Operations Managemgent and Service Excellence

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Operations
Management and
Service Excellence

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Table of Contents
INTRODUCTION...........................................................................................................................3
PART A ..........................................................................................................................................3
Four Vs analysis..........................................................................................................................3
Comparative performance objective analysis.............................................................................5
Design analysis............................................................................................................................6
PART B ...........................................................................................................................................7
Overview.....................................................................................................................................7
Operational strategy of Starbucks and the Macro environment..................................................7
Key requirements, capabilities and challenges...........................................................................8
Analysis and evaluation of chosen operational area.................................................................10
Recommendations.....................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................14
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INTRODUCTION
Operation management is the administration regarding business practices helps to create
the highest level of efficiency possible for an organisation. It is majorly concerned with
transforming the raw material into finished products and service for gaining maximum level of
profitability. Respective report is based on the case study of Starbucks which is an American
Coffee company and a large coffee chain. It is founded in year 1971 in Washington. Respective
report is based on Two organisation that are Starbucks and Greggs which is the largest bakery
chain in UK that aimed to gain world wide network of franchise and licensed Starbucks cafe.
There are two parts of respective assignment in first part of it consisted Four Vs analysis,
performance objective analysis and in second section of respective report consist of operation
management in order to gain potential outcomes.
PART A
Four Vs analysis
There are four specific attributes for defining the operation management that are Volume,
Variety, Variation and visibility to acknowledge each and every attribute in proper manner. By
using respective framework that elaborates about the resources and every possible effort to turn it
into finished goods and services (Ahidar, Sarsri and Sefiani, 2019). Conversion of raw material
into finished goods required for every organisation and it can be possible by using four important
majors that are Volume, Variety, Variation and visibility. Respective factors contributes towards
enhancement of value for both the company and consumers by using various works and
processes. Here are the elaboration of respective factor in context of Both Starbucks and Greggs:
Four Vs elements Starbucks Greggs
Volume In context of Volume which
states that organisation have to
produce products and services
in higher quantity at lower cost
in order to gain potential
outcomes. Respective tactic
can be only possible after the
purchasing of raw material on
In context of Greggs, that
always wants to improve in
their level of performance and
to enlarge business
opportunities by merge and
franchise with Starbucks in
order to remain competitive.
As respective organisation is
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bulk and after produce
products in mass quantity. By
using respective activities
organisation can be able to
deliver products in most
reasonable cost for ultimate
consumers to remain
competitive in marketplace.
very much popular in market
as they operate one of biggest
bakery in most places of world
so by using production in bulk
quantity helps to curtain their
cost effectively (Allen, Alston
and DeKerchove, 2019).
Variety Variety is one of most
important kind of
developments in which
variety of product's offered to
consumers. In context of
Starbucks they use fresh
brewed coffee, hot and iced
espresso beverages, Coffee
and non coffee blended
beverages and many more.
In context Greggs they also
specialised in serving variety
of food products in which
includes the Bacon and cheese
wraps, steak bake, chicken
bake and Sausage Bean many
more that satisfied the
consumers wants and needs in
proper manner.
Variation In regards of respective
component the higher
authority needed the higher
volume of production at
relatively lower cost by
providing variations in their
products and services. In
context of Starbucks their
consumers always needed
some sort of innovation and
enhancement of values in their
present products and services.
In context of Greggs as per
the respective attribute it is
very much crucial for
organisation to add some more
products and services in their
product portfolio as they are
limited at some extent that
hinders their self interest in
giving one of their best
attributes to remain
competitive in marketplace.

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Visibility AS per the respective
component helps to take the
purchasing decision as
respective rare features draws
attention of people such as
tools and techniques used by
respective organisation, their
brand loyalty in marketplace
and many more. Their quality
and brand value is one of most
visible factors in front of them.
IN context of Greggs they are
very much popular within the
people by using the extra
ordinary theme to enchant
their consumer as their stores
is very much popular within
the people as they used
customary technique.
