1 BPP Coursework Cover Sheet Please use the t.docx

1
BPP Coursework Cover Sheet
Please use the table below as your cover sheet for the 1st page
of the submission. The sheet should
be before the cover/title page of your submission.
Programme
MSc Mgmt
Module name
Strategy
Schedule Term
Student Reference Number (SRN)

Report/Assignment Title
Starbucks Business Report
Date of Submission
(Please attach the confirmation of any
extension received)
Declaration of Original Work:
I hereby declare that I have read and understood BPP’s
regulations on plagiarism and that this is my
original work, researched, undertaken, completed and submitted
in accordance with the requirements
of School of Business & Technology.
The word count, excluding contents table, bibliography and
appendices, is words.
Student Reference Number:
Date:
By submitting this coursework, you agree to all rules and
regulations of BPP regarding
assessments and awards for programmes. Please note,
submission is your declaration you are fit

to sit.
BPP University reserves the right to use all submitted work for
educational purposes and may
request that work be published for a wider audience.
BPP School of Business and Technology
2
Programme: MSc Management
Module: Strategy
Coursework Assessment Brief

Submission deadline: 23:59 hrs on 28th April 2020 Submission
mode: Turnitin online access
3
1. General Assessment Guidance
• Your summative assessment for Summer 2019 Term is made
up of this Coursework submission
which accounts for 100% of the marks
• The deadline for submission is 23:59 Hrs on 28th April 2020.
Please note late submissions will
not be marked.
• You are required to submit all elements of your assessment via
Turnitin online access. Only
submissions made via the specified mode will be accepted and
hard copies or any other digital
form of submissions (like via email or pen drive etc.) will not
be accepted.
• For coursework, the submission word limit is 3,500 words for
the Starbucks Business Report plus
500 words for the Starbucks Stakeholder Report (Total 4,000

words). You must comply with the
word count guidelines. You may submit LESS than 4,000 words
but not more. Word Count
guidelines can be found on your programme home page and the
coursework submission page.
• Do not put your name or contact details anywhere on your
submission. You should only put
your student registration number (SRN) which will ensure your
submission is recognised in the
marking process.
• A total of 100 marks are available for this module assessment,
and you are required to achieve
minimum 50% to pass this module.
• You are required to use only Harvard Referencing System in
your submission. Any content which
is already published by other author(s) and is not referenced
will be considered as a case of
plagiarism.
You can find further information on Harvard Referencing in the
online library on the VLE. You can
use the following link to access this information:
http://bpp.libguides.com/ld.php?content_id=30639385

• BPP University has a strict policy regarding authenticity of
assessments. In proven instances of
plagiarism or collusion, severe punishment will be imposed on
offenders. You are advised to
read the rules and regulations regarding plagiarism and
collusion in the GARs and MOPP which
are available on VLE in the Academic registry section.
• You should include a completed copy of the Assignment Cover
sheet. Any submission without
this completed Assignment Cover sheet may be considered
invalid and not marked.
http://bpp.libguides.com/ld.php?content_id=30639385
4
2. Assessment Brief
2.1 Part 1 – Starbucks Business Report (3,500 words)
You are required to write a Business Report for the CEO on the
performance of Starbucks using
independent research and the case study (case 25) that appears
on pages C-200 to C-209 of Part 5

in the Core Textbook, Autumn term 2019:
The case study can be accessed using the following link (you
will need your log in details):
https://online.vitalsource.com/#/books/9781305856271/cfi/648!/
4/[email protected]:0.00
Setting the scene: The CEO of Starbucks is considering their
options over the next 3 years. Your
Business Report should provide the CEO with clear and concise
information that will guide them in
their decision-making process. You should use the Starbucks
case study and also provide evidence
of further independent research to support your answers. Your
research data must not be older
than 3 years. Data prior to January 2017 will be ignored for
marking purposes.
Your Business Report should be structured as follows:
• An Introduction (500 words; 10 marks) to Starbucks and its
competitive position relative to the
other companies (include data from your research and the case
study)
• External Environment analysis (1,250 words; 25 marks) - A
critical analysis of the Speciality

