Operations Management and Service Excellence

This study material provides an in-depth understanding of operations management and service excellence. It covers topics such as four Vs analysis, comparative performance objectives analysis, and design analysis. It also explores Starbucks' global operations strategy and its role in maintaining quality. Suitable for students studying operations management and service excellence.

OPERATIONS
MANAGEMENT AND
SERVICE
EXCELLENCE

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Four Vs Analysis.........................................................................................................................1
Comparative Performance Objectives Analysis..........................................................................4
Design Analysis...........................................................................................................................6
PART B...........................................................................................................................................7
Overview......................................................................................................................................7
Starbucks Global Operations Strategy.........................................................................................7
Key Requirements, Capabilities and Challenges.........................................................................8
Analysis and Evaluation of Chosen Operational Area................................................................9
Recommendations......................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Operational management is the system of business practices because it is helpful in order
to create the highest level of efficiency which is possible in the organisation. It is related with
converting raw materials into efficient goods and services as possible to increase the profitability
of the organisation. It is practice which is related with the planning, organising, controlling the
operational activities in order to bring efficiency in work (Calabrese and Corbò, 2015).
Moreover, service excellence refers to the effectiveness of the management which helps in
earning maximum profitability and also provide various benefits to customers. Furthermore, this
report is based on the Starbucks which is the leading coffee chain and provides its services at
global level and this assignment is classified into two parts. First part covers comparative four Vs
analysis of Starbucks and Greggs, which is the another food chain store in UK. Moreover, also
compare the current operational performance of Starbucks with Greggs as design analysis.
Moreover, in second part it describes the global operational strategy and defines the key
requirements, capabilities and challenges.
PART A
Four Vs Analysis
Four Vs Profile Diagram
Illustration 1: Four Vs Profile Diagram
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It is highly crucial that organisations are appropriately and effectively differentiated on
the basis of several factors that are related to how best the companies operate on distinct fronts.
Furthermore, firstly it is required that each of the factors related to the differentiation are
appropriately explained. Hence, this explanation is explained below:
Definition of Four Vs
Below is a detailed definition of Four Vs in context of the operations:
 Volume:
One of the most effective operations of the company is associated with the volume,
which refers to the volume of products and offerings of a company that is required to satisfy the
market demand. This could be related to food development processes of a company.
 Variety:
The flexibility within the processes and operations within the company is related to this
factor. This could be related to the processes of the firm as well as the variety of product
portfolio (Campbell, Jardine and McGlynn, 2016).
 Variation:
This is particularly related to the demand for the products and services which could
overtime variety due to changes in external factors. Moreover, it relates with the overall
management process of the firm to manage the demand.
 Visibility:
It refers to all the processes adopted by the company which are actually experienced by
the customers. For example, the services related to delivery of coffee to a customer within the
company is a prominent aspect related to visibility (Copacino, 2019).
Explanation of each profile and discussion of differences
BASIS STARBUCKS GREGGS
Volume In terms of volume, Starbucks
operates in an appropriate manner
due to presence of several of its
production plants that allow the firm
to effectively produce more than
In this perspective, Greggs perform in a
better manner that Starbucks, as the
company used digitalised processes in
terms of produce their offerings to the
customers. Hence, this allows them to
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70,000 servings within a week. produce more than 2.5 million servings
within a week (WHAT IS TOTAL
QUALITY MANAGEMENT (TQM)?,
2019).
Variety
Assemble to Order among other
processes are utilised by the company
in context of ensuring flexibility in
operations and products.
Furthermore, such a hybrid approach
helps in ensuring segregation of
several processes which helps in
delivery of several food items in an
appropriate manner.
In comparison with Starbucks, Greggs
adopt and apply digital software in
order to ensure flexibility within
operations.
Variation
To analyse, interpret and address the
changes in demand, the firm provides
customers with an effective options
towards customising the product as
per the changes in demand. This
usually takes place during the year
end where tourists and other
individuals have high demand of
coffee.
To ensure addressing the variation in
demand, the firm appropriately adopts
market research as a method for
effectively managing the variation
beforehand.
Visibility
For visibility, Starbucks ensure
application for Capacity Utilisation
and Optimisation methods within its
joints in a way that the mobility
within the stores could arise in
prominent manners.
Since spontaneous food delivery is a
thing which is promoted and followed
by the organisation, Greggs operate at
places with high footfall, such as
shopping malls, industrial lands and
retail parks.
