Java Lounge vs. Starbucks: A Comparative Analysis

This assignment compares and contrasts the operations, customer service, and management strategies of Java Lounge and Starbucks. It examines key areas like product quality, process design, customer service, forecasting, budgeting, and employee management. The goal is to assess how Java Lounge can learn from Starbucks' successful practices to improve its own performance.

Operations
Management & Service
Excellence
1

TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................4
Business overview.......................................................................................................................4
Core Product- Coffee and Other Products or Services Offered...................................................5
Employees....................................................................................................................................6
Environment or Ambiance and Customers..................................................................................6
Operations management of Java Lounge.........................................................................................6
Quality Management....................................................................................................................7
Waste management theory and lean flow principles...................................................................7
Meaning of 5 performance objectives............................................................................................10
Quality.......................................................................................................................................10
Service.......................................................................................................................................11
Dependability.............................................................................................................................11
Flexibility...................................................................................................................................12
Cost............................................................................................................................................12
Supply chain of Java Lounge.........................................................................................................12
Storage of material.....................................................................................................................13
Inventory control........................................................................................................................14
Production process.....................................................................................................................14
Sales and after sales...................................................................................................................14
Similarities and Differences in Quality Processes of Java Lounge and Starbucks........................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
2

APPENDIX: 1................................................................................................................................20
APPENDIX: 2................................................................................................................................21
APPENDIX: 3................................................................................................................................22
Illustration Index
Illustration 1: Layout- Java Lounge Birmingham............................................................................5
Illustration 2: Java Lounge Mural..................................................................................................7
Illustration 3: Muda, Mura and Muri Theory ................................................................................10
Illustration 4: The 5S theory .........................................................................................................13
Illustration 5: Juran Approach- Total Quality management..........................................................14
Illustration 6: Theory of supply chain............................................................................................19
3

4

INTRODUCTION
Business overview
In the present scenario, operations management and service excellence are very important
in growth and success of a business enterprise. Further, every organization whether small or
large are required to manage their operations in effective manner. Ineffective operations can
affect overall sales and profitability of businesses (Yuan, Chang and Tzeng, 2015). The present
report is based on Java Lounge which is UK based small independent coffee shop. It can be
stated that the competition among coffee shops in the country is getting more and more intense
with the passage of time. Java Lounge was founded by Akram Almulad with the objective of
providing the quality and innovative coffee to people in market. The small coffee shop is located
in 115 Alcester Rd, Birmingham, West Midlands B13 8DD. It can be stated that establishing the
shop in such a location was a risky and very bold move from Akram Almulad. The reason behind
this is that Java Lounge is located just opposite to Strabucks which is one of the leading coffee
chains in the world.
5
Illustration 1: Layout- Java Lounge Birmingham
(Source:Java Lounge, 2014 )

Core Product- Coffee and Other Products or Services Offered
There are various kinds of products and services which are offered by Java lounge
Birmingham. Some products which captured my attention includes toasted mozzarella wrap
which was around £3.50, raspberry bakewell (£2.50). These are the two products which I have
personally tried during my visit in the shop. Hot chocolates, milkshakes, paninis and coffee such
as espresso are some other products which are being offered by the small coffee shop. It ranges
of coffee includes mocha to macchiato and the shop also offers different brews from iced to
Yemen. It can be also argued that all the products and services very quite high in quality in
comparison with the prices which Java lounge is charging (Jain and Shu, 2016).
6
Illustration 2: Java Lounge Mural
(Source:Java Lounge, 2014 )

Employees
Java Lounge employee can be termed as highly productive and have adequate skills to
deliver quality product and services to all its customers. It can be also stated that effective
employee are the one which has helped Java Lounge to get competitive advantage over other
market players. The staff members are very helpful, friendly and always offer customers with
warm welcome.
Environment or Ambiance and Customers
It can be stated that the environment or ambiance at Java Lounge is outstanding. As soon
as customer enter the Lounge, they see different pictures regrading how it was established. The
environment gives a feeling of leisure and relaxation to its customers. On the other hand, Java
Lounge target market consists of people such as youngsters, businessman and working
professionals.
OPERATIONS MANAGEMENT OF JAVA LOUNGE
Operations management is one of the crucial and most significant aspects of businesses.
In simpler terms it can be defined as the management and administration of business practise in
order to develop the highest level of efficiency and productivity. Java Lounge operates from 7
am to 7 pm from Monday to Friday (Bogost, 2008). Furthermore, during Saturday timing of
coffee shop is from 9 am to 5 pm and on Sunday it operates between 10 am to 4 pm. It has been
analysed that Java Lounge import its coffee beans directly from its coffee plantation which is
carried out in Yemen. This also helps the brand in offering unique and very diverse taste of
coffee to all its customers (Carvalho, Paiva and Vieira, 20160.
It can be stated that Java Lounge carry out the task of blending those imported beans into
two different categories. The process of blending supports in developing coffee which has its
won texture and taste. At the time of carrying out its operations, Java Lounge tries to manage its
waste management system in most effective manner. The major competent of the shop's waste
management includes increasing recycling and promotion of cups which can be reused. It has
been analysed that while carrying out its operations, it ensures that less harm and negative impact
is made on environment (Nahmias, 2015). In its waste management system, the shops always
seeks for ways through which improve its packaging design and offer more reusable cups.
7

