Operations Management and Service Excellence

This report discusses the importance of operations management and service excellence in the context of Starbucks. It includes a comparative analysis, performance objectives analysis, and design analysis. The report also evaluates the global operations strategy of Starbucks and its overall macro environment. Key requirements, challenges, and capabilities of the company are analyzed.

Operations Management and Service
Excellence

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
TASK A................................................................................................................................................3
Comparative Four Vs Analysis..........................................................................................................3
Comparative Performance Objectives Analysis.................................................................................5
Design Analysis.................................................................................................................................7
PART B.................................................................................................................................................8
Overview...........................................................................................................................................8
Global operations strategy of Starbucks and overall macro environment..........................................8
Key requirement, challenges and capabilities....................................................................................9
Evaluation and analysis...................................................................................................................10
Recommendations...........................................................................................................................11
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................12

INTRODUCTION
Operation management is considered as the crucial process of business is it support in
designing and controlling business production (Hendayani and Fernando, 2018). It is very
important for organisation to perform operation management services activities in correct and
effective manner. There are different function supply chain, planning and control quality
control and so on. This report based on Starbucks company. This organisation is dealing in
coffee shop industry and it is offering varieties of coffee different part of the world. Starbucks
organisation was established in 1971 and founder of this organisation is Jerry Baldwin and
Zev Siegl. Headquarter of located in Seattle, Washington, US. This report will includes
different elements of Four Vs Analysis for comparison with rival company. In this
performance objectives are compared in order to analyse the operational performance of
organisation as well as design analysis is conducted. Apart from this global operational
strategy and surrounding macro environment of business is evaluated. Key requirements,
capabilities and challenges of business is also analysed. In this report management on various
operational resources of company is indentified as well as some recommendation for
improvement in operations of business is determined.
MAIN BODY
TASK A
Comparative Four Vs Analysis
It is very important organisation to analyse competitive advantage over other Rival
companies. This will help organisation to conduct business activities in more effective
manner as well as identify its strength and market opportunities. Starbucks company can
conduct competitive analysis on various attributes such as raw material, business process,
cost effective techniques, funding, technology, management activities and many more.
Greggs is a well established company which is also providing high quality coffee product and
services customer. In order to compare Starbucks with Greggs organisation four Vs analysis
very effective. This analysis model full support in comparing both organisation on the basis
of visibility, volume, variety variation (Kang, Moon and Moon, 2015). These are the most
common attributes help in evaluating and determine competitive advantage organisation over
other. This comparison will help observing the effectiveness and efficiency of business in

order to achieve predetermined mission and vision. Comparison Starbucks and Greggs
company is mention below on the basis of four V's.
Four Vs attribute Starbucks Greggs
Volume This attribute of production
refer as the level of business
production in order to earn
more profits. Starbuck
organisation is developing and
creating products and high
volume as this will support in
minimizing the cost of
manufacturing. Starbucks
stores is located in different
part of the world which lead to
increase the volume of
manufactured products of
respective company.
Greggs company is dividing its
business operations into
different parts. This is very
useful process of increasing
the volume of products.
Dividing of large task into
smaller parts and communicate
the roles and responsibility to
employees will support in
increasing the volume of
products.
Variety This organisation is working
with the concept of expertise
in its field. Starbuck
organisation is known from its
high quality coffee products
and its is offering different
variety of coffee products to its
customers.
Greggs company is providing
different variety of bakery
products to customers. This
will lead to attract more
customer with different needs
and wants (Maje, 2016). By
flexibility of offering different
types of products respective
organisation is able to enhance
is brand image.
Variation This can be describe as the
changes in pattern of demand
of products and services over a
For providing variation is
products and services Greggs
should add more kind of

