Operations Management and Service Excellence

Operations Management
and Service Excellence

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Comparative Four Vs Analysis...................................................................................................1
Comparative Performance Objectives analysis...........................................................................2
Design analysis............................................................................................................................4
PART B............................................................................................................................................5
Overview of the company...........................................................................................................5
Starbucks global operations strategy and surrounding macro-environment...............................5
Key requirements, capabilities and challenges...........................................................................6
Analysis and evaluation of selected operational area.................................................................7
Recommendations.......................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation management is the process of managing and controlling all the activities and
operations of a company which are performed by the company with the purpose of effective
running, fulfilling consumers needs and maximising productivity and profitability of the
company. It concentrates on carefully managing the activities to manufacture and distribute
goods and services. Service excellence is the level to which a service meets the customer's needs
and desires (Bendoly, van Wezel and Bachrach, 2015). It can be an ability of the provider to
consistently met and administrate clients expectations. It is essential because it highly focus and
offer various advantages and execution differentiator for both private as well as public firms.
This assignment is based on Starbucks which is an American coffee company and coffee-
house chain. This firm has been defined as the main representative of second wave coffee and
the organisation operate its business globally with the help of its variety of products. This written
document will discuss about different comparative analysis and global operation strategy of the
company. Further, will explain about key requirements, capabilities and challenges which are
faced by the company. The analysis and evaluation of the selected operation area will defined to
monitor the impact of the challenges on the company.
PART A
Comparative Four Vs Analysis
Operation management is the process and activity of managing and controlling its
business operations. Starbucks operate its business globally so it also require to administrate its
business. For this, the management of the company can use Four Vs analysis which is described
as below:
Volume- It indicates to the how much of a particular commodity is needed to fulfil its demand.
Low volume operations lean to be less insistent with staff executing more than one utility where
as high volume renders into quotable actions. Starbucks is a well kn own company which operate
its business globally and satisfying the neds of the customers by manufacturing products as per
their needs and demands (Bromiley and Rau, 2016). The respective company likely utilised
between 2.916 and 2.946 billion cups at their stores or an average of 8,070,428 per day. The
annual production of the company at international level is 4 billion cups. Greggs is the largest
bakery chain which specialise in savoury products like bakes sausage rolls and sandwiches etc.

the weekly production of the organisation is 1.5 million sausage rolls. This firm has approx 1650
Greggs shopfronts in Britain.
Variety- It affiliated to the variety of products and services which are manufactured by the
company. High variety in goods provide more organisation's the flexibility to manufacture
commodities and services to fulfil customers needs. The production function of Starbucks offer
variety of products like Tea, coffee quality, Starbucks Verismo and other products (Campbell,
Jardine and McGlynn, 2016). For example, few best products are vanilla Latte, Iced white
chocolate Mocha, Hot chocolate, Chai latte and Lemon bar Creme Frppucchino etc. Whereas
Greggs produce different products like Sausafe Roll, Vegan products, balance choice pasties,
seasonal ranges, sandwiches, breakfast menu, soup etc. Another variety of products are based on
discontinued products such as macaroni pie and bread.
Variation- It is another factor of Four Vs analysis which indicates to the how much extent of
variation of demand change over a time period cause of external factors. For example, variation
are occurred in Starbucks due to consumers needs and demands. Now these day people are health
conscious so they have the requirement of organic, healthy and sugar free coffee and drinks.
Whereas in Greggs, the variation are generated due to cultural fector and for this, the company
manufacture veg and non-veg products to fulfil the needs and demands of its potential clients.
Visibility- This component refers to how much of the organisation's process does the target
audiences actually experience. The service sectors has a higher extent of visibility whereas the
production industry has diminutive to no perceptibility to its consumers. In Starbucks, the quality
of the products and services which are offered by the company in term of offering goods to
customers are good. It provide mobile application service to its customers and make concentrates
on personalisation. Whereas Greggs also offer effective services to their potential customers like
Contact Greggs customer services. It help the customers to resolving their queries, providing
information about products and complain about their experiences.
Comparative Performance Objectives analysis
It can be viewed that there are number of objectives and aims which have to followed in
an organisation and also adopted by top management of both the firms (Campbell, Reyes-
Picknell and Kim, 2015). Main concentration of the organisation is always on their employees as
they are the key resources and most crucial components of manufacturing in each firm. Some of
the essential performance objectives are defined as beneath: