Quality Management in Starbucks: Key Requirements, Capabilities, and Challenges

This assignment focuses on quality management in Starbucks, analyzing its key requirements, capabilities, and challenges. It explores the four Vs analysis, comparative performance objectives, and design analysis. The report also discusses Starbucks' global operations strategy, macro environment, and recommendations for improvement.

Operations Management
and Service Excellence

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
Comparative Four Vs analysis....................................................................................................1
Comparative performance objective analysis.............................................................................3
Design analysis............................................................................................................................4
TASK B...........................................................................................................................................5
Overview of the company...........................................................................................................5
Global operations strategy and macro environment....................................................................5
Key requirements, capabilities and challenges...........................................................................6
Analysis and evaluation of chosen operations area.....................................................................7
Recommendations.......................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation management is an activity which is obsessed with the procedure of planning
which can be utilised to accomplish more profitability. It is generally an activity which is utilised
for computation of available origins with an organisation in a more efficacious way. This
assignment is supported on an international coffee chain which is having presence in estimated
80 nations, also they have around 30 thousand outlets situated all over the world. Gordon
Bowker and Zen Siegel are who direct the foundation of Starbucks (Bendoly, van Wezel and
Bachrach, 2015). In this written document two organisations Starbucks and Greggs have been
appropriated into consideration. Firstly 4V analysis is finished then there is comparative
execution and design analysis. In the second section of the report there is treatment on the
international plan of action and several external environmental components which effect
Starbucks are unregenerated. Apart from this several postulates, situation and ability. Supply
chain management as a procedure is chosen and unregenerated in this report.
TASK A
Comparative Four Vs analysis
The define analysis is the analysis with the assistance of which it is possible to form the
changeover of every assets and raw material in a amentiferous result and these has been
categorised into four components. The statement is accurate that every business needs to have
some common components for the effective working of the company like material, instruments
or equipments, finance and also which will be transformed in the final commodities as well.
These four factors are visibility, volume, variety and variation. These elements offers their
consumers and the firm as well with the value and also generates effectiveness in the work of
their procedures as well (Calabrese and Corbò, 2015). With the assistance of this, it will be
potential to devise the accomplishment of the aims and objectives of their company to be
possible. The efficiency of this analysis will also be offered in context of two diverse companies
which are Greggs and Starbucks. So the explanation of diversification is defined as below:
Four Vs Components Starbucks Greggs
Volume It the first facto of this analysis
and the essentialness of it is
affiliated to the low cost and high
In context of Greggs, the
organisation desires to form
development in the extent of

manufacture. On the other hand, it
states that the organisation should
manufacture high quantity of
commodities and services in
addition to low cost of the
manufacturing. This could only be
possible when the firm devises the
production on higher extent basis.
By bulk production, the
management of the company can
minimise their per unit cost
manufacturing.
their manufacturing because the
organisation wants to maximise
the profitability in order to
maximise their market share
along with their profit margins.
The respective company assist
of bulk production which will
be capable to maximise the
production and decrease their
per unit cost of manufacturing
(Campbell, Jardine and
McGlynn, 2016).
Variety The next component is affiliated
to the introduction of new
commodities and services by the
firm with the assistance of which
it will be possible to offer the
consumers with new and diverse
kinds of trade goods and services
that will help in offering the firm
large customer base and more
profit.
In Greggs, it is crucial to form
improvement in range of their
food products and offer their
consumers with different kinds
of products and services so that
their fulfilment could be
favourably influenced and they
can be offered more with their
needs and desires (Campbell,
Reyes-Picknell and Kim,
2015).
Variation Accordant to this factor,
administrators require to consist
differentiation in their products
and enterprises. In context to
Starbucks, managers generate one
of a kind highlights in their
The third element of this
analysis states that so as to
influence enormous number of
customers, managers of the
respective firm require to
consist some new flavour or

