MSc Management: Operations Management and Service Excellence Report

This report provides a comprehensive analysis of Starbucks' operations management, comparing it to Greggs across various dimensions. Part A focuses on a comparative Four Vs analysis (Volume, Variety, Variation, Visibility) and performance objectives (Speed, Cost, Quality, Resources), evaluating both companies. Design analysis, encompassing customer service processes and store layouts, is also examined. Part B delves into Starbucks' operational strategy and macro environment, highlighting key requirements like speed, quality, flexibility, and cost, while also addressing challenges such as rising coffee bean prices and workforce management. The analysis covers topics like joint venture strategy, global operations, and quality management within the organization. The report concludes with recommendations for improvement and a detailed overview of the chosen operational area focusing on quality management. The report is based on the MSc Management with Streams Operations Management and Service Excellence course.

Management 1
Operating Management and Service Excellence

Management 2
Contents
Part A...............................................................................................................................................3
Comparative Four Vs Analysis....................................................................................................3
Comparative performance objectives analysis............................................................................6
Design Analysis...........................................................................................................................8
Part B.............................................................................................................................................10
Overview...............................................................................................................................of 10
Operations Strategy and Macro Environment...........................................................................11
Key requirements, Capabilities and Challenges........................................................................13
Analyse the chosen operational area..........................................................................................15
Recommendations......................................................................................................................17
Conclusion.................................................................................................................................19
References......................................................................................................................................20

Management 3
Part A
Comparative Four Vs Analysis
Four V's plays an important role in operations management. All four Vs are greatly used in the
organization like Starbucks and Greggs. These four V’s are volume, variety, variation and
visibility. This section includes the overall comparison among Starbucks and Greggs based on
these four V’s analyses. Both the organizations have the same profile so the comparison of these
organizations is based on these four V's.
Four V’s Starbucks Greggs
Volume The product of Starbucks is
mainly a coffee that attracts
several consumers in the
international and national
market (Kundu, et al., 2015).
Volume aspect defines the
demand of the products.
Starbucks includes a higher
volume that easily satisfies
the demands of the
consumers and improves
profitability.
The volume also affects the
Greggs but as compared to
Starbucks, the Greggs do not
follow the high-volume
process that's why Greggs is
less popular among the
market of London This
organization prefers the less
volume that’s why the
repetition process is followed
by the organization.
Variety This aspect includes several
varieties in the products sold
by the organization. This V is
all about diversity. The
company also follows the
varieties in the products to
attract consumers. Starbucks
The Greggs provide high
varieties in the product as it
provides low volume in the
business (Panneerselvam,
2012). The variety of the
products matters in the
profitability of the business

Management 4
provides low varieties in the
coffee as it provides high
volume in the market that's
why it improves the overall
sales of the product in the
market.
and it is defined that Greggs
cannot increase their profits
after giving the high varieties
to the customers.
Variation The variation is also an
important part in four Vs this
shows how many levels of
demand get changes some
time because of the external
factors (Lovlie and Flu,
2015). It has been analyzed
that variation improves the
value of the organization
among consumers. Starbucks
having a high variation in
their products so that the
organization attain a better
value in the market.
The variation aspect in
Greggs is low as the
organization not provide
several variations in the
overall product categories. As
compared to Starbucks, the
Greggs provide low
variations.
Visibility This aspect refers to the
process of the company
experienced by the
customers. In the case of
Starbucks, it is very low as
the customers of Starbucks
cannot experience the process
of the company.
This organization refers to the
visibility in its process of the
organization. The visibility is
shown in the Greggs process
so the customers get attracted
to the company (Arora and
Kaur, 2015).