period of time. It is crucial for
respective company to change
its business process as well as
organisational activities
according to the changes in
market area.
products with new flavours
and dishes. This variation of
business menu will help in
improving and diversifying old
products into new.
Visibility This refer as the extent to
which customers of company
have visibility for the process
of delivering products.
Starbucks coffee house have
platform through which
customer can easily see the
process of their order product
development. High visibility
will assist in enhancing the
level of customer with
organisation.
Greggs organisation is
providing opportunity to its
customers so that they can
understand and analyse the
process of their ordered
products. This company is
offering nourishment products
to its customers through its
stores.
Comparative Performance Objectives Analysis
Performance objective can you describe as standards of product and service that needs
to be full fill my company. It is very important for organisation to develop performance
objective as this will lead to provide guidance to company by performing its operations.
There are different types of performance objective developed by Starbucks and Greggs
organisation (Zimmermann, 2015). By analysing performance objective of both of the
organisation will help in determining competitive advantage over other company. It is crucial
for organisation to set effective performance objectives for attaining desired goals of
respective business. There are various performance objective set by company which is
mentioned below in order to analyse performance objective of Starbuck and Greggs.
Flexibility – Flexibility can you describe as the capability of business in order to adopt
changes business process. It is very important for organisation to be flexible as this will
support in performing organisational activity effective and efficient manner. In context of

Starbucks, it is using new tools and Technology its business process. advanced Technology in
organisation will lead to fast performing of business. Starbucks company is flexible in
adopting new technique or technology in market area. Where is Greggs company is flexible
in modifying business operations and processes as per the need and demand of customer.
Flexible business process will help in improving efficiency of organisation in order to
organisational goal.
Cost – Cost is one of the essential element of business this will lead to have impact on
organisation. Starbucks company is developing high quality coffee products to different part
of the world. This includes business cost as respective organisation is considered main
element of product coffee beans. High quality of coffee beans are very costly coffee giant. So
it is crucial for this company to develop effective strategies that support in minimising cost
an increasing profits. In context of Greggs company cost is mainly associated with raw
material and manufacturing process (Mee-ngoen, Thongrawd and Jermsittiparsert, 2019).
This company is developing different kinds of Bakery product as well as focusing on bulk
production. This is very supportive the cost of organisation manufacturing products in high
volume.
Quality – It is essential for organisation to focus on quality of product and services as help in
attracting more customers towards business (Hamed, Bohar and Siam, 2017). Starbucks is
well known organisation for its quality product and this company is creating high quality
coffee products. This is very helpful in building effective and strong relationship with
customers as well as enhancing profit of company. Where as Greggs organisation is focusing
on developing and creating high quality products as per the need and requirement of
customers. It is very important for Bakery company to identify and analyse the needs and
wants of customers in order to match with the quality requirements of the company.
Speed – This is one of the essential element of organisation which support in attaining
performance objectives. In respect of Starbuck organisation its is developing new platforms
so that customers can get their ordered product in less time. This will help in enhancing the
speed of organisation to conduct business activities. In context of Greggs organisation it is
creating strong communication channel in order to create effective relationship with
customers. Communication channel will assist in reducing the time of delivery of products to
customers.

Employees – Workforce of business in one of the crucial part of organisation as this support
in effective and efficient performance of organisation. It is very important for business to
have right and capable employees that can conduct business activities in required manner.
Starbuck organisation is hiring highly skills and talented employees that have right talent to
conduct business activates. Where ad Greggs organisation is providing training and
development to employees according to which they can successfully perform business
activities. Training of employees will support in increasing their skills and capabilities.
Design Analysis
 Impact on design of customer service process.
Customer services process refer as the steps taken by company in order to improve the
relationship with customers. It is very important for organisation to have effective customer
services process as this support in creating strong and effective relationship with customers.
customer services of business will lead to have major impact on business and its operations.
In context of Starbuck organisation it is considering new and innovative approaches in order
to enhance customer services activities of organisation. This organisation is taking feedback
from its customers in order to analyse their performance. Employees of Starbuck company
will communicate with customer as this will help in determining customers requirement from
business as well as supports in understanding what are the different things business could
place in order to improve the performance of organisation. Greggs organisation is providing
special training to its employees that supports in understanding the needs and requirement of
customers. This is very effective process of customer services as this will assist in analysing
what type of products customer required as well as manufacturing products as per the
requirement of potential customers.
 Impact on design of store layout and flow
It has been analysed that layout of store and flow of business activity will lead to have
significant impact on attracting customers as well as increasing revenues of business.
Design of store can be describe as the physical evidence of organisation which is effective
in marking and promoting products of company to potential customers (Hendayani and
Fernando, 2018). Starbuck organisation is considering new and innovative design of
store layout and flow of business. The innovation will support in increasing sales of
coffee products because customer will be attracting towards the place. Innovative design
of store layout will lead to meet with the needs and requirement of customers. In context
of Greggs organisation, it is offering different types of bakery products through different