Coffee Café Industry as represented by the case study and your
independent research
• Internal Environment analysis (1,250 words; 25 marks) - A
critical evaluation of the sources of
Starbuck’s competitive advantage (internal analysis) and how
these differ from Starbucks
competitors - You should draw upon information and data
provided by the case study and
your extensive research (Remember your research data must not
be older than 3 years. Data
prior to January 2017 will be ignored for marking purposes).
• Recommendations (500 words; 10 marks) for the CEO that
will improve the company’s
performance over the next 3 years. Your recommendations
should be commercial, realistic and
justified. You should present your recommendations using
SMART objectives (Specific,
measurable, achievable, relevant, time-bound).
2.2 Part 2 – Starbucks’ Stakeholder Report (500 words; 20
marks)
a) You should identify (list) the internal and external

Stakeholders for Starbucks (Complete
Appendix A; this is not included in your word count; 5 marks)
b) You should then choose One priority Starbucks’ Stakeholder
Group from this list and
provide a clear definition of this Group. For example, if you
choose “customers” as a
Stakeholder Group you should identify the type of Starbucks
customer together with their
characteristics, demographics, size of the stakeholder group etc.
Your Priority Stakeholder
Group should be a Starbucks’ Group that is currently the focus
of attention (within the last
3 years) from Starbucks due to a specific reason that you must
explain in your answer. You
must provide evidence (appropriately referenced) in support of
your answer from the case
study and your independent research (335 words; 10 marks).
c) You should then critically analyse the power (influence) and
interest of your chosen
Stakeholder Group, using an appropriate academic framework
(for example Mendelow’s
5

matrix) and identify the appropriate communications strategy
that Starbucks should adopt
with this Stakeholder Group (165 words; 5 marks).
2.3 Structure of Your Submission
You should submit both reports as a single document structured
as follows:
- Business School Cover Sheet
- Report Title Page
- Table of Contents (sections and pages numbered)
- Part 1 – Starbucks Business Report (3,500 words)
o Introduction to Starbucks and its competitors
o The External Environment (Apply a PESTLE analysis, 5 Force
Analysis, Industry
Lifecycle model)
o The Internal Environment - Sources of Competitive Advantage
(Apply VRIO, Value
Chain, Resources, Capabilities and Competencies framework)

o Recommendations to improve Starbucks performance over the
next 3 years
- Part 2 - Stakeholder Report (500 words)
- References
- Appendices
3.0 Marking Guide
The Starbucks’ Business Report is marked out of 80 and will
contribute 80% of your overall mark.
The Starbucks’ Stakeholder Report will be marked out of 20 and
will contribute 20% of your total
mark. Note: Your research data must not be older than 3 years.
Data prior to January 2017 will
be ignored for marking purposes.
The following table shows the mark allocation, word count
guidance and the approach required.
Assignment Part Mark Approach
Introduction
(Approximately 500 words)

10
For an excellent mark you will include a detailed and
informative
introduction to Starbucks and present its relative position (as
assessed against Starbucks main competitors). You should draw
upon data from the case study and your independent research.
Your introduction will set the scene for your report and entice
the
reader to want to read more (10 marks).
External Analysis –
(Approximately 1,250
words)
An analysis of the Specialty
Coffee Café industry and its
External Environment.
25
For an excellent mark the industry analysis will include a
comprehensive assessment of the Specialty Coffee Café
Industry.
The analysis will look forward and anticipate future demand
over
the next three years, making use of information that you have
researched. There will be a clear indication of opportunities and
threats (10 marks)

There will be appropriate use of academic frameworks, for
example a Five Force Analysis (Porter’s) will be supported with
appropriate data from the case study and your research (5
Marks).
The Industry lifecycle position will be identified, and the
6
implications to Starbucks critically evaluated (5 Marks).
Appropriate use of the PESTLE framework will be made (5
Marks).
Data will be clearly presented using appropriate charts, tables
and
graphs.
Internal Analysis -
(Approximately 1,250
words)
A critical evaluation of the
sources of Starbucks’
competitive advantage and
how these differ from other
firms competing in the
industry
25
For an excellent mark the sources of competitive advantage will
be explained using appropriate Academic frameworks (e.g.

