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    Operations Management and Service Excellence

    University: BPP University School of Business and technology

    • Unit No: 5
    • Level: Undergraduate/College
    • Pages: 20 / Words 5058
    • Paper Type: Assignment
    • Course Code: BSO2003
    • Downloads: 390
    Question :

    Description 

    Operations management and the service excellence is  the  framework comprises principles which brings sustainable  improvement in the Starbucks.  This is the process which controls and supervise the  manufacturing and production activities. Starbucks is the chain of coffeehouses.

    Questions

    This assessment will cover following questions:

    • Analyse the operations of Starbucks and consider both global and local aspects of its operations.
    • Explain the performance objectives analysis and design analysis of the Starbucks.
    Answer :

    INTRODUCTION

    Operation is the basic function of any business organization and it has to be very effective in increasing the growth of the organization as it will help to establish the business organization in the market to attract more customers. The operation are carried out with employees which are also the human resources of the organization. Employees also need to increase their efficiency by increasing the knowledge and skills which are required to achieve the organizational objectives they also have to maintain the quality of the products and services which the organization have to offer to the customers. In this report there is a brief study about Operation management of Starbucks and its services  as Starbucks is an American company which is delivering coffee to the customers with various varieties. The company was established in 1971 in Washington, US and also have more than 290000 employees inn the company to service the customers and increase the operations of the company. The company also have an annual revenue of 24.7 billion dollars and it has a mission to achieve the satisfaction of the customers. In this report Starbucks  have to examine the competitors' analysis so that they can increase the operation in the market and increase the efficiency of the company.

    1. Four Vs Analysis of Starbucks

    Starbucks have adopted this analysis to determine the factors which can help the company to increase the efficiency and increase the market share be decreasing the threat of competitors.

    Volume

    In this the company have to evaluate the quantity of products to produce them so that it can satisfy the demand of the customer and also provide satisfaction of them. The company have to adopt the high level production of their products which will help the company to decrease the cost and increase the demand by improving the prices of their products and attracting more customers to the company. Starbucks also have to increase the quantity of their production as it will help to meet the daily requirements and increase the efficiency of the company to satisfy the customers needs as it will help the company to become loyal and increase the market share of the company. Coffee brand and other machines are made for the bulk so that it can reduce the cost of the company and decrease the cost of production to reduce the prices.

    Variety

    Starbucks also have to determine the different types of coffee and other products which by evaluating the tastes, preferences of the customers as it will help to attract more customers all of different segments. The company also have to identify the types of nee of the customers to that they van produce the products which can increase the satisfaction level of the customers and become more effective for the company to grow in the market. (Wirtz and Lovelock, 2016)

    Variation

    The company also have to determine the probability of the change on the demand of the customers which can affect the growth of the company and also the demand of the company will be affected. The company have to increase the evaluation to identify all the environmental changes and the external business environmental changes which will impact the efficiency of the operations of Starbucks.

    Visibility

    The company also need to ensure that the products are properly reached to the customers and the brand is visible to the market which will help the company to attract more customers and increase the efficiency of the company. The marketing strategies will also help the company t develop the effectiveness in the market and also help the company to attract more customer by providing them better [products which are visible to them. The company also have to increase the location where the cafe can be easily accessible and increase the sales of the company. The company can also ensure that the products can be visible to the customers at the time of delivery and all the stages of delivery can be seen by the customers which will increase the satisfaction level of the customers and help the company to achieve competitive advantage. Customer satisfaction services with high focus towards bringing innovation, quick delivery of products to bring high profitability and functional efficiency will visibly enhance its goodwill and reach global benchmarks effectively. Gregs is British bakery company serving bakery items and delicious snacks with high quality parameters widely known for its best management ethics and also functioning with new working scenarios. The  company is  aiming to work  ahead within serving consumers on larger parameters., keen  scenarios worked on  among major goals under which new operational  aspects can  be  worked on.

