A Comparative Report on Operations Management: Starbucks and Greggs

This report provides a comprehensive comparative analysis of the operations management strategies of Starbucks and Greggs. It begins with an introduction to operations management and service excellence, setting the stage for a detailed examination of both companies. Task A delves into a comparative Four Vs analysis (volume, variety, visibility, and variation), performance objectives (quality, flexibility, cost, speed, and time management), and design analysis, focusing on customer service processes and store layouts. Task B explores Starbucks' global operations strategy, its macro environment, key requirements, challenges, and capabilities. It evaluates and analyzes these aspects, offering recommendations for improvement. The report concludes by highlighting the importance of quality management and its impact on Starbucks' ability to meet consumer needs and achieve its business goals. The analysis covers various operational aspects, including product design, customer service, and store layout, providing a holistic view of both companies' operational approaches.

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......................................................................................................................7
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................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Operation management is referred as process of controlling as well as designing
procedure of production and operations of products and services in appropriate manner (Al
Shobakib, Abu Amuna and Abu Naser, 2017). Service excellence is defined as procedure of
providing premium quality services to customers and people in order to create brand value,
goodwill, loyalty and so on. It is significant for business to ensure and provide high quality and
excellence services and managing activities of business in best manner. The chosen organisation
for assignment is Starbucks that was established in Washington in 1971. It is serving large
number of consumers in different 80 countries by opening 30,000 retail stores. Main aim of
report is to know operations of business activities of given organisation at both local and
international market. This report is divided into two parts where first section highlights about
four vs. analysis, design analysis and performance objective analysis of Starbucks and Greggs
and second section covers macro environment, requirements, challenges, capabilities, global
operations and areas of operations.
TASK A
Comparative Four Vs Analysis
Comparative analysis is defined as method that helps in identifying four types of
elements which are applied by management team for transferring resources and raw materials in
order to produce potential outcomes (Calabrese and Corbò, 2015). This has analysed that each
and every business need various operations for converting material into finished products. For
achievement of organisation goal and objectives, these components are applied by management
in appropriate manner. This includes raw materials, equipments, money, approaches, strategies
and many more to maintain quality of finished outputs. The four analyses include volume,
variety, visibility and variation. Such elements have to be utilised in proper manner for creation
of value to goods as well as services that are offered by business to gain competitive
marketplace. For doing analysis of these components, Starbucks and Greggs have been selected.
They are explained below:
Four Vs Analysis Starbucks Greggs
Volume This is regarded as first components The respective organisation needs

of four Vs analysis which focus on
principles of high production as
well as low cost. The respective
organisation's management team
focus on producing premium quality
products as well as services with
low cost. This will be possible if
Starbucks has produced products
and services at premium or high
level. It is important for Starbucks
to manufacture at bulk quantity so
that production and cost both will
be low.
continuous improvement while doing
production level in order to enhance
their profitability and productivity at
competitive market. This will be
possible if respective organisation
focus on producing at bulk quantity
that helps in lowering overall cost of
business (Fernandes and et. al., 2017).
Variety This is the second elements of
analysis that assist company to
manufacture new products for
influencing huge number of
consumers. With help of variety of
goods, organisation will be
enhancing their profitability as well
as sustainability at marketplace.
Greggs has to do innovation in their
products as well as services in order to
do competition with their competitors
at marketplace. This helps them to
enhance their brand value and
goodwill at market (Gómez, Martínez
Costa and Martínez Lorente, 2017).
Variation According to this element, it is very
important for managers to introduce
variations in their products as well
as services. Starbucks has to do
variations in their existing products
to provide consumers with various
options in order to attract them
towards their business and enhance
their productivity level in best
It is defined as elements in which
Greggs's manager has to add some
flavours in their new variations as per
requirements of consumers. This helps
them to retain their users for longer
time period and loyalty enhances
towards business.

