Comparative 4 Vs Analysis of Starbucks and Greggs

This document provides a comparative analysis of Starbucks and Greggs in terms of variety, volume, variation finding, universalizing, and individualizing. It discusses the performance objectives and design of both companies. It also explores the operational zone, international strategy, and external environment of Starbucks. Additionally, it highlights the capabilities, requirements, and challenges in supply chain management. The document concludes with an analysis of the business growth and operational area of Starbucks.

OPERATIONS MANAGEMENT AND SERVICE EXCELLENCE

Part A
Comparative 4 Vs Analysis
In the light of these four comparative studies, the variance, quantity, variability detection,
universalizing and individualising will be discussed.
Variety
Although Starbucks and Greggs are boasting about their respective products, they are trying to
keep their respective goods and services separate from each other. Though Greggs as well as
Starbucks seeking to maintain its company in its locality, they required to obtain some bakery
can be without difficulty fulfilled. While examining the variety offered by both companies, the
high quality roast coffee much of the time has been evident to the particular purchaser. At the
other hand, it was important to distinguish oneself from others by having an accessible menu for
vegetarians and the non-vegetarian.
In fact, Greggs provides a wide variety of drinks for the consumer to hold options. We always
seek to retain the offerings that make them distinct from the other supermarket, apart from
retaining differences in the menu.
Figure: Greggsfood launch
(Gupta, 2016)
Volume
Starbucks was clearly the most successful coffee shop in the UK, and it was appealing to
premium coffee drinkers, which first raised the coffee shop's selling volume by 6. Greggs is,
though, still the UK's biggest bakery chain. While it is primarily specialized in items like bakes,

rolls of sausage. The London stock exchange was also listed the company and the FTSE250
Index was incorporated.
Public are, however, mostly drawn to coffee for food and so Starbucks typically makes a bigger
income. Customers under 20 years of age, though, are mostly Greggs. This is critical that the
stores represent a variety of customers around the boundaries of both markets as compared with
sales volumes. The rivalry between the two separate firms thus remains strong.
Variation finding
While Starbucks concentrated on marketing, it was clear that its newly processed food and
facilities for its clients became one of the most respected stores. The variety, which Starbucks
primarily serves, draws more customers. Mainly due to the powerful dream and the company's
purpose the differences are found in them. In addition, the supply chain Greggs is one of the best
components for finding variations in the company. Consumers effectively demanding brand new
offered menus of foods items.
Universalizing
Starbucks be accepted internationally, but still runs abroad and so similarities can be influenced
with Greggs. Greggs has been seen to function internationally and so its existence in the United
Kingdom might be impacted. So, for overcoming from competitive type of weather, this is
essential for the organization to be unanimously embraced.
Individualizing
One of the effectual ways to individualize respective organisation is, they runs independently.
Organization was able to pursue tactics to gradually show its individualism with the aid of the
segmented industry. On the opposite, the change of Gregg from the cafe to the bakery farm has
demonstrated their clients’ value. So, entity has ultimately achieved the distinctive perception of
their customer.
Furthermore, this is evident with context that Gregg is primarily like Starbucks by way of this
article.

Figure: Starbucks Growth
(Sources: Waikar, 2017)
Comparative analysis of performance objectives
Starbucks as well as Greggs Polar diagram
Both businesses are versatile, cost-efficient, operation, goods as well as efficacious into its
current operational performances.
Figure: Polar Diagram of Starbucks and Greggs
(Sources: Nwankpa, 2015)
Objectives of the operation performance
The company's numerous organizational goals contribute to efficiency, expense, resources and
versatility that improve the company's output for retaining client.
Operation Starbucks Greggs
Quality Starbucks quality control
organization specializes in product
consistency in order to please its
clients. One of the most critical tasks
For the drinks that it offers in the market,
Gregg s has always earned a position
within the dynamic industry. This is
determined that the Greggs apply raw

