management and operations
BTEC LEVEL 49410077300
management and operations

Starbucks is the largest coffee shop company in the world, with nearly 18,000 stores in 60 countries. It is a multinational company established in 1971. It was founded by three entrepreneurs-Jerry Baldwin, Zev Sigel and Godwin Bowler. It has more than 2,38,000 employees and operates 26,696 locations worldwide.

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Starbucks stores offered regular coffee beverages and Italian-style espresso drinks. In addition, customers prefer wide selections of fresh roasted whole bean coffees, fresh pastries and other food items.


Starbucks aims to meet their goals through developing a culture that embraces acceptance and support personal culture.

Objectives and goals
Starbucks objectives focused on helping and to inspire their employees as well as their customers. In Starbucks, customers are very important to their business because it helps them to continue and grow. The objectives are driving employees to keep working hard so that it keeps them motivated and reach to the higher achievement. The objectives are a way to encourage, improve and set goals for Starbucks.

Financial performance

The overall goal of Starbucks is to provide better business by creating more financial statements and include all the components to make decisions related to financial performance. In result to that, it will create effective and efficient for Starbucks management.

Organizational structure

The diagram illustrates the organizational structure of Starbucks, shows the different departments. Particularly, the staff members report their work to department managers and to product managers that they must follow their orders too. However, it helps the company by avoiding communication gap with different department and encourages to implement innovative ideas in its product. Therefore, this structure supports the company’s goals and objectives in diversification and expansion across/ the world.

Market base

In U.A.E, Starbucks own 59.2% of the market share. Across the countries, Starbucks served 640 billion cups of coffee every year. The company is increasing its market share by reinventing the brand first and experiencing the customers by serving their orders. Starbucks is showing desirable trends with positive ratios among their competitors.

Task 1
Leader: An individual possessing attributes of leadership is known as leader. Leaders plays a key factor in making any organization successful. A leader maintains his/her personal relations and help the team by fulfilling their needs. Leaders clarifies and inspires team members to accept him/her whole-heartedly. Leaders can direct some of the activities to group members and the group members must obey the leader’s directions. A leader not only commit his/her followers to organizational goals but also guides and motivates the team to reach the target.

Manager: The person who runs the organization is called manager. Managers executes the plans in detail and forward to his/her subordinates. Managers has an ability to direct day to day activities and focused on people’s work. Managers sticks to rules, policies and regulations of the company. Managers are responsible for controlling or administering an organization or group of staff.

Differentiate between Leader and Manager
The role of managers is to perform the task and set goals and objectives of the company whereas role of leaders is to lead his subordinates and inspire them to achieve organizational goals and they follow the step of their leader.

The daily work of the manager is filled with one-on-one discussions focused on operations whereas a leader achieves strategies results by positioning the organization to add value to the campus.

The role of the manager is accountable to seniors for performing and to employees for guidance, motivation and support whereas leaders accomplishes duties by showing new directions and creating new organizational capabilities.
Characteristics of a leader and a manager
Leader Manager
A leader follows the task given by the manager. A manager is concerned with the organizational goals.

There can be a leader for completely unorganized groups. A manager is associated with the organized structure.

A leader performs only one function i.e., directing. A manager performs all the functions of management.

Leader initiates activities for the achievement of goals. Manager formulates broad policies to guide the operations of the organization.

Leaders motivate the employees to work. Managers direct the work to the employees.

Leader design strategic procedure and attain objective. Manager design procedure step and form timeline.

Leader welcome high risk and solves the problem. Manager takes low risk in solving problems.

In Starbucks company, dealing business in the coffee industry and is engaged in the activities like serving high quality coffee to satisfy the customers and offering a snacks and other non-coffee drinks as well. The managers of Starbucks perform a variety of duties such as communicating with the top management office and overseeing employees. Managers make sure that all the guidelines are set forth by the Starbucks and leaders in the company utilize their strength to inspire the team and to be creative in problem solving.

Task 2
Roles of a leader and function of a manager in situational context
The role of leaders and function of managers makes the company’s work to fulfill the objectives. There are different functions of management well as different traits and style of leadership which help in proper processing of functions of management. Starbucks is facing the situation of huge crisis, congestion problem and anxiety of the customer. In such situation, the company is implementing effective functions of management and skills of leaders to plan and develop strategies so that it can control to reduce the cost of the materials to increase the sale and revenue of the company.

The operational management department of Starbucks focuses on the management theories and combine the efforts of leaders and managers to reduce the time management of serving the coffee to customers.

Behavioral theory of management is applied in Starbucks coffee shop, where managers take consideration in motivating employees and encouraging them to perform high levels to achieve the organizational goals and leaders influence the group performance of the employees in an effective way. This theory emphasis on how the leaders behave to become effective and delegate authority to subordinates.

Contingency theory is applied in Starbucks to focuses on changes depending on the circumstances. The leaders build trust with his/her followers and they follow order of their leaders. Leader’s power is to identify the dissatisfaction of employees to vary with the situation so that the company’s performance will not be affected. The manager of Starbucks considers the high cost of product and applied the theory to reduce these and according to the changes they improve the company’s production department.

Situational leadership is applied in Starbucks coffee company, the leaders match their leadership styles according to different situations and is capable to fulfill their aspirations of his/her followers.

The diagram illustrates the model of situational leadership, helps the managers to provide appropriate number of needs of people. Managers perform these four stages i.e., directing(S1), coaching(S2), supporting(S3) and delegating(S4).

S1 Directing – The first core of leadership style is directing. The leader or manager provides guidance and direction to his/her employees by executing the plan and strategies to them.

S2 Coaching – The second core of leadership style is coaching. The leader or manager encourage and support their followers.

S3 Supporting – The third core of leadership style is supporting. The leaders and managers are engaged in supporting and communicating with subordinates. They also should reward the employees by motivating them and give performance appraisal.

S4 Delegating – The last core of leadership style is delegating. The leaders and managers delegate duties to their employees according to their abilities and skills.
Systems leadership optimize all the individual groups and whole company for great performance. The operation management of Starbucks is affected by this leadership as the leader can see the system in such a way that it can evaluate the performance of company.

Management by objective plays an important role in operating the Starbucks company by achieving and implementing strategic plan to objectives and goals. The management by objective approach brings motivation to employees to fulfill the task given by their leaders.

The chaos theory focuses in bringing changes in the prevailing market and the leaders and managers responses to the changes accordingly and make organization to work in that direction.

Task 3
The operations of Starbucks are to offer customers product with high quality and standard across the globe. The company made a great success in their delivery services and goods. The main purpose of Starbucks is to make a positive impact of one person, one cup and one neighborhood at a time.

Total quality management is a management philosophy that has become more significant method. This method is aimed at maintaining standard performance satisfying customers and changing the attitude of the entire workforce. It concentrates in providing quality product and services to attract the customers. The management system of Starbucks analyzes this total quality management approach to meet different working tasks of the business. One example is the quality of beverages of Starbucks is strictly maintained in various ways such as the taste and the temperature.

The role of leaders and managers uses several quality systems to provide adequate service to the customers. The leaders motivate the employees by mobilizing them to become one with vision and providing them sufficient employee benefits.
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