sources. It is considering online as well as offline store in order to sale more products to
customers. This will support in enhancing the customer base of respective company as
well as gain competitive advantage over other rival organisation.
PART B
Overview
Quality management can be define as the formalized system of organisation that is
supportive in developing and creating high quality products for organisation. It is essential to
each and every organisation to provide high quality products and services to customers as this
will help in meeting with the need and requirement of organisation. Starbucks company is
offering high quality products and services from many years which is helpful in meeting
with organisational objectives. There are various factors that affect the quality of products
and it is crucial for organisation to overcome of these issues and provide quality products to
customers. the major products that is offered by company are smoothes, coffee beverages,
tea, baked products and sandwiches. Quality management approached is considered by
organisation in order to attract customer as well as increase sales of organisation.
Global operations strategy of Starbucks and overall macro environment
It is crucial for organisation to develop an effective and efficient strategies of business that
support in growth and development of organisation. it is crucial for Starbuck to analyse and
evaluate macro environment as this will have direct impact in business strategies and
operations (Hamed, Bohar and Siam, 2017). Starbucks is conducting business activities from
many years and the approach that is consider by organisation is quality management. It is
essential for respective company to manage it quality and standards as this will lead to have
direct impact on customer base of organisation. This is the most effective tool that is used by
respective company in order to increase its business profits as well as revenues. There are
different advantages that could be accomplish by business while conducting its operations at
global market level. Quality management is very supportive in maintaining the level of brand
and its products at global market area (Fredendall and Hill, 2016). This will lead to meet with
the need and requirement of customers. Different global market strategy is mention below in
context of Starbuck organisation.

High economic growth - Starbuck is conducting business activities in different part of the
world which helps in increasing the performance of organisation. There are many countries
with high economic growth rate and it is beneficial for organisation to conduct business
operations in these countries. This will support in enhancing the performance of organisation
as well as earning more profits.
Technology changes – It is very important for organisation to conduct business activities
with new and updated technology. There are different technology in market area that needs
to be used by Starbucks in order to increase business performance as well as conduct
organisational activities in effective manner. Changes in technology of respective business
will support in reducing the cost of manufacturing as well as improving the quality of
business products.
Key requirement, challenges and capabilities
There are different business requirement, challenges as well as capabilities that needs
to be timely identified. By analysing and evaluating various challenges of business as well as
determining requirements, Starbucks will be able to develop effective and efficient strategies
that will lead to growth and development of business. Different requirement, capabilities and
challenges of respective company in mention below.
Key requirements of Starbucks – It is essential for organisation to improve the quality of
products and services offered by respective company to targeted customers. Key requirement
of maintaining quality management for Starbucks is followed –
 Value based views – Quality of products offered by respective company will lead to
have significant impact in value of business as well as affect decision making process
of organization. It is required for Starbucks to offer high quality products as this will
support in enhancing the value of business in market area.
 Product based views – Starbucks company is conducting its business operations in
order to sale its manufacturing products to customers (Feng and Harnett, 2017). This
will help in enhancing the profitability and revenues of business. Quality management
is required by respective company in order to ensure that respective organisation is
creating and developing products as per the requirement of customers.
Challenges of Starbucks – There are different challenges and issues faced by compant
while developing products as well as offering it to potential customers. It is crusial for
organisation to analyse and evaluate all of these challenges as this will support in overcoming

