Operations Management and Service Excellence: A Comparative Analysis

This report provides a comprehensive analysis of operations management and service excellence, comparing Starbucks and Greggs. It begins with a comparative "Four Vs" analysis, examining volume, variety, visibility, and variation. It then delves into performance objectives like quality, cost, ...Read More

Operations
management and
Service excellence

Table of Contents
TASK A...........................................................................................................................................3
Comparative Four Vs Analysis..............................................................................................3
Comparative Performance Objectives Analysis.....................................................................5
Design Analysis......................................................................................................................6
PART B............................................................................................................................................7
Overview................................................................................................................................7
Global operations strategy of Starbucks and overall macro environment..............................7
Key requirement, challenges and capabilities........................................................................7
Evaluation and analysis..........................................................................................................7
Recommendations..................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Operation management can be define as a process which will help company to perform
business operations in effective and efficient manner (Sungbae and Taesoo, 2016). It is a crucial
process of business which is majorly concerned with converting raw material into final and
finished goods. Operation management of company help in achievement of desired goals as well
as earning more profits. Chosen company for this report is Starbucks. This is one of the largest
coffee chain company which is operating its functions in approx 80 countries. This company has
more than 30,000 international retail stores. Operations of Starbucks is majorly depend on
different services provided by number of international partners. This company was established in
1971 and founder of this company is Jerry Baldwin, Zev Siegl and Gordon Bowker. This report
includes four V analysis as well as comparative performance or design analysis is conducted. In
second part of the report includes global strategy and various macro environment factors that
have major impact over respective company. Different types of requirements, challenges as well
as capabilities has been identified. Supply chain management as been described as well as its
process is discussed in report.
MAIN BODY
TASK A
Comparative Four Vs Analysis
Each and every organisation can conduct comparative analysis on the basis of four attributes,
such analysis aids in converting every resources as well as modified or crude raw material in
most productive and tillable output. Such practice may include management of resources, raw
material, cost effective techniques, advanced tools and funding. The common and comparative
four attributes are named as, visibility, volume, variety and variation (Abdullah, Yaakub and
Subhan, 2018). These factors render constant productivity and efficiency in the task and work
and also enhance the value of the company. However, it has been observed that by the assistance
of this the predefined missions and visions are also achieved. The efficacy of such analysis has
been provided in reference of two different companies which are Starbucks and Greggs. The
elaboration of four different V's have been discussed below.

Four Vs attribute Starbucks Greggs
Volume At this attribute of
comparative analysis, the
priority has been provided to
the better production of goods
and services with good amount
and superior quality in much
lower cost of manufacturing
and production. Such practice
is only achieved when the
production scale of the
company is higher (Al Khattab
and As’ad, 2015). As it has
been seen that when bulk
production takes place, the
cost of manufacturing is much
lower comparatively.
On the other hand, the Greggs
company desire to make
alterations and positive
changes in the stages and level
of he production. The
company wants to make such
change so as to level up the
amount of profit by increasing
the share prices in the market
and also to enhance the status
of profitability. Greggs also by
the aid of mass production can
graphically increase the
manufacturing so as to lower
the cost and making large
goods in small amount of time.
Variety The company demands and
need some factors and
variables for smooth
functioning. One such factor is
variety which allow the
Starbucks to invent new
services so that they can attract
diverse and large number of
customers towards them.
Greegs, should make alteration
in making new line of food
items and fulfil the demands of
the customer is unique way to
increase the satisfaction level.
Variation The variation in business
comes under this element. The
present product in Starbucks
should be modified
According to this, Greegs
should focus on adding new
flavours and dishes to the
menu for developing

innovatively as per the need of
the customer.
diversification in old products.
Visibility Such element provide
customer with option to
consider the request presented
by them as soon as possible.
This should be checked by the
Starbucks in all platform.
The consumer have the
opportunity to notice and
administer the products (Cui,
2015). Greegs provide
nourishment things in their
stores to the customers.
Comparative Performance Objectives Analysis
There are different performance objectives which is helpful in gaining competitive
advantage over other rival companies. It is essential that company has major focus over the
workforces of company as they are considered as key aspect of organisation. There are some
important performance objectives that is given below in detail. Quality - It is important for Starbucks to maintain quality of products and services. This
is helpful in attracting customers as well as developing better relationship with them. This
company has strong quality management team that is working on quality of products
developed by company (Feng and Harnett, 2017). In respect to Gregges, this is focusing
on manufacturing good quality bakery products in order to satisfy need and requirements
of customers. This is very helpful in development of strong relationship with customers. Cost – Starbucks is developing high quality products which includes raw material as a
coffee beans. This is the main ingredient of this coffee giant. It is essential for this
company to minimize the cost of raw material as well as business operations in order to
enhance profitability. Greggs company cost is majorly associated with the cost of
materials that is required to develop bakery products. In order to maintain the overall cost
of its producing this company needs to focus on manufacturing of bulk products. This
will help in managing the overall cost of organisation. Flexibility – It is essential that company is flexible in their business process so that they
can perform business activities in effective manner. In respect the Starbucks it is very
important that manager of this company is flexible in adaptation of new techniques and

