Introduction to Operations Management
According to Slack, (2015) Operations management used to be a significant function of business organisations but limited to supply chain and manufacturing industries. With developments in thought process and technology, operations management became a transformational process which included all involved functions. Spring and Araujo, (2014) reviews operations strategy to be a technique through which business authorities can estimate their future outcomes and products. This fact is quite acceptable because strategic approach to operations management helps in building stronger foundations which will yield long term profits. For instance, IKEA being a leading furniture manufacturing brand has been known in this industry for its world class products and strategies that have given best in price comfort to customers. The operations strategy of this company will involve processing of raw material, production of proposed design and development of desired product. If strategies are not developed resources allocation becomes difficult. According to Sting and Loch, (2016) resource planning helps in reducing over-usage and wastage.
In the current study, operations management practice is being carried out which helps in evaluating the operations of firm in market. However, it refers to the best business practices in order to create high level of efficiency which is essential for firm within firm. It is concerned in relation to convert raw materials into end products. Thus, improving the efficiency of firm in market helps in maximizing the profit of firm. Here, Starhucks has been selected which is an American Coffee Company and it is a chain which provides beverages services to consumers.
It has long list of coffee products including hot and cold drinks so that wide range of customers can be attracted (About Us. 2017). Further, the main purpose of the report is to analyse the research methodology through which data has been collected and thus carry out effective practice and thus develop a conceptual base so that best practices can be carried out. Further, SWOT analysis is being done in relation to review the current practices so that appropriate targets can be attained (Company Information. 2017).
It can be stated that research methodology involves tools and techniques used in order to carry out the research in a systematic manner. Further, it helps in undertaking effective analysis so that best results can be attained. However, in order to analyse the conceptual model it helps in evaluating the supply chain management and thus operate successfully. Through identifying such process it aids n reviewing current operations' management practices in relation to Starbucks and thus enhance the business performance in market. Management of firm needs to improve its operations management practices so that better performance can be carried out which results into improving firm's supply chain practices (Gregory, 2015). Thus, carrying out continuous improvement process it helps in analysing the business performance and results into improving firm's growth.
Moreover, it is also essential for Starbucks to identify its strengths, weaknesses, opportunities and threats. Thus, analysing such situation it helps in improving firm's growth strategy which results in improving firm's growth share in market. Through carrying out effective practices it results into performing the business operations and thus lacks in understanding the knowledge and concept related to operations management. However, the data has been collected using primary and secondary market sources so that best information can be attained. Both these methods are used in order to help Starbucks management in regard to improve their services and product quality (von Thiele Schwarz and et. al., 2016).
Thus, businesses uses effective continuous improvement model which relates them to enhance their services and improve business performance. However, using both primary and secondary data sources helps in evaluating the best results which helps in improving the business performance in market. Thus, using customer survey results into carrying out questionnaire and thus evaluate the responses of consumers in relation to improve the business performance. It also identifies several secondary sources such as books, journals, online articles which results into carrying out effective operations and thus overcome the issues faced by firm and implement the best operation's practice such as delivering quality products or services to consumers. For instance, interview, observation and research is considered as one of the main approach that focuses upon enhancing market share of firm and thus results in increasing efficiency so that set results can be attained (Sting and Loch, 2016).
Moreover, it has been assessed that continuous improvement model helps in evaluating the best operations' management practice in relation to improve the services of Starbucks. Therefore, business undertakes effective approaches in relation to improve business performance and thus attain best results. However, it is also significant for firm to undergo effective business practices in relation to improve financial performance and satisfy the needs and wants of customers (Stadtler, 2015).
Through delivering better quality products it helps business to enhance the market share of firm and thus attain customer satisfaction. However, business needs to evaluate the feedback collected from customers visiting the coffee shop helps in assessing their responses so that best results can be attained. However, it is crucial for firm to improve business management practices and thus Starbucks can attain desired results. With the help of KAIZEN practices it is valuable and enhance the growth and popularity of firm in market (Spring and Araujo, 2014).
Hence, it can be evaluated that KAIZEN is considered as the best practices which results in improving the business success and performance. Therefore, it is significant for firm to enhance market share and popularity. Thus, carrying out current operation's management practice helps Starbucks to identify the satisfaction level of customers through carrying out customer survey. With the help of such method it helps in identifying the best practice related to current operation's management practice and thus result into improving business performance (Slack, 2015).
Therefore, it is crucial for enterprise to undergo effective management approaches and thus results in enhancing responses related to asked questions upon product quality, service enhancement, workplace atmosphere etc. However, all such responses are required to be enhanced in terms of improving their business performance so that success can be attained. Data will be collected using different primary and secondary data sources and thus use survey to obtain data from respondents. Further, it is also significant for enterprise to use secondary data sources such as online journals, magazine articles, government records in order to assess the importance of operation's management within firm. Hence, such crucial method assists in improving business success and thus results in improving desired results (Oakland, 2014).