of the firms however is to preserve
the consistency of their goods so that
they can keep existing clients and
ultimately acquire new clients
(Nwankpa, 20157). Starbucks was
known as first businesses for using
that utilise coffee beans standard
quality to preserve the food
experience of quality which the
consumers would still enjoy in the
future.
material of standard quality, used in the
development of the beverages. This is
done mainly to minimize production
costs. Nonetheless, customers are happier
and thus more inclined for opting
Starbucks than the Greggs did.
Cost Starbucks primarily used high quality
goods and the expense is thus fairly
small. But Starbucks 'coffee beans
are of high quality, which will protect
the health of the individual. Through
increased product efficiency, the UK
and other parts of the world continue
to become profitable.
For its manufacturing cycle, Greggs uses
primarily low quality raw materials. It
hindered the individual's safety, which
later hit the framework of the
organization. Thanks to its inexpensive
goods, buyers such as students and the
low competitive classes are primarily
drawn. With inexpensive food goods,
though, it seems that the organization is
able to consistently gain its modest
income.

Services The client acknowledges the service
rendered by the company in a sooth
manner. Nonetheless, not only the
client, but also the staff are happy
with their services. The well
developed services would recruit
more workers, thus growing the
degree of productivity of cafe.
By competition among Starbucks, prices
offered mainly through organization are
cheaper. However, since the facilities are
provided exclusively to the customer, the
business offers little better service. This
may also be mentioned that the
corporation wants to strengthen the
service policies of the enterprise.
Flexibility The most agile business you will also
learn. Starbucks 'versatile character
has built itself on the market from
unconventional technology to jobs. In
other nations, it was also able to
develop itself.
Nonetheless, the firm works in a dynamic
market; it also does not have much
versatility within the business. It is unable
to handle the multiple challenges of
maintaining its client base.
Strategies The company's management creates
different approaches to be pursued
through the crisis. Competitive
approaches, pricing strategies and
promotion tactics have also been built
to both draw and retain consumers.
The company did not develop such
strategies that could ultimatelyoverawed
the organizational disadvantages.
Analysis of Design
Consumer service procedures design
For the last couple of duration Starbucks has considered to be well known and famous coffee
store.. With the support of their offerings, and was become competent for developing themselves
into major competition industry. The client appreciates the product provided and thus most of the
consumers enjoy it. Thus, the several practices are performed through last research have been
acknowledged for the beneficial effects upon goods. Also, staff plays crucial role within

company, initiating from products quality to clients care. Furthermore, entity’s sales policy keep
eye upon new clients.
Greggs, while other hand, created fresh food menu that will able to develop the tastes as well s
preferences of potential clients. The above-noted process would also allow corporation to deal
with downside in much effectual way, so that it interacts together with its rivals to identify new
business patterns. The effect of the customer relations cycle has also led the two firms to provide
foodstuffs for the different populations.
Store layout
Starbucks was one of the easiest ways to communicate for reducing environmental effects. The
café is built to encourage consumers to discover its history, too. It is obvious. The coffee beans
selected have been harvested to please the customer. The shops are the trendiest and the clients
that might appear in shop for initial period is welcome. This utilises mainly light, regional
furnishings, that is convenient to consumer for utilise in the business. It has mostly been so built
that the concept of creativity inside coffee shelves can be discussed fairly. At the other hand,
Greggs is now undertaking renovations of the store architecture to cope by another cafe within
region of UK.
Figure: Worlds coffee portal
(Sources: Nwankpa, J2015)

Part B
Overview
Operational Zone
The Starbucks organization utilises automatic management of supply chain process in general.
This considered so as to respective entity invests into actions as well as procedures of supply
chain management. By using the firm's integrated process, it works directly with the world's
three 00,000 coffee growers. Starbucks claims it would positively help to protect all systems that
are successfully controlled if the contact with farmers can be improved. Thus, all the coffee
beans which are obtained have similar kind of steadiness as well as basic flavour.
Scope
 The firm like Starbucks has developed some important fundamental logistics technology
which will enable them for maintaining, coordinate as well as operate by the
international network.
 The Starbucks has been active within supply chain management process
 Scope and size of operation of the company have created a more difficult procedures of
supply chain management.
Strategy of international strategy as well as external atmosphere
Strategy of international operations
Few of huge benefits of businesses while they go starting home to abroad as they can produce
more profits from acquisitions. The Starbucks Company has generated a great deal of revenue
out of the international investment. Therefore it means in general that the company Starbucks has
recognized that the strengths and skills of existing industry rivals have many advantages and
opportunities. This shows the saturation on the current market in which the Starbucks Company
has experienced markets of Japanese by the creation of as well as joint ventures along with few
local retailers. Respective businesses were introduced into the new market by the mutual
agreement with the local employee. Some crucial moves have allowed the Starbucks business to