technology. This is very helpful enhancing the overall performance of organisation as
well as achievement of desired goals. In case of Greggs, this company is also flexible in
using new tool and techniques in order to enhance its overall business process. By
adopting new tool and business process this company will be able to serve for longer time
period.
 Speed – This element is majorley related to the experience of customers. It is very crucial
part of organisation as low speed performance of organisation will lead to have negative
impact over customers (Fredendall and Hill, 2016). Starbucks company has install as
system which help in reduction of customer waiting time as well as speeding the overall
performance of organisation. In respect to Greggs organisation it has developed strong
communication channel which is helpful in timely delivery of products to customers.
Design Analysis
 Impact on design of customer service process
Customer service refers to the process of providing effective and efficient services to
customers in order to meet with their requirements. This is basically the assistance that is provide
to customer regarding products and services of organisation. This is very helpful techniques in
order to improve the overall sales as well as profits of organisation. Customer services will have
major impact over organisation as good quality customer services provided by company will
help in developing better relationship with customers. It is essential that company is providing
effective and efficient customer services in order to gain competitive advantage over other rival
companies. There are different approaches that could be used by company in order to enhance
its customers services. Starbucks is a well known company so it is very important for this
company to providing effective customer services in order to gain competitive advantage over
other rival companies. Respective company is taking feedback as well as reviews from customer
in order to understand needs and requirements of customers. Effective communication with
customers will help in developing strong relationship with customers. By taking reviews and
feedback from customers respective company will be able to enhance as well as modify products
(Hamed, Bohar and Siam, 2017). In Greggs company staff member are trained well to
communicate with customers. This is very helpful in understanding customers view point
regarding products and services of company. It is very important for organisation to develop

strong relationship with customers so that they can identify their requirement as well as meet
with their needs.
 Impact on design of store layout and flow
It has been identified that design of store layout as well as flow of business operation will
lead to have major impact over organisation. It is essential that company has new and innovative
design of store as well as flow business activities in effective manner. This is very helpful in
developing better relationship with customers and enhancing sales of respective company.
Starbucks company have very attracting layout with new and creative design. This is very
helpful in attracting large number of customers towards organisation (Hendayani and Fernando,
2018). Design of Starbucks is able to full filling the expectation of customers. Greggs is proving
bakery products to customer though online and offline platforms. This has well developed and
creatively designed platform which is helpful in gaining competitive edge over other companies.
PART B
Overview
Quality management is the approach which organisation is used for offering better quality
product as well as services to their target customers. In simple term it can be said that, business
environment is full of competition for long term sustainability of business it is important to offer
quality products to customers because it is the only factor which result in loyalty of customers
(Kang, Moon and Moon, 2015). Starbucks is American Coffee Company as well as coffeehouse
chain. It was founded in 1971 by Jerry Baldwin, Zev Siegl and Gordon bowker. Products
offering by respective company is coffee beverages, smoothies, tea, baked goods, sandwiches
and so on at worldwide level. Respective approach will be used by Starbucks because its
functions help them in dealing with product quality, enhancement in quality as well as also and
planning of all the functions which are important for maintaining entire quality.
Global operations strategy of Starbucks and overall macro environment
Starbucks is Coffee shop which has continuous growth from day of their establishment till
now. Which results in generating profitability as well strategies which company using that results
in continuous growth and mentoring their customers loyalty. Global operational strategies help
Starbucks in maintaining their brand at global level and also in long-term sustainability of
business within business environment. Apart from this coma quality management is biggest tool

with Starbucks has implemented within their working for generating high profitability as well as
attracting large number of customers. While entering within global business environment there
are several advantages which Starbucks gain explanation of these are as follows :-
 High economic growth - Within several countries there is high economic growth which
result in more and more opportunities for Starbucks. Because they enter in such nations
which help them in generating high profitability (Maje, 2016).
 Technological changes - In today’s competitive world technology advancement and
modification is one of the major factor. In relation to Starbucks there is lots of
opportunity in terms of technology advancement as it helps in more effectiveness within
overall operations of respective brand. This results in enhancing market share as well as
reduction in cost which results in increasing revenue.
Above discussed all options help Starbucks in both positive as well as negative manner.
But it is depended on respective business firm that it deals with such situations and adopt
these within their working (Zimmermann, 2015). Apart from this, macro environment
involve external business factors which have wide impact on working of business as well as
its beyond of their control. Thus, for Starbucks it is essential to evaluate macro environment
factors in effective manner along with their positive as well as negative impact. So that,
positive can be implemented and negative minimise.
Key requirement, challenges and capabilities
Key requirements – For an organisation maintaining quality of their offering is essential as it
help in gaining long term sustainability. Quality management the most important requirement for
company explanation of this are as follows :-
 Product based view - Starbucks it is important to use product based view Saudi can
maintain quality standards of their offerings. The view is important because it results in
as attribute that can be quantified this will be achieving compare of qualitative aspects.
 Value based view - this video is related to purchase decision of customer shop in relation
to star book they will be able to provide product with high quality standard which have
them in providing fabulous fulfilling requirement of customers in effective and efficient
manner (Mee-ngoen, Thongrawd and Jermsittiparsert, 2019). This will help Starbucks in
accepting product as per the price which are offered by respective company. When