Management 5
Comparative performance objectives analysis
This section includes the proper analysis of the performance objectives that define the overall
performance of the organization. By analyzing the various objectives related to the performance,
the value and profits of Starbucks and Greggs can be analyzed. The comparative study of
performance objectives of both the organization are described below-
Performance Objectives Starbucks Greggs
Speed As per the information of
Starbucks, it has been
analyzed that the Starbucks
maintain the speed in the
restaurant to gain the better
experience of the customers
so they employed more
employees to cover up the
overall speed of the
organization (Gupta and
Nandwani, 2013).
As per the information, it has
been analyzed that Greggs
cannot include the better
speed so that the organization
cannot attain the better
experience of the customers
and the sales of the product
are low as compared to the
Starbucks.
Cost The cost matters a lot to
analyze the performance of
the related organization. Cost
directly affects the profit of
the company (Bierwerth, et
al., 2015). The cost of
Starbucks is high so
sometimes the business gets
affected due to the higher
cost.
The cost of the products of
the Greggs is low as
compared to Starbucks so
sometimes the customers get
increased in the overall
environment of business.
Quality The quality aspect is essential
in the business of any
Quality is essential for all the
organizational process mainly

Management 6
organization so the
organization need to maintain
the quality in the product to
influence the customers
(Kulins, et al., 2016).
for consumers and it
manages the proper
satisfaction of the customers
and Greggs cannot manage
the betterment of the products
as compared to the Starbucks
so the customers get defected
large.
Resources The resources are also
coming in an important part
of the organization as it
manages all the activities and
functions of the organization
(Jones and Robbinson, 2012).
Starbucks uses several
financial resources to manage
the overall cost of the
organization.
The resources are common
for all the business
organizations so Greggs also
used the resources for
managing the business but
this organization not having
as such resources as
Starbucks having. This
manages the overall strategies
differently.

Management 7
Design Analysis
The design analysis includes the customer service process and layout stores of the organization.
The customer service and layout stores are important for any type of business. The customer
service process is important for Starbucks and Greggs as they manage the overall operations and
its characteristics related to the organization. Starbucks follows a various process related to the
services provided by consumers and Gregg’s follows a different process of customer service
(Furnari, 2012). The customer service is essential for the overall business so it is important for
both the organizations to manage the services of the customer to attain the attraction of the
consumers.
Customer service and layout stores are essential for the proper management of the organization.
Both organizations have several stores in several locations. The different categories are involved
in maintaining the customer service process and layout of the companies. The design of the
layout stores impacts the performance of the organization.
Starbucks includes the stewardship goals in managing the environment of the coffee shop so the
more customers get attracted towards the coffee shop. Greggs did not maintain the proper
heritage, community involvement and environmental stewardship goals that’s why the
organization cannot achieve proper growth in the market (Rashid and Haris Aslam, 2012). The
Starbucks designers make an unique environment to explore the innovations in the coffeehouse.
These innovations improve the performance of the business in the market. Although, Greggs did
not follow the unique designs so their business is also affected in the market.
The decisions related to the design affect the proper qualities of the business and also improve
the performance trade-offs. The layout stores impact the sales of the business and increase sales
in the business by maintaining the proper heritage and community. The several characteristics
get improved by adopting the different characteristics in the overall environment of the business.
The performance objectives are beneficial in achieving the several performance objectives
related to the organization (Kim, et al., 2012). The layout stores need to attract the overall
customers of the organization so that they improve the overall business in a different manner.

Management 8
Part B
Overview
The operational area of this assessment relates to quality management. This is the main coffee
providing company in the United States of America and particularly provide the darkly roasted
coffee. The scope of Starbucks is related to gain the attraction of customers by offering better-
quality products at normal prices. The management of quality is a different approach which is
used to provide a better-quality product to the consumers and maintain the attraction of the
customers. The scope of the quality management in Starbucks is very wide as the Starbucks
needs to quality management so that the customers attract towards the products (Talib, et al.,
2012). The scope of Starbucks is closely related to attaining the attraction of the customers. By
offering quality products, Starbucks increases the number of locations all over the world.