Comparative performance objective analysis
Performance management framework designed with the objective to improve the
performance of an individual as well as organisation by taking regular feedbacks and assist
employees in their career development (Bolton, 2019.). Here are the major attributes of
performance objectives in context of both Starbucks and Greggs that are as follows:
Quality:
Quality is one of most important aspect for an organisation as it build loyalty in heart of
consumers, in context of Starbucks they always put one of their best efforts to maintain quality
by setting a seperate department to check the quality of their products. In context of Greggs they
deals in bakery products by using various tools such as total quality management they Positioned
distinctively in market.
Cost:
The cost is one of major factor in front of organisation to deliver one of best attributes to
the ultimate consumers in order to serve their level of expectations positively (Bouranta and et.al
, 2019.). In context of Starbucks the major cost in producing their products and services is coffee
beans that are natural product that hinders their self interest in gaining higher level of
profitability. On other hand in context of Greggs the major factors occurs cost is economic
conditions as they operate in UK marketplace where Brexit affects their level of profitability.
Flexibility:
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Flexibility is very much important factors in today's scenario to embrace changes occurs
within the organisation. In context of Starbucks they provide the flexible working hours and
remote working in order to gain higher level of profitability from their employees. In context of
Greggs they are very much proactive towards changes, to adopt changes positively they provide
proper education and assistance to their employees so that they can perform well.
Speed:
Respective factor plays very much important role which directly connected with level of
consumers experience as it relate with delaying in serving period arise dissatisfaction in
consumers (Copacino, 2019.). In context of Starbucks by using the Bale system that helps to
reduce the time of waiting and serve consumers in best way. On other hand in context of Greggs
by using the best supply chain that never delay in allocation of resources at right place.
So it can be elaborated that respective factors plays very much crucial role in the
organisational development and enhancement in positive manner to gain sustainability and
accountability.
Design analysis
Effects of design on consumer service process:
Customer service is the act of taking care of the needs of consumers to provide and
deliver professional, helpful and quality services in order to remain competitive in marketplace.
Respective stage proved very much important for an organisation to plan, implement and
coordinate various works and activities in order to give satisfactory results to consumers
(Edgeman, 2019. ). In context of Starbucks they operate activities in a systematic process in that
by taking feedbacks from consumers and map a path for consumer decision making. On other
hand in context of Greggs they desing unique stores and use one of best serving style of food
before consumers that impact positively on consumers in order to remain competitive in
marketplace.
Impact of design layout of stores:
For an organisation structure plays very much crucial role to attract and enlarge business
opportunities in order to gain potential outcomes. The physical and online websites come under
the design layout of the stores that draws the experience for consumers. In context of Starbucks
their physical stores possess the unique proposition in mind of consumers that enhance their
level of expectations in positive manner. In context of Greggs they are dealing with bakery
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products by using both online and offline mode, they providing adequate information about their
products and their baking procedure, used ingredient and many more attributes helps to
consumers to take appropriate kind of decisions in proper manner.
So for an organisation it is very much essential to consider major factors before offering
products and services to the ultimate consumer base in positive manner.
PART B
Overview
Quality management is the set of activity or overseeing of various actions within the
organisation to ensure about products and services offered as well as efforts to achieve them in
positive manner (Fließ and Kleinaltenkamp, 2019.). Quality management assist to achieve and
maintain the desired level of quality within the organisation in order to remain competitive in
marketplace. In context of Starbucks and Greggs they take care about the quality of their
products and services in order to maintain stability within the environment.
Operational strategy of Starbucks and the Macro environment
Starbucks is one of the most leading organisation in field of food and beverages by use
prominent kind of operational strategies to remain competitive in marketplace. In their
operational strategy consist of the maintaining consistency in their works and activities that helps
to maintain the loyalty of consumers towards their products. The crucial factor of organisational
success resides in that they always build qualitative strategies that measurable in nature and
enables to grapple other brands too.
