Comparative Analysis of Operations Management: Starbucks and Greggs

This report provides a comprehensive analysis of the operations management practices of Starbucks and Greggs, two prominent companies in the coffee and bakery industries, respectively. The report begins with an introduction to operations management and its significance in business success. Task A delves into a comparative analysis using the Four Vs framework (Volume, Variety, Variation, and Visibility) to highlight the differences in their operational approaches. It also examines their comparative performance objectives, focusing on quality, cost, speed, and flexibility. Furthermore, the report includes a design analysis, considering customer service processes and store layouts. Task B explores Starbucks' global operations strategy and its macro-environmental factors, assessing its requirements, challenges, and capabilities. The report concludes with an evaluation of the two companies' strategies and offers recommendations for improvement, emphasizing the importance of quality management in achieving operational excellence.

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...........................................................................................................................................7
Overview................................................................................................................................7
Global operations strategy of Starbucks and overall macro environment..............................7
Key requirement, challenges & capabilities...........................................................................8
Evaluation and analysis........................................................................................................10
Recommendations................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Operations management can be considered as a process, that helps a business
organisation in maximising revenue and profits through converting all the labour, raw materials
and so on into finished goods and services (Cachia, 2017). Assignment is specifically based on a
global coffee chain named as Starbucks and the company is dealing in coffee industry in more
than 80 nations with more than 30,000 outlets, where organisation is selling coffee related
products. Starbucks was found by Zev Siegel & Gordon Bowker in the year of 1971 and
currently it is having more than 291,000 number of staff members. In order to perform the
analysis, there is another organisation that has been taken into consideration i.e. Greggs. Primal
section of this report will cover the information in regards to Four V analysis, comparative
performance along with the design analysis. Apart from this, in second section of this assignment
elements that has been taken into consideration are: global strategy and different macro
environmental factors that impacts Starbucks. Lastly, assessment will put light on different
requirements, challenges along with the capabilities.
TASK A
Comparative Four Vs Analysis
In present context, for every single business organisation it is required to examine every
single aspect of the business environment as this would help in bringing right modifications
within existing products and services offered by the business company. Here, considering the
information it is conceivable to make the change of each asset and raw material in a finished
goods and services. Apart from this, it is said that for every single business company it is much
needed to consider four different elements and these are variety, volume, visibility, and variation
so that right decisions could effectively be made (Harrop, 2018). These four measurements gives
their clients and the organization too with the worth and furthermore makes proficiency in
crafted by their procedures also. In order to understand all the four elements there is a
comparison has been performed of the two famous organisation (Starbucks and Greggs), which
is presented underneath:
Four Vs
Elements
Starbucks Greggs

Volume This is being considered as primal most
element of the comparative four V
analysis, which plays an important role
in regards to Starbucks. Basically, this
element stays connected with both high
production and low cost. This could be
understood with a good example of
Starbucks only, where company keeps
it's focus on offering customers with
the best coffee products with charging
them to the low amount. Considering
the 30,000 outlets, Starbucks directly
become able to do the same as it
performs bulk manufacturing (Griffin,
2016).
If it is talked about Greggs, then this
organisation is looking forward to
expand business and this can only be
done by this company if it would
develop a heavy manufacturing plant.
With the help of this, it is may be
possible that that production unit of
Greggs will start attaining number of
goals and objectives in specified time
frame. On the other hand, it is also
said that Greggs would become able
to enhance profit margins through
lowering down the cost of production
unit.
Variety This is said to be the second element,
that plays a significant role within the
business organisation like Starbucks.
The reason basically that came in front
i.e. company is offering customers with
number of products and these are: Iced
Coffee, Hot and iced espresso
beverages, Teavana® teas and, Cold
Brew, Fresh-brewed coffee and so on.
On the other side, if it is talked about
Greggs then it is critical to make
modifications or improvement
among different scope of their
products and services offered by
them where different scope in
regards to the items along with the
administrations would take place,
because without this organisation
may go through number of problems
while offering customers with
different range of products and
services.
Variation Another crucial component of Four Vs
Elements, where management of this
This element within the analysis if
considered by the directors of Greggs

organisation i.e. Starbucks needs to
include varieties in their products and
ventures. In present context, Starbucks'
directors has created one of a kind
highlights in their present products
offered by them. This accordingly,
need advancement just as
innovativeness inside their present
products and contributions.
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.
Visibility It is the part wherein customer will
have the choice to pursue the
solicitation put by them inside
stipulated time frame. This is the
strategy which ought to be grasped by
the supervisory team of Starbucks. For
example if a customer put in their
solicitation through online sources,
they can without quite a bit of a stretch
perceive the present zone of their item.
This is being considered as the last
element within the 4 Vs analysis,
where number of customers consists
with the alternative that is being
utilised by them and offered by
organizations. In this particular
condition, Greggs have their physical
stores where they offer their
sustenance things to the customers in
a standard system (Christopher,
2016).
Comparative Performance Objectives Analysis
In present context, comparative performance objectives analysis may help a company in
taking right amount of decisions so that to it could gain competitive advancements. If it is talked
about Starbucks, Greggs or any other company, the it can be said that these companies looks
forward to gain number of benefits like improvement among profits and so on. Different assets
like workforce, capital and more are said to be some of the crucial key resources that helps a
business organisation like Starbucks or Greggs in maintaining their market share. Including this,
there are some of elements, that are taken into consideration are given underneath:
 Quality: It is required by Starbucks to maintain the quality of different coffee products
that are being offered by them. Along with this, it is said that Starbucks at present is