manner.
Visibility This is defined as elements in which
consumers has large number of
options for doing communications
in case if they have faced any
problems or issues. For instance, if
consumer has any issue regarding
products, then they have to put
online request so that identifier can
easily identify location.
This is defined as components where
consumer will be noticing each and
every item offered through company.
The respective organisation has
physical outlets which will be
noticeable by customers easily as
visibility element.
Comparative Performance Objectives Analysis
It is very important for organisation to set performance objectives so that they can attain
within given time period in an effective and efficient manner (Calvo-Mora and et. al., 2016).
Here, different types of performance objectives are set by top management team of Starbucks as
well as Greggs. Each and every organisation has focus on their management team as they are the
person who focuses on achievement of business goal and objectives in given time period.
Performance objectives analysis provides guideline and direction to achieve objectives within
stipulated time period. The different performance objectives that are set by organisation are
described below:
Quality- It is defined as objectives in which management of organisation has to maintain
quality of their goods as well as services that are offered to consumers so that they can take
attention of huge number of people towards business in best manner (Calvo-Mora and et. al.,
2015). Starbucks possess their quality management department that assist them for
manufacturing products as per set standards and regulations. Similarly, on the other hand, Greggs
focus on manufacturing premium quality of bakery goods for establishment of their position at
marketplace and in minds of consumers in appropriate manner.
Flexibility- This is regarded as important performance objectives elements that are
needed by management of team of business while conducting their activities and operations at
market. The team working at management level in Starbucks possess flexible nature because

they do modifications as per their plans; policies and strategies arise at external market or
surroundings. This helps in creating image of organisation as they can modify their strategies.
Similarly, staff working at Greggs has provided with flexible environment so that they can
perform work as per their own requirement and fulfils need and demand of consumers in best
possible manner.
Cost- It is the actual cost incurred for achievement of performance objectives within
given time period. Starbucks has to invest money for coffee beans which is the main ingredient.
The respective organisation focuses on using high quality coffee beans that leads them to
maintain and produce quality of coffee. Starbucks has management team that attempts in
reduction of cost of raw materials in order to gain profitability at market (Campbell, Jardine and
McGlynn, 2016). For reduction of extra cost, manager has decided to purchase materials in huge
quantity and minimize wastages in goods as well as services.
Speed- This is defined as elements that is related with flexibility of performance
objectives of business. It is connected with experience faced by individual at workplace.
Moreover, this performance objective is linked to individual experience about how long they are
waiting for satisfaction level. For achievement of speed objectives. Starbucks has install system
in order to reduce waiting time faced by users. Similarly, on other hand, Greggs has adopted
effective and strong communication channel for improving profitability as well as productivity
level of business at competitive market.
Time Management- It is also another element of performance objectives which has to be
prepared by management team of Starbucks. In order to provide timely services to consumers,
Starbucks has to increase number of staffs so that visitors do not have to wait a long (Copacino,
2019). They have to plan in advance about each and every activity so that they can accomplish
desired outcomes in best manner. Whereas Greggs has to use online app for delivering services
to users on time basis.
Therefore, from the above analysis, it has concluded that each elements assist in
examining overall business performance of organisation. They have to modify their plans and
strategies according to need and demand of consumers. This will help in attainment of business
goal as well as objectives in an effective and efficient way.

Design Analysis
This is significant for organisation to determine their design in most appropriate manner
so that they can attract huge number of consumers. Both organisations have designed their
business in following ways:
Impact on Design of Customer Service Process- Customer service is defined as various
types of services for consumers that are used for particular goods (Eriksson and et. al., 2016). It
is important for overall procedures that start from planning, training, implementing, maintenance
and disposal of different products as well as services. This is segment that focus on dealing with
different types of business goals and objectives for maintaining satisfaction level of consumers.
In context of Starbucks, they have designed their customer service process in such way where
they provide before and after purchase services that assist in maintaining customer satisfaction
level. Starbucks focus on taking regular reviews as well as feedbacks from consumers in order to
perform in better manner and meet expectations of consumers. In context of Greggs, it has
designed their customer service process in such way so that visitors feel comfort and happy. This
leads them to have positive impact in minds of customer and create good publicity of business at
marketplace.
Impact on Design of Store layout and Flow- It is very important for organisation to
design their layout and flow in such manner that helps in attracting large number of consumers
(Escrig and de Menezes, 2015). Here, online as well as physical stores helps in attracting
customer and leads to maintain reputation at marketplace. In context of Starbucks, it has several
physical stores that are designed in innovative ways for attracting large number of people and
customers. The store layout and their design are unique as compared to competitors which lead
to provide best ambience to consumers. In context of Greggs, it deals in bakery products which
possess both online as well as offline platforms for their consumers. It helps organisation to
achieve competitive advantage and enhance their growth and development at marketplace.
Therefore, it is very important for both organisations to design attractive and unique
customer service process, store layout and flow so that large number of consumers come and
visit place and gain good experience. In today’s time, consumers are attracted towards unique,
attractive and creative products as well as place.

