Operations Management and Service Excellence

OPERATIONS MANAGEMENT
AND SERVICE EXCELLENCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Comparative Four Vs Analysis....................................................................................................1
Performance objective analyses...................................................................................................2
Design analyses...........................................................................................................................4
PART 2............................................................................................................................................5
Overview......................................................................................................................................5
Global operations strategy and macro environment....................................................................6
Key requirements, capabilities and challenges............................................................................7
Evaluation of chosen operational area.........................................................................................8
Recommendations........................................................................................................................9
Conclusion.................................................................................................................................10
CONCLUSION..............................................................................................................................10
REREFENCES..............................................................................................................................12

INTRODUCTION
Operation management is the process of business practice that creates high level of
operational efficiency that supports business in gaining competitive advantage in market. This
process involves using accurate raw material and ensuring that no wastage is taking place in
business unit (Chang, 2017). Firm has to inspect the entire process time to time to meet the
quality standards ad to eliminate issues related to quality so that operational efficiency can be
raised. Present study is based on Starbucks, it is the leading firm that is operating in more than 70
countries. It has employed 291000 employees globally and has generated income of 24.71 billion
in the year 2018. Its main agenda is to serve the quality food and coffee to consumers across the
world and satisfy their needs (Åström And et.al., 2018). It aims to use its supply chain system in
effective manner so that it can provide high quality goods to wide range of buyers globally.
Present study will conduct four Vs analyses and will prepare performance objective of business
unit. It will explain quality management operational area of Starbuck and its effectiveness to
raise operational performance of company. Study will evaluate the challenges faced by firm and
will describe ways through which it deals with macro environmental factors.
PART 1
Comparative Four Vs Analysis
There are four V’s that helps in explaining difference between business processes in o e
way or the other. These four V’s of operation management helps in explaining and
differentiating business processes of different organizations (Slack and Brandon-Jones, 2018).
Four V’s of operation management are: Volume, Variety, Variation and Visibility (Ivanov,
Tsipoulanidis and Schönberger, 2017).
Four V’s analysis comparison of Starbucks and Greggs is as follows:
 Volume: Starbucks produce large variety of specialist items in order to satisfy needs and
demands of their customers. Their volume of production is quite low as they provide variety
of food and beverages items because of which their overall cost of food and beverages is
quite high. Volume of their operations is one of the main keys for their success (Åström And
et.al., 2018). They have specialized staff members and machinery in order to increase
efficiency of their operation and meet needs and requirements of their customers. Whereas,
Greggs is a Bakery store chain present in UK (Chang, 2017). They provide large volume of
products to their customers in lower price. Each of their staff members completes wide
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variety of task so that they can produce large volume of products in lower cost (Åström And
et.al., 2018).
 Variety: Greggs do not produce large variety of food products but they do product excellent
quality of lower price food product. They have a fixed variety of food products. They do this
in order to provide excellent quality of food and beverage products to the customers. their
lower variation in products, excellent quality and lower prices helps them to attract a greater
number of customers (Siew and et.al., 2018). Whereas, large variety of food products and
services are produced by Starbucks and are sold to customers. This large variety of food and
beverages items produced by them helps them to match and fulfil needs and requirements of
their customers.
 Variation: Starbucks provides large variation of products. variation within their products is
mostly seen in terms of size and cost of the products as per the needs and requirements of
their customers. Size and price of their products do vary but there is no variation within
overall quality of food and beverages products produced and sold by them. Whereas, Greggs
do not have large variation within their products. They do provide large variety of products
but with least variation within their size, amount and quantity. Most of their food and
beverages products are in standard size (SUN and LIU, 2019).
 Visibility: It focuses on level of organizations processes that are experienced by the
customers (Slack, 2018). Visibility of Starbucks is quite high i.e. they can see and experience
their drinks or food items being made and served to them. Visibility of most of the products
of Starbucks is high as compared to Greggs. Greggs have lower visibility within their
products i.e. food or beverage items are displayed to the customers but customers cannot
experience making of their products. It can also be said that all the products are not produced
in front of their customers (Makos, 2017).
Performance objective analyses
Greggs is considered as largest chain of bakery that offers sandwiches, sausages etc. It also
operates in coffee serving sector. Starbucks is the main competitor of firm. Main objective of
Starbucks is to speed its product delivery process and enhance quality of inventory as well.
Speed and flexibility are the main performance objective of business unit (Åström And et.al.,
2018).
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