current products which are
provided by them. According to it,
this require advancement just as
innovativeness inside their current
products and endeavours.
component in their existing
food commodities. It will assist
them in drawing in large
number of new customers
regarding their company.
Visibility It is the factor in which customer
will have the option to follow the
request put by them inside
stipulated time frame (Copacino,
2019). It is the technique that
should be grasped by the
supervisory crew of Starbucks.
For example, if a consumer place
their request by using online
source, they can without much of
a stretch recognise the current area
of their commodities.
It is the last factor of this
analysis in which target
audiences will have the option
to effectively noticeable the
items and management
provided by them. In this
particular situation, Greggs
have their corporal stores where
they provide their sustenance
things to the shoppers in a
conventional method.
Comparative performance objective analysis
It can be stated that there are various objectives which have to be followed in a firm and
also adopted by senior authorities of the both organisations. Main concentration of the company
is always on their workers as they ate the key origins and most crucial component of
manufacturing in each firm. Some of essential execution objectives are defined as below:
Quality- In reference to Starbucks, they have to maintain high level quality so that they
are capable to get attention of large consumer base and retain them for a longer term time frame.
Starbucks has a separate function of quality administration that assists them in maintenance of
and development of quality. In Greggs, they majorly deal in bakery commodities which assists
them in maintain quality of their commodities so that they are having a good position in
marketplace.

Cost- in Starbucks, the majority of the finance is with regards to there raw material which
is the coffee beans which the major product manufactured components of this business firm (Jaca
and Psomas, 2015). They devise attempts to reduce this fund so that all over productivity extent
can be retained of the company. In Greggs, the cost is affiliated with raw material needs of this
firm to devise bakery products. To minimise their overall cost of manufacturing, the
administrator of this organisation require to concentrates on bulk production or production in
ample amount so that overall cost an be preserved.
Flexibility- This factor is preoccupied with speed and flexibility these two components
are highly affiliated to each other. In Starbucks, administrator have to be very negotiable so that
they are capable to modify themselves or change their policies as per to changing circumstances
of external atmosphere (Kerzner, 2018). This has a main influence on the respective firm as
whenever they are entering into a new nation those brand has to accepted themselves with
civilization of the specific nation. In Greggs, it will be beneficial for this company in adapting
themselves with the diverse need of marketplace so that they are able to survive for a long term
time frame.
Speed- It is the factor which is affiliated to consumer cognitive content as for how much
a time a specific potential client has to wait in a store monitors that the extent of fulfilment
accomplished by that consumer. Starbucks has effectively able to install a method which is
assisting them to minimise the waiting time starting from their order to the finished good being
perceived by the consumer. This has direct to maximise in satisfaction extent of their potential
consumers. In Greggs, administrators posses effective tools of communication which assists
them in maximising and maintain their extent of profit margins.
Preceding defined are some factors which is assisting the firm in adopting factors so that
they are capable to keep their level of survival and sustainability or reputation in the rival
marketplace. It is also helping administrators in accomplishment of a rivalry benefit so that aims
can be attained in an effective way.
Design analysis
Influence on design of consumer service procedure
Customer service indicates to number of customer services which is utilised in helping
their consumers so that they can be prepared how to utilise a specific commodity. It is beneficial
in all over procedure which is starting from designing, utilizing, grooming, repairing and

disposal of several products and services (Lu and et. al., 2016). Consumer services is a segment
which deals with several company aims to hold the extent of fulfilment of their target audiences.
In Starbucks, it is required that the administration group is offering services before and after buy
which can assist in keeping the satisfaction level of consumers. Such as this organisation is
taking regularly response and review from their target audiences so that they are executing
functions in according to their need and expectations only. In Greggs, the administration of the
company is utilising this system so that they can have a favourable influence on their mindset
which direct to reaped visit and favourable world of mouth promotion by their loyal target
audiences.
With the assistance of such consumer need and feedback of clients, administrators can
innovate their products which will assist them in retaining of their consumers for a long term
period.
Influence on design of store layout and flow
It is a need that each firm must have an effective design and adequate construction so that
they can get attention of number of consumers with the assistance of their store structure.
Physical and online stores can assist in attracting clients and then in maintenance of notoriety in
the marketplace (Naser and Al Shobaki, 2017). In Starbucks, the company is having several
physical retail store which they are utilising to get attention numerous consumers. They are
having a store layout which is very unique from their other rivals and this is highly assist them in
term of offering a diverse and best ambience to their target audiences.
In Greggs, administrators are handling in bakery trade goods which they are having
existence online and offline platforms. It is essential for the company because it assist in
acquiring a rival benefit and acquirement of overall growth and improvement.
TASK B
Overview of the company
Quality management is an approach which is used by the companies to mange the quality
of the products and services which are provided by the firm to its potential clients. In Starbucks ,
it is also utilised by the administration to administrate the quality of those commodities which
are offered by it to its customers (Naser and et. al., 2016). It is a function which agreements with