Furthermore, using KAIZEN model it helps in improving efficiency and thus results in reviewing the current best practices related to operation's management which results into improving market share and performance. There are various methods through which business can carry out its research it involves interview, observation and research. Thus, such method assists in improving efficiency and result into carrying out best targets. Hence, it is considered that implementing KAIZEN model evaluates the success of firm in market (Monczka and et. al., 2015).
It can be evaluated from the study that Starhucks management aims to carry out effective practices and thus results into carrying out effective business practices in order to operate the business successfully. However, through finding it can be evaluated that cited firm aims to carry out effective practices which results into improving the product quality and thus improve satisfaction level of customers. It is the main reason through which business aims to improve the product and service quality in relation to expand the business operations in market.
Further, implementing appropriate framework results into carrying out effective results and thus effective continuous improvement so that best results can be attained (Miller, Wroblewski and Villafuerte, 2014). Main results of such analysis results into improving the business practices and overcome deficiency so that rivals can be given tough competition. It is the best way through which expansion of business operations can be attained.
STARBUCKS is one of the leading coffeehouse chain and thus operates in worldwide locations. Therefore, business focuses upon serving both hot and cold beverages in order to satisfy the needs of customers.
- Quality, Profitability and Ethics- Business focuses upon maintaining its quality in relation to improve its services and satisfy customers needs. Ultimately it results in enhancing profit margin of firm and thus success can be gained. Further, it is significant for firm to improve ethicality so that it does not undertake any unethical practices and thus results into proper functioning so that best results can be attained. However, it is crucial for enterprise to focus upon maintaining its quality and thus results into giving tough competition to rivals (Li, 2014).
- Worker Treatment- Further, it is another strength which helps Starbucks to improve the training facilities for its customers and thus aims to improve their capabilities so that best results can be attained.
- Efficiency and Reinvestment Strategy- It evaluates that firm invests its profit within the firm and thus expand the business operations so that Starbucks can improve it successfully (Lawrence and et. al., 2015).
- High Price- It is considered as high price point and thus due to this it decreases the customer ratio. Therefore, it is essential for firm to improve its pricing strategy in relation to improve business success.
- Lack of Unique Products- Thus, it is another weakness that identifies that business lacks in unique product range and therefore, it affects the customer satisfaction ratio. Therefore, it is essential for business to improve its customer ratio and improves satisfaction (Lam, 2014).
- Worldwide expansion- It is one of the effective opportunity with firm and thus expand the business functions in relation to improve the business performance.
- Introducing new products- It is another opportunity with Starbucks that firm aims to decide its new product range and thus results into business expansion (Higuchi, Nam, and Sonobe, 2015).
- Fierce competition- Business faces tough competition within business and thus directly compete with other international brands such as McDonald.
- Specific market- Further, it has been assessed that business operates in specific market and thus it faces threat in market (Grant, 2016).
It can be concluded from the study that Starbucks evaluates significant changes within business and thus for that SWOT analysis is being carried out. Thus, it is essential for firm to improve its business performance in relation to undertake effective strategy and achieve goals. For this, proper conceptual model i.e. KAIZEN has been implemented in relation to improve business performance in market.
Operations management plan covers steps to follow guidelines and manage each and every activity of firm. It also creates business efficiency to develop positive results and outcomes at workplace (Wallace, 2014). The Highest level of efficiency can be possible with converting material and labour in goods and services. It assists to maximize profits of Starbucks and attract potential customers.
GAP analysis is a management literature which involves comparison of actual performance with potential things in Starbucks. Gap analysis determines as situation which manage actual performance level which is differs from desired outcomes (Cho and Bae, 2016). It assists to find needs that could e done to achieve high performances level. In order to analysis current situation, the firm need to develop their system to maintain progress and effective results at workplace.
In addition to this, the company can manage their results through identifying positive outcomes in the company. With making gap bridge, it has been analysed that current situation of the company is not effective so that they have to enhance operations with the best practices (Bradford-Knox, Kane and Neighbour, 2016). In order to use GAP analysis these steps can be taken within the firm:
Identify Future State
In order to manage business results, there are various things that need to be carry by Starbucks. In this step, the organisation find their objectives which need to accomplish for attain business targets. Hence, the chosen enterprise can easily manage their profitability and the best outcomes at workplace. For instance, the cited firm want to accomplish new products at workplace within one month (Hill, Jones and Schilling, 2014). In addition to this, they can also set objectives to enhance customers and their satisfaction level. In this context, the company identify information to manage business operations and activities.
