Operations Management Analysis Reports

OPERATIONS MANAGEMENT

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Comparative Four Vs. Analysis.............................................................................................3
Comparative Performance Objectives Analysis.....................................................................4
Design Analysis......................................................................................................................6
PART B............................................................................................................................................6
Overview................................................................................................................................6
Global Operations Strategy....................................................................................................7
Key requirements, capabilities and challenges.......................................................................8
Analysis and Evaluation.........................................................................................................9
Recommendations................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation management is a continuous process of monitoring and managing company’s
production process so that highest utilisation of resources available within company would be
achieved (Machado and et al., 2019). Primary objective of OM is to improve profitability and
productivity of a company by improving its supply chain and production process (Park, Chang
and Jung, 2017). Whole report is divided in to two parts in which part A explains four V’s
analysis of Starbucks and Greggs which conducts their business in the same industry i.e., retail
coffee and snacks industry. Besides this, current operations management of both the companies
will be explained with the help of functional example of it. In the latter part, Starbucks global
strategy to tackle micro and macro environment is described. Various types of challenges faced
by company is explained with its capabilities and key requirements. At last, how company is
managing their resources to gain competitive advantage over others is explained by giving
various recommendations for implementation.
PART A
Comparative Four Vs. Analysis
In every manufacturing or services company, one thing is common i.e., production process as
every company goal is to transform raw materials or inputs like knowledge, goods, time, capital
etc into final products so that customers or clients’ needs would be satisfied (Odongo and et al.,
2016). But there are different ways of doing the same thing which can be explained and
understand with the help of 4 Vs of operations which is Volume, Visibility, Variety and
variation.
Volume Dimension: It is well known in the operation work that high volume of products
produced by company leads to lower production cost which improves company profitability and
performance in the market. In the retail food and coffee industry, it is essential for every
company to produce and sell more products if they wants to sustain in the market for longer
period of time (Migdadi and et al., 2018). According to reports, Starbucks has more than 707
licensed stores and 288 company managed stores in United Kingdom which serving more than 1
million customers on a regular basis but due to premium services and facilities company charges
more money as compare to other stores (Number of Starbucks stores, 2019). On the other hand,
Greggs focuses on high customer footfalls and low production cost strategy as they have more

than 2000 stores in United Kingdom itself and prices less than their competitors like Starbucks
so that more customers would be attracted. Due to this, company has been able to increase their
profit by 41% (Greggs set to open its 2,000th, 2019)
.
Visibility Dimension: It refers to ability of customers to track company products and their stores
on a regular basis. As mentioned above, Greggs has more stores or double number of stores as
compare to Starbucks, so it can be said that Greggs has more advantage in visibility dimension as
compare to their competitors (Mostaghel and et al., 2019). In terms of online visibility, Starbucks
mostly provides coffee by order and which could be different in different stores but Greggs
provides product to eat as well as drink so that more customers would be satisfied.
Variety Dimension: It means different or various options in products provided by company to
their customers. Starbucks is mostly famous for their different types of product related to coffee
as they have more than 50 types of coffee which they service on a regular basis (Yu, Zhang and
Huo, 2019). On the other hand, Greggs started as a bakery or eatery services and now also starts
selling coffee on a large basis. So they have more products in their food department as compare
to Starbucks. So both the companies have their speciality which cannot be altered in any way.
Variation Dimension: It refers to number of choices provided by company for a single product.
For instance, in Starbucks Brewed Coffee product, company has sub products like Blonde Roast,
Cafe Misto, Pike Place Roast (Soares, Soltani and Liao, 2017). In Greggs, Breakfast section
contains more than 10 different categories of food. So as explained above, both the companies
have same targeted customers with same products but with different taste and speciality.
Comparative Performance Objectives Analysis
In this competitive market, it is essential for every company to change their strategies and
working process on regular intervals of time so that they can sustain their market position as
compare to their competitors. So there are various factors, on the basis of which company’s
performance is analyses and identify which is given below,
Quality of the product: Quality always plays an essential role in the success of any organisation
as if customers are satisfied with the product provided by company then chances of customer
retention for longer time is also high (Hu, Braziotis and Tan, 2017). According to reports,
Gregg’s coffee and quality of Caffeine is better as compare to their competitors like Starbucks,
McDonald, Costa Coffee etc. For instance, Greggs coffee has 140.63 MG amount of caffeine per