Operations Management and Service Excellence

Operations
Management and
Service Excellence

INTRODUCTION
Operation administration is a process which is possessed with the activity of preparation that
can be used to increase further profit margins. It is basically an act that uses for computation of
accessible assets in a corporation in more efficient way. This written document is supported to a
international coffee chain which is operating its business in estimated 81 nations and also have
around 30,000 stores that are situated crosswise the globe. Gordon Bowker and Zen Siegel are
who direct the foundation of Starbucks (Wirtz and Zeithaml, 2018). In this report two companies
Starbucks and Greggs have been appropriated in to deliberation. In first part, the document will
define 4V analysis, qualified performance and design analysis. In second part, the description
will consider behaviour on global strategy and different outside environmental factors that affect
Starbucks. Moreover, diverse postulates, situation and ability also define. Supply chain
administration as a procedure is chosen and unregenerated in this document.
PART A
Comparative Four Vs analysis
The describe examination is the study with the assist of which it is potential to form the
changeover of each resources and substance in an amentiferous outcome and these has been
confidential into four factors. The announcement is a accurate that each business needs to have
common factors for the efficacious performance of the venture like raw substance, instruments,
machinery, finance and others and also which will be transformed in to completed goods as well.
These four components are viability, volume, variety and variation. These components provide
their clients and the firm as well with the assessment and also generate effectiveness in work of
their procedures as well. With the assistance of this, it will be potential to formulate the
attainment of the objectives and aims of the enterprise to be potential (Dharamdass and
Fernando, 2018). The value of this examination will also be offered in reference two diverse
ventures that are Starbucks and Greggs.
Four Vs Components Greggs Starbucks
Volume In reference to Greggs, the
company desires to make
improvement in production as
the firm wants to increase the
It is the first and foremost
component of this analysis and
importance of this is that it
associates to the low cost and
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profitability in respect to
increase their market share
and profitability. The
respective venture help in bulk
of manufacturing that will able
to increase the manufacturing
and minimise their per unit
cost of production (Padma and
Wagenseil, 2018).
high production. Apart from
this, it states that the company
should produce high quality of
goods and services along with
low cost of production. This
could only be possible when
the firm form manufacturing
on high level. With the help of
making bulk production, the
administration of the firm can
reduce their per unit
production cost.
Variety In Greggs, it is essential to
devise improvement in range
of their food items and
provide their customers with
diverse forms of commodities
and services so that they can
provide satisfaction to their
needs and favourably
influenced in term of getting
more with their requirements
and demands (Krishnaiyer,
Chen and Bouzary, 2018).
It is another factor which
related to introduction and
awareness of new goods and
services by the company with
the help of which it will be
potential to provide the
customers with innovative and
a range of products and
services that will assist in
serving the venture customer
base and gaining more profit.
Variation It is the third feature of this
examination which mentions
that to influence a large
customer base, administrator
of respective company require
to consist of some new taste
and components in their
As per this component,
managers need to include
differentiation in their goods
and products. In reference to
Starbucks, administrators
generate one of a form
highlights in their existing
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current food items. It will help
in drawing number of
consumers regarding the firm
(Reid and Sanders, 2019).
commodities which are
offered by them. Accordant to
this, it need advancement just
as innovativeness in their
existing commodities and
endeavours.
Viability It is the last component of this
analysis in which potential
clients will have the option to
appropriately noticeable the
items and administration
offered by them. In this
specific condition, Greggs
have their corporal stores
where they offer their essence
things to the shoppers in a
conventional method.
It is the component in which
consumer will have the
alternative to follow the
demand put by them within
predetermined time duration.
It is a tool which should
grabbed by the managerial
team of Starbucks. For instant,
if an individual place their
request by utilising online
source, they can without much
stretch distinguish the existing
area of their goods.