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    2. Performance Objectives Analysis of Starbucks

    Starbucks have to analyze this factors which will help to increase the performance by estimating the quality of operations of the employees in the company which will integrate all the efforts to push them to achieve the objectives of the company and increase the growth of the company.  The company also have to compare the performance in the market to ensure the efficiency of the company and also increase the productivity of their operations in the company. Greggs is also the competitors of Starbucks and also need to be analyzed on the same to determine all the strength's weakness of the two company which will help Starbucks to grow effectively. Greggs Company being one of the strong competitors providing innovative business services to customers with efficient services, impactful services with high focus towards positively bringing new handy coffee drinks.

    Specific

    Performance objectives of the Starbucks have to  specific in nature and it should have the effective knowledge about the resources which are currently available and it should also help the employees of the company to understand the vision of the company so that they an easily attain the objectives and create an effective organizational culture which will help to increase the productivity of the company. Whereas  Gregg's have to analyze the effective ways in which the customers can increase their satisfaction and increase the sales of the Bakery chain. The company also have to formulate the specific mission which can be effective to the behavior of the demand of Bakery products and it can also help the employees of the company to increase their knowledge in that field to increase their performance.

    Measurable

    The company have to decide the system why which the performance can be measured and increased the quality of the products and services as the Starbucks have adopted the star rating system which will ensure the quality and satisfaction of the customers on the basis of the stars where one star is poor and 5 star is excellent in terms of quality and satisfaction level. Where as Gregg's bakery have adopted numerical rating system in which the scale of 1 to 10 is used to identify the satisfaction of the customers. Starbucks also implemented the questionnaire and feedback forms which increased the knowledge of the company to increase the satisfaction of the customers and remove the obstacles within the internal structure of the company.

    Attainable

    Starbucks have to analyze the liability of the objectives of the company as it can be attained  the objectives with the available resources and maintain the quality of the coffee and all other products in the company. Starbucks also have to analyze that the resource which are available should be utilized optimally to increase the rate to achieve the objectives this will increase the performance of the company increase the market share of the company to increase the profitability in the market. Gregg's bakery have analyzed that the need and demand of bakery product is growing so the company also increased the cost efficiency of the raw material and also increase the value of the resources to increase the performance of the objectives to increase te growth of the company and increase the sales of the company. The company also helped the customers to maintain the quality of their standard of living by providing low cost food which was hygienic and healthy.(Wirtz and Zeithaml, 2018)

    Relevant

    Starbucks have to analyze that the objectives which are set are relevant to the nature of the company and also are efficiency in integrating with the company so that they can also help the company to maintain the quality of the company and increase the performance of the company. Starbucks also have to analyze all the customers which are having preferences of coffee and target the specific market to ensure the regulation of the objectives. Gregg's bakery have to analyze the relevancy of the food products which are their Uniqueness and also maintain the taste of their products to increase the performance of the company. The performance of the company will only be increased if the employees of the company are very well skilled and knowledgeable to achieve the objectives.

    Time Bound

    The objectives of the company also have been time limited to increase the efficiency as thew company as they believe more pressure will increase the efficiency of the employees and also they will push their boundaries to increase the quality of the products. Gregg's bakery have the ideology that the employees should work coordinated in a systematic manner by which they will able to increase their efficiency and manage their time to decrease the chances of stress. 

    The 5 PO  principles applied to operations can be understood as major impact scenario which further brings on major determinants worked on among management, to upgrade sales and consumer focused services which have been majorly known for major work goals. Operations of management under Starbucks company is known for best working aspects and new scenarios under which working profits can be analyzed within various quests goals.

    The student has shown no clear understanding of the 5 PO principles as applied to operations.