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Comparative Performance Objectives Analysis
By considering the Starbucks and Greggs it is determined that there are various types of
performance objectives which put emphasis on the performance of organisation and also reflect
various ways which helps in boosting the overall performance of the company (Gómez,
Martínez Costa and Martínez Lorente, 2017). For this, the execution and scope of performance
objectives are defined with the help of Polar Diagram and its description is mentioned as under:
Illustration 2: Polar Diagram
Thus, by considering the above Polar Diagram the various performance objectives are
discussed as under:
Cost: It is the basic objective of every organisation as in terms of Starbucks, it is useful in order
to enhance the scope of organisation. But in terms of competition, the scope of Greggs is high as
comparing to Starbucks. For example, operations of the firm describe the current market
conditions and describes that company controls it manufacturing system and eliminates the
wastage of resources and also reduce the cost. For this, firm choose the premium pricing policy,
which help the Greggs to minimise its cost because of higher profitability (Jaca and Psomas,
2015).
By comparing with Starbucks, it is quite weaker in this position and the reason behind
this is that company put emphasis on other thing instead of focusing on its manufacturing and
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operations. For example, Starbucks closed its in-store operation in order to make sure the cost
maximisation. Therefore, in comparison with Greggs hey work in better manner to achieve their
objectives.
Speed: This element is very essential for both the companies as one of them use instant product
delivery and continuous operations and also provides healthy working culture. Therefore, Greggs
make sure that their operation done through the digitalization. The done booking in advance and
develop timeline for their members for employees to work on it overall to make sure the speed
(Kerzner, 2018).
Besides this, Starbucks manage speed by focusing on each element in the company. For
example, Starbucks use proprietary system in order to manage and provide services to their
customers and his different style to serve their coffee which become efficient and easy for them
to provide their services. Hence, the scope of operation becomes wider than Greggs.
Quality: It is also the most important and active element for both the companies which is makes
sure by them. In terms of Greggs, the use execution of it systems acid help them in order to make
sure the quality of the goods and services and also deliver their products efficiently and
effectively to their respective customers.
On the other hand Starbucks use detailed approach in order to enhance their quality. For
example they carefully source their beans from their farmers which are certified from the
industrial quality standards and it is a program in the firm termed as the name of Starbucks
coffee and farmer equity (CAFE) it is established on the basis of the acquisition of raw material.
Flexibility: This objective is concerned with the flexibility in operations in company. In this
context Greggs is continuously introducing various product categories in their menu require
different market segments. For instance, in order to adapt China Company use their taste and
also introduce a new product line in their stores like almond milk to acquire new market.
In comparison with Starbucks, they use flexible working on their work force by
launching various approaches like part time working which is helpful for employees. It allows
the company to retain their best talent and develop flexibility in operations. Therefore, by this
there scope gets limited and weaker which is not reliable for people (Naser and Al Shobaki,
2017).
Dependability: This objective is required by companies in order to enhance the dependability in
the cost of Management and also in the delivery system. Greggs use outbound logistics in order
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to make sure on time delivery and cost management. For example, firm manager’s use their
warehousing, transportation and many more in order to handle their services. Moreover company
also digitalise their operations by using various transportation software which helps company in
order to Minister cost effectively.
Here, Starbucks establish its supply chain in UK by various product delivery companies in
order to make sure its longer and effective chain in order to produce goods and deliver it on time.
Moreover they also control and manage their cost and maintain the supply chain at contractual
manner.
Design Analysis
It defines the analysis of design for both the organisation which help them in supporting
their operational features and also carry out it effectively. Hence in this term evaluation of design
in both the organisations are mentioned as under:
Design of customer service process:
Starbucks: The customer service process of Starbucks is not supportive in terms of operations
and also in terms of managing the performance objectives as reason behind this customer service
process as it helps in enhancing the scope to make sure high end production variety, variation
and visibility (Psomas and Jaca, 2016). It is because of the implementation of company adopted
in their operations from its supply chain to distribution is it providing them better scope in their
operational activities.
Greggs: In this the manufacturing system of the company is comparatively advanced which help
the company in its operations and help to cope up with the volume design and develop variety
which is quite effectively. Moreover, the performance of chickens are not enhanced and
implemented buy the form as it requires some sort of modification in its supply chain in order to
support its requirement in effective manner.
Design of store layout:
Starbucks: Use of capacity is one of the best ways which is supported by company in its
operations. Moreover, it also helps in their each and every operational activity and also supports
various characteristics like volume of production (Wirtz and Lovelock, 2016). For instance, the
proprietary system helps them in order to produce huge volume of products which are different
in variations and effective display.
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Greggs: Display in operations used by company in order to support their designs layout for
company. For example, IT systems used by them are quite capable and supportive in terms of
variety and variations along with the supply chain management which is also the effective
function of the company.
PART B
Overview
Introduction of operations area
Operations management is very essential section is it helps in organising the activities of
business in a systematic and appropriate manner. There are so many departments which work
under this department is in terms of Starbucks its operational department include production
sales marketing and many more with appropriate management activities as it becomes easy for
the managers to attain their objectives and targets (Naser, Al Shobaki and Amuna, 2016).
