Comparative Analysis: Operations Management of Starbucks and Greggs

This report delves into the operations management strategies of Starbucks and Greggs, two prominent companies in the food and beverage industry. It begins with a comparative analysis using the Four Vs framework (volume, variety, variation, and visibility) to highlight the operational differenc...Read More

Operations
management and
Service excellence

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
Comparative Four Vs Analysis...................................................................................................3
Comparative Performance Objectives Analysis..........................................................................5
Design Analysis..........................................................................................................................6
TASK B...........................................................................................................................................8
Overview.....................................................................................................................................8
Global operations strategy of Starbucks and overall macro environment..................................8
Key requirement, challenges & capabilities................................................................................9
Evaluation and analysis.............................................................................................................10
Recommendations.....................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERNCE...................................................................................................................................13

INTRODUCTION
Operations management is a process which is concerned with planning which can be used
to achieve more profits. This is basically a process which is used for conversion of available
resources with a company in a more effective manner. This report is based on a global coffee
chain which is having presence in approx 80 countries, also they have around 30 thousand outlets
located across world ' (Melnyk, , Flynn, and Awaysheh, 2018). Gordon Bowker and Zev Siegel
are who laid the foundation of Starbucks. In this report two companies Satrbucks and Greggs
have been taken into consideration. Firstly four V analysis is done, then there is comparative
performance and design analysis (Koh,., Orzes, and Jia, 2019). In the second part of the report
there is discussion on the global strategy and various macro environmental factors which affect
Starbucks are discussed. Apart from this various requirements, challenges and capabilities.
Supply chain management as a process is selected and discussed in this report.
TASK A
Comparative Four Vs Analysis
The following analysis is the analysis with the help of which it is possible to make the
conversion of every resource and raw material in a productive output and these has been
classified into four attributes (Nair,and Reed‐Tsochas, 2019). The statement is right that every
business requires to have some common elements for the effective working of the organisation
such as raw material, equipment, money and also which will be converted in the finished
products as well. These four dimensions are visibility, volume, variety and variation. These four
dimensions provides their customers and the company as well with the value and also creates
efficiency in the work of their processes as well. With the help of this, it will be possible to make
the achievement of the goals and objectives of their organisation to be possible (Bozarth, and
Handfield, 2019). The effectiveness of this analysis will also be provided in the context of tow
different organisations which are Starbucks and Greggs. So the description of the difference is
being provided as under:
Four Vs
Elements
Starbucks Greggs
Volume In the very first element of this While taking about Greggs, the

analysis, the importance is related to
the low cost and high production. In
other words, it says that the company
should produce high quantity of
products and services along with low
cost of production. This could only
be possible when the company makes
the production on high level basis.
By bulk manufacturing, the company
will be able to lower their per unit
cost of production (Joglekar, ,
Davies, and Anderson, 2016) .
company wants to make
improvement in the level of their
production because the company
wants to make increment in their
profits in order to increase their
market share along with their
profitability as well. Greggs with the
help of bulk manufacturing will be
able to increase their production as
well as to lower down their per unit
cost of production (Rossetti, 2019).
Variety The discussion in the second element
is related to the introduction of new
products and services by the
company with the help of which it
will be possible to provide the
customers with new and different
kinds of products and services that ill
provide the organisation with more
customers and more profitability as
well (Khan and Wisner, 2019).
For Greggs, it is important to make
development in the range of their
food items and provide their
customers with different range of
products and services so that their
satisfaction could be positively
effected and they could be provided
more with their needs and demands.
Variation According to this component,
managers need to include varieties in
their products and ventures. In
reference to Starbucks, directors
create one of a kind highlights in
their present products offered by
them (Kumar, Tiffany. and Vaidya
2016). This accordingly, need
The third element of 4 Vs says that
so as to impact enormous number of
clients, directors of Greggs need to
include some new flavour or
component in their present food
products. This will help them in
drawing in huge number of new
clients towards their organisation.

