Operational Management and Service Excellence in Starbucks

Operational Management and Service
Excellence
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................5
How operation management process support Starbucks shop.........................................................7
Performance objectives applied to Starbucks and improvements need to be made........................9
Discussing supply chain of Starbucks............................................................................................11
Compare and contrast the quality processes of Starbucks with Costa Coffee ..............................12
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
APPENDIX ...................................................................................................................................20
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Illustration Index
Illustration 1: 5 S principles of quality..........................................................................................14
Illustration 2: Gap analysis................................................................................................................
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1. INTRODUCTION
Starbucks is an eminent coffee company and coffee house chain operating in 23,768
locations worldwide. The company serves wide range of coffee products in the form of hot and
cold drinks, micro ground instant coffee and whole-bean coffee. The mentioned series of product
line is entitled as espresso, caffe latte, VIA and even Teavana tea products. The coffee enterprise
also serves fresh juices, snacks, pastries and beverages to their respective food lovers. Many
stores offer pre-packed food items, hot and cold sandwiches along with mugs and tumblers. Even
Starbucks-brand coffee, ice cream and bottled cold coffee drinks are also sold at grocery stores.
Operational management concept helps the mentioned business entity to serve good quality of
products to target customers.
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For the present study Starbucks store in London location was selected and analysed in
order to attain effective service and operational analysis.
 Location: The small store situated on 126, Baker's Street Marylebone London was
selected for the present study. Ownership of the business: Starbucks is the public company whose ownership is
dispersed among the public through share that are traded over the counter markets. Layout: The traditional appearance and modern equipment’s made the selected site a
popular and crowded place. Capacity: The shop could accommodate 50 guests at one point of time and has arranged
extra seating for additional 10 after that.
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Illustration 1: Starbucks Baker's Street

 Customers: Starbucks is having the wide stream of customers around the globe. Its prime
focus is on the men and women belonging to the age group of 25-40. Further, it has up-
street and elite people in its customer base due to its high prices.
 Services offered: It offered full range of products including beverages, snacks and juices
to its consumers. The place was reviewed as cosy and organised by the consumers.
2. How operation management process support Starbucks shop
Operational management process are the crucial part of business activities. It helps in
transforming input into output using effective measures and approaches for the business. This
helps in developing output to sell out the final product in the market. Different measures are
adopted by the companies to attain effective and well developed business results. These
measures include total quality management method, just in time method, six sigma method etc.
every process has unique purpose and objective. It has helps business units in organizing
business operations and control organizational cost for business growth. (Refer to 7 waste model
in Appendix (A 2))
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