Managing Street Trading and Operations

This assignment presents a variety of research papers focusing on different facets of operation management. Topics covered include sustainable models for street trading, software process management, power system operation, manufacturing resource allocation, public rental housing management, demand response systems in microgrids, defrost operation management in heat pumps, clinical assessment and management plans for children after surgery, sustainable wastewater management, optimal control strategies for wind-photovoltaic-battery storage units, and teaching reforms in production and operation management.

Operations Management and Service
Excellence

Contents
Introduction.................................................................................................................................................3
Assignment..................................................................................................................................................3
1. Company overview..............................................................................................................................3
2. Operation management process of Café Nero Ltd and it importance...................................................4
3. Performance objectives of café............................................................................................................7
4. Supply chain of the organization.........................................................................................................8
5. Quality process of Café Nero Ltd and comparison with Start bucks..................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

Introduction
Operation management is the term that defines the business practices of the organization
and work to improve efficiency level of the entity. It is concerned with converting the raw
material into quality output in order to maximize profit of the corporation (GUO. and et.al,
2015). It is the duty of operation manager that to focus on each activity so that company can get
optimistic outcome. For managing the operations well, authorities have to utilize resources well
and have to supervise the activities effectively so that overall sustainability of the entity can be
enhanced. For the present study Café Nero Ltd is being taken into consideration which is a small
sized café (Qu, Perkins and Olsen, Lennox Industries Inc., 2013). It is working in the limited,
offers café and beverage to population of London Current assignment will discuss the overview
of Café Nero Ltd. Its operation management process will be analyzed and importance will be
described in this study. Supply chain management of the entity will be evaluated. Quality process
of the Café Nero Ltd will be compared with Starbucks.
Assignment
1. Company overview
Location of business
Café Nero Ltd is the in depended coffee house which is specialized in creating high
quality Italian coffee. Currently cited firm is working in London only. It does warm welcome of
its valuable guests and treat them well so that they feel like premium consumers and come
frequently in the coffee shop (Luo ,2014). It offers quality and delicious food and great services.
It is situated in Tooley street London. There are many competitors of cited firm such as Start
bucks etc. those which are having good command over industry and those which are service
extremely well services to the clients. Mostly average income people, students and professional
customers come in the Café Nero Ltd. Incoming of students is great in the café. They like coffee
of this place and arrangement of the coffee house (ZHANG. and et.al, 2015).
Capacity

Café Nero Ltd is providing good drinks and food or beverages to consumers. Quality
food is the main capability of the organization. Its workers are strength of the cited firm. It hires
skilled people in the workplace those who have knowledge of hotel management and consumer
services. So that they can serve better to the clients (Kanellos, Anvari-Moghaddam. and
Guerrero, 2016). Café Nero Ltd has capacity to enhance its business operations globally.
Sufficient financial resources and good experienced of the field makes it more powerful for
expansion. Over a period of time Café Nero Ltd can accommodate more than 1000 customers.
Every day approx 50-60 guests enter in the café and they enjoy coffee and services of this place.
It has capacity to enhance its number of customers by formulating effective business strategies.
Layout
By looking at the layout it can be said that Café Nero Ltd is working at limited area and
there are limited space for consumer’s sitting (Kato, Nec Corporation, 2013). But arrangement of
tables and chair are very good so in such a small area people do not feel restricted. They can
move here and there easily. Photographs show that there are space for parking sand infrastructure
of the place is very good that is liked by students the most. There is parking space but due to
heavy traffic sometimes consumers feel troubled in parking (Rathod and et.al, 2016).
Services offered
Italian coffee is the specialty of this place but apart from this cited firm offers latte,
frappe latte, hot and cold drinks to the guests. In addition there is facility of having pasta salads,
soup dishes, Panini etc. Café Nero Ltd offers people loyalty card services that is used for making
payment for any type of drinks (Zongchao, Yixian. and Shi, 2014). Apart from this there is
services of mobile payment to that is easy for the service users. To attract more customers
towards the café cited firm give them warm welcome and try to build healthy relationship with
them so that consumers feel comfortable and feel happy in the place. There are around 700 cafes
in the London, being a small sized café still people are satisfied with the services and products of
the organization (Nunna, and et.al,2016).
2. Operation management process of Café Nero Ltd and it importance
Operation management is the tool that helps in producing quality output from input.
Effective management of operation is very important by this way firms can enhance their