advancement just as innovativeness
inside their present products and
contributions.
Visibility It is the component wherein client
will have the option to follow the
request put by them inside stipulated
time period. This is the technique
which should be embraced by the
supervisory crew of Starbucks
(Jabbour and Sousa Jabbour, .,
2016). For instance if a client put in
their request through online sources,
they can without much of a stretch
recognize the present area of their
product.
It is the last component where clients
will have the option to effectively
noticeable the items and
administrations offered by them. In
this specific circumstance, Greggs
have their physical stores where they
offer their nourishment things to the
shoppers in a customary technique.
Comparative Performance Objectives Analysis
It can be said that there are many objectives which have to be followed in a company and
also adopted by top authorities of both the companies ( Sarkis, 2017). Major focus of company is
always on their workforce as they are the key resources and most essential factor of production
in every company. Some of important performance objectives are mentioned below:
 Quality: in context with Starbucks they have to maintain high quality so that they are
bale to attract large number of customers and retain them for a longer period of time.
Starbucks has a separate department of quality management which helps them in
maintenance of and improvement of quality (Rumble, 2019). In Greggs they mainly deal
in bakery products which helps them in maintain quality of their products so that they are
having a established position in market.
 Cost: Majority of cost of Starbucks is with regards to there raw material which is the
coffee beans which is main ingredient of this coffee giant. They make attempts to

minimize this cost so that overall profitability level can be maintained in the company. In
Greggs cost is associated with raw material requirements of this company to make
various bakery products. To reduce their overall cost of production manager of this
company need to focus on bulk production or production in large quantities so that
overall cost can be maintained.
 Flexibility: This element is concerned with speed and flexibility these two factors are
highly interrelated to each other. Manager in Starbucks have to be very flexible so that
they are able to change themselves or modify their policies according to changing
conditions of external environment. This has a major impact on Starbucks as whenever
they are entering into a new country those brand has to adapt themselves with culture of
that particular country. In Greggs this will be helpful for this brand in adapting
themselves with the various requirement of market so that they are able to survive for a
longer period of time (Kumar, Tiffany. and Vaidya 2016).
 Speed: this is one element which is related to customer experience as for how much a
time a particular customer has to wait in a outlet determines the level of satisfaction
achieved by that customer. Starbucks has successfully bale to install a system which is
helping them to reduce the waiting time starting from their order to the final product
being perceived by the customer. This has lead to increase in satisfaction level of their
customers. In Greggs, managers posses strong channels of communication which helps
them in increasing and maintain their level of profitability (Khan and Wisner, 2019).
 Innovation: It has been one of key cultures in Starbucks as this has helped them in
creation if a strong customer base. This is a global coffee brand and they are selling their
coffee & espresso in approx 75 countries. This company has also become famous
because of innovation which they have done as compared to another brands who are
dealing into similar products, such as Costa coffee. They write the name of their
customers on their coffee mugs which is a promotional Strategy used by this brand so
that their customers click it and post it on social media platforms so that it will lead to
promotion of their brand.
Above discussed are some of the elements which is helping the company in adopting
factors so that they are able to maintain their sustainability level and reputation in the

competitive market. This is also assisting mangers in achievement of a competitive advantage so
that goals can be accomplished in a appropriate manner.
Design Analysis
 Impact on design of customer service process
Customer service is refers to range of customer services which is used in assisting their
customers so that they can be prepared how to use a particular product. This is very helpful in
overall process which is starting from planning, implementing, training, maintenance and
disposal of various goods & services. Customer services is a segment which deals with various
organisation goals to maintain satisfaction level of their customers. On Starbucks this is a
requirement that management team is providing services before and after purchase which can
help in maintaining the satisfaction level of customers (Rossetti, 2019). Such as this company is
taking regular feedbacks and review from their customers so that they are performing functions
in accordance with their requirement and expectations only. In Greggs this company is using this
method so that they can have a positive impact on their mindset which leads to reaped visit and
positive mouth publicity by their loyal customers. This is a brand which focuses on having
adequate quality standards but they don't have much emphasis on making customized products.
On other hand, Starbucks has always made efforts on customizing their products by making them
available to their customers based on their choices. This has been major reason why people are
getting attracted towards this brand of coffee in comparison with other brands.
With help of such customer require and response of customers mangers can modify their
products which will help them in retaining of their customers for a longer period of time (Koh,.,
Orzes, and Jia, 2019). Impact on design of store layout and flow
It is a requirement that every organisation must have a design or appropriate structure so
that they can attract more customers with help of their store design. Physical and online stores
can help in attract customers and then in maintenance of reputation in the market. In Starbucks
this brand is having many physical stores which they are using to attract more customers. They
are having a store layout which is very unique from their other competitors and this is of great
help for them in providing a different and best ambience to their customers (Fredendall and Hill,
, 2016). Physical appearance of a store plays a very crucial role in attaining customer and retain
them for a longer period of time in the organisation. This is a method which helps in creation of a

