Operations Management and Service Excellence

This document explores the concept of operations management and service excellence in the context of Starbucks. It includes a comparative analysis of Starbucks and GREGGS in terms of Four Vs, performance objectives, and design analysis. The document also discusses Starbucks' global operations strategy and its impact on customer service process, store layout, and flow. It highlights the role of quality management in Starbucks' global operations strategy and its link to the company's performance.

Operations
Management and
Service Excellence

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1. Comparative Four Vs Analysis....................................................................................................1
2. Comparative Performance Objectives Analysis..........................................................................4
3. Design Analysis...........................................................................................................................6
PART 2............................................................................................................................................7
Overview..........................................................................................................................................7
Starbucks Global Operations Strategy.............................................................................................8
Key Requirements, Capabilities and Challenges.............................................................................9
Analysis and Evaluation of Chosen Operational Area..................................................................10
Recommendations..........................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Operations management can be defined as a concept circumscribing the practices such as
planning, organising, directing and control of various activities pertaining to a business. It is a
crucial concept which if effectively executed within a company leads to attainment of
organisation goal within due course of time. Apart from this, service excellence can be defined
as the effectualness of merchandise and services offered by company at market place to cater to
the needs and demands of people.
The present project is done on Starbucks which is regarded to be one of the largest coffee
chains of the globe. Across the world, it serves people within 32000 regions. This project is
categorised into 2 sections. Hereby, the first part consists of comparison of Starbucks and
GREGGS in terms of Four Vs, Performance Objectives and Design analysis. The second part of
assignment comprises of one specific area of Operations Management, global operations strategy
and macro-environment, key requirements, capabilities and challenges along with analysis of
chosen operational area.
PART 1
1. Comparative Four Vs Analysis
a. Four Vs profile diagram
(Source: 4 Vs of Operations Management, 2019)
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Illustration 1: 4 Vs of Operations Management

The 4 Vs analysis can be referred to as the composition of elements which are essential
for ensuring effective development of overall process design of a company. This analysis
provides assistance to an organisation in ascertaining the intensity of the implementation of
organisational procedures to facilitate maximisation of business efficiency. Apart from this, there
are a number of key decisions that are required to undertaken by the management of an entity as
per the analysis of elements pertaining to 4 Vs.
b. Definition of each of the Four Vs in the context of the operations
The components of 4 Vs are essential to be taken into account by a corporation for
analysis of effectualness of operations management procedures. With respect to this, the
elements belonging to 4 Vs are briefly described as follows:-
Volume: It can be referred to as the quantum of food articles manufactured within the
confines of a company. It is not barred to food production only but is also concerned with
delivery of products and services of corporation.
Variety: This aspect is concerned with an array of business activities which are
conducted in the confines of a corporation. More variety would imply enhanced cost of
operations for entity.
Variation: This aspect is concerned with alterations taking within the confines of demand
pattern with the passage of time. Thus, it is associated with changes in allocation of resources of
a corporation.
Visibility: This component is concerned with the physical appearance of procedure of
product or service delivery of a company. This component demands facilitation of dominant as
well as strong presence of brand in front of the customers so as to effectively appeal to them.
c. Explanation of each profile and discussion of differences
It is important to make a comparison of company with its rivals on the basis of 4 Vs so as
to gain an insight into the application of these elements. To facilitate the same, the management
of Starbucks has made a comparison with GREGGS, which is the biggest bakery organisation
within the confines of Britain. The comparison is presented as follows:-
BASIS STARBUCKS GREGGS
Volume The manufacturing system of this
company is ascertained to be quite
Opposed to the leading coffee company,
GREGGS maintains a much better and
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effectual because of its large number of
manufacturing plants that provide
assistance to corporation in produce
coffee beans daily in bulk. In this
regard, it is acknowledged that the
company manufactures as well as
delivers around 70000 cups of coffee on
a weekly basis.
enhanced system. Being the biggest
bakery house of United Kingdom, it
produces a total of 2.5 million sausage
rolls on a weekly basis.
Variety It has been analysed that this coffee
company has executed Assemble to
Order procedure that is acknowledged
to be a hybrid approach which ensures
segregation for the purpose of
facilitating enhancements in product or
service delivery process.
GREGGS PLC has implemented digital
transformation within the procedures to
meet the criterion of this component. In
this relation, the bakery has applied SAP
business suite in order to digitalise the
operations such as receipt and delivery
of orders of corporation.