However, there are various weaknesses that are being observed in implementing the strategies that have been formed for meeting the future challenges. Existing staff members of the entity are not skilled and taken for running the desired functions and it is vital that proper training and development programs should be organized for making positive improvements in skills and capabilities of employees (Becot, Conner and Kolodinsky, 2015). Other than this lack of availability of proper resources is also a weakness due to which problems are faced in running the business operations. In addition to regular changes in preferences and needs of buyers is also a weakness. Starbucks offers high quality coffee for the business consumers and it is required that proper analysis of market conditions should be done for assessing and identifying needs of buyers.
It supports in developing and delivering the goods as per the requirement shown by consumers. Fluctuations occurring in economic conditions and changes in regulations also gives impact on the business activities that are performed in the entity (Mendis, Mahmud and Muttaqi, 2016). In addition to that technology which is used by company is outdated and due to that performance of Starbucks is weaker compared to its rival firms. Moreover, strategy formulation process of the entity is also not effective and due to that it becomes difficult for scheduling the day to day operations of the company and efficiency of the entity gets hampered due to this. All the weaknesses gives impact on the final performance of the business and due to that long term growth and success of the business also can be maintained.
Analysis Current Situations
To analysis current situation of company, Starbucks need to maintain their activities to perform various task at workplace. In this aspect, the cited firm can take methods to identify proper needs and satisfaction at workplace related to reviewing documents (Balasubramaniam, Saraf and Makram, 2016). In addition to this, they are also found that what is the best source to get information related with customers satisfaction. It can be done through design workshops and activities to manage each and every task of project. Thus, the firm can achieve their profits and positive outcomes within the business environment. It can be done through appropriate staff member and additional people who can complete objectives of the company. To manage effective functions, it is important to deliver effective goods and services to customers so that Starbucks can easily find solution to develop business outcomes.
In addition to this, it is also enhances opportunities to increase revenue and profitability to manage business functions and effective results. Further, it also describes to manage results and high power of the company resources (Barelli, Bidini and Bonucci, 2016). Opportunities can be identified by Starbucks after analysing market conditions and it will support for expanding the existing operations of business in effective manner. Company can launch new variety of products and existing restaurant chains can be opened in new market areas. It will help in enhancing financial revenues and profitability of the entity and long term growth of the business will be ensured through this.
Other than that acquisition of some other firms can be done and new coffee stores can be opened in other countries. Consumer base of the company will be expanded through this and it will support for accomplishing long term and short term objectives of the enterprise in effective manner (Becot, Conner and Kolodinsky, 2015). Operational strategy and other action plans that are formed in the company can also be improved and it will help for making positive improvements in the current practices and procedures that are currently running in the entity.
Identify GAP Between Potential and Current Outcomes
Once the company analysis their current situation, they have to identify gap between potential and current results. Hence, it can be assist to manage positive results and increasing productivity at workplace. Further, development system also assist to manage profitability at workplace to determines time period for accomplish targets. With managing enough staff at workplace, Starbucks can maintain their delivery system at workplace (Mendis, Mahmud and Muttaqi, 2016). It aids in identifying gap among present and future situation. It is also helpful to determines positive results with recruiting additional people at workplace. Beside this, if the chosen organisation fail to operate their functions, they have to develop positive results through ascertain and maintain profits in Starbucks.
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In order to analysis gap between potential and current outcomes, the cited firm can easily identify their problems so that they can easily manage effective results. In addition to this, it is also framed threats to overcome problems within the enterprise. Thus, the company can easily take profitability to ascertain goals. To overcome the business issues, threats are creates major problems to operate functions in various part of marketplace. To ascertain effective results, the firm can eliminate threats through adopting various tools and techniques to measure performances.
In order to manage business outcomes, SMART objectives need to be ascertain so that the enterprise can easily attain positive results. In this aspect, Starbucks can easily deal with different outcomes and effective results to operate functions in the marketplace (Mok, Sparks and Kadampully, 2013). With making plan, goals can be easily achieve so that the cited firm need to maintain profitability at workplace through delivering effective results. Goals of the firm can be maintain in the following manner:
Starbucks has objectives to expand their market in new areas with attract potential customers. It will assist to manage positive results and effective outcomes to manage profitability at workplace. Goals of the chosen company is clear so that they have to maintain effective results and involve various people to maintain effective outcomes (Mendis, Mahmud and Muttaqi, 2016). In addition to this, the firm need to considers location where they can make their operations to creates marketing executives and experiences. It can be build to career development which is necessary to lead with successful team-building.