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    3. Design Analysis of Starbucks

    Starbucks is also known as the most beautiful coffee places in the world as the company have the efficiency to design the cafe in such a way which increase the ambiance f the cafe and increases the satisfaction of their cafe they also have to maintain the beautiful views so that they can also increase the sales of the company. (Suarez, Calvo-Mora and Roldán, 2016) As the design analysis help the company to increase the goodwill and brand image of the company to I crease the quality of the products and services the company offers to the customers. Starbucks also have to analyze the design of every aspect which will help the company to be more vibrant for the customer as the company also have to  display itself to attract maximum customers. The company also have to decide the interiors and brand logo design which will be more effective in making the efficient design of the company. The design of the company helped the company a lot o promote and influence the customers to attract to the cafe as the quality standard and the pricing of the company increase the self-esteem to be the part of the company and it creates the social uplifting the customers who visit the Starbucks cafe. The customers who are going the Starbucks cafe are also treated as the upper and higher class people as they are ready to spend more to their satisfy their demand and increase the quality of their standard of living. (Reid, and Sanders, 2019)

    Operational Performance Objectives:

    Starbucks operations are based towards efficient performance and objectives being largely focused towards integration of new working patterns, innovative technology usage to serve customers dynamically. The operations are highly focused towards bringing cost effective production techniques in all departments which will enable optimum resource utilization on varied functional arenas. Operations in Starbucks are highly focused towards keenly reaching the set global benchmarks of brand among consumers, leveraging best resources and outlets to technically uplift its standards.

     

    Starbucks

    Gregg's bakery

    Customer Service process

    The company have increased the mobile utility with the help of mobile application as all the customers are able to register any complaint on the mobile application and also order their coffee as well. They also provide the customized the coffee according to the tastes and preferences of the customers.

    The company have developed the food which can be delivered as take always and it does not decrease the quality of the food in the packaging.  The coffee also helped the company to increased its sales.(Psomas and Jaca, 2016)

    Store layout

    The coffee cafe of the company have the heritage history and mixture of traditional and modern concepts of architecture. The company also have good ambiance in their sitting arrangement which provide better quality of comfort and satisfaction.

    The layout of the stores have been differentiated with the food stores as it will help to create the bakery environment. The location of the store is also made prime to attract the customers. The layout also included the artisan styling which increase the efficiency of the customers to visit the store more frequently.

    PART B

    1. Planning and Control

    Planning Is the process of forecasting the uncertain future outcomes which are market with the available resources to increase the efficiency of the business organization. Planning is the first stage of managing the operations of the organization and also need to gather all the factors  which will also help the organization to make an effective functional operations so that they can create a vision and mission as it will also help the organization to create the foundation of the nature of the business organization which the business will do all the other activities to increase the growth of the company. Controlling is the last stage of the management operations which help the organization to maintain the planning operations and create a systematic culture in the organization as without controlling planning is of no use and vice versa. (Mahadevan, 2015) Planning objectives are strongly important for Starbucks in establishing high end targets completion within specific time frame for gathering strong goodwill, productivity and strong working ethics within all departments.

    Impact on performance: Planning and control functions are highly fundamental for Starbucks to focus towards for reaching strong working efficiency, timely production targets and serving customers with strong delivery of products along with diverse business extension.

    The design analysis is widely also known for gaining functional objectives, keenly known for gaining stronger working aspects which has bee fundamentally known for various scenarios under management. The 5vs analysis is correlated under this where we can analyze that there are  major working aspects under which new goals among company paradigms are framed on for enhancing new scope segments within consumers market reach.

    2. Starbucks Macro Environment Analysis

    Starbucks have to increase the managerial operation so that the company can perform the effective planning and controlling of the options strategies and it will also help the company to increase the productivity to maintain the efficiency to lead in the market as the company also have more than 30000 stores all over world and it is very essential for the company to ensure the proper planning and controlling of their stores to increase the performance and achieve the competitive advantage In the market which will also help the company to increase the profitability and develop innovative ideas to promote the growth of the company. All the factors of the external environment have  analyzed by the company as Starbucks is always expanding its business in the new market and that also need to decrease the threat of failure so this analysis will help the company to formulate the effective strategies to increase the efficiency I the market and achieve the objectives if the company. (Liker and Ross, 2017)

    Starbucks operational strategy can be understood by the fact that strategic planning is highly involved in the deployment of resources, implementing effective usage of all resources through which capital investments can result in high outputs. Impact of planning, controlling on these operational factors is highly relevant and their role will bring strong positive impact on profitability as well as goals attainment.

