, it helps to sustained the effective management task. This is the process which simple enhancing the simple process that is increasingly valuable when moving a new product or service.Systematic leadership tool are generally based on real situations which reflects the change in vocabulary (Brigham and et.al., 2016). Systematic leadership helps leaders to adopt the systematic approach that helps leaders to set the work on prioritise and then work accordingly. It helps leaders to give their hundred percent in order to meet out the goals and objectives as well.

LO3

P4 Explaining the key approaches to operations management and the role that leaders and managers play.

Leadership management is the influencing people, so the objectives are attained willingly and enthusiastically management goals. Leaders of the Starbucks are highly motivated and influenced by the company culture which influence business growth and development areas of the business organisations. It helps to discover the new managing business that helps to upgrade the business performance. Management is a discipline of managing things in the best possible manner.

Manager is the another play the most important role in within the company environment in order to manage the working environment. There are providing some key approaches to operation management in order to play the key roles of development. It helps to represents the long term targets and give the best performing goals and target.

Operation management is the most essential target market functional area which serves different process of converting inputs in terms of material, labour and energy into outputs. The key concepts or approaches of plans will help to identify the new managing successful business targets to perform the different functional area (Northouse, 2018). It also affect the new managing successful business growth to achieve the target of Starbucks.

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TQM Total Quality Management

It is the best approach to operation management, it affects the best possible action plan. Total quality management helps manager to meet the leadership goals. Leader and managers both helps to manage the effective growth in order to meet out the result oriented. Overall, it helps to continue the effective management task. It helps manager and leader to achieve all target in effective manner. It helps to improve product quality, services, culture and effective management approach. This approach helps to focused target customer, total employee involvement, process centred, integrated system, and strategic and systematic approach.

  • Lean production:It is the another strategy or key approach to the operation management in order to meet out the effective product outcome goals. Lean production is an approach that focuses on cutting out waste and ensuring the overall process quality goals (Wan and et.al., 2016). Lean approach managing several task and developing results such as creating new managing technical quality and effective management task. It helps to reduce the process of logistic and create new developing opportunity to take better result and goals.
  • Six Sigma:It is the another managing and effective approach or style to managing effective operation management task and overall process. Six sigma is a disciplinary management effective performance and drive approach and continuous improvements methodology for eliminating the unstinting task and ineffective waste material.Sigma represents the better objective and long term task in order to meet out the better goals oriented process and effective management task. Six sigma measures the variations in a data set collected about the process (Wang and et.al., 2016). If a defect is defined by specification limits separating good from bad outcomes.

P5 Presenting the importance and values of operation management in Starbucks

Operational management is the simple process that consist of planning, organizing and controlling the system in a quoted company. In Starbucks, the company also have unique operational management system which also ensures that there should be timely delivery of all the products that help to attract wide range of customers towards them (Turner, 2014). The importance of the operational management's system in the working area is as follows:

Importance of operational Management

  • This system help to manage the overall system as well as daily activities in Starbucks and through operational management system, an organization can able to determine how to use the labour, raw material and other resources on time. Hence, it shows that the operational management further involves all the planning, controlling and directing elements that further help to raise the production level of the company.
  • Operation management system is that activities which take place in a business and also contributes to making those products which help to align the needs of their customers. Therefore, it is also known as the heart of the company because it controls the overall system and if the products are meet out the needs of their customers need then they will further sell in a market at cheap and affordable rates (Kerzner and Kerzner, 2017).
  • The key approaches such as TQM, Six sigma or lean production approaches also help the company in order to maximizes the production level and minimizes the wastage of the company. So that it will be more beneficial for Starbucks to improve the profitability and improve the overall financial performance of the company. This approaches are applied by Starbucks because the company provides the best quality of products to their customers and it will further help to raise the production level of the company.
  • Operation management system in Starbucks is important to enhance the entire productivity. The ratio of output and input is referred as productivity. It provides a measure of the efficiency of the managers as well as workers. As the discipline concentrates on utilising the available resources in the best possible way to attain end goals, as to better the productivity.
  • Before it has been observed that the operation management was not that crucial for organisations, but afterwards, it was revealed that it is actually very vital for companies like Starbucks. It was also found that the producing of raw material to make final product and selling them along with management of trading is essential, and this is done effectively by handling the operations (Laudon and Laudon, 2016).

It little complicated procedure to handle the operations, therefore, in-depth knowledge is need to be required by Starbucks to attain goals.

P6 Assess the factors within the business environment

Starbucks Coffee Company, was established in 1971 that has expanded to an international brand. Since the world's biggest coffee house company, Starbucks constantly leads the industry in Sustainable business and innovation. The macro economic environment that company operates in its categorised by the ongoing global economic recession which has affected the purchasing power of buyers. Hough based on market investigation done in the last few months has indicated that customer have not reduced their consumption of coffee and rather are shifting to lower priced options (Annarelli and Nonino, 2016). This states that, Starbucks can still leverage they purchasing power of the buyers in a way that would provide it an important benefit over its competitors by offering less expensive alternative products. The framework of PESTLE analysis implies the most significant based on features of the remote or macro-environment.

There are various environmental factors that might affect company's leaders and manager decision making process. These are explained below:

  • Political factors :- the key political factor is about sourcing the raw materials. This has collected a lot of attention from politicians in the West and from the sources countries. Because of this reason, Starbucks leaders and mangers desire to adhere to social and environmental rules. Another influence is the need to follow the laws and regulations in the countries from where Starbucks purchases the raw material (Zalengera, Blanchard and Gondwe, 2014).
  • Economic factors :- the ongoing global economic recession is the major external economic force for Starbucks. As noticed, this factor affect the profitability of the company. Therefore, this has made consumers to shift to buy cheaper alternatives. The company's leaders and managers need to deal with rising labour and operational costs.
  • Social factors :- based on study it is clear that Starbucks can offer cheaper commodities but it might have to sacrifice the quality. Hence, this is key sociocultural problem that the start-up companies generally faces. Apart from this, another concern for manager sand leaders of the company is Green and Ethical chic consumers. Therefore, they need to be alert regarding all these changes in trends (Aithal, 2016).
  • Technological factors impact of Starbucks :- company is in a good position to enjoy benefits of the new technology i.e. mobile. Its partnership with Apple to bring app based discount coupons is assisting company to ride the mobile wave easily. Furthermore, company introduced WI-Fi capabilities in its stores already.
  • Environmental factors :- numerous Starbucks business practices concern activists and international advocacy groups. Even customers have their expressed issues, therefore, the company should take these into account to keep holding buyer's trust.
  • Legal factors :- the company must make sure that it does not violate any law or rules in the home country and countries from where they purchase raw materials. Leaders and mangers should stay alert regarding introduction of caffeine production and consumption related legislations and rules by health authorities (Racz, Fozer and Deak, 2018).

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CONCLUSION

From the above study it has been summarized that role of leader and manager differ from each other in various aspects such as aim, vision, approach etc. there goals differ from each other. Different roles of leaders and functions of managers had been explained in different context with Starbucks company as an example, in next part different leadership theories and models had been explained like contingencies' leadership style, situational leadership style and systematic leadership style had been explained. Key approaches to operation management had been explained like total quality management, lean production and six sigma etc. Importance and value of operation management had been explained in achieving business objective of Starbucks organization. Different factors within business environment that impact operation management and decision making of Starbucks by leaders and managers had been explained in details.

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