Comparative Analysis of Starbucks and Greggs in Operations Management

This article provides a comparative analysis of Starbucks and Greggs in operations management, including volume, variety, variation, and visibility. It also discusses their performance objectives and design analysis.

MSC MANAGEMENT;
OPERATIONS
MANAGEMENT AND
SERVICES EXCELLENCE

TABLE OF CONTENT
PART A.......................................................................................................................................................3
Comparative four Vs analysis..................................................................................................................3
Comparative performance objectives analysis.........................................................................................6
Design Analysis.......................................................................................................................................7
Part B...........................................................................................................................................................9
Overview.................................................................................................................................................9
Global operations strategy and macro environment.................................................................................9
Key requirements, capabilities and challenges......................................................................................10
Analysis and evaluation.........................................................................................................................11
Recommendations.................................................................................................................................12
Conclusion.............................................................................................................................................13
REFERENCES..........................................................................................................................................15

PART A
Comparative four Vs analysis
Operation management four Vs analysis between Starbucks and Greggs can be
summaries in following manners. This analytical tool of operation management compares
organizations on the basis of four elements which involve volume, variety, varietation and
visibility.
Four V elements Starbucks Greggs
Volume Starbucks is among the
leading brand in the business
environment as the company
operate its business
operations all across the
globe.
Volume indicates about the
areas of operational services
of the company.
Volume of company’s
business indicates that
company is operating its
business across the globe at
more than 28000 locations.
Company’s revenue statistics
also shows the dominance of
Starbucks in coffee shops
industry across the globe as
the company has generated
the sales revenue of worth
more than £ 28 billion (Dai
and et.al., 2020).
Greggs operate its business
operations in the food
industry.
Volume of the business of
Greggs company project that
company is operating in
more than 2000 locations
across the globe as per the
recent statistics of company.
Company’s financial
statements indicate that
company has generated the
sales revenue worth more
than £ 1400 millions.
Company’s financial
statement also indicates the
profitability of the company
worth more than £ 100
millions.
Company’s profitability and
sales turnover indicates that
company could effectively

Sales figures indicate the
dominance of the Starbucks
in the respective market.
Company has generated an
effective brand value which
also positively impacted the
business operations of
Starbucks and the company
carry the market share of
36% in the respective
industry.
Starbucks could effectively
cater in the market which
also provided growth
opportunity to the company.
Company is growing at the
rate of more than 12% in the
market.
cater its customer base.
Revenue statistics of the
company project that
company could not mark its
dominance in the associated
market like other companies
Starbucks.
Company is growing in the
associated market at the rate
of approximately 7% which
is an impressive figure about
the Greggs Company (Han
and et.al., 2019).
Variety Variety involved in the four v
analysis of operations
indicates the types of
products company offers to
its customers.
Starbucks deals in multiple
products to improve the
consumer’s experience.
Product portfolio of the
Starbucks involves coffee
beverages, smoothes, tea,
baked goods and sandwiches.
Syatbucks carry the effective
Greggs are well known for its
effective product portfolio
which also allows company
to achieve an effective
customer satisfaction from
the services of company.
Product portfolio of the
company is comprises with
sandwiches, pies and
pastries. Company also offers
baked goods to its customers.
Greggs company has
achieved an effective brand

brand image and company’s
well diversified product
portfolio played huge role in
establishing such an
attractive brand image of
company in target market
(Lawton, 2020).
Operation management
approach of company is also
innovative which allows
company to launch new
products as well that can
improve the customer’s
satisfaction.
image in the target market
and company’s product
portfolio played huge role in
achieving such success.
Product portfolio of the
Greggs company is
significant but still it looks
precise and selective as
company offers only few
selected products. As
compare to other competitors
like Starbucks product
portfolio is not looks much
effective.
Varieation Operation management of
Starbucks aims to improve
the consumer experiences. In
such a process company offer
different varieties of
products.
Coffee segment of the
Starbucks is segregated into
whole bean coffee and other
segments
Whole coffee segment offers
multiple varieties which
include blonde roast, medium
roast and dark roast,
flavoured roast and decaf
coffee.
Company also offers VIA
Greggs cater its customers
with different food products
like sandwiches, pies and
pastries and other baked
products.
Food products offer by
Greggs involves cheese and
onion bake, bacon and cheese
wrap, sausage roll, steak
bake, chicken bake, sausage
bean and cheese melt, beef
and vegetable pasty, three
cheese pizza, three cheese
and pepperoni pizza, nacho
chilli cheese bake, vegan
sausage roll and vegan steak
bake.