Management 9
Operations Strategy and Macro Environment
The global operations strategy is very important in international business as the global market
strategies required to improve the profits of the organization. Starbucks adopted the Joint venture
strategy as a global operations strategy. This strategy provides helps in the management of
Starbucks. This strategy helps in the management of strategic alliances that also helps in gaining
competitive advantage by the access of markets, technologies, capital and people.
The global strategy of the organization refers to the plans of a business that developed to attain
the proper target of the business (Porter and Tanner, 2012). By adopting the joint venture
strategy, the organization increases its growth in the international market and also affect the
macro environment of business. The company enters into joint ventures with a local
businessman. The expansion of foreign market improves the overall profitability of the
organization.
The overall business environment of Starbucks gets affected by adopting the global operations
strategy as the operations become different in the global business. The difference in global
business creates many advantages for the business organization (Androniceanu, 2017). It is
important to maintain quality in the global operations process so that macro environment also
managed properly. In the macro environment of business, the global operations strategy plays a
crucial role in which business gets affected.

Management 10
Key requirements, Capabilities and Challenges
There are several requirements used by Starbucks to maintain the overall process of achieving
growth in the business environment. There are several objectives and requirements used by
Starbucks to attain better growth in the overall business. There are several objectives used by the
Starbucks that helps in managing the operations of the business. The main requirements of the
Starbucks are discussed below:
 Speed
The speed is the basic requirements for the business of coffee and Starbucks relate to the
experience of customers. Speed affects the customers of Starbucks in a very large
manner. This aspect effect in several ways.
 Quality
Quality is one of the essential aspects of the overall business as the quality of the product
is responsible to increase or decrease the effectiveness of the company in the minds of
consumers (Cabiddu, et al., 2012). The satisfaction of customers can be achieved by
managing the quality aspects in a very large manner.
 Flexibility
Speed and flexibility are related to each other as the processing becomes faster and it
makes the process that is adjusted quickly. Flexibility manages the needs of the
consumers and provides them with better services and products.
 Cost
Cost is also an important factor that impact the process of the business and the profits of
the respective business. The coffee beans include more costs in the Starbucks operations
as they choose the coffee beans from the best farmers production (Conforti, et al., 2015).
The technology also required more costs as compared to other operations because
Starbucks uses more technical aspects in business management.
There are several challenges occurred in the management of quality in Starbucks. The main
challenges in this process are described below-

Management 11
 Rising prices of good quality coffee beans
The price of coffee beans started increasing in the market. The increasing demand for
coffee that affect the production of coffee beans. The rising in prices of good quality
coffee beans affected the overall quality management in the Starbucks (Loke, et al.,
2012). It is essential for the business to maintain the proper quality for increasing sales in
the business.
 Managing a decentralized quality workforce
The quality management also required the decentralized workforce so that they can easily
manage the overall quality in the whole process. The decentralized quality workforce
included in the organization only works in the proper management of quality and it
increases the process of the business and improves the profitability of the business by
improving the quality in the products.

Management 12
Analyse the chosen operational area
The chosen operational area in the Starbucks organization is the management of quality as in the
products related to the Starbucks in the quality process matters a lot as it is drinking product
provided by the company. The management of quality approach is one of the beneficial
processes that manage all the operations of the organization and improve the wealthy of the
products provided to the customers so that they get attracted more towards the use of the
company's products. The approach of the quality management used to improve quality and
performance that achieve the overall expectations of customers (Lo and Chai, 2012).
There are several functions used in the process of quality management and those functions are
closely related to the management process. The quality management approach looks after all the
measures of the organization that used to manage the design quality and proper development of
the business while managing the quality approach. Starbucks adopted the approach of quality
management to make the better-quality products and services so that satisfaction can be easily
achieved and the satisfaction is the most important part of any business. The organization uses
several quality systems to give better services to the customers and ensure that the feedback of
the customers to ensure quality and the requirements for the quality improvement in the products
of the organization. The various strategies used by Starbucks also helps in managing product
quality (Zu and Kaynak, 2012). As compared to other coffee shops, this organization is one of
the best organizations that preferred by the customers as this organization provide better quality
products to the customers.
Starbucks uses several quality systems as it starts with the baristas on the floor. This provides
accuracy in the quality of the drinks provided by the organization. The several quality systems
matter in the business process of Starbucks as it maintains the quality of design and quality of the
business (Wang, 2015). The design quality is the most important part of the quality management
as the designing attract the customers first then the taste of the product comes so it is important
to maintain the quality of the design.
Quality management approach is much proper in the business as it improves the performance of
the business in the market and improves the overall growth of the business in the market.