design which will lead to attraction of more customers towards them. This is very helpful in
establishment of long term relationship with customers for a brand like Starbucks. This is also
helpful in customer loyalty as there is a relationship build between customers and the brand
which is playing a very important role for Starbucks.
In Greggs managers are dealing in bakery products which they are having presence
online and offline platforms. This is helpful for the company in getting a competitive advantage
and achievement of overall growth and development (Melnyk, , Flynn, and Awaysheh, 2018).
They do not focus much on having a very attractive layout of their stores which leads to a
situation.

TASK B
Overview
Quality management is a Quality management is a approach which is used by Starbucks
so that they are able to provide best quality product and services to their target customers
(Nair,and Reed‐Tsochas, 2019). This is a function which deals with controlling of quality,
improvement in quality and is also focussing on planning all the functions which are very
necessary for maintenance of overall quality.
Global operations strategy of Starbucks and overall macro environment
Starbucks is a leading brand of coffee and they are having a continuous growth
throughout all these years since their establishment (Bozarth, and Handfield, 2019). As this
company is having continuous profits the major strategy which this brand is using is the
maintenance of consistency in their products which is helping them to keep their customer loyal
towards them. Overall success which Starbucks has experienced through these years reflects that
how qualitative they have made their effective strategies which can help grapple with their
various competitive brands. Quality maintenance is a big tool which has been used by Starbucks
in maintenance of their profits. Expansion across different countries is a tasks which requires lot
of aspects which has to be taken into consideration and there are many issues which are
discussed below:
 High economic growth: There is a very high economic growth in many parts of the
world which will lead to more opportunities for Starbucks as they can enter such
countries and this can help them in having high percentage of profits (Joglekar, , Davies,
and Anderson, 2016).
 Technological changes: there is lot of opportunity for Starbucks as technological
advancements can help in more effectiveness in the overall operations of this brand
which will lead to increase in their market share and reduction of cost which will lead to
increase in revenue.

Above mentioned are some of the points which is very helpful for Starbucks both in a
negative and positive manner and this depend on the company how to deal with such type of
situations.
Key requirement, challenges & capabilities
Key requirements: In case of quality management as a tool the most important requirements are
discussed below:
 Product based view: The company must use product based view so that they are able to
maintain the quality standards. This view is very important so that quality can be viewed
as a attribute which can be quantified this will be of great help as quantified attributes can
be measured and achieved more easily as compared to qualitative aspects (Jabbour and
Sousa Jabbour, ., 2016).
 Value based view: This is also a view which is related to purchase decision of
customers. If Starbucks will be able to provide products at appropriate quality standards
then it will help them in providing required value to their customers. This will help them
in accepting the product according to prices at which they are offered by Starbucks.
When customers will be experiencing more and increased value then it will lead to
increase in overall Brand image of Starbucks.
 Manufacturing based view: In this effort have to be made by Starbucks by maintenance
if quality since their initial step which is manufacturing if product. This is a tool which
will help in adoption of adequate quality in the manufacturing a stage itself this will lead
to best quality in the final product which is being served to the customers.
Challenges for Starbucks:
Maintaining quality is a feature which must be adopted by Starbucks as their strategy to
increase their sales and profits. This is not a easy task and there are many hurdles and challenges
which they have to deal with in order to achieve their objectives (Sarkis, 2017). Some of the
challenges which are faced by Starbucks is discussed below:
 Global measuring system: There is a requirement that there has to be system in which
the overall quality across all their outlets which are present across globe are measured
which can help this brand in maintaining a fixed quality of their products in all their
outlets. This is a big challenge as it becomes very difficult to manage large number of