It is very important to measure goals at workplace so that Starbucks can easily progress and take positive outcomes (Dai, Wang and Zhao, 2016). In addition to this, they can ascertain to meet with deadlines in which they can easily meet goals to get closer attention to manage business results. In addition to this, the cited firm can also analysis that how many goals are achieved, how many outcomes are taken to deliver effective results and efficiency to accomplish results. Goals can also measure with identifying necessary training courses which can be gained with relevant experience in the five years plan. Measurement is very important element to determines various solution at workplace on the basis of tools and techniques which can be accomplish to determine high profits (Dani, 2015).
Goals of the firm are to be realistic to manage effective results at workplace. In respect to this, all goals can be considers to make successful operations and abilities to manage firm operations. In addition to this, it also offers opportunities or resources which can be closer to accomplish within the time-frame. It is also based on work experiences to match concentration with financial factors (Becot, Conner and Kolodinsky, 2015). Further, Starbucks need to assess skills which can be accomplish to manage results and positive outcomes. In addition to this, the cited firm can continuously monitor their performance to manage effective and efficiency at workplace which is based on company outcomes. It can be done through development of business profits.
In this step, the enterprise found relevancy at workplace from various operations. In this aspect, they can align with ensuring goals to accomplish within the time-frame. Goals of the company are also aligned with different objectives and effective results at workplace (Mok, Sparks and Kadampully, 2013). Thus, the company can easily manage their results and match it with efforts of Starbucks employees. In addition to this, they have to analysis current socio-economic environment. In this aspect skills are need to e develops to determine additional qualifications. Training need for employees can also determines to assess goals and objectives.
With taking effective time-frame, goals of the company can be target to meat with specific deadlines at workplace. In addition to this, every activity and goals need to accomplish to desire outcomes and profitability at workplace (Barelli, Bidini and Bonucci, 2016). Thus, Starbucks can easily deal with different activities and outcomes. In addition to this, it could e recommend that the company can easily manage their functions and results to overcome their weaknesses at workplace. Hence, they can fully support to each and every activity of the firm. Long term goals can easily achieve with developing solutions which assist to manage results. According to specific time-frame, each and every activity should be accomplish to maintain effective results so that the business can deals with different sources and goals at workplace. It can be measure through delivering effective outcomes and time take for each activity.
Operations Management Plan vs. Best Practises
Operations management plan helps in analysing current strategy that has been applied by company for its production processes. Starbucks has been planning a business expansion. This vision is supported by effective SMART recommendations which have been discussed ahead. Best practises that must be involved in operations strategy of the company include correct choice of raw materials and effective machinery to produce best in class coffee (Dralle and et. al., 2014). Decisions regarding goods and services are important for Starbucks. The generic strategy of operations defined by company involves these decisions. Hence, it can b inferred that initial stage of this plan is quite justified when compared to proposed best practises in the industry.
Ideologies are defined to support practical applications which are instituted by companies. Starbucks adopted an ideology of kaizen for supporting its operations. Since, organisation's brand name is at stake, the decisions regarding goods and services cannot be compromised. Kaizen model is based on total quality management (García and et. al., 2014). It involves continuous improvements until customer satisfaction is not achieved. Operations are defined according to basic principles of Kaizen. These help in application of ideology with regards to effective quality management.
Starbucks ensures high quality supplies by collecting best in class produce from the markets. It has been running a collaboration with Farmers Equity program. This program involves a group of farmers that have certified produce. Since, product quality is totally dependent on supply material this choice of produce makes it stand ahead in competition. Hence, best practises for selection of raw materials are adopted by the company (Golicic and Smith, 2013).
Operations plan includes an important element that is layout design and strategy. Aforementioned plan includes a structured layout which results in high productivity (Dale, 2015). This can only be possible when human resource is well managed. Starbucks has been utilising strategies which creates a productive working environment. Innovation with affection has been their motto inside the working premises. The dependency of company's excellence on customer satisfaction is maximum. This makes the enterprise more responsible towards its stakeholders (Beske, Land and Seuring, 2014). A separate human resource department has been assigned this role for looking after the welfare of their employees and other staff members.
Supply chain is the backbone of the operations plan. Best practises for supply chain include good transportation facilities and distribution channels which will help in providing raw materials to different operational centres. Starbucks has a global approach towards supply chain management. It helps in organising all its suppliers and co-producers to align with a centralised system. High class technology has been implemented to assist this function (Alexander, 2013). Since, choice of suppliers is significant to company, it has a prioritizer which filters the quality level of supply chain.
With all these features in operation, Starbucks has been concentrating on maintenance and scheduling. The company functions its daily operations with efficient yet flexible scheduling options. All the physical assets involved in complete operations plan are well managed and maintained (Wu, Qiao and Cai, 2015). Any sort of disruptions in their functioning do not affect customer satisfaction level because of these components.
Henceforth, it is evaluated that Starbucks operations management plan is highly relevant to best practises and completely correlates with them.
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