VRIO,
Value Chain etc.), and drawing on information represented in
the
case study and your research (10 Marks). There will be a clear
analysis of the company’s strengths and weaknesses and
reference to resources, capabilities and competencies (5 marks).
Examples of how some of the competing companies have
created
competitive advantage should be critically evaluated, with
appropriate evidence professionally presented. There should be
clear assessment of what the competition did that was better
than
Starbucks and provide some insight into what Starbucks can do
to
improve their performance in the future (this should tie in at
least
in part to your recommendations below) (10 marks)
Recommendations -
For the Starbucks’ CEO that
will improve the company’s
performance over the next
3 years. Your
recommendations should
be commercial, realistic and
justified
10
For an excellent mark, students will present 3 detailed
recommendations, using the preceding analysis and evaluation
to

recommend specific steps for the Starbucks CEO to improve
Starbucks’ performance over the next 3 years. You should be
clear on which areas of performance will be affected (for
example,
is this about increasing sales? Market share? Profitability?
Efficiency? Or other targets/metrics?). For best marks,
recommendations should be presented as SMART objectives
(Specific, measurable, achievable, relevant, time-bound). There
should be a consideration of cost / benefit, but a detailed
financial
analysis is not required (10 marks)
Presentation and
Referencing
10
For an excellent mark the report should have, a clear and logical
structure that is easy to read and navigate, and with a
professional level of presentation. There should be precise, full
and appropriate references and notes. There will be no spelling
or
grammatical errors. The subtle use of language will express
highly
nuanced thought with clarity and precision to a level
appropriate
for submission to a Senior Executive of Starbucks (10 marks).
Total marks for Part 1 – (no
more than 3,500 words)

80
Stakeholder Report Mark Approach
List the internal and
external Stakeholders –
Complete Appendix A and
add it to your report (Note:
This table will not be
included in your word
count)
5
For an excellent mark, you will complete Appendix A below
and
attach this to your report. The Appendix A requires you to
complete a comprehensive list of Starbucks’ Stakeholders,
indicating whether they are internal or external stakeholders and
providing a justification for including them in the list (5
marks).
Priority Group – definition
and justification for
selecting this group -

10
For an excellent mark you will choose One priority Stakeholder
Groups from this list and provide a clear definition of this
Group.
For example, if you choose “customers” as a Stakeholder Group
you
should identify the type of Starbucks customer together with
their
characteristics, demographics, size of the stakeholder group etc.
A
Priority Stakeholder Group is a Group that is currently (within
the
last 3 years) the focus of attention from Starbucks due to a
specific
reason that you must explain in your answer. You must provide
7
evidence (appropriately referenced) in support of your answer
from
the case study and your independent research (10 marks).
Priority Group – Power /
interest and
communication strategy -
5

You should then critically analyse the power (influence) and
interest
of your chosen Stakeholder Group, using an appropriate
academic
framework (for example Mendelow’s matrix) and identify the
appropriate communications strategy that Starbucks should
adopt
with this Stakeholder Group (5 marks).
Total marks for Part 2 - (no
more than 500 words)
20
TOTAL FOR ASSESSMENT 100
8
Appendix A – Starbucks’ internal and external Stakeholders
with justification
You must complete the table below and attach it to your
Stakeholder Report. This Table will not be
included in the 500-word count for part 2.