outlets and quality of their products to be same as many time there has to be modification
one base done cultural differences and preference of customers prevailing in different
countries.
 Continuous evaluation system: There has to be a system which can be used fir
continuously management of quality department of he company (Rumble, 2019). Quality
maintenance is not a one time activity or one time process but this is a function which has
to be carried in in the company in a continuous manner. This acts as a big challenge as
there is lot of resources in terms of financial and human which company has to
continuously invest so that their overall procedure of quality maintenance is taking place.
 Similar suppliers worldwide: For having a similar quality standards to be followed it is
also necessary that the raw material being used is also same. For this there is a
requirement that same suppliers are supplying raw materials to each of their outlet again
this is a very challenging task because it is very difficult for having same suppliers all
through their outlets. Which leads to a situation of difficulties in maintain similar quality
standards by Starbucks in their products.
Evaluation and analysis
From above discussed points it can be evaluated that for Starbucks quality is everything
and the most important aspect which is used by this brand so that they are able to attract more
customers and have large share of market with them. Many efforts are made by this brand which
is helping them in achievement of their objectives (Meredith Mantel and Shafer, 2017). They
are spending a time period if approximately 18 weeks every year by visiting various coffee
suppliers and growers to make suer that the coffee beans which they operating producing are
according to the required quality standards of Starbucks. Evaluation of present process of quality
improvement in case of Starbucks is understood based on below discussed points:
 Consideration of quality and cost: Starbucks is successfully maintain quality by also
having cost control which means they are investing their resources in such a manner that
they are able to utilise them in optimum manner. This leads to establishment of
effectiveness in all the functions of company and achievement of their profits targets.
 Commitment: In comparison with competitive brands it is seen that the commitment
level which Starbucks has is rarely seen in companies. All their stakeholders including

their investors, shareholders, creditors, debtors, employees, top authorities are having a
very strong level of commitment towards achievement of their objectives. This is a
positive aspect of this brand which makes it feasible for them to achieve their objectives
in the stipulated time.
 Development of strategies: Starbucks has always been very consistent in developing
strategies for maintenance of quality so that they are providing genuine services, inviting
atmosphere and a superb products which is fulfilling the expectation of their customers.
 System of random checks: Starbucks is a brand which is using a system of random
checks which is done by various district managers where their major responsibility is to
check the baristas, getting information from various customers, taking feedback from
them and checking drinks so that they are able to ensure that required quality so being
maintained in a particular outlet (Thomé, Scavarda. and Scavarda, 2016).
 Achievements: Maintenance of quality standards is a aspect which is used by Starbucks
to get a larger share in market. Starbucks has been able to achieve a good brand image in
the market because of quality of their products. They have achieved many prestigious
awards & also recognized as “Best coffee” because of their quality standards which they
are maintain in their products.
 Exceptional quality if raw materials: Starbucks is using a exceptional quality of coffee
beans so that their customers can experience a unique and best taste of coffee flavour
which is different from other similar brands. This is a differentiation strategy which is
adopted by Starbucks so that they are having a differentiation advantage to survive in this
competitive market (Bromiley, and Rau, 2016).
 Segmentation of market: This is also one of approach which is used by Starbucks in
which they are trying to segment their target market and based on that they focus on heir
product bundle. Schultz who is the founder of Starbucks always makes attempts that their
are bringing innovation ideas which can help this brand in expanding portfolio of their
products. Strategic quality ideas this coffee giant is showing no decline in their
profitability percentage and is also expected that they will be able to successfully notch
another consecutive sales growth in the year.
 Diversity of thought & approach: This is also a approach which is used by Starbucks in
which they have are building teams which are very effective and with innovative robust

ideas. This helps in motivating their employees as they can help in having a passion in
their employees so that they can make efforts towards developing their brand. This will
also help in sense of challenge which will lead to creation of a learning atmosphere in
organisation (Heizer, 2016).
 Make time for coffee education: It is the responsibility of Starbucks that they have to
make education experience fir their customers so that they are able to make them aware
and create a enthusiasm amongst their target customers with reference to love for coffee.
On of the most essential ways is to develop programs such as coffee master which can
teach their customers how can they experience a innovative experience of coffee.
 Increase awareness of great things Starbucks has to do for local communities: many
customers and partners do not posses information that Starbucks has local volunteering
and anybody can find a project related with community service. Very few parameters &
customers are having a knowledge that “community stores” share profit with some locval
non profit. So it is responsibility of Starbucks to bring awareness with this regard.
Above discussed points are based on overall evaluation of Starbucks which this brand is
doing in order to achieve their quality levels and then survive in the market while maintaining
their profitability level for a longer period of time.
Recommendations
There are many recommendation which rae being made by analysis of above discussed factors
such as:
 There is a need to adopt some of the services when there are large number of customers
which is affecting their sales (Reid,and Sanders, , 2019). Such improvement in quality
standards will help this company in improving their standards and process of supply
chain.
 The overall appeal to customers has to be made better so that they ate able to increase
their sales and market share. This is a tool which will help in having a category of
customers who are educated, cultured and technologically interested in having a huge
customer base. This will be helpful in increasing overall brand image of their Starbucks.

