Exploring Key Areas Of Operations Management

Better Essays


In this article we are going to analyse key areas of ‘Operations Management’, considering a British coffeehouse company: Costa Coffee. We will study its specific operations management strategic frameworks such as design of goods and services, location strategy, management quality, process and capacity design, layout strategy, inventory management, supply chain management and job design and evaluate its effect on both company’s success and productivity.


Costa Coffee is a British multinational coffeehouse company. It is the second largest coffeehouse chain in the world and the biggest in the United Kingdom.

The products and café services from Costa Coffee are accessible all over the world. It sells first-class …show more content…

- Goodwill among consumers due to Social Responsibly Initiatives: Their stores are community friendly, concentrated on recycling and reducing waste. They have goodwill among communities where they operate.


- Expensive Products: In the times of economic sluggishness, customers to have so switching costs to competitor’s products with lower costs and forgo paying a premium. It produce some weakness for it to succeed in developing countries.
- Negative large corporation image: As a large corporation, Costa Coffee does come under increased analysis and have to invest in corporate social responsibility activates and keep tight control over labour practices.


- Expansion into Developing Markets: Costa Coffee has made good inroad into several countries. Costa Coffee has a great evolution prospective in additional expanding into the emerging and developing markets. They can control their size, experience, financial ability and efficiencies to make new market share.
- Brand extension


- Increased Competition: This is the biggest threat that Costa Coffee faces with the market being at a maturity stage, there is increased pressure on Starbucks from its competitors like Dunkin’ Donuts and

Get Access