TASK B
Overview
Starbucks has chosen quality management as operational area which means act of
performing all types of activities and works in order to maintain excellence level (Jaca and
Psomas, 2015). It also consists of policy made for quality, creation as well as implementation of
quality planning along with controlling and improving in appropriate manner. Scope of quality
management is outlining policies and standards in context to quality and applied in operation of
respective organisation. Starbucks mainly focus to enhance and improve quality level of products
as well as services in best possible way. This leads consumer to get high and premium value
products and services for consumption. It also leads to accomplishment of goal and objectives by
enhancement of organisational performance. Quality management helps Starbucks in delivering
high quality products to consumers without any problems. Thus, it is significant for business to
carry their activities and functions with help of proper operations in order to achieve set goals.
Global operations strategy of Starbucks and overall macro environment
The operation area selected for Starbucks is quality management that is impacted because
of various reasons like unable to apply new techniques, lack of guidance and so on. Respective
organisation has adopted total quality management for business so that they can respond with
macro environment. It is essential to analyse market in order to know requirements of customers
and accordingly providing them with goods as well as services. Starbucks has to implement
global operation strategy in order to be different from competitors. This is called approach which
is used by enterprise for developing new, innovative and unique products and services different
from competitors. The respective strategy leads Starbucks to be different from competitors brand
and provide positive outcomes. In order to expand business at several countries, there are some
aspects which have to be taken care such as:
Technological Changes- With the adoption of technology, Starbucks possess
opportunity in increasing effectiveness and efficiency level for operating brand at marketplace to
increase profits, market share and reduce cost (Naser and Al Shobaki, 2017).
High Economic Growth- Different types of opportunities are available to respective
organisation in which they can easily enter into new market and countries for increasing high
profit margins. Therefore, it will assist in high economic growth at business place.

Therefore, the mentioned global strategy helps business in both positive as well as
negative ways to deal with market place and their scenario.
Key requirement, challenges & capabilities
For running business in appropriate manner, it is significant for organisation to adopt
operation in order to perform each and every activities and functions. There are some key
requirement, challenges faced and capabilities of business which are as follows:
Key Requirements to Starbucks
The key requirements for quality management in context of Starbucks are as follows:
Valued Based View- It is defined as view that is connected to purchase decision of
consumers (Psomas and Jaca, 2016). If respective organisation will be providing goods as per
need and demand of consumers by following quality standards then it leads to rise in value of
those products. It also assisting consumers to accept goods as per priced offered by Starbucks.
Therefore, it overall enhances value of organisation and increase brand value.
Product Based View- The respective organisation has to apply product view for
maintaining quality standards. It assists Starbucks to identify quantified attributes in appropriate
manner as compared to qualitative aspects.
Manufacturing Based View- In this requirements, Starbucks has to maintain quality of
their products from the initial step that is manufacturing of goods. It is referred as tool that will
be adopted in order to maintain quality from stage of manufacturing to final stage that is
delivering to consumers.
Challenges for Starbucks
It is not very easy to handle each and every task as some challenges have to be faced by
Starbucks for attainment of goal and objectives. They are as follows:
Similar Supplier Globally- In this supplier of Starbucks has to supply same raw
materials to each and every outlet which is difficult for it (Resta and et. al., 2015). This creates
problems in maintaining same types of quality standards in all products at respective
organisation.
Global Measuring System- The respective organisation should have global measuring
system of quality which measures all qualities of outlets operating at marketplace in order to fix
standard while providing products and services. It is challenges for respective organisation to
maintain and manage huge number of outlets and their quality of products.