consists with a separate branch of value the executives which causes them in maintaining
and bringing improvements among different values (Chatterj and Toffel, 2015). Along
with this, if it is talked about Greggs then this is aid to be a company, which mainly
bargain in food items which encourages them in keeping up different nature of their items
with the goal that they are having a set up position in showcase.
 Cost: It has been found that most of part of cost that is being applied by Starbucks is on
raw materials which is the espresso beans which is fundamental element of this espresso
coffee products. Company's management specifically covers the project to limit this
expense with the goal that general productivity level and can be kept up in the
organization. In Greggs cost is related with raw materials prerequisites of this
organization to make different bread kitchen items. Over the years, to diminish their
general expense of generation chief of this organization need to concentrate on mass
creation or generation in enormous amounts with the goal that general expense can be
kept up (Wu, 2015).
 Speed: this is one component which is identified with client experience concerning how
much a period a specific client needs to hold up in an outlet decides the degree of
fulfilment accomplished by that client. Starbucks has effectively bunch to introduce a
framework which is helping them to decrease the holding up time beginning from their
request to the last item being seen by the client. This has lead to increment in fulfilment
level of their clients. In Greggs, administrators gangs solid channels of correspondence
which causes them in expanding and keep up their degree of gainfulness (Campbell and
Helleloid, 2016).
 Flexibility: This component stays related to adaptability and speed where these two
variables are profoundly interrelated to one another. Supervisor in Starbucks must be
entirely adaptable with the goal that they can change themselves or alter their strategies
as indicated by changing states of outer condition. This majorly affects Starbucks as at
whatever point they are going into another nation those brand needs to adjust with culture
of that specific nation. In Greggs this will be useful for this brand in adjusting with the
different prerequisite of market so they can get by for a more drawn out time frame.
Therefore, these are said to be some of the crucial elements that majorly aid a business
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
Design analysis can effectively be developed as one of the crucial and systematic process
of developing a design that consists with different information in relation to discovery, planning
and communications (Kiran, 2016). This can be applied to any type of design including the
design of physical things such as buildings and intangible things such as software, information
and processes. In present context, in regards to Starbucks this type of analysis has been taken
into consideration where customers related design and design of stores are being interpreted
underneath:
Impact on design of customer service process
If it is talked about Starbucks this is said to be one of the organisation that offers
customers with good quality based coffee products, and in the same way if providing services
before and after purchase which can help in maintaining the satisfaction level of customers.
Through this, Starbucks would directly gain ample number of benefits at marketplace. On the
other hand, if it is talked about Greggs then this is said to be one of the business firm, which
maintains 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 (Hutt, 2016).
Impact on design of store layout and flow
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.
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.
TASK B
Overview
Quality management is being considered as one of the crucial approach that can be
adopted by a business organisation like Starbucks in order to deliver good or the best quality

products and services to customers among different target markets. With the help of this, it can
be said that Starbucks would directly become able to start controlling quality of coffee products
like Fresh-brewed coffee, hot and iced espresso beverages, Iced Coffee and so on.
Global operations strategy of Starbucks and overall macro environment
In present time, Starbucks is called as one of the leading coffee handcrafted beverages
brand within the coffee industry. The reason that came in front is that, Starbucks is offering
customers with the best quality based coffee products made up roasted coffee beans and this has
helped firm in maintaining the continuous growth throughout the years since their establishment
(Neill, Sohaland Teng, 2016).
Along with this, it is said that this Starbucks is holding continuous growth through
getting high range of profit margins and this has happened due to company has given higher
experience to customers, which improvised loyally in much effective and in efficient manner.
Over the years, quality maintenance related tools that the company is holding has given ample
number of benefits, which has been utilised by Starbucks gaining ample number of competitive
advantages (Van Dooren, Thijsand Bouckaert, 2017). Over the years, expansion has been one of
the crucial factor for Starbucks, where it has brought both negative and positive elements for the
company and some of these are presented underneath:
 High economic growth: In present context, it can be said that there is an extremely high
monetary development in numerous parts if the world which will prompt more open
doors for Starbucks as they can enter such nations and this can help them in having
higher level of benefits (Taecharungroj, 2017).
 Technological changes: There is part of chance for Starbucks as innovative progressions
can help in more viability in the general tasks of this brand which will prompt increment
in their piece of the pie and decrease of cost which will prompt increment in income.
Key requirement, challenges & capabilities
Key requirements: In case of Starbucks, while considering the quality management
approach, it will be required by the company fill all the requirements and these are presented
underneath:
 Product based view: It will be required by Starbucks to must utilize different item based
view with the goal that they can keep up the quality principles. This view is significant
with the goal that quality can be seen as a property which can be evaluated this will be of