which is segregated into
blonde roast, medium roast
and dark roast.
Company offers caffeine
which also distributed into
regular and decaf.
Company offers flavoured
and unflavoured coffees.
Starbucks coffee sement is
further distributed into hot
coffee, cold coffee. Product
portfolio off company also
involves hot tea, hot drinks,
frappuccino blended
beverages, iced teas, cold
drinks. Starbucks also offers
baked products such as
sandwiches, salads and
museli, sweet bakery and
savoury bakery.
Company also offer different
varieties of pastries like
chocolates, strawberry and
other varieties (Prabandari,
Sembiring and Angela,
2018).
Visibility All products offers by
Starbucks can be visible by
any time for all its customers.
Company maintain the clean
hygiene while producing its
products and all products can
be visited any time by
customers.
Company provide theservice
of visibility.
All customers can verify the
cleanliness of company while
preparing its products.
Comparative performance objectives analysis
Performance analysis of both the companies can be projected in following manners.

Starbucks: Starbucks has becomes one of the leading brands in the associated market sector.
Company has achieved the sales revenue worth more than £ 28 billion. Company’s growth rate is
also impressive as company is growing at the rate of 12%. Starbucks effective sales revenue
enables company to achieve the 36% of market share in the respective sector across the globe
(Zhao, 2017). Company carry the business outlets at more than 28000 locations across the globe.
All the figures specify that company is growing rapidly across the globe. Company is at the
growth stage in the Polar Diagram.
Greggs: Greggs is a part of the dominating branding the associated markets sector. Recent
revenue statistics of the company projects that company has achieved the sales revenue of more
than £ 1400 millions. Company is growing at the rate of 7% in its market. Company operate its
business operations in more than 2000 locations across the globe. With the support of effective
product portfolio company has achieved an effective presence in the associated market. Due to
effective presence company can be associated at the growing organisation in the Polar Diagram.
Apart from all the growth company still behind the Starbucks in term of market competitiveness.
The above analysis projects the market competitiveness of the Starbucks and Greggs.
Design Analysis
It is very essential for business to determine the effective platform which helps to
improve customer engagement and develop profit margins effectively. Starbucks is one of the
largest coffee shops in the world which provides different types of coffee to its customers with
authentic taste and quality (Holweg and et.al., 2018). Due to Gregg’s bakery which is the largest
bakery chain in UK has increased the competition of Starbucks to sell its products and gain better
profit margins. As brand value of both businesses are well established in United Kingdom
market and also provide healthy and quality products to compete with each other. As both the
businesses are established very close to each other and has common products like eateries and
hot beverages. Starbucks uses different products other than coffee and different varieties of
coffee to increase the menu size and expand its product range to attract more customers. As
Starbucks is international brand and has more stores in different market it also has more volume
than Gregg bakery to reduce the price and attract customer to make them satisfied. Starbucks

also provides different variations in their products with innovation and market research which is
according to needs and wants of customers effectively (Tasleem and et.al., 2017). However
Gregg’s bakery is not potential to evaluate the market factors and control the volume of product
sell. Visibility of both the business is same as they lie on the same street which increases the
competitiveness to gain better profit margins while providing better quality products and services
with low price.
Both the companies has chain of stores in United Kingdom market and Starbucks has
standardized colour of interior which is different shades of brown in all specific order to
maintain consistency of stores. Gregg’s bakery also has standardized its store colour and
appearance to increase the brand value in market and charge better prices from customer. As the
bakery white and green (Galankashi and Helmi, 2017). This also helps both the business to
establish in market and gain better popularity effectively. It is essential for Starbucks to improve
its customers service design process as the currently it provides customised coffee cups with
names of customers which Greggs does not provide. But Greggs has online delivery of their food
products and online store with home delivery which also increases its market share to compete
with Starbucks effectively. Starbucks also increases the satisfaction of customers by providing
comfortable sitting arrangements while consuming products and if not that Starbucks provide
effective packaging for takeaways and same prices. This increases the motivation of customers to
become loyal. There are many benefits which are provided by Greggs bakery like discounts,
membership discounts, holiday off which increases the attractiveness of Greggs in the market
effectively. Starbucks has 8nnovative machine which reduce the cost of operations as the
company promotes social responsibility activities to recycle the waste to protect environment
which also increases the brand value of company and allows to gain better premiums due to
increase in brand equity effectively (Urick, Hisker and Godwin, 2017). Greggs has restaurant
theme which allows customers to give order and wait for their food products in the sitting area
with proper ventilation and hygienic to increase potential of company to increase satisfaction of
customers effectively.