 Quality is maintained in Starbucks but this is not only enough apart from that there is a
requirements that a system of continuous improvement is also adopted by this company
which can help in having a consistent quality in all their outlets across world.
 There is a presence of threat from various competitors which can impact negatively the
products of Starbucks such as they could develop beverages which are low in price and
this may impact the sales of Starbucks. Hence, it is the responsibility of this brand that
they have to analyse such factors which can posses a threat because of such small
competitors present in the market. It is usually seen that all organisation notice strong and
big competitors but they ignore such small competitors who may emerge and then create
a threat for organisations (Slack and Brandon-Jones, 2018).
 It has also becoming important for Starbucks that they must start focussing on adding
more time which is non coverage. This means that Starbucks is willing to see specifically
time which is non-coverage for cleaning, coffee tasting, education training etc.

CONCLUSION
This report is based on different aspects of companies which is related with their process
of management of their operations. There are many aspects which is having a affect on overall
functioning of the company such process of supply chain management, improvement
& maintenance of quality standards this results into positive or negative brand image if a
partui8culr brand. Quality management is a process which is very helpful for companies in
improving their brand image and also for carrying of their functions in a more effective manner.
So that overall objectives can be achieved in the specified time period.

REFERENCE
Books & Journals
Bozarth, C.C. and Handfield, R.B., 2019. Operations and Supply Chain Management.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management, 41, pp.95-106.
Heizer, J., 2016. Operations management, 11/e. Pearson Education India.
Jabbour, C.J.C. and de Sousa Jabbour, A.B.L., 2016. Green human resource management and
green supply chain management: Linking two emerging agendas. Journal of Cleaner
Production, 112, pp.1824-1833.
Joglekar, N.R., Davies, J. and Anderson, E.G., 2016. The role of industry studies and public
policies in production and operations management. Production and Operations
Management, 25(12), pp.1977-2001.
Khan, H. and Wisner, J.D., 2019. Supply chain integration, learning, and agility: Effects on
performance. Journal of Operations and Supply Chain Management, 12(1), p.14.
Koh, L., Orzes, G. and Jia, F.J., 2019. The fourth industrial revolution (Industry 4.0):
technologies disruption on operations and supply chain management. International
Journal of Operations & Production Management.
Kumar, S., Tiffany, M. and Vaidya, S., 2016. Supply Chain Analysis of E-Tailing Versus
Retailing Operation–Business Case. Enterprise Information Systems Journal.
Melnyk, S.A., Flynn, B.B. and Awaysheh, A., 2018. The best of times and the worst of times:
empirical operations and supply chain management research. International Journal of
Production Research, 56(1-2), pp.164-192.
Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2017. Project management: a managerial
approach. John Wiley & Sons.
Nair, A. and Reed‐Tsochas, F., 2019. Revisiting the complex adaptive systems paradigm: leading
perspectives for researching operations and supply chain management issues. Journal of
Operations Management, 65(2), pp.80-92.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Rossetti, C., 2019, July. Compensation in Operations and Supply Chain Management: a Manifest
Text Analysis Approach. In Academy of Management Proceedings (Vol. 2019, No. 1,
p. 19243). Briarcliff Manor, NY 10510: Academy of Management.
Rumble, G., 2019. The planning and management of distance education. Routledge.
Sarkis, J., 2017. Greener manufacturing and operations: From design to delivery and back.
Routledge.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Thomé, A.M.T., Scavarda, L.F. and Scavarda, A.J., 2016. Conducting systematic literature
review in operations management. Production Planning & Control, 27(5), pp.408-420.