Variatio
n
To meet the need of this element, the
management of Starbucks capitalises
upon customisation. This helps the
organisation in catering to the needs and
demands of customers in the evolving
corporate scenario.
The strategy adopted by GREGGS PLC
to anticipate the demands and
preferences of people is constant market
research. This provides aid to the
corporation in meeting the requirements
of this criterion.
Visibilit
y
The respective coffee company applies
capacity optimisation as the technique
within its outlets across the globe to
ensure flexibility for its employees and
clientele. In addition to this, the
corporation mainly setup the outlets in
urban areas to gain the attention of
larger base of individuals.
GREGGS PLC has implemented on the
go food retail system wherein the
corporation setup its outlets mainly
within industrial areas, shopping malls,
airports and other commercial
complexes to appeal to more number of
persons and inflate its revenues.
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2. Comparative Performance Objectives Analysis
a. Performance map (Polar diagram)
(Source: Self Generated)
b. Definition of each operations performance objective in the context of the operations
Operational performance objectives are regarded to be the areas of performance which an
entity seeks to enhance, with a view to fulfil the requirements of business strategy. Post the
stipulation of a well defined business strategy, an organisation determines the appropriate
operational performance objectives for measuring as well as configuring the business
environment. This enables a company to timely achieve the objectives. In this regard, these
objectives are defined in a brief manner as follows:-
 Speed- This objective measures the pace at which an organisation can make delivery of
offerings as well execute revenue generation. It is an objective which encompasses
aspects such as taking into account the time needed to do production or carry out new
product research and actually create it. This implies the efficiency of organisational
operations.
 Flexibility- Flexible operations pertain to configuring product lines such that they can
deal with several requirements and also adjust the product lines at a rapid pace as per the
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Illustration 1: Polar diagram of Starbucks vs GREGGS PLC

new requirements. This is closely linked to speed objective, whereby an organisation
should be capable of producing quality offerings while simultaneously adapting to
operations for meeting the different types of marketplace conditions.
 Quality- This objective is aimed at making measurement of the extent to which
merchandise meets the specifications. In this relation, quality is also equally important.
The product developed by a company should have characteristics such as reliability,
durability, easy serviceability to meet the objective of quality.
 Cost- This measures the extent of variation underlying within the unit cost of a good
measured by alterations in a number of components. Such components consist of variety
as well as volume of merchandise. It is analysed that merchandise which illustrate a
number of features are in low volume and have unit cost. This tends to have a significant
influence over the pricing, cost of production and profits. The objective of every entity is
to minimise the cost and maximise the profits.
 Dependability- This is regarded to be an objective which determines the dependence of
corporation in terms of delivery of merchandise in a timely manner as per the targeted
cost. Further, it also includes the ability of a commodity to function in an intended
manner over the course of time.
c. Discussion of differences across the five objectives
The comparison of Starbucks and GREGGS PLC on the basis of performance objectives
is done below:-
Cost: The scope of this performance objective is relatively high for Starbucks as opposed
to Greggs. Firm implements Vertical Integration to control the manufacturing system and
Premium pricing strategy to lower down the cost. GREGGS PLC is fairly weaker and abnormal
in relation to cost. It has closed its in-store bakery operations recently to ensure cost
maximisation.
Dependability: GREGGS PLC implements outbound logistics to ensure timely delivery
and cost management. The company has digitalised its operations which allow the firm to
manage cost. Starbucks has set up its supply chain within UK with several product delivering
companies ensuring product delivery in a very timely manner.
Flexibility: Starbucks is consistent in introducing new product categories within its menu
to adapt to different markets. To adapt to China, the firm introduced Almond milk. GREGGS
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PLC practices flexible working to ensure staff retention. However, the scope gets limited after
some time making it a relatively weaker approach.
Speed: GREGGS PLC ensures speed through digitalisation. It books orders in advance
and sets up timelines for the members. Starbucks manages speed by implementing digitalisation
for booking order and adopting proprietary systems for managing and serving coffee.
Quality: GREGGS PLC implements IT which to ensure maintenance of product quality
and service delivery. Starbucks uses a rather detailed approach to enhance quality. It sources its
beans from certified farmers. Starbucks’ Coffee and Farmer Equity (CAFE) programme sets up
basis for acquisition of raw materials.