    Political Factors

    Starbucks have to analyze the political stability of the new market in order to ensure the efficiency of the market all the laws and policies formed by the government have to be identifies in this factor. The company also have to analyze the employment laws and regulations in the market to ensure the ethical operation in the market. (Kerzner, 2018)

    Economical Factors

    The company also have to determine the economic factors In the market to ensure the financial stability and also increase the profitability from the market. The company have to ensure the employment rates and unemployment rates, inflation rates, Gross Domestic product of the nation, tax rates which are applicable on the company's products and services. As the company is also dealing in the global operations they also need to evaluate the foreign exchange rates and import and export rates of the country to make the effective pricing strategies and increase the efficiency of the company.

    Social Factors

    Starbucks is focused on the customers' satisfaction so that company have identified the customer behavioral pattern in order to increase the quality of their coffee to meet the demand of the customers. In this factor the preference, tastes, values, morale, ethics, culture, beliefs are evaluated to increase the efficiency of the products and make them according to the demand of the market this will also help the company to segment all the customers to develop the product differentiation so that they can target them and increase the sales of the company.

    Technological Factors

    The company also need to analyze the technology to In the market and the competitors to ensure the competitive advantage as latest technology reduces the cost of operations and also increase the efficiency to attract the customer more effectively.(Jaca and Psomas, 2015)

    Planning and control  also posses strong focus for  gaining stronger place within working  competitiveness for gaining new positions as per external factors where brand aims to function with maximum functional efficiency.

    3. Challenges of Starbucks

    Strengths

    • the company is financially very strong and also have a very effective strategy to increase the efficiency to invest in the market to gain the maximum returns.
    • It is the fastest growing company and is also worth more than a billion which is much more than their competitors which give an advantage to the company to increase the sales and discourage the new entrant to compete in the same market.
    • Starbucks is the largest chain of coffee house in the world which also gave the company a strong advantage of economies of scales and decrease the cost of operations of the company.
    • The panning and controlling of the company also provide better outcome o to the new market and also help to survive in the existing markets.

    Effective planning and controlling business functions work as an important fundamental requirements for enabling change in overall structure with the detailed analysis on the set global brand benchmarks. Starbucks strongly focuses towards integrating strong management functions with relative focus towards planning, controlling as it is strongly required for positioning itself as competitive brand ( Bataglin, Viana, and Bulhões, 2020.

    • Starbucks also have an effective managerial employee which help to increase the efficiency of the company so that they van improve the quality of the outcome and provide the better vision to the company. (Gómez, Martínez Costa and Martínez Lorente, 2017)

    Weaknesses

    • The have a weakness is hat the company  is totally based on the coffee beans and if the price of the coffee beans is increased it will also impact the profit margins of the company.
    • Planning can controlling of the company will be ineffective if there is any factors which is changing with he control of the business and it will also decrease the efficiency of the company.
    • The company is also to having all the product other than coffee which decrease the customers to go for it as there are many competitors which provide food and coffee at the same place.
    • Starbucks plan to achieve the addressed weaknesses with strong strategic planning, innovative technologies and impactful services among consumers by dynamically serving them as per their preferences. High promotional business services are strongly important to bring leverage of high profitability goals and completion if targets .

    Opportunities

    • Planning and controlling of the marketing strategies which will help the company to provide the efficiency to increase the quality of the products and innovate the technology will also decrease the cost of the company.(Fernandes and et.al., 2017)
    • The agricultural aspects of the company of the coffee beans can also ensure the quality of beans and also decrease the uncertainty of the fluctuation from the suppliers. There are business opportunities for company to expand in untapped countries market and also govern special focus onto  new arenas for leveraging major work aspects competively.

    Threats

    • Starbucks have the threats of new entry in the market which are more innovating and it can attract the customers of the Starbucks which will decrease the market share of the company.
    • The company also have to expand its business to growing economies to increase the efficiency and increasing the panning and control of the strategies.  Starbucks faces competition from external sources of business industry where  various new companies and startups are coming up among various paradigms.

