Operations Management in Starbucks- Assignment
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Added on 2020-02-03
Operations Management in Starbucks- Assignment
Added on 2020-02-03
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Operations Management
Table of ContentsASSIGNMENT 1 ............................................................................................................................1Literature review.........................................................................................................................1ASSIGNMENT 2.............................................................................................................................4INTRODUCTION...........................................................................................................................4METHODOLOGY..........................................................................................................................5FINDINGS.......................................................................................................................................7SWOT ANALYSIS.........................................................................................................................7CONCLUSION................................................................................................................................9ASSIGNMENT 3.............................................................................................................................1Operations management plan vs. best practises..........................................................................5REFERENCES................................................................................................................................7
ASSIGNMENT 1 Literature reviewAccording to Slack, (2015) Operations management used to be a significant function ofbusiness organisations but limited to supply chain and manufacturing industries. Withdevelopments in thought process and technology, operations management became atransformational process which included all involved functions. Spring and Araujo, (2014)reviews operations strategy to be a technique through which business authorities can estimatetheir future outcomes and products. This fact is quite acceptable because strategic approach tooperations management helps in building stronger foundations which will yield long term profits.For instance, IKEA being a leading furniture manufacturing brand has been known in thisindustry for its world class products and strategies that have given best in price comfort tocustomers. The operations strategy of this company will involve processing of raw material,production of proposed design and development of desired product. If strategies are notdeveloped resources allocation becomes difficult. According to Sting and Loch, (2016) resourceplanning helps in reducing over-usage and wastage. Enterprises develop their operations strategy with an appropriate and structured plan.Starbucks is an international brand that has been known for its world class coffee and eateries. Itshygienic working conditions and great quality products have helped the organisation to gain thisbrand reputation. On the contrary Lawrence, Nguyen and Alfelor, (2015) said that operationsstrategy must be based on theoretical approach to get high profits. Six sigma is a theory based onquality management. Starbucks has been applying this theoretical approach in meeting its dailygoals. Customer satisfaction levels can be increased only when quality is concentrated.According to six sigma theory, a sequence is defined with financial targets which can involvereducing costs, managing supplier power, etc. Dralle, Stang and Machens, (2014) stated thistheory of operations management strategy to be highly effective and profits yielding as comparedto other approaches.Business organisations are subjected to various risk factors and environmental hazardswhen operations are considered. It is not necessary that every company would be havingprecautionary measures for risk assessment. According to Dale, (2015) risk management is atechnique which involves identification, control and evaluation of factors that have led to risk ordamage in an environment. This process is crucial to every organisation irrespective of their size1
and economic strength. However, Grant, (2016) said that risk assessment is only possible whencorporate governance prevails in the respective company. Threats or risks can occur from anysource. Be it natural or man-made, intentions are most important feature to judge the nature ofthreats and risks. Henceforth, business organisations manage their risks through a riskmanagement plan. Over past decades, technological intervention in lives of individuals has increased. This isjust not limited to personal life but also to professional world. Therefore, governmentorganisations across the world felt the need to implement certain legislations and rules that willhelp in managing various types of risks with help of technology. According to (), globalisationand industrialisation are a result of advancements in human thought processing. Despite of suchhuge progresses, it is important to adopt enterprise management techniques so that dangers toworkers and employees are handled easily.However, business process redesign (BPR) is another approach that can be considered byStarbucks for operations strategy. Basically, business organisations function to meet theirpurposeful objectives. These steps which are involved in meeting objectives must be inaccordance with performance standards, ultimately giving a huge return on investment. Incomparison to this theory, García, Maldonado and Rivera, (2014) stated that redesigningcomplete process is not affordable on a regular basis. Starbucks has to take initiative for adoptingan operations strategy that is affordable and productive simultaneously. For multinationalorganisations, BPR is less reliable but completely valid. On the other hand, six sigma operationsstrategy can help in reducing risk and damage to company due to external forces.Resources and operations are two important parameters that have to be considered beforemaking any strategic plans. If these two go hand in hand, businesses can flourish to great extent.Starbucks operations strategy is quite efficient. They have been utilising best raw material that ishigh quality coffee beans and milk produce. According to Schwarz, Nielsen and Hasson, (2016),success of operations strategy depends completely on choices of resources by industrialists. Inaddition to choices and selection of resources, the techniques used for transforming these rawmaterials into final products are also important. Starbucks has an edge over competition becauseof this feature in its operations strategy.According to Miller, Wroblewski and Villafuerte, (2014) operational managementactivities supports in executing business operations in effective and advanced manner. It is vital2
that all the key approaches of operations management should be used in organized way foraccomplishing the goals of the entity. Supply chain activities that are carried out in anorganization supports for managing flow of materials and services for carrying out requiredbusiness functions properly. It is assertive that for performing operational activities in theenterprise. Operations management approaches that are used in the enterprise supports incarrying out required functions such as planning, organizing, scheduling, controlling andcoordinating required business activities in the enterprise in effective way. Overall control on the functional activities performed in the entity is managed and itsupports in executing required functions in better way. Operational strategies are formulated inthe entity for running the business functions. Starbucks is a leading organization and it servesmillions of consumers. Day to day regulations of working activities and scheduling workoperations becomes easier and it also supports for running the business activities in effectiveway. Higuchi, Nam and Sonobe, (2015) has mentioned that operational strategies needs to beformulated systamatically so that required outcomes should be achieved from them. Many areasare includes while making such strategies and action plans in the enterprise and it also aids indoing capacity management and running various activities such as purchasing raw material,sourcing and procurement, operations and process transformations, manufacturing, innovationsand product development and executing other required business activities in effective way. Starbucks offers high quality coffee for its consumers and a strategic approach is beingused for running the operational activities of the enterprise. Major focus is given for innovationsand product development and it supports for offering better quality products to the consumers.Coffee making activities are also performed by using a systematic approach and it aids in makingsuperior quality coffees by adopting innovations and perfections. All the functions are performedby using strategic manufacturing operations and industry expertise is also used for running thebusiness activities. Other operations and process transformations activities are also performed bymaking use of innovative concepts and strategies and it helps in ensuring growth and success ofthe enterprise. Stadtler, 2015) has described that sourcing and procurement related activitiesshould be performed in an effective way so that required goals should be accomplishedeffectively. Competitive advantage can be gained for the business and it also helps for makingpositive improvements in existing performance of the business. Supply chain activities are alsosignificant part of business and it helps in ensuring delivering of products to right place and to3
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