3. Design Analysis
a. Impact on design of customer service process
Starbucks: It is analysed that customer service of this corporation is quite effective in
terms of operational characteristics and attainment of performance objectives. The management
of this company ensures that each operation of company is executed in a chain manner so that
the organisational targets can be effectively achieved.
GREGGS PLC: The production system of this corporation is advanced as it provides
assistance in dealing with and maintaining volume, designing and variety. Yet it is seen that the
organisation has a scope to facilitate improvements in its supply chain and IT system in order to
attain all the performance objectives as per requirements.
b. Impact on design of store layout and flow
Starbucks: Capacity utilisation has been regarded to be the most effective technique that
is applied by the management of this corporation to provide support to the variety of operations
within the stores of company. This aids in inflating the volume of output produced.
GREGGS PLC: The display operation of GREGGS PLC is supported by the layout
design of corporation. In this regard, it is analysed that the IT system of corporation are
supporting the entity to leverage variety as well as variation effectively. Further, it also aids in
executing SCM as per requirements.
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PART 2
Overview
a. Introduction of operations area
Operation management is termed as a one of the most essential and relevant segment in
the association as with the help of this organisation can effectively able to manage their business
functions in a well defined manner. There are different forms of departments those who perform
their activities at Starbucks such as sales, purchase, production, sales, etc. With the help of
proper management of activities manager of entity can effectively able to fulfil their targets.
Quality management is being undertaken as operational areas. In this regard, It is important in
food and retailing sector to consider quality of food items in best regard it is essential to properly
check requirement of raw materials in order to avoid any delay in operation this will eat
organisation to satisfy their customers with best.
b. Scope of operations area
This has been identified that within Starbucks quality management have much wider
scope within development and growth of company. It is essential for entity to improve and
effectively maintain quality as it will allow them to maintained formative relations with their
customers for long duration of time. As when quality is managed in a proper manner then it is
easy for entity to maintain long-term relationships with their customers. Thus, with the help of
this manager can effectively able to manage their brand image and further improve this as to gain
more competitive advancements.
c. Linking operations area to Starbucks performance
It has been determined that quality management is directly linked with performance of
Starbucks, as if organisation does not maintain the quality of products then it become tough for
managers to conduct their operations in best effective manner. It has been identified that if
company does not maintain quality standards then they may find themselves into trouble. In this
entity is required to consider quality in production, logistic, purchase etc segments effectively
improve overall performance of Organisation in industry.
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Starbucks Global Operations Strategy
Explanation of Starbucks' global operations strategy
Starbucks management is taking advantage of quality management in order to effectively
maintain quality of their products. In this company can undertake different type of strategies for
continuous betterment in their quality of products along with maintaining standardized value.
This will allow company to formulate effective relationship with their customers by providing
them qualitative products as well as service. It has been identified that within total quality
management organisation improve product as to ensure long term sustainability. In TQM there
are mainly eight elements i.e. process centred, fast based decision, customer focused, integrated
system, continual improvement, communication, etc. This will allow the respective organisation
to manage quality in an effective manner.
Role of the quality management in the global operations strategy
Total quality management act as one of the most essential function with the help of which
managers can effectively able to maintain good brand image and can further able to ensure long-
term sustainability. In contact with Starbucks company evaluate different type of operations with
the help of which they can effectively able to maintain quality of their products. For instance
manager ensure regular check on quality of their coffee along with allocation of raw material
from suppliers. This will allow company to operate in best effective manner at Global scale and
further maintain formative relationship with their customers.
Influence of the macro and micro business environment
It has been identified that in external market there are different type of components that
create obstacle in front of organisation to perform their operation. For this company can
undertake different type of quality management strategies as to manage their operation. In
context with Starbucks it has been identified that manager undertake different type of strategies
as challenge legal policies for example food licensing act along with some protocols. With the
help of this company ensure smooth functioning as negligence of legal rule as well as regulation
may create hurdles in front of company smooth operations that can further decline their brand
image in industry.
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Key Requirements, Capabilities and Challenges
Discussion of Key Requirements and Capabilities
Starbucks operate their functions at large scale thus it is essential for company to
effectively determine capabilities which the entity has in context with implementing quality
management. Mentioned below there are some requirements in relation with this:
 Adaptability: It has been identified that one of the major requirement as well as
capabilities in Starbucks in relation with quality management is adaptability of
organisation towards different type of techniques as well as methods. Thus, it is essential
for entity to make sure that they have a culture and employees those who effectively
support change management and new methods on continuous basis as with the help of
this company can effectively ensure high quality offering.