Comparative performance objective analysis
It can be mentioned that there are different motives which have to be considered by the
corporation and also accepted by senior establishment of the both companies. The company
always make it main focus on its workforce because they ate the main resources and most
effective factor of production in each company. Some of important performance of purposes is
described as under:
Quality- In perspective of Starbucks, they have to preserve high extent superiority so that
they can capable to draw amount of customer and hold them for a long term phase. The respected
company has a disconnect division of quality administration that helps them in preservation and
development of superiority (Kerzner, 2018). In Greggs, they mostly agreement in bakery goods
that help them in maintaining superiority of their goods so that they are having a good location in
marketplace.
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Cost- In Starbucks, the mainstream of the monetary value is with considers to their raw
substance which is in the form of coffee beans that the major component which used in
manufacturing of commodities in the firm. They make efforts to minimise this finance so that all
over production level can be maintained of the venture. In Greggs, the price is related with raw
substance requires of this venture to from bakery goods (Holweg and et al., 2018). To minimise
their all over cost of manufacturing of this corporation require focusing on mass manufacturing
of ample amount of production so that whole rate can be protected.
Flexibility- This component is anxious with speediness and elasticity these two aspects are
extremely linked to each other. In Starbucks, managers have to be extremely negotiable so that
can capable to alter themselves and their polices accordant to changes circumstances and
situation of macro atmosphere. This has a main influence on respective company as whenever
they are expanding into a new nation those product has to accept them with the civilization of
specific nation. In Greggs, it will be effective for this venture to accept themselves with different
marketplace needs so that they are capable to endure for a long term time duration.
Speed- It is a component that is associated to client cognitive inside as for how much a time
a specific consumer has to stay in a store determined that the extent of fulfilment attained by that
client. Starbucks has efficiently able to install a system that is serving in reducing the coming up
time which initial from their order to the finished good being observed by the target audiences.
This has lead to increase in satisfaction level of their potential clients, In Greggs, management
posses’ effective tools of conversation that assists them in growing and maintaining their stage of
effectiveness.
From the above mentioned factors are essential to the company because by adopting them,
the firm can be able to maintain its extent of sustainability and survival or maintain its reputation
in competitive marketplace (Lee and Tang, 2018). It is also assist managers in attainment of
gaining rivalry edge so that objective and aims can be attained in proper way.
Design analysis
Impact on design of customer service process
Customer service mentions to the service which is offered to number of people in term of
assisting them so that they can be ready how to use a particular product. It is effective i all over
process that is opening from conniving, using, improving and restoring and discarding of
different goods and services, Customer service is a division that deals with different
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organisation’s aims and objectives to maintain the level of satisfaction of it potential customers.
In Starbucks, It is needed that the management team is providing services previous to and after
purchase which can help in maintaining the fulfilment stage of clients. Such as this company is
captivating frequently reply and reassess from their consumers so that they are performing
purposes as per to their demands and opportunities only (Gunasekaran and Subramanian, 2018).
In Greggs, the management of the organisation is using this tool so that they can have a positive
impact on their attitude which leads to reaped appointment and constructive world of mouth
advertising by their faithful potential consumers. With the assistance of such customer demand
and response of target audiences, managers can create their commodities which will help them in
holding of clients for a extended time frame.
Impact on design of outlet layout and flow
It is a demand that every company have an appropriate propose and effective
manufacture so that they can attract quantity of customers with the help of their shop design.
Corporeal and online outlets can help in getting attention of consumers and then in preservation
of notoriety in marketplace. In Starbuck, the firm is having different physical retail outlet which
they are using to attract number of individuals. They are having a shop design that are differ and
exclusive from their other competitors and this is extremely help them in form of providing a
different and best atmosphere to their potential client.
In Greggs, managers are managing in bakery products which they are having survival
online and offline plate forms. It is crucial for the firm as it help in obtaining a competitive
advantages and attainment of entire success and development.
PART B
Overview of the organisation
Quality administration is a system and method that is utilised by the firms to administrate
the excellence of the goods and services which are offered by the company to its target
audiences. In Starbucks, it’s also used by the management for the management of superiority of
those goods which are provided by it to its consumers (Franceschini and Mastrogiacomo, 2018).