Quality Management
1Research and Development, customer Service and Inventory Planning
Java Lounge carry out extensive research and development in order to provide its
customers with new products and services. In order to deliver customers with fast and accurate
services the brand has always takes care of quality of its products by checking it at regular
intervals. Along with this, it also focuses on working upon the feedback provided by customers.
2Development of the Products and Services
Java Lounge always tries to make sure that it deliver high quality products and services to
all its customers. There are different type of products such as Coffee and other products which
are being developed by the coffee shop. Before delivering products, chef taste the quality in
effective manner.
3Employees’ Management
It can be stated that Java Lounge has taken well care of all its employees. It focuses on
training and development programs of all its staff members. Other than this, it also encourages
their views and opinions for success of the coffee shop. Equal growth and development
opportunities are also provided to employees. Further they are being paid fair and adequately
against their work.
8

Waste management theory and lean flow principles
The Muda, Mura and Muri theory is an important tool which is used to carry out the
process of waste management in organization. At the time of carrying out their operations, Java
Lounge is required to deal with and manage three type of waste which are Muda, Mura and
9
Illustration 3: Muda, Mura and Muri Theory
(Source: Horvat, Antic and Jeremic, 2015)

Muri. The coffee shop is managing Mura (waste due to inconsistency in manufacturing
coffee)with the help of using just in time technique. Muda which can be termed as the activities
that are unproductive has been also removed by Java Lounge. On the other hand, waste such as
overburden of work (Muri) is eliminated by the coffee shop by using technique which is
standardization of work. At the time of carrying out its process, Java Lounge has well taken care
of three important things. The first thing among them is that people in coffee shop do not have
any kind of unreasonable burden. Further, it has also taken care of the fact that there is no uneven
load on all its machines and people. Along with this, it also removes waste from all its process.
1Production process
The coffee shop has developed effective process of production which makes sure that the
best products are being manufactured and minimum amount of waste is extracted. For this
purpose, the brand is using the latest machines to manufacture coffee and other products. On the
other side of this, Java Lounge is also making the best use of lean flow in various kind of
practises in its operations. It is used in order placing process and at the time when customer pays
their bill.
2Supply chain management
The process of supply chain management begins with decision of purchase where the
brand deals with its various suppliers to make purchase. At the time of dealing with all its
suppliers, the brand makes sure that purchases the best quality of products at convenient prices.
In order to avoid Mura, the coffee shop makes sure that all coffee beans and other products are
preserved in effective manner.
3Inventory management
In order to manage its inventory, Java Lounge has adopted for Just in time technique. It
can be also stated that the above mentioned technique helps the coffee shop to deal with issues
related to Mura in appropriate manner.
4Scheduling
On the basis of its sales, Java Lounge has schedule all its major factor such as operations,
raw materials, operations
Refer Appendix 1
10

In order to assure quality in its products and services, Java Lounge has adopted Juran
Approach which is one of the most important tool of Total Quality management. Further, the
coffee shop assures quality with the help of three steps which are mentioned below as:
 Quality planing- It is a process in which the coffee shop creates awareness among its staff
members regarding goals and objectives made to improve quality. In this step, effective
training and development sessions are provided to employees so that they can make
changes to improve quality.
 Quality control- Effective ways are adopted by Java Lounge to examine overall quality of
its services and products. The staff members also check beans and taste of coffee three
times a day in order to ensure the fact that whether quality of coffee is up-to required
standards or not.
 Quality improvement- In this stage, the coffee shop seeks for the ways through which it
can gain perfection in delivering the best coffee in market. In addition to this, Java
Lounge also praise and reward its staff members for their efforts in improving quality.
11
I
llustration 4: Juran Approach- Total Quality
management
(Source: Carvalho, Paiva and Vieira, 2016)

MEANING OF 5 PERFORMANCE OBJECTIVES
Quality
Every organization is required evaluate and measure its performance on the basis of five
performance objectives. This measurement helps businesses to become aware of the fact that in
which direction it is moving. The objectives are quality, speed, dependability, flexibility and
cost. Further, it can be stated that quality is the first and one of the most important objectives of
organization. In simpler terms quality can be defined as specification of particular product or
service (Alon and Lattemann, 2016). Quality can be termed as good when customers or people
consuming/using products and services do not have any kind of complain regarding the same.
High quality also results in lowering down overall cost of production, increasing rate of customer
satisfaction and loyalty. In terms of Java Lounge, it can be stated that it has maintained
appropriate level of quality in all its processes along with products and services (Giraud and
Poeppel, 2012). The shop is also able to generate more revenue because of displaying high
quality standards. At the time of carrying out its operations there are some mistakes which are
being made by the shop. In terms of Java Lounge, it can be stated that the speed of services is
appropriate. This means that the services which are being delivered by the shop are not too slow
or fast. People are not required to wait for long period to place their order and receive the same
(Nahmias, 2015). However, it can be argued that in order to provide quality services and
products Java Lounge, requires some time. Therefore, speed of responding to customers order,
need and demand of Java Lounge can be termed as satisfactory.
Service
Another performance objective which is important for the long term success of a business
organization is dependability. Further, it can be defined as the criteria which determines whether
customer are able to get products or services on time or not. At the time of carrying out their
operations every business enterprise is required to ensure that product are being delivered to
customers on time.
Dependability
Another performance objective which is important for the long term success of a business
organization is dependability. Further, it can be defined as the criteria which determines whether
12

customer are able to get products or services on time or not. It has been analysed that as soon as
customer places order, Java Lounge starts processing the same. This supports in delivering
products and services within required time (Life, 2014). Other than this, dependability objective
also make direct impact on overall cost of operations of Java Lounge. It helps the coffee shop by
saving time and money by delivering services and order on time. However, it can be argued that
operations which are not dependable cannot commit its customers to provide fast response
towards their need and demand.
Flexibility
Another objective of businesses is to take care of their flexibility. Furthermore, it is
defined as the ability of organization to carry out different things in given time (Jain and Shu,
2016). In case of Java Lounge, it can be explained that it is somewhat flexible. Its direct
competitor Starbucks can be termed as completely flexible as it is able to make changes in its
offering as per the market trends and changing customer preferences. After, carrying out
competitor analysis it has been observed that that Java Lounge is not much flexible as compared
to other small independent coffee shops.
Cost
The last and another important element of the five performance objective is the overall
cost. It can be argued that the cost of operations varies from one business enterprise to another .
Other than this, all the above mentioned performance objectives focuses on lowering down the
cost. The operations of Java Lounge are not carried out on large scale therefore, its cost of
operations is not very high. In addition to this, it is also able to cut down its cost by using highly
advanced technologies in its operations.
Refer Appendix 2
SUPPLY CHAIN OF JAVA LOUNGE
1Procurement of material
Supply chain can be termed as the process of bringing in raw material, processing it and
then supplying the same to customers. The supply chain of Java Lounge consists of three major
elements which are importi ng coffee beans from Yemen. Processing those beans in their stores
and then supplying it to customers by its own stores. It can be also stated that the brand do not
depends on external suppliers for raw materials to make products. Further, in-sourcing of its
13