dominating of quality, development in quality and is also focusing on planning all the
components which are highly needed for maintaining all over quality of products.
Global operations strategy and macro environment
Starbucks is a leading company of coffee and they are having an on going development
throughout all these years since their formation. As this firm is having continuous profitability
the main plan of action which this brand is utilising is the maintaining of consistence in their
commodities which is assisting them to hold their consumer loyal regarding them (Psomas and
Jaca, 2016). All over growth which Starbucks has experienced through these years meditates that
how qualitative they have devised their efficient plan of actions which can assist grapple with
their several competitive organisations. Quality management is a big technique which has been
utilised by Starbucks in maintenance of their profitability. Expansion crosswise various nations
is a tasks which needs lot of factors which has to be taken in to consideration and there are
several problems which are defined as beneath:
Technological modifications- There are lot of growth options for Starbucks as technological
advancements can assist in more efficient manner in overall operations of this company which
will direct to maximise in their market share and minimization of the cost which will direct to
increase in revenue.
Higher economic growth- It is a very high economic development in various sections if the
world which will direct to more growth options for Starbucks as they can enter such nations and
it can assist them in having higher percentage of profit margins.
Preceding defined are some of the points which is very beneficial for Starbucks both in
favourable and unfavourable manner and this based on the organisation how to deal with such
kind of circumstances .
Key requirements, capabilities and challenges
Key requirements
In case of quality maintenance as a technique the most essential needs are defined as
beneath:
Product based view- The management of the organisation must utilise product supported
view so that they are capable to maintenance the quality modular. It is crucial so that quality can
be prospected as factors can be specified (Reid and Sanders, 2019). It will be effective assistance

as quantified factors can be sounded and accomplished more easier manner as comparison to
qualitative components.
Value based view- It is also a view which is affiliated to buy determination of consumers.
If Starbucks will be able to offer commodities at adequate quality modular then it will assist
them in offering needed value to their target audiences (Schwarz, Hall and Shibli, 2015). It will
assist them in adopting the commodity as per costs at which they are provided by Starbucks.
When consumers will be experiencing more and maximised value then it will direct to maximise
in overall organisation image of Starbucks.
Production based view- In this effort have to be devised by Starbucks by maintaining
quality since their initial phase which is production of goods. This tool and technique which
assist in adoption of effective quality in the production a phase itself. It will direct to best quality
in the finished good which is being service to the potential clients.
Challenges for Starbucks
Managing quality is the characteristic which must be accepted by Starbucks as their plan
of action to maximise their gross sales and profit margins. This is not a easy task and there are
several issues and challenges which they have to deal with in order to accomplish their goals.
Some of challenges which are suffered by Starbucks is defined beneath:
International measuring system- There is a need that there has to be method in which
the all over attribute crossways all their outlets which are exist crosswise world are plumbed
which can assist this company in keeping a fixed quality of their products in all their retail stores.
It is a big issue as it becomes very complex to administrate large number of stores and quality of
their commodities to be similar as several time there has to be change one base done cultural
variation and orientation of target audiences frequent in diverse nations.
Continuous evolution system- There has be a method which an be utilised administration
of quality division of the firm. Quality management is not a one time actions or process but this
is a function which has to be carried in within the organisation in an ongoing way. This activity
as a big challenge as there is lot of resources in terms of fiscal and human resource of the firm
which organisation has to continuously invest so that their overall process of quality maintenance
is taking place.
Similar suppliers worldwide- For having a same quality modules to be locomoted, it is
also required that the raw material being utilised is also similar (Suarez, Calvo-Mora and Roldán,