It is a purpose which is provided by it to its consumers. It is a utility that concurrences with
controlling excellence, development in superiority and is also concentrating on preparation all
the factors which are greatly required for keeping all over class of commodities.
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Global operations strategy and macro environment
Starbucks is a top organisation and they are having a continue improvement all over all these
year since their incorporation. As this corporation is ongoing profitability the main approach
which this firm is using is the preserving of consistence in their goods which is helping them to
retain their customer faithful towards them (Slack and Brandon-Jones, 2018). All over
development which Starbucks has practised through these years arbitrates that how qualitative
they have formed their effective plan and strategies that can help wrestle with their different
rivalry firms. Quality administration is a large and effective tool that has been used by respective
firm for maintaining their profit. Expansion cross wise different countries is a task that requires
lot of components which has to be engaged in to deliberation and there are different issues which
are described as under:
Technological changes- Starbucks has lot of development and development opportunities in
term of technological advancement that can helps in more effective way in on the whole
procedure of this firm which will lead to increase their marketplace size and share or
maximisation of price that will express to make improvement in income.
High economic development- It is a extremely high economical growth in different division
in the globe which will lead to further development opportunities for Starbucks because they
penetrate such countries and it can help them in having superior proportions of profitability.
As per above motioned content, some of the points which is very essential for respective
firm both in positive a well as negative form and thus supported to company that how to deal
with such kind of situations and conditions.
Key requirements, capabilities and challenges
Key requirements
In case of superiority preservation as a tool which is the mainly critical requirements and
requirements are described as below:
Product based view- The administration of the company must use goods maintained
observation so that they are able to maintain the excellence modular (Carvalho and et. al., 2019).
It is essential so that quality can be scanned because components can be precised. It will be
appropriate help as measure elements can be resonanced and accomplished in easy way as
compare to qualitative factors.
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Value based view- It is also an observation which is related to purchasing behaviour of
individual. If Starbucks will be capable to offer goods in effective superiority module then it will
assist them in offering necessary worth to their clients (Um and Lau, 2018). It will help them in
accepting the goods accordant costs at which they are get by respective firm. When target
audiences will experience more and augmented worth then it will guide to improve the
representation of Starbucks.
Production based view- In this, effectiveness have to developed by Starbucks by keeping
value since their intrinsic stage which is manufacturing of merchandise. This technique and tool
which help in acceptance of efficient class in the manufacturing a segment itself. It will lead to
paramount feature in the faunal product which is serving its products to its target audiences.
Challenges for Starbucks
There are different challenges that are faced by Starbucks, some of them are defined as
under:
Global evaluation system- There is a want that there has to be system in which the all over
feature across all their stores which are survive all over globe are desirable that can help this
firm in maintain a permanent value of its commodities in its all trade outlets. It is a major
problem because it becomes extremely critical to manage a range of store and class of goods to
be comparable as much time there has to be modification one base completed civilization
difference and direction of consumers common in different countries.
Continuous evolution system- There has be a system which can be used management of
superiority department of the company. worth administration is not a onetime performance or
activity but this is a purpose which has to be approved in the company in continuous manner.
This process as a large issue because there is a lot of assets in forms of financial and human
resource of the corporation that the company has to continually spend so that their entire activity
of value preservation is taking place.
Same providers internationally- It is another challenge that is faced by Starbucks due to
same raw material providers all over world (Berenguer and Shen, 2019). Because there is a need
that same suppliers are providing required material to each store so that all outlets can offer
similar products and managing the similar value principles by Starbucks in their products.
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Analysis and evaluation of chosen operations area
As per above mentioned data it can be concluded that for Starbucks, worth is most crucial
factor and significant feature which is utilised by this company so that they are capable to draw
number of individual and capture a large market size and share (Prashar and Antony, 2018).