In their operational strategies consist of the maintaining quality of products and services
by setting standards such as Key performance indicators, benchmarks and many more in order to
deliver one of best attributes to remain competitive in marketplace (Gupta, Trehan and Gandhi,
2019). They always planned to maintain good standards in regards of quality of products by
measuring or evaluating the errors in production and distribution of products and services. They
use quality management due to the lack of proper planning regarding quality, not able to use
technology that advance in nature in macro business environment.
In context of Starbucks which adopted the differentiation strategy that helps to maintain
the uniqueness in their products and services and helps to beat their competitors in marketplace.
The quality management operations sphere can be improved by using global level tactics into

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marketplace to build products that possess unique quality in marketplace. So it is very much
important for organisation to use standards by considering various factors that are as follows:
Technological advancement:
The major opportunity in front of respective organisation to adopt one of best tools that
helps to enhance the consumer's experience level and bring effectiveness in their operations to
reduce cost and increase revenue (Lu and et.al ., 2019.).
Economic growth:
For an organisation it is very much important to avail the opportunities available into the
marketplace. In context of Starbucks they always expand their brand in other countries to enlarge
business opportunities. By considering the economy of respective countries organisation can be
able to gain higher level of profitability.
The mentioned factors helps to organisation to evaluate or measure the potential
outcomes in both positive and negative manner to beat the adverse situations arise in front of
organisation.
Key requirements, capabilities and challenges.
For an organisation, it is very much essential to access own capabilities, requirement and
challenges that they can face in near future. Evaluation of respective factors helps them to build
strategies and tactics to perform in best way, in context of Starbucks the key operational
requirements of them consisted of endeavour, capabilities and sustainability into marketplace to
perform in best way (Majava and Isoherranen, 2019.). While carry out operational activities or
actions it is very crucial to maintain the quality standards as consumers mostly aware about it in
today's health conscious world. Respective organisation needs operational activities on daily
basis as they operate at global level to maintain harmonious activities they need to modify in
their tactics. With they charges higher price for their products so consumers accordingly demand
the results. So it can be said that for effective kind of functioning it is crucial to evaluate the
strategies, standards to maintain level of quality and many more. In context of Starbucks their
major capabilities that enables to become pioneer of their field are as follows:
Talented personnel:
To maintain the quality of products and services it is very much essential to possess the
most skilled workforce that give one of their best efforts by using their skills and capabilities for
organisational as well as for self development to remain competitive.
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System:
The another major factors that is very much essential for organisation to maintain the
quality standards are validate system to transit knowledge and information to one another. In
system consist of various factors such as values, distribution channel and many more.
While an organisation aimed to give one of their one of best efforts to maintain level of quality
they also faces some sort of challenges that hinders their self interest in gaining potential
outcomes in positive manner that are as follows:
Technological advancement:
The first and foremost challenge faced by organisation while maintaining quality that
some organisation not able to use efficiently the tools and techniques. To utilize in best manner it
is very crucial to have the skilled workforce and it is rare in nature (Marimon, Melão and
Bastida, 2019.). Adaptation of highly advance tools consumes too much cost and time that are
not possible for every organisation.
Different culture:
In context of organisation while they put efforts to maintain the level of quality they
found that due to difference in culture people not able to act properly. As different culture bring
difference in their understanding and also in activities to pursue the work in proper manner. To
implement quality within organisation it is necessary to provide training and development to
people so that they can give their one of best efforts in development and growth.
Analysis and evaluation of chosen operational area.
From the above discussion it has been evaluated that maintaining quality is very much
important for an organisation as it helps to enhance brand value and enhance market share to
remain competitive in marketplace (Reid and Sanders, 2019.). It takes very much long time to
build brand image in marketplace as it bring sustainability and competitiveness. Respective
organisation spends too much time to find out best suppliers of coffee beans and grocers that
supply the ingredients to prepare their products in proper manner. So it can be said that
Starbucks is very much concern towards maintain the quality of their products and services. Here
are various aspects and chain of activities that helps to improve the quality of Starbucks products
Commitment:
Commitment to maintain quality plays very much crucial role and to maintain it each and
every individual give one of their best efforts. There are several organisations exist that offers
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same products that offered by Starbucks but they are the only suppliers that build their distinctive
image in marketplace. It can be only possible by their commitment to offer always best products
to their ultimate consumer base. There are no. of stakeholders that contributes towards
maintaining quality of their product consist of Creditors, suppliers, debtors and investors many
more in order to serve best products to ultimate consumers (Wirtz, 2019).