 Information Management: It is essential for management to ensure that there is constant
flow of information in organisation thus it is essential for entity to ensure that there is
proper form of information in each and every department as to make sure that customers
are effectively satisfied.
Discussion of Challenges/Problems
There are different types of challenges that can be faced by company in context with
adopting quality management in well-defined manner. Mentioned below there are some
challenges define:
 Complexity in Supply Chain: Supply chain acts as major challenge in context with
implementing this strategy in global operation. As it has been identified that it is not
necessary for each and every part in supply chain those who support technological
advancement. This further lead towards creating complexities and obstacles in
organisational smooth functioning.
 Resistance to Innovation: It has been identified that resistance to innovation is also the
major challenges that can be faced by company. This allow organisation to embrace
Innovation and Technology advancement within company that further restrain entity to
implement quality management system within their operational functioning.
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Analysis and Evaluation of Chosen Operational Area
Evaluation of resources and capabilities management
It is essential for an organisation to effectively manage all the resources in best effective
manner as it further help them to conduct their operation and execute strategies in a well defined
manner:-
 Technical Resources: In relation with this resource, organisation take advantage of
product testing method as to make sure that each and every resource get utilised to an
optimum level to provide Quality Services to their customers.
 Information Management: Starbucks take use of different type of communication
channels as to make an increase in the flow of authentic information within organisation.
In addition to this technique logical software’s have also been undertaken by entity as to
ensure smooth functioning of their operation.
Impact on operations performance in Quality management
There is a positive impact upon current operation performance of entity on quality
management strategies as it effectively allows them to executive functioning in best effective
manner. For instance, by undertaking use of product testing and information management, senior
management of organisation effectively identify loopholes and further take use of strategies and
alternative methods to increase efficiency of their operations.
Response to challenges/problems
The response to various challenges mentioned above could be given through
usage of a prominent theory. For example organization may face issue of resistant to innovation
for which it is essential for company to implement a culture that effectively support change. For
this, Kotter's 8-Step model is being undertaken by organisation which is further being defined
below:
 In this manager of company is required to create a sense of urgency, this can be
accomplished with the help of developing sense of competition in outside environment.
 In this managers are required to have guiding coalition, for example team of supervisor
who effectively communicates competition industry to employees.
 In this step organisation is required to create and communicate a vision to change.
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 Vision must be further communicated to different departments with the help of proper
channels.
 Organisation is required to work upon eliminating hurdles in a well defined manner.
 Manager is required to create short term wins as to increase motivation within employees
in context with quality management strategy.
 Consolidation of different improvement is required to be performed by managers in order
to stabilize change.
 The last step is related to anchor the change in best effective manner.
Recommendations
Description and Justification of Recommendations
A number of suggestions are given for Starbucks to execute enhancement in strategy
implementation of company. Such recommendations are listed beneath:-
 Training: It is recommended that proper training sessions should be conducted for
employees of Starbucks so that they can maximise their efficiency and quickly adapt to
newer techniques and innovations. This would provide aid in maintaining quality within
the premises.
 Process Approach: This is yet another recommendation that is laid down for respective
coffee company which would allow the firm to assure facilitation of operations in high
quality. Besides this, flexibility should be exhibited within the activities and practices so
that necessary changes can be brought in a timely manner.
CONCLUSION
On the basis of above discussion, it can be said that operations management as well as
service excellence are regarded as important concepts that need to be effectively facilitated and
incorporated within each and every company to ensure smooth business functioning. In addition
to this, it has been analysed that there are 4 important elements of operations management,
namely, the 4 Vs that must be effectively executed to attain the business objectives within due
course of time. It is important for firms to analyse the operational areas to ensure alignment with
long term vision. In this regard, one of the most crucial operational area is regarded to be quality
management which seeks to provide assistance to corporation in gaining extensive satisfaction
from clientele.
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REFERENCES
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and TQM: an empirical comparison. Total Quality Management & Business Excellence.
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Jaca, C. and Psomas, E., 2015. Total quality management practices and performance outcomes in
Spanish service companies. Total Quality Management & Business Excellence. 26(9-
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Clarity in the Palestinian Universities from the Perspective of Academic Staff.
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in Universities and its Impact on Performance Excellence" Comparative study".
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