Operation Management

Operation
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART 1............................................................................................................................................3
Comparative four Vs Analysis.....................................................................................................3
Comparative Performance Objective Analysis............................................................................5
Design Analysis...........................................................................................................................7
PART 2............................................................................................................................................7
Overview......................................................................................................................................7
Starbucks Global operations strategy and surrounding macro environment...............................8
Key requirement, capabilities and challenges (need changes)....................................................9
Analysis and evaluation of Quality Management in Starbucks.................................................10
Recommendation.......................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Administration of business process to create highest level of possible efficiency within
the organisation is known as operations management. Operations management is concerned with
converting raw material into goods and services in the best possible way in order to maximize
the profit of the organisation. This is concerned with utilization of various organisational
resources in form of staff, material, equipments and technology. This report will discuss
operations management in context of Starbucks. This is American multinational chain of
coffeehouse and roaster reserves. The company was founded in 1971 and is headquartered at
Seattle, Washington, U.S. This report will discuss various aspect of operations management
these are four Vs of operations management which are volume, variety, variation and visibility.
Analysis of performance objectives of Starbucks and Griggs will also be discussed in the report.
Quality management, the act of overseeing activities and task needed to maintain a desired level
of excellence. Its various aspects in Starbucks and its operations management which includes
global operational strategy, key requirement, capabilities and challenges etc will be discussed in
the report.
MAIN BODY
PART 1
Comparative four Vs Analysis
Four Vs analysis refers to four Vs of operation management. This considers that all
operations processes have that all of them take inputs and transform them into output. The inputs
are, input, material, knowledge, capital, time and equipment (Hill and Hill, 2017). The difference
is that they do it in different ways, the main difference is in, Volume, Variety, Variation and
Visibility. Here four Vs of Starbucks and that of Greggs is being discussed.
Four Vs of Starbucks
Volume- This refers to size, magnitude and rate of production is Starbucks. In this context
Starbucks believes in cost efficient operations and along with this Starbucks is a coffee chain

which needs it to prepare and produce its products at the time of offerings. This means that
volume of production in Starbucks depends on the demand by the customers. Other than this
Starbucks also follows the past trends on the customers to ensure availability of the required
resources in the stores to avoid shortage and surplus which might cost Starbucks.
Variety- Starbucks offers wide range in its products which are coffee, baked items, sandwiches
and smoothies (Slack, 2018). In all this products Starbucks offers various varieties and along
with this customers can also order as per their specific requirements and they are fulfilled by the
Starbucks. Variety in coffee of Starbucks is a highlight in this context.
Variation- Starbucks offers variation in products as customers are able to order as per their
specific requirement and they are fulfilled at Starbucks. The requirements of the customers might
be different in terms of what is regularly offered by the Starbucks and somewhat different from
their product standards but customers are provided what they are willing to have. this is because
customers at Starbucks are considered to be of utmost importance.
Visibility- Starbucks believes in giving its customers an experience above the products and
services they receive from the Starbucks (Slack, 2018). This is perfectly visible through
customer service of the Starbucks. The visibility also reflects in form of design of the stores of
the Starbucks.
Four Vs of Greggs
Volume- Volume of the Greggs remain and needs to be high as the products of the Greggs are
not only available at the stores but they are also delivered and this requires to keep high volume
which can be immediately ready to meet unpredicted customers demand.
Variety- In terms of food Greggs offers wide variety and their offering extend from traditional
fast food and bakery items. Greggs offer vegan products and breakfast range, sausages and
seasonal food range and this means that they offer variety of food products.
Variation- Products of the Greggs are offered as per their specific menu and this is why variation
in the products of Greggs is limited (Bromiley and Rau, 2016). Though the products are
available in wide variety but the scope for variation is limited in Greggs.