sustainability and profitability to great extent (Fuggetta. and Di Nitto, 2014). The main aim of
Café Nero Ltd is to expand its business across the world and increase number of customers of the
entity. That is only possible when organization put its best efforts for improving its operation
management so that it will be able to run in new location significantly.
Operation management process is very common in which all firms use knowledge,
resources, equipments , time etc (Sylaios, Gikas and Tsihrintzis, 2016). Well to convert into
quality output. Café Nero Ltd follows 4V’s process in the workplace, management of these four
V’s are as following:
The volume dimension
Volume is the key element that describes the arrangement of the entity. Being a small
sized company Café Nero Ltd is having low volume, less number of employees, less
systemization (Khlat and et.al, 2016). Due to lack of employees and low volume, every worker
has to perform multiple duties in the workplace. But it develops their knowledge about each
operation and they get career development options too. Due to less volume unit cost is very high.
It is necessary for the Café Nero Ltd to make effective control over its unit cist which is only
possible if cited firm increases its volume (Bénit-Gbaffou, 2015). For that it will have to make
communication with mass audience so that number of customers of the entity can get improved.
It is necessary process of operation management that can help in analyzing the unnecessary
expenditure of the entity so that manager can make necessary changes in current process in order
to reduce operational cost of the firm.
The Variety Dimension
It can be termed as number of products and services offered by an entity to its valuable
consumers (Wu, K., An, S. and Huang, T., 2015. Café Nero Ltd offers limited products to its
customers as compare to big coffee houses in London.
Variation dimension
It is another important point that affects the overall cost of the organization to great
extent. If cited firm offers quality products at lower prices but production needs to be high then it
will be able to make effective control over its cost (Rathod and et.al, 2016). By this way Café

Nero Ltd can be able to offer coffee at cheaper rates. Currently production of the café is limited
but its quality if average so it can afford to offer lower price coffee to the users.
Visibility dimension
It is another major point that is included in the operation management process. If
visibility of the entity is good then it will be able to attract more consumers and it will enhance
interest of the consumers (Sylaios, Gikas and Tsihrintzis, 2016). Currently Café Nero Ltd is
working at small scale thus, its visibility not that much good but location of the firm is at high
street area so most of the students come here with their friends.

4V’s model of operation management is very effective by using that cited firm is able to
make effective control over its cost and it helps in increasing profit of the entity (Wu, K., An, S.
and Huang, T., 2015. By this way Café Nero Ltd has analyzed that quality coffee and food is the
major demand of consumers so for maintaining the quality it continuous supervise activities of
employees so that they serve better services to them. Apart from this cited firm organize time to
time inspection from authorities so that actual position of the organization can be analyzed. 4 V’s
process of operation management it successfully transform the resources into four outputs
(Bénit-Gbaffou, 2015). Apart from this, it is effective tool that helps in minimizing the wastage
of the organization. Apart from this, this process is very effective and supports Café Nero Ltd in
making strong planning for future growth.
o 7”s wastes model is another operation management tool that is used in the Café
Nero Ltd.
Transport: Cited firm is making effective control over of its transportation cost. It emphasis on
the risk and focus on safe transportation (GUO. and et.al, 2015).
 Inventory: Café Nero Ltd purchase good and quality raw material and emphasis on
inventory management.
 Movement: It control over movement so that no damage gets reduced.
 Waiting and delays: Café Nero Ltd is using Batch and Queue model that can help in
improving the operation management process of the organization.
Over production: Café Nero Ltd focuses on the process so that production needs to be in control
and no over production take place (Qu, Perkins and Olsen, Lennox Industries Inc., 2013).
 Over processing: Café Nero Ltd focuses on the timely completion of work so it reduces
wastage.
 Defects: To try to control over the cost so that no defects take place.