Moreover quality management is also used in the operational areas as in food and retail sector
the quality of food is important element and also considered by each and every organisation
because it is the basic requirement of customers. It is the basic factor which helps managers to
develop good relations with customers.
Scope of operations area
Management of quality has huge scope in terms of growth and development of company.
It is important to maintain quality in their food for put the employees and organisation because it
makes easy to develop and maintain relationships with customers for longer period of time.
Therefore Starbucks use its reputation which helps it in order to sustain itself in this industry for
longer period of time.
Linking Operations area to Starbucks performance
The performance of Starbucks directly links with the quality management because if the quality
of their offerings are not maintained properly then it will become tough for managers in order to
perform in an effective manner moreover it can create legal issues as if the quality concept is not
maintained (Calabrese and Corbò, 2015). At the time of production purchase logistics at cetera
quality need to be considered because the performance of the company depends on it.
Starbucks Global Operations Strategy
Explanation of Starbucks' global operations strategy
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Starbucks is using total quality management in order to maintain their quality as it
becomes easy for their employees in order to understand and analyse the changes in an effective
manner. By considering this strategy, there are various ways which is useful for the continuous
development of quality of products as it helps in maintaining the standards and value of product
(Campbell, Jardine and McGlynn, 2016). They also put more emphasis on customers in order to
make improvement in quality as it help them in developing and maintaining healthy relationships
for longer period of time with customers. In this technique, those products are improved which
are beneficial for the development and growth of organisation and also helps in developing
sustainability of company for long term. There are mainly eight factors of TQM which are
integrated system, customer focused, process centric system, continuous improvement, fast
decision making, communication and many more which put emphasis on the management of
quality.
Role of quality management in the global operations strategy
Total quality management is the most essential and appropriate way which is helpful for
managers in order to maintain their reputation in industry. In this context, changes in operations
and its activities bring efficiency which becomes easy in order to analyse and evaluate the
policies in an appropriate manner (Copacino, 2019). While discussing about international level,
Starbucks analyse the operations which ensure the quality of product is maintained and it is
possible only when managers continuously check the quality of coffee. For this, the raw
materials got collected from suppliers in order to develop final product. Therefore, it is defined
that the quality management plays an important role in operations at global level and also helps
in maintaining healthy relations with customers.
Influence of the external and internal business environment
The development of quality management strategies is essential for company because it
helps in analysing the external factors which become barrier in the development and overall
operations of company (Gómez, Martínez Costa and Martínez Lorente, 2017). Moreover, there
is the need of change in operations of working because it becomes easy for Starbucks in order to
manage their operations in an appropriate manner. In addition to this, there is change is legal
policies like food licensing and many more in which various protocols set which needs to be
achieved in order to eliminate the legal actions against the association of company. If the legal
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rules and regulations are concerned with the quality which is not maintained then it develop
various problems in its operations and also damage the reputation of company.
Key Requirements, Capabilities and Challenges
Key Requirements and Capabilities
It is required by Starbucks to analyse the various capabilities in order to implement the
management of quality. Therefore, some requirements for this is discussed as under:
 Adaptability: It is the primary requirement which is needed by Starbucks in terms of
quality of management the adaptability of company for the new techniques and methods
of management (Jaca and Psomas, 2015). For this, organisation need supportive culture
for their employees in order to adapt the changes and new methods which are
continuously explored in the industry which need to be effectively and efficiently
executed as it make sure high quality of products and services.
 Information System: It refers to the continuous flow of information in an organisation.
Therefore, it needs proper communication capabilities in their employees which must
evident at all the times in continuous manner and also interpreted in an appropriate
manner in order to make sure that each customer gets best experience from their services.
Various Challenges and Problems
There are various challenges which Starbucks face in terms of executing its quality or
managing it in an appropriate manner. Some of them are discussed as under:
 Complexity in supply chain: It is the major problem regarding the execution of strategies
in the global operations which is the supply chain (Kerzner, 2018). Here, it is not required
that each person in the supply chain support technological advancements and hence, it
could cause various complications in operations because of inappropriate alignment of
these functions.
 Resistance to Innovation: It is another problem which needs to be considered by
employer while implementing change in management. Therefore, in terms of Starbucks it
is required that they take care of their employees while implementing changes as it helps
in the enhancement and development of quality.
Analysis and Evaluation of Chosen Operational Area
Evaluation of resources and capabilities management
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It is important that each resources and capabilities in an organisation is managed in an
appropriate manner which helps in planning, organising and implementing the strategies.
Therefore, various examples are discussed based on the performance of management are as
follows:
 Technical resources: In this term, the firm choose product testing method in order to
make sure that each resource is working in an effective manner and also used in an
optimum manner and also provide the high quality operations within the company (Naser
and Al Shobaki, 2017).