these challenges. The major issues that is faced by Starbucks is related to global measuring
system as there are different system for measuring the quality of products offered by
company (Cui, 2015). For maintaining the quality of products same in different regions it is
crucial that respective organisation have same suppliers of raw material for different stores of
Starbucks. This is very difficult for organisation as same supplier can not offer its raw
material to all various part of the world.
Capabilities of Starbucks – There are number of capabilities of Starbucks that is supportive
in enhancing business operation as well as meeting with the requirement of customers.
Employees of Starbucks are considered as its major capabilities as this assist in conducting
organisational activities in more effective and efficient manner.
Evaluation and analysis
Quality management is very crucial for organisation as it support in offering high quality
product to customer. from the questions it has been determined that quality management
leads to have major impact on business as well as its activities. Starbucks is a well reputed
company for its unique quality product. Company is considering coffee Beans from selected
suppliers which is able to develop coffee product as per the requirements of customers.
Evaluation of the procedure which is considered by Starbucks in order to manage quality
office product and services explain below.
Identifying quality and cost – It is important organisation standard equality that needs to be
offered by company to its potential customers. Standard quality consider as the objective
which needs to be achieved by business (Al Khattab and As’ad, 2015). Starbuck company
needs to control the cost of manufacturing and optimum utilisation raw material in order to
create high quality product.
Creating strategies – Strategies are very supportive in meeting in an objective of business.
So significant for Starbucks effective and efficient strategies for creating quality product with
minimum cost. Strategy of respective company will need to provide product which is able to
meet with the expectation of customers.
Random check system – Starbuck company is focusing on providing high quality products
to customers in order to attract them. for this it is very important check the quality of product.
Prospective company is using system that is helpful in checking the quality of products on

random bases in order to ensure that company is offering products which is as per the quality
standards.
Exceptional quality of raw materials - This company is offering unique quality products to
customers. Starbuck company is known for its high quality products and services which lead
to meet with the exceptional of customers (Abdullah, Yaakub and Subhan, 2018). This is
because of consider exceptional quality of coffee beans in it products which make its coffee
different for other rival companies.
Business achievements – Achievement of business play crucial role in enhancing the market
share of business in respective market areas. There are various rewards and recognition
award accomplish buy respective business such as “ Best Coffee” and so on. These
achievement of business is attain due to high quality of offering and this lead to have direct
impact in brand image of respective company.
Recommendations
As per the above report there are several recommendations for Starbucks company
that will help in enhancing the performance of business as well as support in completing
desired target. Recommendation in relation to Starbucks is mentioned below -
Develop effective strategies – It is important for company to develop effective strategy in
order to enhance performance of organisation. Strong strategies of Starbucks will support in
managing the quality of product which will result in increasing sale. Strategies such as
improvement in quality of products as well as increase in sale or profitability of company will
lead to have significant impact on business. Strategies supporting accomplishing desired
objective of prospective company.
Training employees – It is crucial for respective organisation to provide training to its
employees as this will lead to increase in their capability to conduct business task. It has been
determined that train employee will be able to perform business operation in effective and
efficient manner. By providing training to its employees respective company will be able to
direct employees and provide guidance in which they are suppose to do business activities.
Training and development of employee assists in increasing their skills and capability to meet
with requirement of business and develop beauty product of Starbucks.
Promotions – It is very crucial for Starbucks to attract more and more customer in order to
increase sales of business. Company should use effective and attractive promotional tools to

influence customer towards topic product. Traditional and modern method of promotion will
be effective customer and enhancing product sales (Sungbae and Taesoo, 2016). There are
different types of promotional tools and techniques which can be used by business in order to
attract customers. Starbuck company needs to select promotional tools as per the target
audience in order to maximize the impact on promotional tool.
Continuous improvement - Continuous improvement is very important Starbucks to grow
and develop its business. Improvement in quality of Starbucks product as per the customer
requirement will assist in meeting with the customer expectation. Continuous improvement is
is crucial for increasing customer base and profit of Starbucks company.
CONCLUSION
From the above report it has been concluded that the operational and services of
business lead to have major impact on growth and development of business. It is very for
organisation to focus on its operation and service excellence as this will support in attracting
more and more customers towards business. There are several aspects of business that will
affect its business operations as well as help in improvement of business products and
services. Quality management is one of the crucial concept of business as this will help in
offering high quality product to customers. This will lead to attract more customers towards
organisation and improve sales of business. There are different challenges and requirement
of business that needs to be full filled in order to manage quality of offering. Brand image of
company will be enhanced with the improvement in quality of products and services.
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