It is the great tool that supports in reducing wastage of the café and improving quality of
the products of Café Nero Ltd.
3. Performance objectives of café
Performance objectives are the purpose of the firm which it wants to accomplish in near
future. Café Nero Ltd is small sized café which is working well in the London market (ZHANG.
and et.al, 2015). But its number of customers is limited and it has to work in limited area.
Performance objective of Café Nero Ltd are as following:
Speed services: Café Nero Ltd wants to serve its consumers well because it is the only through
which cited firm can enhance its profitability and can sustain in the market for longer duration
(Kanellos, Anvari-Moghaddam. and Guerrero, 2016). In most of the cafes consumers have to
wait for longer period and there are many big coffee houses where pre b poking is very
important. Café Nero Ltd wants to enhance speed of services so that it can minimize gap
between request of clients and final delivery of the products. It can help in accomplishing goal of
the organization soon (Rathod and et.al, 2016).
Quality improvement: Café Nero Ltd has capability to improve quality of its products. To
provide quality products and services to users is another essential key performance objective of
the company. Café is running well but to expand its business it is essential that organization
offers range of variety products and services to customers so that they feel satisfied and like the
environment of the entity (Zongchao, Yixian. and Shi, 2014). It will help in making them loyal
towards the brand by this sales volume of the company will get improved. This Café Nero Ltd
will be able to accomplish its main goal. Improvement in quality of the products is the
performance objective of the entity so that it can compete with its competitors well.
Price objective and cost control: Cost is the major factor in each business unit. If cost is high
then company is unable to get high profit whereas is cost is low then it can enhance its revenues
(Rathod and et.al, 2016). The performance objective of Café Nero Ltd is to make effective
control over unnecessary expenditures so that overall cost of cited firm can be in control. It
purchases raw material from good suppliers those which give raw material on low rates and on
credit. If Café Nero Ltd enhances its production then overall unit cost of production will get
minimized significantly.

Staff retention: Café Nero Ltd has skilled and experienced persons those who are serving well
to the customers of the entity (Fuggetta. and Di Nitto, 2014). There are many big organizations
those which can give them high salary packages then they can leave the job. Company wants to
treat its employees well so that they retain in the café for longer duration.
Sustainability: It is another key performance objective of the Café Nero Ltd. Cited firm wants to
sustain in the corporate market for longer duration (Khlat and et.al, 2016). It wants to meet with
needs of consumers and want to increase their level of satisfaction so that consumers like the
organization and give positive feedback to others. It will help in increasing sustainability of café
to great extent.
Improvements:
 Café Nero Ltd should focus on increasing production volume, which can be done by
adopting effective marketing strategies. If cited firm market its café well then more
people will get to know about it and they will come to take experience of the coffee of
this place. That would support in increasing volume of production thus it will be able to
reduce its cost to great extent.
Café Nero Ltd is currently having limited staff members that are why many times consumers
have to wait a lot to get their order on time. If cited firm hire more people than it would be able
to improve speed of services thus, café will be able to increase satisfaction level of employee by
reducing waiting period of them (Wu, K., An, S. and Huang, T., 2015).
Conduct effective market research is another improvement which is required to make by the Café
Nero Ltd soon. By this it will be able to identify market trends, needs and wants of London
Population. It is the great way that would help the cited firm in proving people products and
services as per their needs Lee, C.K.H. and et.al., 2014. It will enhance sales volume and
profitability of the entity will get improved to great extent. By this way consumers will give
positive feedback to others as well thus, café can be in position that it can sustain in the corporate
market for longer duration.

4. Supply chain of the organization
Supply chain plays a significant role in the organization, overall profitability of the entity much more
depended upon supply chain system of the organization. To improve quality of products most of the
firms pay close attention on their supply chain management (Rathod and et.al, 2016). It is considered
as network of resources and individuals that all together c\work for producing the quality final goods for
the customers. Raw material is supplied by the suppliers and they charge for it. Overall cost of the
suppliers depended upon the quality of raw material.
Cafe Nero Ltd wants to serve its consumers well thus, it tries to buy the raw material from good
suppliers those who can deliver the products on time and with quality (GUO. and et.al, 2015). Cafe
Nero Ltd is small sized coffee shop it has limited supply chain and its all suppliers belong to London only.
It purchases several items from suppliers such as tea, coffee etc. The quantity buys by the entity is
depends upon its overall sales volume. Cited firm manage its supply chain system very well and conduct
operations in such manners that it can improve its efficiency level to great extent.
Cafe Nero Ltd currently purchase raw materiel from three main suppliers. It has linked with
small farmers those who provides raw material at lower prices (Kanellos, Anvari-Moghaddam. and
Guerrero, 2016). In addition to this sometimes when farmers are unable to deliver the material on time
then at that time cited firm purchase it from intermediaries or agents. Cafe Nero Ltd has option to move
towards other suppliers. If any of them ask for the high cost then it buys from other suppliers, thus it
can get the products at lower rates. Students are the main target customer of the entity, they come here
to spend some quality with friends and to make parties. So cited firm has to purchase raw material in
advance so that it can deliver the products on time to the final users. Such type of consumers always
want quality products at lower rates (Zongchao, Yixian. and Shi, 2014). Thus, it is essential for the
Cafe Nero Ltd to buy it from cheaper suppliers so that it can meet with the customers. This assist in
profit maximization of the entity to great extent.
It is necessary for the Cafe Nero Ltd to make coordination between warehouse and cafe so that
it can manage its work effectively. Cited firm manage its inventory well that supports in reducing overall
operational cost of the cafe. Cafe Nero Ltd needs to adopt KPI technique in order to improve its
standards to great extent (Sylaios, Gikas and Tsihrintzis, 2016). By this way it will be able to
analyzed the supply of big coffee houses and currently what Cafe Nero Ltd is applying currently. Apart