manage retail and to profit considerably from the local affiliate. The Starbucks Corporation
established around 600 shops within U.S in it new program.
External Environment
Macro environment forces
(Source: Path, 2018)
Political
 Bureaucratic problems for the emerging countries
 Increased policy assistance to development
Economic
 Increasing labour costs among world suppliers
 The unemployment rate aredeclining
 The growth rate is high among developed countries
Technical
 The technology is passed to coffee farmers in the world
 The availability of domestic coffee machines
Economical
 The labour cost is rising
 The unemployment rate aredeclining
Socio-cultural
 The increasing rates of coffee culture

 Rising of the mid classes as well as raising a health awareness
Ecological
 Low rate of the coffee farms
Demographic
The lower educational rates among farmers
The coffee machines are available in the home.
PESTLE analysis
The political factors  The employment law
 Taxation framework
The economic factors  Local currency exchange rate
 The business condition
Socio-cultural factors  Preferential use.
 Change in job habits and relationships.
 Shift in community standards.
Technological factors  Innovative technology is evolving.
 Agricultural sector growth.
Environmental factors  Regulations and conservation laws.
 Global warming.
Legal factors Implementation of buy and sell as well as
inflexible conduct laws
Capabilities, key requirements, and challenges
Main Requirements
The key considerations of management of supply chain process comprise of the cost
investigation of shipping, logistics as well as third party contract manufacturing. While the
simplification process has made the company's industry more effective across this hierarchical

framework for the supply chain management operation. Following this process, Starbucks
concentrated upon minimising entity’s unnecessary expenses. Many provisions obligatory needs
continuous improvement of sales cycle as well as application of cycle of managing supply.
Thereby, generally it states that the respective firm has recognized their strengths as well as
skills of existing industry competitor have many benefits as well as chances.
Challenges
The primary challenges that have been fasces are the increasing rate of product prices and higher
pay rates. A more difficulty has been seen, as the coffee beans have influenced the Starbucks
margins with a higher coffee beans manufacturing. The whole process of managing supply chain,
like accumulating beans of coffee to coffee mug. A vibrant method of outsourcing was used to
promote techniques of managing supply chain, even though they has a direct impact upon a high
rate of inflation as well as cost of operating.
Abilities
ability, engineers, contractor, sales administrative, supply chains manager as well as logistics
management have main competencies for person into the company of Starbucks. A technique for
knowledge evaluation by presenting a variety of information is included in the system's
capability. The infrastructure is the Starbucks business and involves financial services,
productive planning and supply chain management activities.
Challenges
The business Starbucks faces two big obstacles within the procedures of supply chain
management: the change of climate as well as logistics. The company's supply chain strategy is
responsible for adjusting the cycles of rainfall and the colder temperatures. The warmer weather
has induced loss to coffee seeds and this higher coffee bean prices affect the company's margins.
The analysis as well as the evaluation of the operational area
In the worldwide market, coffee goods and coffee beans of high quality have been sold to
Starbucks Business. It is main tactics of entity for penetrating domestic as well as international
marketplace for remaining there. It is data which suggests that this organization marketplace
products in catching new demand during its business-oriented trade shop.