2016). For this, there is a need that same providers are offering needed material to each their
outlet again this is a most challenging task because it is very hard for having similar suppliers all
y their retail stores that directs to a situation of complexities in managing same quality standards
by Starbucks in their commodities.
Analysis and evaluation of chosen operations area
From preceding explained information it can be measured that for Starbucks, quality is
most important things and crucial aspect which is utilised by this brand so that they are capable
to get attention of more potential consumers and have large market share with them. Many
endeavours are devised by this brand which is assisting them in accomplishment of their goals
(Thompson, Strickland and Gamble, 2015). They are disbursing a time frame of estimated 18
weeks each year by visiting several coffer providers and growers to ensure that the coffee beans
which they operating and maufecturing are accordant to the needed quality modules of
Starbucks. Evaluation of existent procedure of quality development in case of the respective
company is appreciated supported on beneath defined points:
Consideration of quality and cost- In Starbucks, the management of the firm is managed
the product's quality in successful manner by also having cost control which states they are
spending their origins in a manner in which they are capable to usage them in optimal way. It
directs to establishment of effectiveness in all the functions of the firm and accomplishment of
their profitability.
Commitment- By devising comparison with rival organisations, it is analysed that the
commitment extent which Starbucks has seldom seen in firms. All their shareholder consisting
their investors, creditors, to management, employees etc., are having a very powerful extent of
commitment regarding accomplishment of their aims and goals. It is a favourable factor of this
company which devises it feasible for them to attain their goals in the specify time frame.
Improvement of strategies- Starbucks has always been very concordant in designing plan
of actions for maintenance of quality so that they are offering veritable services, inviting
environment and a quality products which are able to satisfying consumers needs and demands.
Systems of random checks- Starbucks is a well known organisation which is utilising a
method of random checks which is completed by several district administrators where their
major responsibility is to check the baristas, getting data from diverse consumers, fetching

response from them and checking drinks products so that they are capable to assure that needed
quality so being maintained in a specific retail store (Wirtz and Lovelock, 2016).
Achievements- Management an maintenance of a quality standards is a characteristic
which is utilised by Starbucks to get a large market share (Wirtz and Zeithaml, 2018). The
respective firm has been capable to accomplish a good brand position in the marketplace due to
effective quality of its products and commodities. They have accomplished many esteemed
awards & also recognised as best coffee cause of their quality level which they are managed in
their commodities.
Exceptional quality of raw material- The management of respective company utilised
exceptional quality of coffee beans so that their consumers can experience a specific and better
taste of coffee which bis differ for other similar competitors brands. It is a diversification plan of
action which is accepted by Starbucks so that they can have a specialization benefit to sustain in
the rival marketplace.
Segmentation of market- It is one of concept which is utilised by Starbucks in which
they are trying to diversify their target market and based on that they concentrates on their
different commodities. The founder of Starbucks always devises attempts that there are bringing
excogitation thoughts which can assist thus firm in expanding portfolio of their commodities.
Strategic quality ideas, this coffee company is showing no decline in their profit margins
percentage and it is also assumed that they will be capable to successfully touch another
consecutive sales growth and development of the company in a year.
Preceding defined information are supported on overall evaluation of Starbucks which
thus company is doing in order to accomplish their quality levels and then survive in the
marketplace while managing their profit margins extent for a term time period.
Recommendations
There are several suggestions and recommendation that are being devised by analysis of
preceding defined components such as:
 The company required to accepted some of the services when there are large number of
consumers which is influencing their sales. These kind of development in the quality of
product will assist the respective firm in developing their standards and procedures of
logistic and supply chain.

 The all over appeal to consumers has to devised better so that they are capable to
maximise their gross sales and market share (Bendoly, van Wezel and Bachrach, 2015). It
is a technique which assist in having a class of consumers who are knowledgable,
civilised and technologically interested in having a large consumer base. It will be
beneficial to maximise entire image of Starbucks.
 Quality is managed and maintained in Starbucks but it is not enough so there is need that
a system of ongoing development is also adopted by this firm which can assist in having
a consistent quality is all their retail stores crosswise the world (Calabrese and Corbò,
2015).
CONCLUSION
This written document is supported on diverse components of the organisations which is
affiliated with their procedure of administration of their operations. There are several aspects
which is having an impact on all over functioning of the firm such activity of supply chain
management, development and management of quality standards. This outcomes can be in form
of favourable and unfavourable brand image of a specific brand. Quality management is an
activity which is very beneficial for firms in developing their trade name image and also for
carrying of their utilities in a more efficacious way. So the whole goals can be accomplished in
the nominative time frame.

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Online

The 4 Vs of Operation Management. 2019. [Online]. Available Through:
<https://www.linkedin.com/pulse/4-vs-operation-management-philip-eshelby>.