Stakeholder Group Internal or
External
Justification for including them on your
list
9
Appendix B - General grading criteria – Level 7
Criteria Pass Grades Fail Grades
High
Distinction
85-100%
Distinction 70-
84%
Merit 60-

69%
Pass 50-
59%
Fail
30-49%
Low Fail 0-
29%
The work
displays:
The work displays: The work displays: The work
displays:
The work
displays:
The work
displays:
Knowledge &
Understanding
(a) ystematic

Understanding
(b) merging
Thought
(a) Strong
evidence of a
comprehensive
and systematic
understanding of
an extensive
range of
appropriate
issues,
concepts,
theories and
research
(a) Clear evidence
of a
comprehensive

and systematic
understanding of a
considerable
variety of issues,
concepts, theories
and research
(a) Clear evidence
of a
comprehensive
and systematic
understanding of
all major - and
some minor -
issues, concepts,
theories and
research
(a) Evidence of
a systematic

understanding,
which may
contain some
gaps, of all
major - and
some minor -
issues,
concepts,
theories and
research
(a) Evidence of
an
understanding of
an appropriate
range of issues,
concepts,
theories and
research but has

significant gaps
or
misunderstandin
gs.
(a) Evidence
of a limited
understanding
of issues,
concepts,
theories and
research
either major
and/or minor.
(b) Sustained
excellence in the
application of
thoughts and
practices at the
forefront of the

discipline
(b) Precise and
well-judged
application of
thoughts and
practices at the
forefront of the
discipline
(b) Some clear
evidence of the
application of
thoughts and
practices at the
forefront of the
discipline
(b) Clear
evidence of an
understanding of

thoughts and
practices at the
forefront of the
discipline.
(b) Unclear or
imprecise
understanding of
thoughts and
practices at the
forefront of the
discipline.
(b) Significant
gaps in the
understanding
of the debates
at the forefront
of the
discipline.

Argument
(a) nalysis,
Synthesis &
Evaluation
(b) Numerical
Analysis
(c)
Argumentation
(d) Independent
Research
(a) Consistently
precise,
accurate and
reasoned
analysis,
synthesis and/or
evaluation;
addressing

issues with
insight or
originality
(a) Consistently
precise, accurate
and reasoned
analysis, synthesis
and/or evaluation
addressing all
issues, some with
creativity
(a) Precision,
accuracy and clear
reasoning
throughout the
analysis, synthesis
and/or evaluation
addressing all

issues
appropriately
(a) Broad levels
of precision,
accuracy and
reasoning in
analysis,
synthesis and/or
evaluation, and
addresses all
key issues
(a) Errors which
affect the
consistency of
the analysis,
synthesis or
evaluation
and/or key gaps

in the issues
addressed
(a) A lack of
precision,
accuracy or
reasoning in
analysis,
synthesis or
evaluation with
significant
gaps in the
issues
addressed
(b) Numeric
analysis that is
complete and
free from errors
with application

of methods that
may be insightful
or original
(b) Numeric
analysis that is
complete and
mostly free from
errors with fluent
and appropriate
application of
methods.
(b) Numeric
analysis that is
complete and
mostly free from
errors with
relevant and
effective

application of
methods.
(b) Numeric
analysis that is
mostly complete
and free from
significant or
critical errors
with appropriate
application of
methods.
(b) Numeric
analysis that is
mostly complete
but contains
errors with
significant effect,
or methods that

are applied
inappropriately
(b) Numeric
analysis that is
incomplete or
contains errors
which have
critical effect,
or methods
that are
applied
inappropriately
(c) Extremely
strong and
consistent
argument
making a
convincing
whole with

evidence of
originality.
Impressive
dexterity in the
use of
(c) Extremely strong
and consistent
argument that
convincingly
addresses issues
including
uncertainties and
conflicts. Excellent
use of information
gathered which to
support and further
the argument
(c) Evidence of an

argument that is
generally
convincing with a
good internal
consistency and
addresses most
issues. Very good
use of information
gathered to
support the
argument.
(c) Evidence of an
overall convincing
argument but may
have weaknesses,
gaps or
inconsistencies.
Clear use of

information
gathered but may
have some
weaknesses in the
integration into the
argument.
(c) Evidence of a
consistent
argument but
may have
weaknesses,
significant gaps
or be
unconvincing.
Clear use of
information
gathered but
may not be

(c) Lack of
consistency or
structure in the
argument.
Serious
weaknesses in
the integration
of evidence
and/or no
awareness of
the limitations
or
10
Criteria Pass Grades Fail Grades
High
Distinction