Business growth of Starbucks
(Source: Southey, 2017)
The figure above has illustrated the company Starbucks 'economic success both within national
as well as international marketplaces. The operations concentrate upon years 1971 to 2010 was
used into model. To order to assure consistency to procurement phase, the organization approach
for the management of supply chain requires a certain diversification of the provider. After 2010,
the company's business expansion on the market continued effectively until recent years.
Starbucks businesses are accredited to offer the highest standard of their merchandise and
services to their clients, within coffee of Starbucks as well as Farmer Equity (SCFE) scheme.The
corporate control of the Starbucks business was developed in unique decision to match the
group's luxury brand with any clear and consistent level. This group used a robust management
structure so that the company's decision-making process could contribute to the operational
goals.
Starbucks is very effective in its operation and efficiency, which can be seen in many countries.
By using the design method to meet variability dependent on consumer demand, they have
optimized their efficiency. These management processes are very flexible and adapt the staff in
order to meet the required demand. With the simplicity of workflows, Starbucks was designed to
improve the cost-efficiency of the enterprises. Mostly, it focused mainly upon urban region
because residence of rural does not has cafe at ease. The aggressive clustering of the stores was
used by Starbucks to raise market share and raising the price levels in the new sector. The

operational management of the company only emphasizes the rich customer in order to obtain
the premium services. This specific area has been demonstrated in this decision area.
The architecture of the business used by Starbucks maximizes the performance of workflow.
This architecture approach has maximized the company's room usage to give customers quality
service. The activities of the company give preference to customers 'space usage interactions in
the broad area of decision making. For choosing and prioritising vendors, the organization
utilizes software Coffee and Farmer Equity (CAFE). Many legal principles that have an focus on
sustainability have been implemented in the programme. Operational management combines
such corporate responsibilities as well as principles with the flexibility of the supply chain into
the particular decision of business field. The firm's plan for particular management supply chain
includes suppliers’ diversification so that the delivery cycle is secure.
Recommendation
Essential improvements
1. The most important issues discussed above are pollution problems, economic concerns
and another enterprise problem. Organization will minimise emissions of carbon within
region through utilising eco-friendly mug. It is quite significant from the time when the
Environmental Protection Act 1986 involves stringent norms as well as legislation.
Starbucks is able to enhance effectiveness of sales upon marketplace through its emphasis
upon improving food as well as offerings value. You will also focus upon managing
wastage as these are huge concern of entity. We should have to utilise or set out of eco-
friendly items with help of the approach that do not impact atmosphere. The challenges
may be avoided through incorporating these undertakings as:
 Utilisation of eco-friendly protect goods as well as recycling
 Focus upon the handling of products utilised all through the manufacturing
process
 Maintain the uniformity of offerings.
2. Organization involved whole appropriate pieces of business within creative procedure.
To order to best serve the consumer, the Starbucks organization will concentrate on

consumers 'interactions. Another problem in Starbucks is the use of high manufacturing
costs. This can be avoided through successful corporate strategy. Sleek growth, decreased
labour costs and decreased manufacturing costs are all included in these successful
approaches. A more difficulty has been seen, as the coffee beans have influenced the
Starbucks margins with high coffee beans manufacturing. Management of supply chain
protocol involves whole the essential processes, like sorting of coffee beans into cup.
3. The business of Starbucks is currently facing rivalry and there isn't any hope of opening
new outlets within marketplace. With current problem, diffusion of marketplace is slowly
rising other problems of shop cannibalization, while some mechanisms can quickly
mitigate that problems of market diffusion as well as cannibalization. These systems free
up
Conclusion
In addition, the company Starbucks insists upon the operation of the supply chain, efficient sales
plans and other operation methods. It was noted that the consistency of the goods on the current
market was also a focus of the Starbucks group. The company encourages consumers to share
their unique experiences and provide clients with quality offerings. Employees of entity facilitate
clients by improved items as well as affordable goods that boost corporate strategies.
Nevertheless, this approach aims to meet the corporate goals of other industry rivals.Starbucks
claims that it can help ensure the complete control of the supply chain by close contact with
producers.