customer will be experiencing value then it directly result increasing overall brand image
of Starbucks.
 Manufacturing based view - in this step effort has been made by Starbucks by
maintaining quality from their initial step of manufacturing products. This is the tool with
assist respective Organisation in adoption of aggregate quality within their manufacturing
stage because its results in of offering best quality products to their customers.
Challenges for Starbucks – Maintaining quality is challenge for Starbucks because it is not easy
task as there are numerous challenges as well as hurdles which respective organisation will face
while accomplishing their goals and objectives. Few challenges out of these are as follows :-
 Global measuring system – Requirement of system which help in checking quality of all
the outlets across globe as well as also used in measuring and maintaining brand image
within market area. Because it is a big challenge to manage large number of outlet at
same time requirement to modification which are based on cultural bases and preference
of customers in different countries (Schildbach and Morari, 2016).
 Continuous evaluation system – Continuous evaluation and Organisation is important
as it help in evaluating quality offerings. Quality management is not one time activity
there is requirement of continuous locus within it. This act as an big challenge for
Starbucks because there are lots of resources such as finance and human on which
company has two containers invest for maintaining quality as well as valuation purpose.
 Similar suppliers worldwide – For maintaining same quality of offerings at each and
every please it is important for Starbucks to use raw material similar at every Store. For
this it is important to have same supplier of raw material to each and every outlet. But
this is biggest challenge for respective organisation as it is not easy to find out scenes
supplied replace Ajmer result in difficulty for maintaining similar quality of product and
services at global level.
Evaluation and analysis
After going to about this question it has been evaluated that for Starbucks maintaining
quality is everything as well as most important aspect which are utilising for attract more and
more customers as well for attracting customers and efforts made by respective organisation for
completing their predetermined goals and objectives (Sutduean, Prianto and Jermsittiparsert,

2019). Span approximately 18 weeks in a year by visiting several coffee supplier as well as
growers foreign shopping that coffee beans they are using will meet customer requirement and
Standards of their company. Evaluation of present procedure related to quality improvement in
case of Starbucks are as follows :-
 Consideration of quality and cost - Controlling cost of their products Starbucks is able
to maintain quality which simply means that they are investing resources in such a
manner which results in their optimum utilisation. Such practices result in establishing
effective message information of company as well as also result in accomplishing their
profit targets.
 Commitment - There are several competitive band in comparison of that has been seen
that Starbucks commitment level seen really. Stakeholders included within respective
company are investors, stakeholders, creditors, employees, top qualities have high level
of commitment for accomplishing their goals (Singhry, 2015). All this is positive aspects
of an brand which results in making it visible for them for achieving their objectives
within stipulated time.
 Development of strategies - In developing strategies in relation to maintaining quality
Starbucks is consistent so they will be able to provide genuine services, inviting
atmosphere good quality products which help in fulfilling Expectations of customers.
 System of random checks - Respective brand is using system related to random check
who is done through several district manager where majority is to check baristas, getting
information from several customers, taking feedbacks from them as well as checking
drinks. So they can ensure required quality of offerings will be maintained of their
products in particular outlets.
 Achievements – It is one of the important aspect which Starbucks use for getting large
share within market area (Schönsleben, 2016). Through good quality offerings respective
organisation able to achieve good brand image within market area. Thus, Starbucks
achieved several prestigious awards and also recognized as “Best Coffee” because of
their maintained quality standards.
 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.
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
In relation to Starbucks there is several recommendations which made after analysing all
above mention factors. Explanation of these are as follows :-
 It is recommended to Starbucks that they have to adopt some strategy related to offering
quality services when there are large number of customers because it may result in
increasing their sales. Such improvement within quality standards assist organisation in
enhancing their standards as well as procedures of supply chain managements.
 It is essential to appeal customers in effective manner because such practices will result
in increasing 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.
CONCLUSION
From above discussion it has been summarised that, there are different aspect of business
organisations that are related with procedure of management and their operations. There are
several aspects which have impact on overall functioning of business firm such as procedure
related to supply chain management, improvement & maintenance of quality standards. This
result in positive as well as negative impact on specific brand image. Apart from this, quality
management is the process which help organisation in maintaining quality of their goods and
services. Along with this, it also help improving brand image and also in continuing their
functions within effectual way. Thus, overall goals and objectives of firm can be achieved within
effective time period.

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