Part B
Overview
Starbucks is very particular about maintaining their quality management in the
organization because the organization has created standards for themselves which has to be
controlled. There has to be a control on the processing and the products of the company so that
there is a better quality of the products which will increase the satisfaction of the customers. The
administration of the organization gets the best of coffee beans so that the quality of the products
of Starbucks is not compromised upon which is going to affect the organizations reputation in
the market. There is a huge scope in this operational area because that will help the establishment
to have a better operation for themselves and a better customer base (Jiang, Xiong and Cao,
2017). This way the business will be able to perform better and have an improved reputation for
them in the marketplace which is a great factor for company.
Global operations strategy and macro environment
Starbucks is being able to competitive advantage on a global scale because they are being
able to have a better functioning for themselves which is very helpful for a long run. Just in time
is the strategy which is being used by Starbucks from time to time which would help the
operations to be better and effective (Lucke, 2016). Economic factor of the company is being
maintained which is a very critical aspect for the business which is helping the organization have
a better operations. There is no use of unnecessary material and the company can function
successfully in market which would be very important element for the business.
 Political Factors
Taxes and policies in establishment are followed very strictly so that the business can have a
strong portfolio which will facilitate the organization to globalize themselves (Rezaei and et.al.,
2016). There are fair trade practices which are taking place in the organization.
 Economic Factors

The company has to price the products according to the coffee beans and the raw material
which is coming in the company. The price of the coffee is for the premium users and the
company is going very well in the market.
 Social Factors
There are a lot of changes in the products of Starbucks according to the customers so that
there is a better functioning which is a very important element for the company. There is green
and herbal coffee which has been invented for the customers so that the satisfaction is higher and
the organization will be able to have a better functioning (Gonzalez, 2016).
 Technological Factors
There is a good use of information technology in the organization which is a great factor for
the company. Errors are reduced in business because of the use of technology (Asnan, Nordin
and Othman, 2016).
 Legal Factors
The laws and regulations of all the organization have been taken care of by the organization
which is going to be a great section for business to get competitive advantage. Employees are
having improved wages now and there is licensing of the regulations to the industry which is
being provided to Starbucks.
 Environmental Factors
The company is reducing the carbon footprint from the company and using renewable
resources so that they can have a better competitive advantage in the market.
Key requirements, capabilities and challenges
There is a lot of variety in the products of Starbucks for maintaining the quality of those
products as well in the organization which would help to get a stronger customer base for
themselves. There has to be a well planned and maintained organizational structure and control
on those aspects of the organization so that they can have a better quality of the products. There

has to be records and evidence of the system which is present in the organization which is a very
essential element for the business (Tasleem and et.al., 2017). There has to be a confirmed
employees applications as well which has to be checked in the organization if they are trained
and experienced for an organization like Starbucks. There have to guidelines in the organization
so that there is a well balanced surrounding the organization which is going to be very helpful for
a long run of the organization. There have to a fulfilment of all the requirements in the
organization on time so that the demands of the customers can be met and the reputation of
business can be kept up.
Documenting all activities in the establishment is a very crucial factor in the company so
that there is an effective operation which is going to assist the company to have a better
competitive advantage for themselves so that they can grow in the market easily. There has to be
a fixed quality of raw material so that the products of the company are not compromised upon
which is a very necessary element for the Starbucks. There are a set of new products which come
in the market which is why training the employees from every now and then is a very vital factor
so that the company can have a better functioning and understanding of the products which are
being produced in the organization (Carayannis and Sindakis, 2017). This factor will not just
improve the experience of the customers and the employees but all the organization will be
capable to attain their objectives and aims from time to time which is a very essential factor for
the company. Use of good quality leadership styles also in the organization to maintain the
quality of the products and the leaders have to support their team and improve them so that the
values of the business can be met.
Analysis and evaluation
There is a high growth of Starbucks in this industry because there are very few coffee
stores which are improving on the quality of the product more than the services and prices.
Starbucks has a very strong portfolio in the market which is being well maintained by the
business which is a great thing for organization. Starbucks has expanded themselves in so many
countries because they are capable of becoming better which can help the organization to have a
better functioning for them. It is extremely essential to have strong leaders in the establishment

