Operational Management: Analysis and Strategy for Starbucks and Greggs

OPERATIONAL
MANAGEMENT

TABLE OF CONTENTS
OPERATIONAL MANAGEMENT ...........................................................................................1
TABLE OF CONTENTS.............................................................................................................2
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
4 Vs Analysis...............................................................................................................................3
Operational Performance.............................................................................................................4
Design Analysis...........................................................................................................................5
PART B ...........................................................................................................................................7
Overview......................................................................................................................................7
Global Operation Strategy...........................................................................................................7
Requirement, capability and challenges......................................................................................8
Analysis........................................................................................................................................9
Recommendation.......................................................................................................................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
Operating management is defined as the activity which looks at bringing the effectiveness
in all the function or the operation of the business. Report highlights the comparison between the
Starbucks and Greggs on the basis of 4 Vs Analysis, Performance objective and Design Analysis
of the company. After that the report goes on to highlights overview of operational management
and the global operational strategy which is used by the Starbucks in the organization. After that
the report highlights Requirement, capability and challenges faced by the quality management
operation management. In the end the report highlights the analysis and evaluation of operational
area of Starbucks.
PART A
4 Vs Analysis
4 Vs Analysis of the organization is defined as a different output which has been excreted
from the input of the different input like raw material, knowledge, capital, equipment and time. 4
Vs of operational management are defined as Volume, variety, Variation and Visibility.
Volume: volume stands for the amount of the product which used to produced by the
organization to satisfy the need of the customer in the organization. Starbucks has an annual
sales of $22.39 billion in the year 2018. At the same time Greggs the largest bakery chain in the
United kingdom has a sales volume of 1 million in the year 2019. From the data and the
observation it has been find out that the Starbucks used to produce the higher volume of the
product in the market to satisfy the demand of the customer successfully in the market
(Damanhuri, 2018).
Variety: Both the organization used to offer the variety of the product line in the UK
market to attract the eye of the customer in the market. At the time of comparing the variety of
the product offer than it can be easily said that Greggs used to offer the larger product line to the
customer. As they used to offer, beverages, cakes, sandwiches, burger and also variety of the
cookies in the outlet. At the same time Starbucks also used to offer or manufacture the variety of
the product. It has been find out that the Starbucks also used to offer the variety of the product
line of the company only but the coffee product of the company are only well-known in almost
all the market.. At the same time Greggs used to offer the variety of the product such as cake,
coffee and cookies of the outlet as well. This help Greggs in attracting the customer toward the
company. Some famous product line Starbucks in coffee product are Fresh-brewed coffee, hot

and iced espresso beverages, Iced Coffee, Cold Brew, Nitro, Frappuccino® coffee and non-
coffee blended beverages, Starbucks Refreshers® beverages, and Teavana® teas.
Variation: Variation stands for bringing the new product in the market by making some
small or changes in the product line of the company. When comparing both the organization on
the basis of the same it has been find out that Starbucks used to bring more amount of the
variation in the product line of the company as compare to the Greggs (Lohr, 2019). As Greggs
generally used to bring the 2 to 3 variation in the product line of the organization. At the same
time Starbucks used to bring the huge amount of the variants' product in the market. Coffee
product is the best example of the same. Some variants of coffee product of Starbucks are Drip
coffee. This is the simplest drink on the menu are Drip coffee, Iced coffee, Espresso, Latte,
Macchiato, Cappuccino, Mocha, Americano. To compete with the same Greggs has started
developing variety of the hot drink product to attract the consumer and able to get the good name
from the market.
Visibility: When seeing at the visibility of both the companies' product it has been seen
that the Starbucks and Greggs both used to present the product in the name and logo of the
company. Starbucks used to take help of the cups to offer coffee and wrapper to present the
coffee beans. Whereas Greggs uses the combination of variety of the packaging to present the
product of the company.
Operational Performance
Operational performance is defined as a measurable result which are relative to the assets used to
achieve those result. Generally operational performance is measured against the cycle time,
productivity, waste reduction, and regulatory compliance (Mas-Machuca, Akhmedova and
Marimon, 2018).
Productivity: Process and capacity efficiency is one of contributor to Starbucks success.
As Starbucks outlets are becoming more productive as compare to the past. The reason behind
the same is found that the organization has developed the broader product line and also has hired
the more baristas and worker to carry out the operation of the business. At the same time when
seeing the productivity of the Greggs it has been find out that Greggs has seen the better amount
of the productivity rise as compare to the Starbucks. As Greggs has seen 6 percent rise in the
productivity of the company in the last 1 year whereas Starbucks has only seen the rise of 25
percent in there productivity.