Supply Chain Management of Starbucks

Operations management
and Service excellence

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A ..........................................................................................................................................3
Comparative Four Vs Analysis..............................................................................................3
Comparative Performance Objectives Analysis.....................................................................6
Design Analysis......................................................................................................................8
Impact on design of customer service process ......................................................................8
PART B ...........................................................................................................................................9
Supply chain management of Starbucks ................................................................................9
Overview ...............................................................................................................................9
Starbucks Global operations strategy and surrounding macro environment .........................9
Key requirements, capabilities and challenges 350 .............................................................10
Analysis and evaluation of supply chain management of Starbucks ..................................12
Mercantile theory: .............................................................................................................12
Recommendation .................................................................................................................13
Conclusion....................................................................................................................................14
REFERENCES .............................................................................................................................16

INTRODUCTION
Operational management is defined as the administration of business practise for creating
the highest level of efficiency that is possible within the company. This includes conversion of
materials and labour into services and goods and to maximise the profits earned by the
organisation. The operations management team is responsible for maximising profits of the
organisation. The following report includes information regarding supply chain management of
Starbucks. This is an American coffee company that is founded in Seattle, Washington.
Starbucks uses automated espresso machines for increasing the sales of the company. There are
two parts of this report. Part one includes comparative four V analysis, performance objective
analysis and design analysis. On the other hand, second part includes supply chain management
of Starbucks and its global operational strategy.
PART A
Comparative Four Vs Analysis
The main element of this process is to transform each and every resource or raw material
in a way that it is productive for classifying it into four assorted attributes (Zdeblick, M.J,2016).
The different attributes which are present in business are raw material, equipment, money and in
return, these are changed into finished products and goods. The four dimensions included in
comparative four Vs analysis are visibility, volume, variety and variation. There is fundamental
management of creating values and belief in effective manner. This is concluded that in every
business, there are lot of operations required for converting each and every resource in
productive output. The differentiation between Starbucks and Greggs on the basis of 4 V's is
mentioned below -
Starbucks is an American coffee company and coffee house chain which was founded in
the year 1971. This is a well known coffee shop that provides services across the world. On the
other hand, Greggs is an organisation which has the largest bakery chain in UK and the
specialisation of this company is savoury products like bakes, sandwiches and sausage rolls and
vanilla slices. The headquarters of this company are located in North Tyneside. The Four Vs
model of these organisation is listed below -

Four Vs
Elements
Starbucks Greggs
Volume This is a factor which is involved in
producing high volume of services
and products. When this organisation
want to increase volume of sales ,
this helps in producing high volume
of goods and services. In context of
Starbucks, there is requirement of
focusing on bulk manufacturing that
minimises cost of production.
Starbucks is dealing with product
naming coffee.
The managers of Greggs have an
objective for increasing the volume
of the products produced by the
company. They want to earn more
profit and money in marketplace. It
is required to maximise the bulk
production and this automatically
aids in minimising manufacturing
cost.
Variety According to this factor, it is seen
that managers of Starbucks require to
maximise dimension area. The
managers of Starbucks must
maximise their competitiveness by
adopting new and strong strategies
for providing good services.
Starbucks is involved in innovating
it’s products and services. This
attracts lot of customers across the
world. Starbucks offers a wide
variety of coffee.
Managers of Greggs are increasing
the type of food dishes and food
items they are selling. This will help
in attracting new customers and
retention of existing customers by
providing them something new. This
company is offering bakery items
and it is attracting a lot of customers
Variation Starbucks has to do variant addition
in it’s offerings and services. This
company offers it’s coffee by a
unique style. It writes names of the
buyer on cup. This differentiates
The managers of Greggs are adopting
an attractive idea. In this, they try to
make their food items and dishes by
adding new flavour and spices to
them. They also focus on decorative