products is done by its own plantation which is carried out in Yemen. Furthermore, the objective
behind this is to ensure quality of beans use in the processing (Hill and Hill, 2012). Souring raw
material from its own sources also helps Java Lounge to provide unique and innovative taste of
coffee to all its customers. It can be explained that after importing beans, the process of roasting
begins in Java Lounge. Further, finished product is directly supplied to customers by its small
shop which is located in Birmingham (Capraro, 2009).
During the entire process of supply chain, the brand makes sure that it maintain quality of
its products in the best possible manner. It can be also argued that the entire journey from bean to
a cup of coffee is not easy for Java Lounge. The coffee shop is required to ensure the fact that
quality beans are being imported from selected sources and are processed in order to supply the
best coffee to customers (Horvat, Antic and Jeremic, 2015). One of the main reason behind
selecting Yemen as a place for importing coffee beans is that the parents of Java Lounge's owner
were from Yemen only. Furthermore, in the middle of 15th century, coffee drinking and
information regrading coffee trees was witnessed by people in Yemen.
Along with this, it can be also stated that the place is hub of coffee culture. The supplier
of Java Lounge are also located in different Midland areas and the coffee shop also put a lot of
efforts in working with all roasters. The shop has developed a strong bond and relationship with
all its major suppliers and this will very beneficial for the brand in long run. Brazil's Santos area,
Colombia, Al Salvador, Nepal, Yemen and Africa are some places from where Java Lounge
imports its products in order to make the best cup of coffee (About us Java Lounge, 2016). It can
be also stated that the beans which are imported by the coffee shop are of AAA category and are
very expensive.
All these efforts are made only with the purpose of enhancing the overall quality of
products offered by Java Lounge. It can be argued that even being a small coffee shop in the
country, it has developed a strong supply chain system which is contributing a lot in Java Lounge
overall growth and success. The shops keep on doing in-depth research in order to identify the
ways through which it can enhance its existing supply chain. Java Lounge is very passionate
towards providing the best coffee experience to all its customers.
14

Storage of material
It is the second stage of supply chain management of Java Lounge which is carried out
after the process of procurement of materials. Further, it is the process in which the brand
performs the task of storing and distribution of all products. There are various kinds of storage
centres which are used by in order to store material which has been procured from various
sources.
Inventory control
Java Lounge is using various techniques in order to control its inventory. One of the
major and most effective among those is Just in Time technique. The small coffee shop is
successfully, using this technique in order to manage elements such as level of inventory,
storage, transportation and scheduling.
Logistics and distribution system
It can be stated that the system of logistic is deals with forward and backward flow of
materials which are procured from various sources. The brand has been developed an effective
logistic and distribution system in order to deliver the best quality of products and services to
customers.
Production process
The small coffee shop has reserved all the rights of production and has well taken care of.
Java Lounge has developed an appropriate kitchen where the entire process of production is
carried out. Further, appropriate standards are maintained in the entire process of production. As
soon as people place order, the staff members starts preparing the food in kitchen. Furthermore,
Java Lounge is also performs the task of inventory check in order to maintain [proper level of
demand and supply.
Sales and after sales
After preparing the coffee and other products of Java Lounge, it is being served to the
respective customers. At the time of delivering products and services, the coffee shop always ties
to deliver fast, accurate and satisfactory services and products. Along with this feedback is also
taken from customers to enhance product quality of products.
15

1Stages in supply chain management
According to the theory of supply chain, there are three main stages in supply chain
management of an organization. Further, customers and suppliers are key players in the same.
The process of supply chain management in Java Lounge begins with purchasing different raw
material and ingredients used to make coffee. After making the purchase, process of production
begins in Java Lounge. At last, the produced coffee is distributed to customer with the help of its
store. It can be also stated that both suppliers and customers are taken in to consideration by the
coffee shop. Along with this, it also seeks for the ways through which process in supply chain
which are purchase production and distribution can be improved.
16
Illustration 5: Theory of supply

SIMILARITIES AND DIFFERENCES IN QUALITY PROCESSES OF
JAVA LOUNGE AND STARBUCKS
In comparison, with quality process of Java Lounge with Starbucks there are many
differences observed. It can be stated that Starbucks is global giant in coffee market of the entire
world. On the other hand, the operations and quality process of Java Lounge is at very low scale.
It has been observed that both the businesses import their raw material from different sources.
Starbucks relies on almost nineteen countries for raw material whereas Java Loung's majority of
material comes from single country which is Yemen. There are total six roasting centers of
Starbucks which perform the task of preparing beans (Capraro, 2009). On the other side of this,
Java Lounge has only one center for carrying out the process of roasting. It can be stated that in
order to maintain and improve quality, Starbucks adopt new technologies and also tries to
improve its overall processes at regular intervals. Furthermore, customer research and surveys
are being conducted at regular intervals to identify whether quality of its products and services is
satisfactory or not. On the other than, Java Lounge make sure that quality of its offering are
maintained to the highest possible level (Bou-Llusar and Beltrán-Martín, 2009). In addition to
this, the small shop is also expertise in origin of filter coffee from different places of the world.
In contrast, of quality process of Java Lounge with Starbucks it can be argued that it has
maintained adequate level of quality.
It can be stated that both the brands has developed effective process to maintain quality.
Java Lounge is able to give good competition to the Starbucks because of its product and
services quality. In addition to this, both the businesses always seeks for way through which they
can deliver customers with fast, accurate and quality products. After carrying out comparison of
quality process of both the businesses it can be argued that Starbucks maintain quality is global
level which a very complex procedure (Zeithaml, 2010). At the time of carrying out its
operations, Starbucks prefer to buy coffee beans from framers which are certified under
Starbucks Coffee and Farmer Equity. This is done with an objective of importing beans which
are best in quality.
17