Many actions are performed by this venture which helps them in attainment of their aims and
objectives. They are setting time period of 18 weeks each year by appointing different coffee
providers and growers to assure that the coffee beans which they fabricating and manufacturing
are as per mandatory superiority units of Starbucks. Assessment of current process of worth
improvement in case of the particular firm is acceptable maintained on below explained tips:
Consideration of quality and cost- In Starbucks, the administration of the organisation is
administrated the commodity’s worth in effective way by also having price manage which
positions they are expanding their resources in a way in which they are able to use them in most
constructive manner. It leads to organisation of efficiency in all the functions of the company in
all the purposes of the venture and attainment of their profit margin.
Commitment- By making comparison with competitive firms, it is determined that the
commitment level which Starbucks has rarely seen in companies. All their stakeholder including
capitalist, creditors, administration and workforce etc. are having a very powerful level of
commitment in term of attainment of their goals and objectives. It is a favourable component of
this firm which devises it feasible for them to accomplish their goals in granted time duration.
Improvement of strategies- Starbucks has for all time been very concordant in formulating
plan and policy to maintain the value so that they are offering veritable services, appealing
impression and quality commodities which are capable to satisfying customers and anxiety and
requirements.
Systems of random checks- Starbucks is a fine recognized company which is using a system
of casual confirms that is finished by different region managers where they are accountable to
confirms the baristas, collecting data from diverse clients, fetching comment from them and
examination food and drink item (Bouranta and et. al., 2019). So that they can effectively make
sure that the necessary value is being preserved in exacting retail outlets.
Achievements- Administration and maintenance in quality standard is a characteristic and
feature that is used by Starbucks to capture a big marketplace size and share. The particular
company has been able to attain a good brand image in the market cause of efficient worth of its
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goods and products. They have achieved number of respected honours and also documented as
best coffee reason of their value extent that they are administrated in their products.
Exceptional quality of raw material- The administration of Starbucks used outstanding
superiority of coffee beans so that their customers can familiarity a particular and better taste of
coffee which is poles apart from other comparable rivalry firm (Hussain, Edgeman and
Eskildsen, 2018). It is a diversification plan which is accepted by Starbucks so that they can have
a specialisation benefit to maintain aggressive marketplace.
Segmentation of market- It is one of system and method which is used by Starbucks in
which they are annoying to enlarge their intention marketplace and supported to that they focuses
on their diverse goods. The originator of Starbucks for all time develop endeavour that there are
carrying excogitation ideas which can help the venture in increasing collection of their goods,
tactical excellence thoughts, this coffee firm is presenting no decrement in their profitability and
it is also presumed that they will be able to productively feel another successive sales
enlargement and expansion of the firm annually.
This has been analysed that above mentioned information supported on entire evaluation of
Starbucks which the firm is doing in reference to attain their excellence levels and then maintain
in the market while administrating their productivity level for a extended phrase period.
Recommendations
There are diverse suggestions that are urbanized by examination of over described factors
like:
 The firm needed to accept some of the forces when there are numerous clients which are
impacting their trades. This type of development in the superiority of product will help
the respective company in recovering their values and processes of logistic and provide
sequence.
 The entire demand to clients has to create improved so that they are capable to augment
their trades and revenues (Lasrado, 2018). It is a tool which helps in having a division of
person who are knowledgeable, cultured and technically concerned in having a big base
of target audiences. It will be helpful to improve the whole brand picture of Starbucks.
 superiority is administered and uphold in Starbucks but it is not sufficient so there is
require that arrangement which are effective for continuous development and can be
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accept by venture to have a reliable worth in their entire trade outlet across the world
(Wirtz and Zeithaml, 2018).
CONCLUSION
This has been summarised from the preceding defined information that there are different
factors of the company which is related with the management and process of organisation’s
processes. There are different features that are having an influence on all over performance of the
company like action of provide sequence administration, improvement and administration of
quality principles. These results can be in term of positive and negative brand position of a
particular brand. Quality administration is an act that is most crucial for organisations in
improving their operate name picture and also for transport of their uses in a more effective
manner. So the entire aims and objectives can be attained by the company in effective and
efficient manner in granted time duration.
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REFERENCES
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