Visibility- Greggs focus on providing best customer experience and its teams are also first class
in terms of support. This is visible to customers and this is the reason that Greggs have managed
to become best and largest bakery chains in UK.
The above models of four Vs suggests that there is high degree of difference in four Vs of
both the companies and the difference the main difference lies in Variation and variety of the
products of both the companies.
Comparative Performance Objective Analysis
Performance objectives refers to something which companies want to achieve regarding
their performance and here performance objectives of Starbucks and Greggs are being compared.
Performance Objectives of Starbucks are;
Encourage a great working environment
This objective of Starbucks related to its organisational performance means that
Starbucks wants to achieve great working environment. Great working environment allows
organisation to achieve maximum profitability and best contribution of employees in the
organisational performance (Wu, 2017). This collaboratively improves performance of the
organisation in terms of quality and customer satisfaction.
Offer-high quality products
This is another performance objective of the Starbucks this helps in improving and
continuing quality performance of the Starbucks. This is important for Starbucks and at the same
time image and reputation of the company is also based on high quality products of the company.
Provide Goods which to meet customer desire and what customer need
Starbucks has one of the important performance objectives and considers that customers
should be provided what they need instead of what Starbucks can and do provide. This is why
Starbucks provide their products in customized manner which has been demanded by the
customer (Marie, 2019). To achieve this objective Starbucks has also employed effective policy
regarding warranty in which customers can easily change and replace their products.
Objectives of Greggs are;

Great Tasting Fresh Food
This is performance objective of the Greggs that they want to provide food which is great
in taste and along with this they also want to provide fresh food to their customers. Tasty food
which is provided by Greggs is also affordable in terms of price (Copland, 2017). Greggs also
has objective that its classic and traditional favourite cannot be beaten and remain same. Greggs
also has objective in which it can provide food according to changing trends and taste of the
customers that it can possibly keep its customers.
Best Customer Experience
Customer satisfaction and customers are centre of the focus of the business and likewise
Greggs also keep its customers in centre of its performance. Greggs has this objective and the
company considers that it want to take its operations where its customers are and making sure
that its shops are open when its customers need it. Greggs also has objective to provide best and
modern shopping experience to its customers. In this order Greggs has plans that they are able to
provide and deliver its goods in fast and friendly service.
Competitive Supply Chain
Supply chain is important part of the performance of the business and this is also
important for Greggs. In this context objective of the Greggs is to stand out from the crowd
because they consider to be able to create the best things to excite their customers. The objective
of the Greggs is to be more efficient and to minimise our impact on the environment and at the
same time shape the growth of the Greggs.
Above identification and discussion of the objectives of Starbucks and Greggs suggest
that as their markets are different their objectives are also different. Markets of Starbucks are
middle class and upper middle class people who are capable of buying the premium price and
high quality products (Song, Gu and Ren, 2016). On the other hand Greggs’ market is high
streets where it can sell its variety of the products at the affordable price. Though, both the
companies keep the customer satisfaction at the priority in their objective.

Design Analysis
Design analysis includes analysing customer service process and layout of the stores of
the Starbucks and Greggs.
Customer service at the Starbucks is a part of its quality management, because premium stores
focus on their customers service like other areas of service and like their product offering (Zhang
and et.al., 2016). In relation with
In relation with design and layout of the Starbucks stores they are designed in sophisticated
layout and located at posh and urban areas with middle and upper middle class population
because of its offerings and cost.
Customer service process of the Greggs is becoming increasingly modern and sophisticated so
that they can provide modern experience to customers shopping. Along with this they also
provide customers with on the go food and delivery to home so that they can be catered where
they want to (Azriuddin and et.al., 2020). In relation with operations process this requires
Greggs to keep its volume of material and products high so that they can cater unpredicted
demand of the customers in form home delivery. Other customer services are offered like
enquiry are offered through online mediums and platforms.
Design and layout of the Greggs stores are in local bakery style shops. Shops are mainly located
in high streets and now they are taking the format of shops on the go.
PART 2
Overview
Quality management is overseeing activities and tasks in operation management to ensure
that all the tasks in operation of the Starbucks needed to maintain desired level of excellence.
Quality management includes determination of policies related to quality assurance and quality
maintenance policy, creating and implementing quality planning and assurance and quality
control and quality improvement. Quality in Starbucks is given utmost importance and this is
why they uses several quality systems. The main objective behind the quality management is to
ensure long term success of the organisation as this includes continuous improvement in the