Divergences of Quality Processes of Java Lounge and Starbucks
On the other side of this, Java Lounge do not use such kind of procedure in carrying out
its operations. The layout and operation design of Java Lounge is also completely different from
that of Starbucks. It can be stated that Starbucks has also looked forward to strategy for growth
and expansion and Java Lounge is going for the same strategy by seeking for establish new
stores. Most of the people in the world will agree that Starbucks serve them with the best quality
brewed coffee which supports them to stay energetic in entire day. Java Lounge also put lots of
efforts and resources in order to add some science in its coffee and enhance its overall quality
(Sayogo and et.al., 2015). In terms of service quality, it can be expressed that as soon as
customers walk in Starbucks, its staff member's makes sure that they get them within 3 minutes
which is not the same in case of Java Lounge. On the other side of this, effective training and
development sessions are organized by Starbucks for its employee at regular intervals in order to
enhance its service quality.
Java Lounge do not provide such kind of training sessions to workers which is affecting
its overall level of quality. In comparison, of service quality of Starbucks from Java Lounge, it
has been found that Starbucks is using Swiss-made Mastrena, in order to deliver the highest
quality shot of espresso which is not used in Java Lounge. Another reason why quality of
Starbucks is very good as compared to Java Lounge is that it has installed single brew clover in
order to provide the best coffee taste (Kenyon and Sen, 2015). Thus, it can be stated that the
quality process of Starbucks is much improved as compared to Java Lounge. In addition to this,
the small coffee shop is trying really hard to enhance its overall quality process and gain high
degree of customer satisfaction.
Refer Appendix 3
CONCLUSION
From the above report it can be concluded that Java Lounge is carrying out its operations
in effective manner. Further, the brand always seeks for ways through which it can enhance
quality of all its products and services. It can be concluded that Java Lounge needs to introduce
some new range of products in order to attract more customers. Even after carrying out its
18

operations in front of brands such as Starbucks, it has been able to gain adequate sales and
profits.
19

REFERENCES
Books and journals
Alan, A.K., Kabadayi, E.T. and Yilmaz, C., 2015. Cognitive and affective constituents of the
consumption experience in retail service settings: effects on store loyalty. Service
Business. pp.1-21.
Alon, I. and Lattemann, C., 2016. Tchibo Goes Global: Implementing a Hybrid Franchising
Strategy at Germany's Leading Coffee Retailer. Global Business and Organizational
Excellence. 35(2). pp.18-30.
Carvalho, J.M., Paiva, E.L. and Vieira, L.M., 2016. Quality attributes of a high specification
product: Evidences from the speciality coffee business. British Food Journal. 118(1).
pp.132-149.
Chiang, T.A. and Wang, S.T., 2016. An evaluation and enhancement approach of the carbon
footprints-based environmentally sustainable service competitiveness for coffee
shops. International Journal of Technology Management. 70(1). pp.4-24.
Grant, D.B. ed., 2016. Logistics, Supply Chain and Operations Management Case Study
Collection. Kogan Page Publishers.
Horvat, A., Antic, S. and Jeremic, V., 2015. A New Perspective on Quality Characteristics
Determining Supply Chain Management of Coffee Production. Engineering Economics.
26(3). pp.239-244.
Jain, R. and Shu, Q., 2016. Critical Design Elements for Service Systems. InManaging
Flexibility. Springer India.
Kenyon, G.N. and Sen, K.C., 2015. Implementing Change in the Supply Chain. In The
Perception of Quality. Springer London.
Kenyon, G.N. and Sen, K.C., 2015. What is Quality?. In The Perception of Quality . Springer
London.
Life, W., 2014. Hookah on the highway. The Guardian. 1. pp.15-2014.
Nahmias, S., 2015. Production and operations analysis. Waveland Press.
Sayogo, D.S. and et.al., 2015. Challenges and requirements for developing data architecture
supporting integration of sustainable supply chains. Information Technology and
Management. 16(1). pp.5-18.
Yuan, B.J., Chang, H.F. and Tzeng, G.H., 2015. Evaluation of service quality continuous
improvement in coffee shops. Human Factors and Ergonomics in Manufacturing &
Service Industries. 25(1). pp.1-11.
Online
20