from this cited firm needs to train its staff members so that people can manage supply chain and
inventory for the benefits of the organization. It will help the corporation in accomplishing its goal soon.
The information is flow from company to suppliers and the suppliers note the items which cited
firm want then they send it to the warehouse. Once the Cafe Nero Ltd receive the raw material then
after cited firm convert it into final products and then it transferred to final users (Bénit-Gbaffou,
2015).
Illustration 1: Supply chain of cafe
Effective supply chain management is very important for the organization, with the help of this
firms can improve their working effectiveness and can enhance brand image to great extent. Cafe Nero
Ltd is managing it well and its supply chain is managed well by this higher authorities. Mangers of cited
firm look upon the each section closely from order to final ware house delivery (Luo ,2014).
Information is pass from each level effectively so that no confusion takes place, It is beneficial tool that
supports Cafe Nero Ltd in quality assurance. It buys products from correct suppliers or agents can
convert it into final goods for customers. Another benefit of supply chain management in the Cafe Nero
Ltd is that it assist in risk mitigation to great extent. Managers look upon the internal and external
factors and accordingly it manages its operations so that it can avoid future uncertainties of the cafe.

5. Quality process of Café Nero Ltd and comparison with Start bucks
Quality management is the essential tool of business unit; it can be defined as act of
several activities which are required to achieve desired excellence. It includes planning,
assurance, quality control and improvements. By this way any small firm can enhance its
efficiency level and can perform well in the market. It supports in gaining competitive advantage
too.
Starbucks is the biggest competitor of Cafe Nero Ltd , it serve its consumers quality service.
The main focus of this firm is to satisfy the consumers so that they come again and again in the entity. In
the Starbucks, there is accuracy check system in which supervisors ensure that their employees provide
quality food to clients (Rathod and et.al, 2016). For designing the quality team members of the
company work together and they put best efforts in order to serve better to customers. Needs of users
are the first priority of the organization and they produce drinks accordingly. Star bucks carefully
purchase coffee from the farmers who can provide quality raw material to the entity. Premium quality
services are given to its users. On other hand Cafe Nero Ltd concentrate on students and offer the
products which consumers like. It also purchase coffee beans from small farmers (Wu, K., An, S. and
Huang, T., 2015. For managing and maintaining the quality Cafe Nero Ltd give training to its
employees, so that they take care of this point and never compromise with quality aspect.
Conclusion
From the above report it can be concluded that operation management is the function that
can support the entities in managing their business and reducing the risk of the company to great
extent. It is the way that can support in accomplishing the objective of the entity significantly.
Above report has discussed about small sized Cafe Nero Ltd. It can be articulated that current
supply chain management of the cited firm is good and it can reduce operational cost and ca
improve its profitability to great extent. Quality is the essential factor for maintaining it,
organizations have to purchase the raw material from correct suppliers so that it will be able to
improve its efficiency and will be able to meet with expectation of the customers. By managing
the operations small coffee house would be able to achieve its goal soon.

References
Books and journals
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Lessons for Johannesburg after Operation Clean Sweep. Johannesburg, South Africa: University
of the Witwatersrand, School oi Architecture and Planning, Centre ior Urbanism and Built
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Fuggetta, A. and Di Nitto, E., 2014, May. Software process. In Proceedings of the on Future of
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Kato, K., Nec Corporation, 2013. Operation management apparatus and operation management
method. U.S. Patent Application 14/435,799.
Khlat, N. and et.al., 2016. Power management architecture for modulated and constant supply
operation. U.S. Patent 9,246,460.
Lee, C.K.H. and et.al., 2014. Application of intelligent data management in resource allocation
for effective operation of manufacturing systems. Journal of Manufacturing Systems. 33(3).
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Qu, Y., Perkins, B. and Olsen, M., Lennox Industries Inc., 2013. Defrost operation management
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