Assessment2_Operational Management (1)

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Assessment2_Operational Management (1)

GENERIC INSTRUCTIONS

There are two parts in this assessment. Each part carries a weight of 20%. Please print out the hard copy of this assessment when explaining to trainer. Use additional internet sources to identify factors such as costs, products, inventory and so on. For additional queries ask your instructor. There is a word limit of 3000 words for this assessment.

PART 1: WRITE AN OPERATIONAL REVIEW REPORT

BRIEF

The national franchising headquarters for a large coffeehouse chain has received complaints about the service, quality, and cleanliness of one of its cafés in your area. You have been sent to inspect and to report on what you see.

PART 1 INSTRUCTION

  • Select a nearby, or your favourite, coffee house/café or barista.
  • Visit the outlet on two (2) or more occasions and conduct observation and notes about how many customers were served, how quickly they received their coffee, tea, food and beverages, and how courteously they were treated.
  • Observe the number of employees and supervisors working. Note the cleanliness of observable parts of the café, the processes and any obvious systems
  • Inspect the restroom as well as the exterior and surrounding areas. Again note the cleanliness etc.
  • Sample the beverages and food items. Your trainer and assessor is a ‘stickler’ for details; they have no use for general statements such as the coffee and cake were great. Be specific.
  • Draw conclusions. If improvements are necessary, make recommendations.
  • Address and explain your report to trainer and assessor.
  • PART 1 REPORT STRUCTURE, REPORT CONTENT AND MARKING CRITERIA

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    Assessment2_Operational Management (1)
    Last updated: Feb 2024

    Page 1

    ONTENT AND MARKING CRITERIA

    Service, quality, and cleanliness of one Starbucks

    Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971.

  • Executive Summary
  • This report is based on the case study of Starbucks and its failure to perform in the Australian market. The purpose of this report was to research about an international organisation that was faced with a challenged caused by differences in economic development, political systems, culture, ethical standards and other significant differences. Then, identify ways in which the organisation overcame these challenges and ultimately understand the significance of how international market differences can impact on an organisation. Starbucks struggled to connect in the Australian market and this report highlights the key strategies used to cope with the challenge and explain whether these strategies were effective or not. The report will also point out ways in which the company could improve or cope with the challenge. Lastly, the report explains the lesson that could be learnt from the Starbucks case.

  • Introduction: A good report introduction typically covers the following elements, although not necessarily in this order:
  • Background: Describe the events leading up to the problem or need.
  • Starbucks Coffee began in Seattle, Washington and has now become one of America’s largest coffeehouse chains. The Coffee in Starbucks offers a European style coffee that was previously very unique in America. Now European has become considerably more common around the world and thus the competition for Starbucks has caused many issues for Starbucks. Starbucks has gained popular success in many areas around the world such as America, China, Japan and the UK, however the company has struggled to make an impact in other countries such as Australia.

    Starbucks is considered to be the biggest coffee-house chain in the world. With other 23,000 stores around the world, Starbucks generated a total profit of about $4.48 billion US dollars in 2013. In the year 2000, Starbucks entered the Australian market with high hopes and expected great results as the Australian market seems very similar to the American market. This was Starbuck’s first mistake, as Starbucks made little to no adjustments from their strategies in America. Last year, Starbucks closed down 60 stores in Australia and the remaining 22 stores in Australia were given to the Withers Group, owner of the 7-Eleven stores. Starbucks completely failed in Australia because of various reasons; however the biggest cause of the failure was the lack of adjustment to the market and ability to meet the consumer needs. Starbucks was a company that provided a great example of what happens when an international organisation disregards the different cultures and values of international markets.

  • Problem or purpose: Explain the report topic and specify the problem or need that motivated the report.
  • There were multiple challenges that affected Starbucks overall failure in the Australian market. Starbucks utilised what worked in America, Canada and China, into the Australian market, expect good results, and thus were inevitably disappointed in the results. Starbucks’ lack of research when attempting to penetrate the Australian market resulted in the company losing more than $143 million dollars since the year 2000. The company could not attract the customers effectively due to poor advertising, poor locations, low quality beverages and poor strategic decisions.

    According to an expert in economics and business, Professor of University of Sydney, Nick Wailes highlights the fact that Starbucks failed to identify Australia’s local culture and adapt the Starbucks’ strategy to meet the local market needs…

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    Assessment2_Operational Management (1)
    Last updated: Feb 2024

    Page 2

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