About us Java Lounge. 2016. [Online]. <Available through:
http://www.javaloungecoffee.com/coffee/>. [Accessed on: 23 March, 2016].
Hallam, K., 2015. Independent coffee shop Java Lounge opens second store in Birmingham city
centre. [Online]. <Available through: http://www.birminghammail.co.uk/whats-on/food-
drink-news/independent-coffee-shop-java-lounge-9605045>. [Accessed on: 23 March,
2016].
Java Lounge. 2014. [Online]. <Available through: http://independent-birmingham.co.uk/java-
lounge/>. [Accessed on: 23 March, 2016].
21

APPENDIX: 1
Theories of operational management
The 5S theory
5S theory can be termed as one of the best and most effective approach in order to
evaluate management standards and capabilities of a business enterprise. The results after
applying theory on Java Lounge is mentioned below as:
22
Illustration 6: The 5S theory
(Source: Kenyon and Sen, 2015)

 Sort- After visiting Java Lounge, it has been identified that the coffee shop separated all
unnecessary items. Along with this, items which are required are placed in appropriate
manner. Straighten- All the times which are required to produce different types of coffee and
other items are arranged in proper manner in Java Lounge. Shine- Java Lounge has well taken care of cleanliness in the coffee shop and all the
equipments are cleaned on daily basis. In addition to this, it has also maintained clean and
safety standards. Standardise- It has been observed that proper standards are maintained by in the first
three steps by Java Lounge.
 Sustain- Java Lounge has framed effective rules and procedure to maintain standards and
carry out continuous improvement. Further, all staff member follow these rules in the
best possible manner.
APPENDIX: 2
Suggestions to Improve the Performance Objectives
It can be explained that as compared to its major competitors which are Centenary
Lounge, Home is Where, Faculty etc, Java Lounge operations are capable enough to achieve its
short and long term objectives. However, it can be argued that there are some areas where the
small coffee shop needs to make improvements. In order to improve its overall competitiveness,
the improvements are mentioned below as:
 It is required by Java Lounge to increase its operations to other area of UK. This will help
in creating more and more awareness about its products and services in the minds of
people in market.
 It is also required by the shop to become more flexible by introducing new range of
products and services. It can be stated that coffee, beverages and other food offered by
Java Lounge is very limited.
23

 In order to stay competitive in market place, it is required by Java Lounge to carry out
marketing and advertising of its offerings.
APPENDIX: 3
Operating in such a competitive market, organisation needs to maintain its quality standard so
that they can delight customers. Therefore, it is important for the top level management of Java
lounge to make sure that they match the standard of Starbucks so that they can improve their
level of functioning. Following are the similarities of quality processes of Java lounge and
Starbucks:
 Procurement strategy: Looking at the functioning of both the firms it can be stated that,
they both use high premium coffee beans and other food raw materials from the certified
suppliers so that they serve the best quality of products to their customers.
 Process design: Considering the process of Java lounge which is relatively inefficient as
compared to Starbucks which gives high priority to the process design. However, it is
important for the Java lounge to make sure that they design specific recipes as per the
taste and preferences of customers so that they can easily improve their process.
 Customer service: In every organization customer service is considered as one of the
biggest prospects and every organization makes tons of efforts to provide quality of
services to their customers. In this regard, Java lounge and Starbucks are making efforts
to maintain superior quality of customer service so that their experience at every visit can
be enhanced.
 Forecasting and budgeting: These are financial methods which aims at determining the
sales, revenues, customers served, inventory and materials estimations etc. However,
both Java lounge and Starbuck managers prepare proper budgets to forecast the economic
conditions so that they can minimize the risks and uncertainties associated with financial
prospects of the business.
 Employee management: Operating in different parts of the world both the companies
employ skilled and qualified employees with the aim to serve the customers in the best
possible manner. Furthermore, training and development sessions are organized at
24

constant basis in Starbucks for enhancing the level of performance of the individual so
that they can achieve the ultimate goals and objectives of the business. Therefore, it can
be said that Java lounge should organize training and development to enhance the skills
of employees. Furthermore, proper recruitment procedures should be employed so that
the best possible individual can be recruited to the post who can carry out the work in
effective and reliable manner.
These are some of the differences and similarities between the functioning of Java lounge
and Starbucks and it is the duty of senior authority of Java lounge to make sure that they analyze
the strategies used by Starbucks and employ them in their organisation to achieve desired results
and outcomes.
25