so that they can have an effective operation which is going to be helpful for a long run of the
organization in the market.
There has to be a transparency of the profit which the company is getting with the
employees and the customers of the organization so that they can understand the improvement
and the position of the organization in the market (Chugani and et.al., 2017). It is very important
for the company to improve the standards of the company by making the entire team work as
one. Starbucks is not being able to have better operations because they are not having a
transparent functioning for themselves which is a very essential factor for the company. The
company is using the right strategies and measures for making a change in the organization and
to improve the operations of the organization so that there is a better processing. There has to be
a good functioning of Starbucks so that there is a better reputation of the organization in the
market which is an extremely essential factor for business.
It is because of the experience which Starbucks has gathered over years can be used to
overcome the problems of the organization which are very critical so that the organization can
have a better functioning. The theory which can be used by the organization is motivational
theory so that the employees of the company can be motivated and the quality of products is not
being compromised upon (Gantsho and Sukdeo, 2018). It is very important to motivate the
employees of the company so that there is a better functioning and that is going to help the
company to increase their productivity of the organization which is a very important factor.
There has to be a good measuring of the changes as well in the organization so that the
improvement in the organization can come easily which is a very essential factor for company.
There are names on the products of the customers so that they feel accepted and welcomed in the
establishment which will help the business to have a better customer base in the market.
Recommendations
It is very important for Starbucks to have a strong reputation of the organization in the
market which will get more customers in the organization. There are a lot of loyal customers
which the organization had created for them in the market but there has to be a well maintained
service which the company will have to provide to customers. There is a requirement of a lot of

factors which need to be improved in the organization so that there is a better functioning of the
organization and that is going to help the organization to grow further. The company is already
spread over 81 countries which is why getting the right customers is very essential since the
competition in the market is increasing rapidly which is going to be very difficult to overcome
for the company (Tristan and et.al., 2019). Skilled worker are required in the organization so that
the quality of the product can be maintained. There have to be experienced and contacts of the
organization have to be strong with the suppliers so that they can get the raw material for lesser
price so that the pricing of the products can reduce.
The problem which the company is having is that there are too many part time workers in
the organization which are not trained and that are reducing the service of the company. That
factor is making the profit margins higher as well for the company. The company will have to get
in the right employees so that they can have a better functioning for themselves. The company
will have to improve so that the loyal customers in the organization can increase and the
company will be able to have a better operation. The operations of Starbucks are slow and the
raw material is either got in bulk or not present in the organization which is not fulfilling the
demands of the customers (Kasim, Umar and Martin, 2018). It is very important for the
organization to fulfil the needs and demands of customers so that they can have a better
functioning and the customer’s base in the market will be higher than the competitors in the
market. Getting the right staff in the organization is going to be very supportive and the company
will be capable to get ready for action.
Conclusion
From the above report it can be concluded that there is a need of having a strong
workforce in the establishment so that the organization can have a better functioning for them
which is going to be very successful for Starbucks. In the report there was a detail understanding
of the strategies and the methods which the organization is using but they are not being able to
get a competitive advantage because the targeting the customers is too specific. The pricing of
the products will have to be controlled by the organization so that they can get more clients in the
establishment which is going to be very useful. Starbucks has to strong growth in the market
since they are being able to deal with the changes so well but for that they need to get more

experienced and skilled employees who are giving a better service to the customers of the
business so that there is a better operation.

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