Continuous Evaluation System- The respective organisation should possess system
which should be used for continuous management of quality. The maintenance of quality is
continuous and long time process which goes in business till its wind up. It is very difficult for
organisation to maintain such system in business as there are requirements of resources like
financial, human resources and others.
Evaluation and analysis
From the above discussion, it can be evaluated that respective organisation need to
maintain and manage quality in an appropriate manner for enhancement of goodwill and brand
value in order to attract huge number of customer as well as market share (Suarez, Calvo-Mora
and Roldán, 2016). They have to make various efforts in maintaining goodwill as well as brand
value to achieve business goal and objective. For effective quality of coffee beans they spend
approximately 18 weeks to different suppliers of coffee as per standard. After evaluation of
several aspects, quality of standards has to be improved at Starbucks which are mentioned
below:
Commitment- If there is comparison of other brand at marketplace; respective
organisation does not have any commitment. The huge number of employees works at Starbucks
for attainment of results. Different types of stakeholders like debtors, investors, creditors,
authorities and many more perform work at Starbucks who possess high commitment for
attainment of goal as well as objectives in appropriate way. There should be good evaluation of
brand at marketplace in order to make goal to be achievable and attainable.
System of random checks- Starbucks is regarded as famous brand in serving high
quality coffee to consumers at marketplace which is using random check systems that is
performed with help of various district managers’ roles and responsibilities are checking baristas,
taking consumer feedback, providing information, tasting drinks in order to provide premium
value goods and services. It helps in maintaining quality at other outlets.
Exceptional quality if raw materials- Starbucks is using exceptional quality of coffee
beans for providing good experience to consumers in coffee flavour and unique taste which
varies from their competitors as well as other brands (Wirtz and Lovelock, 2016). The respective
organisation has applied differentiation strategy for sustaining and surviving at competitive
market place in order to offer different, unique and creative products and services.

Consideration of quality and cost- The respective organisation focus on maintaining
goods as well as service quality with use of cost control tool and doing investment of resources
that helps in optimum utilisation of resources. This will helps in maintaining as well as
establishing each and every function for attainment of business goal and objectives along with
attainment of desired profits and gains.
Development of strategies- The respective organisation always focus on adopting and
developing several strategies in order to maintain product quality, providing services, proper
atmosphere for meeting requirements of consumers in best possible manner. The strategies has to
be developed on continuous basis for maximization of profits and gains so that set goal and
objectives are accomplished and attained.
Achievements- For increasing market share as well as profit margins, respective
organisation need to maintain standards of quality at their business to get positive results.
Starbucks focus on supplying high quality products as well as services for attainment of goodwill
as well as brand value at marketplace. Due to maintenance of quality standard, Starbucks was
recognised and achieved best coffee award from long time period
Segmentation of market- This is defined as approach which is used by respective
organisation in which they target particular segmented market and focus on producing that
products at marketplace. Starbucks was founded by Schultz who always focus on bringing new
and innovative ideas for expanding brand portfolio of their products and services in appropriate
manner.
It is very essential for Starbucks to maintain their quality level while manufacturing
products and services for their consumers. This helps in attainment of business goal and
objectives along with achievement of profits and gains in best manner.
Recommendations
Quality management is defined as process that is applied by organisation in order to serve
premium value good and services to consumers in an effective and efficient manner. Starbucks
has to improve their management process of quality so that they can earn more profits and
sustain at marketplace. In order to improve, there are some recommendations which are provided
to respective organisation for positive results. These are provided by analysing above factors that
are mentioned below:

 Starbucks has recommended enhancing their service for customers so that their sales
would not decline or affect. They have to follow all legal and quality standards that
improve their process and supply chain in order to serve products and services to
consumers in an effective manner.
 It is recommended to Starbucks to prepare premium as well as high quality goods and
services for their consumers so that they can enlarge market size and enhance market
share along with rise in sales and profitability ratio in appropriate way. This is referred as
techniques that will provide help for specified category of customer who are interested,
cultured and educated in huge customer base. Hence, it will increase goodwill and brand
value of respective organisation at market through fulfilling requirements of customers in
appropriate manner.
 It is recommended to Starbucks to maintain quality of their products and services through
performing continuous improvement in their existing goods. This assist in maintaining
consistent quality of outlets across global market. For continuous improvement, they
have to apply total quality management tools and techniques so that quality is maintained
for each and every products as well as services that leads to serve their consumers in best
possible manner.
Hence, it is important for Starbucks to follow above provided recommendations in order to
achieve and attain goal and objectives in best possible manner. This also assists them to increase
their brand value and goodwill at market.
CONCLUSION
The presented report summarised that assignment has been prepared considering several
aspects of organisation which are related with process of management as well as operations of
business. These effects on functions of enterprise in terms of supply chain management, quality
standard, improvement, maintenance that has positive and negative impact on brand value and
goodwill of business. It is very important for organisation to improve their quality which is
regarded as process that enhances brand value and goodwill for carrying business activities and
operations in an effectual and prompt way.

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