 Information management: Various communication channels are used by Starbucks in
order to enhance the flow of information in the company. Furthermore, they also manage
the orders by using technological software which describes the authenticity in an
organisation.
Impact on operations performance in Quality management
It put positive impact on the performance and operations of company in terms of quality
management strategy and it is much capable in the context of executing this strategy (Psomas
and Jaca, 2016). For instance, continuous product testing and information management allow the
top management in order to analyse the loop holes and requirements of good quality alternatives
which promote the appropriate in an organisation.
Response to challenges and problems
In order to response the various challenges and problems which are discussed as under by
the use of appropriate theory. For example, company face resistance of innovation, which need
to execute the culture which supports changes. For this, Kotter’s 8-Step model is used in the
company which are discussed as under:
 It is the first step which need that managers of the company create the sense of
importance. It would be done by developing the sense of competition in the external
environment.
 Guiding alliance which is created by managers, like the team of supervisors which need
to communicate about the competition in the industry in an appropriate manner to
employees.
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 Another step which requires that company needs to create and communicate the insight
of change, like communicating the various benefits in the firm and employees which is
might experience in an appropriate manner (Wirtz and Lovelock, 2016).
 The vision also communicated by proper channels to each and every department for the
excellent understanding.
 Here, company need to work on the elimination of barriers in an appropriate manner.
 Short term victory also developed by managers in order to make sure motivation in
employees in terms of quality management (Naser, Al Shobaki and Amuna, 2016).
 Consolidation of various improvements needs to be performed by the managers in order
to steady the change.
 It is the last step which anchors the changes in an appropriate way.
Recommendations
Description and Justification of Recommendations
There are various recommendations which is given to Starbucks is need to be adhere to
enhance the scope the execution of strategy in firm. Therefore, various recommendations are
mentioned as under:
 Training: It is the main recommendation for Starbucks which is effective training to their
respective employees. It is because it would provide excellent vision and adaptability
towards the new techniques and methods as it contribute in the strategies of quality
management.
 Process approach: It is another recommendation for an organisation in an appropriate
way towards the procedure which is adopted by the company in order to make sure high
end quality in operations. Furthermore, the flexibility also promoted in an operations in
an appropriate way to make sure the effective changes in the company.
CONCLUSION
From the above discussion it is concluded that operations management and service
excellence is the important aspect which is followed and executed in the company. Moreover, by
comparing the organisations within another it allows in order to earn the vision for the operations
management for the companies which defines the efficiency in the operations management of the
company. In addition to this, determining the global operational strategy with the key
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requirement, capabilities and challenges would highlight the various areas in which the company
must determine the efficiently enhancement of their performance at the marketplace. It also
analyse the operational areas in which companies execute the effectiveness of evaluation in the
same and also enables the various suggestions and recommendations which can be utilised in
order to increase the level of competence.
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REFERENCES
Books and Journals
Calabrese, A. and Corbò, M., 2015. Design and blueprinting for total quality management
implementation in service organisations. Total Quality Management & Business
Excellence. 26(7-8). pp.719-732.
Campbell, J.D., Jardine, A.K. and McGlynn, J. eds., 2016. Asset management excellence:
optimizing equipment life-cycle decisions. CRC Press.
Copacino, W.C., 2019. Supply chain management: The basics and beyond. Routledge.
Gómez, J.G., Martínez Costa, M. and Martínez Lorente, Á.R., 2017. EFQM Excellence Model
and TQM: an empirical comparison. Total Quality Management & Business Excellence.
28(1-2). pp.88-103.
Jaca, C. and Psomas, E., 2015. Total quality management practices and performance outcomes in
Spanish service companies. Total Quality Management & Business Excellence. 26(9-
10). pp.958-970.
Kerzner, H., 2018. Project management best practices: Achieving global excellence. John Wiley
& Sons.
Naser, S.S.A. and Al Shobaki, M.J., 2017. Organizational Excellence and the Extent of Its
Clarity in the Palestinian Universities from the Perspective of Academic Staff.
Naser, S.S.A., Al Shobaki, M.J. and Amuna, Y.M.A., 2016. Knowledge Management Maturity
in Universities and its Impact on Performance Excellence" Comparative study".
Psomas, E.L. and Jaca, C., 2016. The impact of total quality management on service company
performance: evidence from Spain. International Journal of Quality & Reliability
Management. 33(3). pp.380-398.
Wirtz, J. and Lovelock, C., 2016. Services marketing. World Scientific Publishing Company.
Online
WHAT IS TOTAL QUALITY MANAGEMENT (TQM)?. 2019. [Online]. Available Through:
<https://asq.org/quality-resources/total-quality-management>
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