    Planning and control requirements are widely important for gaining new functional working aspects, leverage working innovation among employees performance goals and to enhance new working aspects which will keenly bring on major factors of working effectiveness.

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    4. Analysis and evaluation of Planning and control of Resources

    Starbucks also have to evaluate the effective methods and theories which are very effective in planing and controlling the operations in the company and it also helps the company to provide a better performance criteria. (Escrig and de Menezes, 2015) The self actualization needs are the focus of the company and the design analysis help to evaluate the best ways to attract the customers which are willing to spend on themselves to increase their satisfaction. As the Gregg's is also located very close to the Starbucks cafe it will also help the Starbucks to increase the sales as the company have the quality of products and best ambiance and both the chains have different stores which will not compete each other. Motivational theory is highly important to motivate employees in company for delivering services to customers as per the set benchmarks as there needs to be strong development along with focus towards gaining strong workforce commitment from them 

    Resource allocation

    Starbucks have to plan that all the resources which are available in the company are allocated at the right place so that it can increase the efficiency of then company and provide a better quality of management. A proper planning of all the resources will help to allocate all the resources effectively in the organization.

    Resource Scheduling

    In this the managers of the company have to evaluate the total resources required and what are the resources available. This will also ensure that the required resources is mad available in the same time and this will also help the company to increase the efficiency of the company by increasing the resources which are required for in the specific time so that the company can reach the objectives effectively. (Campbell, Reyes-Picknell and Kim, 2015)

    Resources Leveling and Smoothing

    In this stage the Resources of the company will be processed in such a way that all the resources which are planned within the time period will also increase the quality of the operations and provide better results. Starbucks have to make sure that the resources which are available are equally utilized  in all the operations so that it can increase the efficiency of the operations.

    Resource Forecasting

    It is the planning of the resources which rare to be used a=or required by the company in the future to continue the operations and also increase the expansion of the company. The resource forecasting help the company to analyses the cost of production which is to be done and also it helps to evaluate the pricing strategies of the current period which will help the company in future to increase the resources in the company. (Campbell, Jardine and McGlynn, 2016)

    Planning and controlling are interrelated with performance parameters as it enables  company to serve new  strengths  and  working aspects among employees, where  new goals and  aspects are  widely worked on by analysing new domains.

    5. Recommendations

    Starbucks need to analyze all the factors which will help to increase the sales of the company they also need to promote the quality and consistency in such a way that all the customer do not forget. This will all be done with the help of effective planning and the company also have to provide better customer satisfaction also that the company can increase the sales. The plannings and controlling will help the company to grow rapidly as it evolves overall functioning efficiency and infrastructure of brand leveraging them strong determinants through which they can reach the set production standards. Training employees and strategic planning along with strategic controlling of delivery within services will enable Starbucks to be effective in all its business activities . The company have to ensure the efficiency of the employees and also motivate their employees to get training and increase the knowledge and skills of them so that they can help the company to achieve the efficiency and maintain the quality of the company. The Coffee is the most consumable product in the hot beverages and the employees also need to find an innovative way to convey this information to the customer in such a way that it will help them to decide more openly, and they will be more effective in becoming the loyal customers of company. Starbucks also need to increase the promotional campaigns and provide free sample taste of their coffee to the pope so that they can ensure the taste of quality and provide discounts to the existing customer to retain them in the company as customer satisfaction is very essential In the company to achieve the competitive advantage  and also increase the profitability of the company. (Calabrese and Corbò, 2015)

    CONCLUSION

    This Report had a detaileB04062d discussion about Operation management of Starbucks in Comparison with Gregg's bakery as it had developed the products and also launched a new coffee in their store which had now become the competitors of the company. Starbucks also have to analyses then internal and external environment to increase the knowledge ad provide a better vision to the company. Report concludes importance of planning and controlling on company performance, various issues which management needs to overcome with strategic planning and also focus towards bringing long term implementation. The management of the company also need to be much effective in managing the resource which will help to increase the quality and productivity of the company (Missbauer and Uzsoy, 2020).

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