System of random checks:
Starbucks possess the highly validate system that helps to check randomly the
performance of each and every individual by using several kinds of district manager that always
verify performance of their subordinates. They taking feedbacks from their subordinates so that
they can find out gaps to perform well within the organisation. They use system to save the
consumers information that are one of most burning issue of data privacy so that quality should
be maintained and effective results should be achieved (Rosenzweig, Queenan and Kelley,
2019.).
Exceptional quality:
The respective organisation avail one of best quality beans to prepare the coffee that
provide exceptional experience to their consumers and helps to beat their competitors in positive
manner. By using differentiation strategy organisation that helps to survive in business
environment positively by adding some unique propositions they conduct research and
development on continuous basis.
Consideration of quality and cost:
Starbucks are the pioneer to maintain the quality of products and services with the help of
cost control and investing resources at right place helps them to gain optimum kinds of outputs
(Sehnem and et.al ., 2019.). They by distributing the cost of each and every factor that helps to
establishing effective kind of functioning to serve best products to the ultimate consumers.
Formulation of strategies:
In context of Starbucks strategies and tactics plays very much crucial role to improve the
level of performance in regards of quality, cost and motivation level of employees. By using
development plans they organise activities and provide roles accordingly so that people can give
one of their best efforts.
Achievement:

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Maintaining quality is one of the great achievement for an organisation and it provides
rewards in terms of brand value, sustainability, large no. of consumer base and many more. In
context of Starbucks which are pioneer of their field as they pay attention towards maintaining
quality of their products since a long time (Sony, 2019.). Due to their great efforts they gain the
award and appreciation of great coffee in market and always continue research to maintain high
standards to maintain their level of quality.
Market segmentation:
Segmentation of market is very much potential for an organisation, respective efforts
helps to organisation to reach at large no. of consumer base by offering products that are most
suitable for them (Vanichchinchai, 2019,). They always tries to bring innovation in their
products and in serving style as both are very much important for consumers. By follow strategic
quality ideas they never face decline in their profit ratio that enhance sustainability in
marketplace.
Hence it can be concluded that respective organisation try one of their best efforts to
maintain the quality of their products and services to gain profitability and sustainability in
marketplace.
Recommendations.
For an organisation it is very much important to bring improvements in their present
conditions as it is essential to maintain sustainability and profitability in marketplace. In context
of Starbucks some major kinds of recommendations in order to bring improvement in their
present scenario that are as follows:
The factor which separates Starbucks from their major competitors that is relationship
with their consumers. After research it found that experience in between the consumers
and Barista is sole reason consumers keep coming back to purchase their products. So it
is very much essential for them to keep changing oneself as it always helps to connect
with consumers in positive manner.
The another area of improvement is to give time to consumers to educate them by
conducting seminars including coffee seminars. As mostly consumer taking experience
inside the coffee store which is one way to spread enthusiasm for the whole coffee bean
wall to share experiences related to coffee in order to enhance consumer base. They have
to scheduled the program for people who possess the untapped passion for coffee.
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In success of an organisation there are no. of employees who contribute but there are
always some few individuals that care about their self interest. In that regards
organisation can not root out those individual but it would do something good to
encourage in order to give one of their best efforts in organisational development and
enhancement.
The another major area to improvement that in an organisation specifically have to spend
time on the non coverage activities such as education, coffee testing, cleaning and
connecting partners with store managers. Respective activities helps to improve the
morale and performance of employees that is very much essential to remain competitive
in marketplace.
To remain always relevant it is very much necessary to valued some exceptional kind of
consumer feedbacks by setting some sort of standards. The another important option is to
conduct open ended kind of comment area on the survey conducted by Starbucks so that
they can take appropriate kind of actions to remain relevant in marketplace.