extraordinary assistance as evaluated traits can be estimated and accomplished all the
more effectively when contrasted with subjective perspectives (Papp, 2018).
 Value based view: It is said to be a view which is directly linked with customer's
perceptions and , where 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.
 Manufacturing based view: This type of view is also important for every single
business organisation, which is manufacturing a product. In the same way, if it is talked
about Starbucks, then this is being considered as a tool that would aid company in
adopting different quality related aspects, because within the overall manufacturing
process, best quality is something that would lead Starbucks to develop a customer based
product considering their requirements and needs.
Challenges for Starbucks:
When it comes to develop quality related products and services, there are various
challenges a Starbucks may face and these are given underneath:
 Continuous evaluation system: It is truly necessary for Starbucks to build up a powerful
consistent assessment framework, as this may help firm in keeping up and using the
assets in an improved way. Throughout the years, it has been discovered that quality
upkeep can't be performed just on more than one occasion while producing a predefined
time allotment is certifiably not a one time action or one time process however this is a
capacity which must be conveyed in the organization in a persistent manner. This goes
about as a major test as there is parcel of assets as far as budgetary and human which
organization needs to constantly contribute with the goal that their general strategy of
value support is occurring (Rocha-Lona, Garza-Reyes and Kumar, 2017).
 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 (Ross, 2017).

Evaluation and analysis
From above made analysis it can be said that Starbucks is a well known coffee brand and
they are having a differentiation in their products which is best quality which they are
maintaining in their products. Efforts are made by this brand which helps them in achievement of
their objectives. They are always visiting their suppliers and observing how production of raw
materials are produced this helps this brand in having a standardised quality of their raw
materials (Seppänen and Virrantaus, 2015). A period of approx 18 weeks is fixed which has to be
send by Starbucks by visiting their raw material producers. Evaluation based on present
measures taken by Starbucks for their quality improvement is discussed below:S
 Consideration of quality & cost: Starbucks has been able to successfully maintain their
quality at same time with having a control on their cost this leads to proper utilisation of
resources. This has lead to effectiveness in overall functioning of this company.
 Distribution channels: Initially Starbucks was having a wholesale business and was
limited to some local restaurants. Starbucks has successfully established a wide
distribution network which is now expanded as they have opened their physical outlets in
many countries.
 Commitment: In comparison with other competitors who are also dealing in similar
products as of Starbucks the commitment level which employees and owners of this
brand have is rarely seen in companies. They only pick coffee cherries when that are at
peak, red and ripe, they sort them lot of times before they are taken in use as they want
zero defect. Many times this is considered as obsession but Starbucks calls this a great
coffee.
 Developing strategies: Starbucks has been consistent in development of strategies which
is necessary for maintaining quality of their products. They have great ambience which
leads to increase in satisfaction of their customers.
 System of random checks: Starbucks is entwined with their future and also with future
of their coffee farmers. They always make efforts to nurture relationships the same
manner in which they nurture coffee beans. They also ensure that they are benefiting
entire coffee brand this fulfils the dual objective of Starbucks that is better livelihood and
a better coffee cup for all their customers (Shirdastian, Laroche and Richard,, 2017).

 Exceptional quality: Starbucks is using a exceptional quality of coffee beans by
fulfilment of their four objectives such as agronomists test of soil, examining their soil
samples and then making use that coffee beans are according to requirements and
accordance with high quality standards.
 Segmenting the market: Starbucks has segmented their market with the help of
geographic and demographic locations. This has helped this brand that they can find out
educated coffee lovers which can increase their sales. They have gained competitive and
strategic advantage which has lead to creation of a effective position in the market.
Above discussed points are on the basis of evaluation of Starbucks is doing so that they
can fulfil their objective of maintaining higher profitability along with high quality of their
products.
Recommendations
In this context, there are ample number of recommendations that can be given and these
are given underneath:
 It is recommended that, overall appeal in relation to the customers has to be made better
so that they are 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.
 Another recommendation that can be given to Starbucks is that, company would require
to keep on updating the technology and the machineries that they are using for
maintaining the quality of coffee products offered by Starbucks. With the help of this, all
the systems in relation to continuous improvement would help company in reaching to
new heights in specified time frame (Spofford Jr, Russell and Kelly, 2016).
CONCLUSION
Considering the above mentioned report, it is being concluded that for every single
business company it is much needed to develop an effective operations management. With the
help of this, enhancement of sales, increase in profit margins along with improvement of quality
can effectively take place. Along with this, it is also summarised that developing an effective
supply chain management and maintaining the quality of different products and services offered
by company and through reducing the operations unit cost, a company could directly gain ample

number of competitive advantages. Including this, it is said that in order to grab a good position
within the market, it is much required for company to develop number of strategies so that
different number of goals and objectives can be achieved in the specified time period.