quality. Starbucks employ its quality management in various forms and first level in quality
management starts with baristas on the floor. Later random check is carried out through district
manager they make random check and ensure quality. Later, Starbucks also include third party
quality check and in this process a company is used by Starbucks to ensure quality of the
products.
Starbucks Global operations strategy and surrounding macro environment
Global operation strategies are those which have been adopted by the Starbucks in
international operations of the Starbucks (Taecharungroj, 2017). Quality management in the
Starbucks is given most important place and company adopts this strategy in international
process. Starbucks communicate it as a premium products and this requires that quality of the
company products is high. High Quality and premium product is the global strategy of Starbucks
and this is how it operates in the global market. The macro environmental factors which affect
global operations strategy are;
Political- Starbucks operates in food and beverages industry and this is why it has to follow
regulations that affect the food and beverages operation in various countries. This includes food
safety standards of different countries and along with its own safety and quality standards
company has to follow all these standards as well which affect its operations in global market.
Economical- Starbucks provide high quality and premium products and this is why it gets
affected by the economic condition of a country in its global operations. Starbucks has to modify
its quality standards when operating into a country whose economic condition is not very good.
This also needs to place itself in such way that people can consider it a premium product.
Social- In context of global operations this factor affect the most operations of the Starbucks
(Shamim and et.al., 2019). The factors which affect operations and its success are perception of
the people of a particular company for the products which are being offered by the Starbucks.
This means only when people have positive perception towards fast food and drinks which are
offered by the Starbucks its operation will be successful. Other than this, perception of people for
premium products and about premium food and drink products also affect the operational
success of the Starbucks. For Example, country or culture specific where healthy food and drinks
are given more importance in such case coffee will not be considered good and this is a negative

factor for the operational efficiency of the Starbucks. In such Starbucks has to offer products
which are good for health and is not harmful for physical wellbeing of the individual.
Key requirement, capabilities and challenges (need changes)
Quality Management in Starbucks is an organised process and this is why the process of
quality management has some requirements these are,
Maintaining high level of product and service quality- This is first requirement in terms of
quality management in the Starbucks. This is utmost requirement for the Starbucks is that
Starbucks maintain high level of product and service quality (Yaqoob and et.al., 2017). This is
the first requirement in the operations that products of the Starbucks are of high quality and the
quality is regularly checked to ensure that the standards for quality are met by the Starbucks.
Service refers to service they offer to the customers and in this regard they are required to ensure
that they provide high quality of service in which customers are served with the product which is
exact match of their demand and in this process it is checked that all the order are complete for
the customer.
Capabilities for Quality Management
Procedure, Instruction and Records- Quality management in Starbucks is an organised process
and this is why it is important that it is predefined procedure to be followed while quality
management. Starbucks includes quality checks in its general operations and this is why it has
clearly articulated instructions which are required to be followed by its employees while
delivering products and service to the customers.
System and People- This is another capability in operations of the Starbucks regarding quality
management (Lo and Yeung, 2018). People in Starbucks are perfectly aware about the quality
they are required to maintain while providing service to customers and system of the company is
managed accordingly.
Operational challenge in Quality management
Changing customer needs- This is an important consideration that customers are being
provided what they need and desire along with what maintain standards of the quality. In this
changing and rapidly changing customers needs are a challenge and along with that Starbucks