CONCLUSION
From the above report it has been concluded that operations management is one of the
most important system for an organisation that contribute in converting raw materials into
finished goods to serve consumers in best way. For an organisation it is very much necessary to
plan and execute by considering various factors and attributes in which visibility, variance and
volume to gain potential outcomes from the whole process. To perform well it is very essential to
build the performance objectives that should be measurable and specified by considering various
factors such as cost, quality,risk and resources in order to plan and execute in proper form.
Design of layout and stores plays very much crucial role that enhance the satisfaction level of
consumers in order to remain competitive in marketplace. For an organisation quality matters a
lot as it enables to maintain distinctive image and enhance brand value to that helps to improve
profitability and sustainability in marketplace.
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REFERENCES
Books and journals:
Ahidar, I., Sarsri, D. and Sefiani, N., 2019. Approach to integrating management systems: Path to
excellence application for the automotive sector using SYSML language. The TQM
Journal. 31(2). pp.183-204.
Allen, P.M., Alston, F.E. and DeKerchove, E.M., 2019. Peak Performance: How to Achieve and
Sustain Excellence in Operations Management. CRC Press.
Bolton, R.N., 2019. Service timing: Designing and executing service in a dynamic environment.
In Handbook of Service Science, Volume II (pp. 13-33). Springer, Cham.
Bouranta, N. and et.al , 2019. The key factors of total quality management in the service sector: a
cross-cultural study. Benchmarking: An International Journal. 26(3). pp.893-921.
Copacino, W.C., 2019. Supply chain management: The basics and beyond. Routledge.
Edgeman, R., 2019. Complex Management Systems and the Shingo Model: Foundations of
Operational Excellence and Supporting Tools. Productivity Press.
Fließ, S. and Kleinaltenkamp, M., 2019. Commentary essay on “blueprinting the service
company–managing service processes efficiently”. Journal of Global Scholars of
Marketing Science. 29(3). pp.281-292.
Gupta, A., Trehan, R. and Gandhi, S.K., 2019. Service Quality Through the Lens of SAP-LAP
Methodology: A Case Study. In Operations Management and Systems Engineering (pp.
111-132). Springer, Singapore.
Lu, D., Asian, S., Ertek, G. and Sevinc, M., 2019. Mind the perception gap: An integrative
performance management framework for service supply chains. International Journal of
Physical Distribution & Logistics Management. 49(1). pp.33-51.
Majava, J. and Isoherranen, V., 2019. Business model evolution of customer care
services. Journal of Industrial Engineering and Management. 12(1). pp.1-12.
Marimon, F., Melão, N. and Bastida, R., 2019. Motivations and benefits of quality management
systems in social services: mediation of the implementation process. Total Quality
Management & Business Excellence, pp.1-26.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Rosenzweig, E., Queenan, C. and Kelley, K., 2019. Virtuous cycles of service quality: an
empirical test. International Journal of Operations & Production Management. 39(2).
pp.357-380.
Sehnem, S. and et.al ., 2019. Improving sustainable supply chains performance through
operational excellence: circular economy approach. Resources, Conservation and
Recycling. 149. pp.236-248.
Sony, M., 2019. Implementing sustainable operational excellence in organizations: an integrative
viewpoint. Production & Manufacturing Research. 7(1). pp.67-87.
Vanichchinchai, A., 2019, March. Quality Management and Supply Chain Management
Frameworks: A Classification. In 2019 8th International Conference on Industrial
Technology and Management (ICITM) (pp. 22-26). IEEE.
Wirtz, J., 2019. Cost-effective service excellence in healthcare. AMS Review, pp.1-7.
Online:

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How companies reinvent themselves to stay alive, 2019. [Online]. Available through.
<https://emersonnash.com/how-companies-reinvent-themselves-to-stay-alive/>.
Starbucks: a tech company or your neighborhood coffee shop?, 2019. [Online]. Available
through. <https://digital.hbs.edu/platform-digit/submission/starbucks-a-tech-company-
or-your-neighborhood-coffee-shop/>.
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