Operations Management and Service

Operations
Management and
Service

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Comparative four Vs analysis......................................................................................................1
Comparative performance objectives analysis.............................................................................3
Design analysis............................................................................................................................5
PART B............................................................................................................................................6
Overview......................................................................................................................................6
Global operations strategy of Starbucks and surrounding macro environment...........................6
Key requirements, capabilities and challenges............................................................................7
Analysis and evaluation of the operational area..........................................................................8
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Operations management can be defined as the process of administering different business
practices for the purpose of attaining higher level of efficiency to carry out operational activities.
Main purpose of it is to convert the labour and material in products and services so that an
organisation can generate higher profits (Babich and Kouvelis, 2015). For the effective execution
of business it is very important for the top level managers to pay attention towards it. This report
is segregated in two different parts first one is based upon comparative analysis of Starbucks and
Greegs Store. For this purpose different topics are discussed in this part which are Four Vs,
comparative performance objectives and design analysis. The second portion of the assignment
is based upon analysis of operational area of Starbucks. The topics which are discussed in this
part are macro environment, global operation strategy, key requirements, capabilities and
challenges etc. Additionally, analysis and evaluation of the operational areas along with
recommendations are also covered in this portion of the report.
PART A
Comparative four Vs analysis
Four Vs encompasses the operations process which is the core elements of any
organisation because it helps in the generation of final output which is served to the customer in
order to satisfy their prevailing need (Copacino, 2019). It simply involve the transformation of
input that include raw material, capital, equipment as well as knowledge into the desirable output
that is final goods and services.
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It simply involve the four V's that include Volume, Variety, Variation and Visibility
dimension whose role is to systematically carry out operations process by transmitted the raw
material intro finished goods. Explantation of elements are determined below:
Volume Dimension: On the basis of repeatability of orders by carrying out organised
tasks helps the company to manage the low cost operations in order to accommodate the high
volumes. Almost all the successful companies that deliver immense choices and maintain the
taste of customer gain the advantage of high volume by compensating the cost of products.
Variety Dimension: It simply represent the variants that are offered by company in order
to accommodate the needs of diverse people. Usually the customer gets attracted towards the
company that have wide options in terms of the flavour and sizes that represent the flexibility of
company and help to carry out smooth business operations.
Variation Dimension: This include either standardization as well as customised design
of the products that are served by company in order to meet the needs of the customer. Under
standardised design all the commodities are based upon the uniform procedure as well as design.
So the customer does not get much choices in terms of design, features and colours. Whereas, as
per customised services the company give the priority to customer in terms to get the product as
well as choice on the basis of their likings (Durugbo and Erkoyuncu, 2016).
Visibility Dimension: it involve the role of customers in terms to track their order and
gain personalised experience. This has increased the transparency between the company and
customer where end user can not get manipulated. This leads in delivering the enriched customer
experience.
Basis of difference Starbucks Greggs
Volume Dimension Starbucks get the opportunity to
serve the wide range of customer
due to its well established
goodwill for which it has high
volume dimension and get high
profit margin.
Greggs has the emerging bakery
chain that offer quality food to
high income group due to which it
is low in volume dimension.
Variety Dimension The company successfully serve
various types of coffee, tea and
It involve bakery items,
sandwiches, pastries and is low in
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