also provides for option that customized customer products are given priority than general
standards of the quality.
Analysis and evaluation of Quality Management in Starbucks
Resource management is significant part of quality management and the reason behind
this is that resources are required to utilized in such way that Starbucks is able to achieve desired
quality in its process and in its products (Bastas and Liyanage, 2018). Resource management in
quality management is also important as resource management includes identification and
assignment of resource required to implement, maintain and improve quality management
system and enhance customers satisfaction through meeting customer requirement and this is
done through resources.
Resources which are used in Starbucks are both tangible and intangible assets. Tangible assets
are land, property and intangible assets and resources are knowledge and intellectual power of
the employees at the Starbucks. Quality requires both type of resources as knowledge and
intellectual resources allows Starbucks to decide and determine what standards and quality they
want to achieve and how they can achieve these standards. Tangible resources help in carrying
out and creating quality in the process and products of the Starbucks.
Resources which Starbucks uses in quality management are resources and ingredients
required for its products. Products of Starbucks are coffee and this is why Starbucks carefully
source its coffee beans so that it can create and provide high quality of coffee. Resource
management in this includes that Starbucks has provided certificate to farmers which are known
as Starbucks Coffee and farmer equity and in this Starbucks buy its coffee from these certified
buyers to ensure high quality of coffee.
In relation with its human resources Starbucks design its policies in such ways that firms
café are able to adjust increasing demand of the personnel to manage the increasing demand of
the personnel to sudden increase in demand (Psomas and Antony, 2017). In this Starbucks aim to
achieve cost effectiveness through effectiveness and efficiency of the workflows.
Location is also a resource for the Starbucks because this plays major role in building
value in the mind of customers and in relation with the locations Starbucks manage its locations
and focus on urban areas with large upper middle and middle class. This is important for the

Starbucks as this provides premium products and affluent can afford the products of Starbucks.
This will ensure that Starbucks is able to achieve cost effective results.
Total Quality Management is the widely used theory in this operational area and
Starbucks also apply this theory in its operation. Total Quality management refers to
management approach which focuses on long term success of the business through customer
satisfaction. This process involves all members of the organisation and they are expected to
provide their contribution in improving processes, product, and service in terms of quality which
can attain objectives of customer satisfaction.
This theory is adopted by Starbucks and this is why their quality management takes place in
various forms and at various levels (Honarpour, Jusoh and Md Nor, 2018). The quality check and
management starts with baristas at the floor on the point of sale, here baristas check that drinks
are accurate and miss no drink before handling the drinks to customers. Later in second stage of
the quality management, Starbucks make random check ins from its District Manager, in this
district manager make random checks and talks to customers, watches baristas and do check on
the quality of drink. Lastly, Starbucks also make quality checks through third party, in this
Starbucks uses third party company which make checks on all its stores to check and ensure
quality standards are met every six months.
Total quality management at Starbucks ensure that quality standards in their stores are
met. In this order and process of total quality management stores have copy of required
qualification which stores must meet, this includes-
Quality of Design, cross-functional team, including members from marketing, engineering,
operations and other departments are responsible for quality of their design. This includes
consideration of customer needs. The design refers to design of the drinks and products offered
by the Starbucks.
Quality of conformance and availability which means meeting specification regardless of what
quality is maintained (Psomas and Antony, 2017).
Field service refers to customer service and warranty and repair and replacements of the
products of the customers.

In its operations Starbucks follows a practice of continuous improvements and quality
check at the very place of offering services this helps in identifying any defect in quality quickly.
Recommendation
The above discussion introduced with various aspects of operational management and
quality management of the Starbucks. The discussion uncovered various elements which helped
and contributed in operational effectiveness of the Starbucks. Quality is the main element behind
success of the Starbucks and this is added value by their efficiency in the routine process of the
company. quality management and checks are not limited and this is why Starbucks managed to
develop itself as a premium product around the globe. But there are some points that Starbucks
can improve and work on and these are;
Expansion in developing markets with modified standards of quality.
In this Starbucks can modify its standards of quality in developing markets the
modification need not to be major and highly diversified but Starbucks can modify them slightly
which are not clearly visible this will allow company to modify its price from its standard
premium price (Siva and et.al., 2016). Slight differentiation in price not clearly visible but is able
to attract more customers in the developing countries. This will allow Starbucks to grow its
operations in the developing countries and later they can also increase their price when they are
well established in the developing markets. This is a minor change in operations but can give
long term benefit to Starbucks.
Imitability of the products
The products of Starbucks are premium and at the same time quality of the products is
also high as a result of operational efficiency and control measures. But one factor that products
of the Starbucks are imitable which means that other company can provide similar and same
products this is unfavourable for Starbucks (Gutierrez-Gutierrez, Barrales-Molina and Kaynak,
2018). This can be a advantage for the low cost competitors that they are able to provide
products like Starbucks at low cost. This will not only affect business of Starbucks but will also
affect premium image of the Starbucks.

CONCLUSION
On the basis of above analysis it can be concluded overall success of the firm and its
operations depend on the success of its operations. This is why operation management is integral
part of the organisational process and for organisations like Starbucks it is more important as the
organisations are involved in manufacturing and for Starbucks quality is utmost important.
Starbucks can achieve its success only when Starbucks has its successful operation management.
Later operations management and its important part quality management was discussed and
quality of the products and service of the company. In the order of discussion of the quality
management of the Starbucks its quality management was also analysed and evaluated and
resulted that resources and all the processes in the Starbucks are well managed to achieve the
utmost level of quality.

REFERENCES
Books and Journals
Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher
Education.
Slack, N., 2018. Essentials of operations management. Pearson UK.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management. 41. pp.95-106.
Wu, H.C., 2017. What drives experiential loyalty? A case study of Starbucks coffee chain in
Taiwan. British Food Journal.
Marie, A.L., 2019. The Effect of Service Quality and Servicescape Towards Customer
Satisfaction, Starbucks Coffee, Jakarta. TRJ Tourism Research Journal. 3(1). pp.56-70.
Copland, M., 2017. Case study: The business of farm animal welfare at Greggs. In The Business
of Farm Animal Welfare (pp. 197-203). Routledge.
Song, J., Gu, C.W. and Ren, X., 2016. Parametric design and off-design analysis of organic
Rankine cycle (ORC) system. Energy Conversion and Management. 112. pp.157-165.
Zhang, G and et.al., 2016. Fundamentals of heterogeneous backhaul design—Analysis and
optimization. IEEE Transactions on Communications. 64(2). pp.876-889.
Azriuddin, M and et.al., 2020. Becoming an International Brand: A Case Study of
Starbucks. Journal of the community development in Asia. 3(1). pp.33-43.
Taecharungroj, V., 2017. Starbucks’ marketing communications strategy on Twitter. Journal of
Marketing Communications. 23(6). pp.552-571.
Shamim, S and et.al., 2019. Role of big data management in enhancing big data decision-making
capability and quality among Chinese firms: A dynamic capabilities view. Information
& Management. 56(6). p.103135.
Yaqoob, I and et.al., 2017. Overcoming the key challenges to establishing vehicular
communication: Is SDN the answer?. IEEE Communications Magazine. 55(7). pp.128-
134.
Lo, C.K. and Yeung, A.C., 2018. Quality management standards, institutionalization and
organizational implications: A longitudinal analysis. International Journal of
Production Economics. 200. pp.231-239.
Bastas, A. and Liyanage, K., 2018. Sustainable supply chain quality management: A systematic
review. Journal of cleaner production. 181. pp.726-744.

Psomas, E. and Antony, J., 2017. Total quality management elements and results in higher
education institutions. Quality Assurance in Education.
Honarpour, A., Jusoh, A. and Md Nor, K., 2018. Total quality management, knowledge
management, and innovation: an empirical study in R&D units. Total Quality
Management & Business Excellence. 29(7-8). pp.798-816.
Siva, V and et.al., 2016. The support of Quality Management to sustainable development: a
literature review. Journal of Cleaner Production. 138. pp.148-157.
Gutierrez-Gutierrez, L.J., Barrales-Molina, V. and Kaynak, H., 2018. The role of human
resource-related quality management practices in new product
development. International Journal of Operations & Production Management.