Reference list
Alwaleed, N., Al Huwail, N.H., Singh, S. and AlMejhem, A., 2019. A Case Study on
STARBUCKS.Journal of the community development in Asia, 2(2).
Aversa, P., Furnari, S. and Haefliger, S., 2015. Business model configurations and
performance: A qualitative comparative analysis in Formula One racing, 2005–2013.
Industrial and Corporate Change, 24(3), pp.655-676.
Ballam, R., 2016. British Nutrition Foundation Healthy Eating Week 2016.Nutrition Bulletin,
41(3), pp.283-289.
Berger, K.A. and Blake, L.J., 2016. Starbucks Enters India: The Indomitable Competitor or
Underdog?.Journal of Case Studies, 34(2), pp.75-91.
Gupta, P., Nagpal, A. and Malik, D., 2018. Starbucks: global brand in emerging
markets.Emerald Emerging Markets Case Studies, 8(4), pp.1-22.
Honack, R. and Waikar, S., 2017. Growing big while staying small: Starbucks harvests
international growth.Kellogg School of Management Cases, pp.1-22.
Karlsson, J., Cetino Salazar, C.M. and Yao, X., 2019.Tea Marriage of Starbucks and
Teavana.LBMG Corporate Brand Management and Reputation-Masters Case Series.
Koch, L., 2019. Starbucks Espresso Drinks: More Than the Average Cup of Joe. Journal of
Renal Nutrition, 29(1), pp.e1-e4.
Marcia, A., 2018. FACTORS INFLUENCING PURCHASE INTENTION OF GENERATION
Z AT STARBUCKS KEMANGPRATAMA BEKASI (Doctoral dissertation, President
University).
Nwankpa, J.K., 2015. The Effect of Service Quality and ServicescapeTowards Customer
Satisfaction, Starbucks Coffee, Jakarta.TRJ Tourism Research Journal, 3(1), pp.56-70.
May, K., McAlinden, F., Splawa-Neyman, M., O'Rourke, M. and Sturgess, T., 2017.
Flexible, capable, adaptable: a dynamic allied health workforce.Asia Pacific Journal of
Health Management, 12(1), p.25.
Nwankpa, J.K., 2015. ERP system usage and benefit: A model of antecedents and
outcomes.Computers in Human Behavior, 45, pp.335-344.

Parviainen, P., Tihinen, M., Kääriäinen, J. and Teppola, S., 2017. Tackling the digitalization
challenge: How to benefit from digitalization in practice.International journal of information
systems and project management, 5(1), pp.63-77.
Path, Y.Y., Lapian, S.J. and Rumokoy, F.S., 2018.ANALYSIS FACTOR THAT
AFFECTING PURCHASE INTENTION CONSUMER TO REDEEM ONLINE COUPONS
IN STARBUCKS MANADO TOWN SQUARE 3. JurnalEMBA: JurnalRisetEkonomi,
Manajemen, BisnisdanAkuntansi, 6(2).
Pölling, B., Prados, M.J., Torquati, B.M., Giacchè, G., Recasens, X., Saffarini, C., Africa, O.
and Lorleberg, W., 2017. Business models in urban farming: A comparative analysis of case
studies from Spain, Italy, and Germany. Moravian Geographical Reports, 25(3), pp.166-180.
Page 19 of 19
Purkayastha, D., Sahu, B., Seshaiah, S.V. and Tripathy, T., 2019. Can Starbucks Sustain Its
High Prices in China?.In China-focused Cases (pp. 103-118).Springer, Singapore.
Real, K. and Percell, H., 2018.Starbucks Corporate Social Responsibility Report.
Sholihah, P.I., Ali, M., Ahmed, K. and Prabandari, S.P., 2016. The Strategy of Starbucks and
it's Effectiveness on its Operations in China, a SWOT Analysis. Asian Journal of Business
and Management (ISSN: 2321–2802) Volume.
Southey, R., 2017. Competition and Collaboration: Concert Promotion in Newcastle and
Durham, 1752–1772. In Concert Life in eighteenth-century Britain (pp. 55-70).Routledge.
Talhelm, T., Zhang, X. and Oishi, S., 2018. Moving chairs in Starbucks: Observational
studies find rice-wheat cultural differences in daily life in China. Science advances, 4(4),
p.eaap 8469.
Tregear, R., 2015. Business process standardization. In Handbook on Business Process
Management 2 (pp. 421-441). Springer, Berlin, Heidelberg.
Vos, B., 2018. State Aid, Taxation & Transfer Pricing: Illegal Fiscal State Aid Granted
to Starbucks?.EC Tax Review, 27(2), pp.113-120.
Yee, J., 2018. The Effect of Disclaimers on Liability for Misleading or Deceptive Conduct
under the Fair Trading Act 1986.