85-100%
Distinction 70-
84%
Merit 60-
69%
Pass 50-
59%
Fail
30-49%
Low Fail 0-
29%
The work
displays:
The work displays: The work displays: The work
displays:
The work
displays:
The work

displays:
information
gathered to
support the
argument.
sufficient to
sustain the
argument.
weaknesses of
the research.
Argument
(continued)
(d) Independent
Research
(d) Evidence of
an innovative or
original use of
extensive

personal
research which
has been
thoroughly
critically
evaluated both
conceptually and
methodologically
(d) Substantial
research and
evidence of an
innovative use of a
wide range of
personal research
with clear and
consistent critical
evaluation both
conceptually and

methodologically
(d) Clear evidence
of considerable
personal research
and the use of a
diverse range of
appropriate
sources but may
contain problems
with consistency in
the conceptual
and
methodological
critical evaluation
(d) Appropriate
use of a wide
range of
personal

research which
is critically
evaluated for
key conceptual
and
methodological
issues although
this may not be
consistent
throughout
(d) Evidence of
a range of
personal
research but
evidence of
methodological
or conceptual
evaluation may

be limited,
inconsistent or
inappropriate
(d) Over
reliance on
very restricted
range of
personal or
secondary
research much
of which may
not be
evaluated and
may not be
directly related
to the question
or area
Presentation

(a) tructure
(b) Referencing
(c) Use of
(a) xcellent
structure and
presentation
(b) recise, full
(a) xcellent
structure and
presentation
(b) recise, full
(a) ood structure
and presentation
(b) ull and
(a) dequate
structure and

presentation
(b) ood
(a) dequate
structure and
presentation
(b) Competent
(a) oor
structure and
presentation
(b) oor
Language and appropriate
references and
notes.
and appropriate
references and
notes.
appropriate

references and
notes with minor
or insignificant
errors
references and
notes with minor
or insignificant
errors or
omissions
references and
notes but may
contain
inconsistencies,
errors or
omissions
references
and notes with
multiple

inconsistencie
s, errors or
omissions
(c) Subtle use of
language
expressing
highly nuanced
thought with
clarity and
precision to a
level appropriate
for submission
for publication.
(c) Precise use of
language
expressing
complex thought
with clarity,

accuracy and
precision which
furthers and
enhances the
argument
(c) Clear and
precise use of
language allowing
a complex
argument to be
easily understood
and followed
(c) Generally
clear use of
language
sufficient for
arguments to be
readily

understood and
followed
(c) Generally
understandable
use of language
but significant
errors in
expression
affecting overall
clarity
(c) Serious
errors in the
use of
language
which makes
meaning
unclear or
imprecise

of the submission. The sheet should
be before the cover/title page of your submission.
Programme MSc Management with Streams
Module name Operations Management and Service Excellence
Schedule Term
Date of Submission
(Please attach the confirmation of any
extension received)
of BPP School of Business and Technology.

appendices, is ___ words.
Student Reference Number: Date:
By submitting this coursework you agree to all rules and
regulations of BPP regarding assessments
and awards for programmes. Please note, submission is your
declaration you are fit to sit.
educational purposes and may
request that work be published for a wider audience.
MSc Management with Streams
Operations Managemgent and Service
Excellence

Submission deadline: 23:59 PM on 28th April 2020
Submission mode: Turnitin online access
this written report based on the
operations of Starbucks and accounts for 100% of the marks
Please note late submissions will
not be marked.
via Turnitin online access. Only
submissions made via the specified mode will be accepted and
hard copies or any other digital
form of submissions (like via email or pen drive etc.) will not
be accepted.
s.
You must comply with the word count

guidelines. You may submit LESS than 3500 words but not
more. Word Count guidelines can be
found on your programme home page and the coursework
submission page.
on your
submission. You should only put your
student registration number (SRN) which will ensure your
submission is recognised in the marking
process.
assessment, and you are required to achieve
minimum 50% to pass this module.
your submission. Any content which
is already published by other author(s) and is not referenced
will be considered as a case of
plagiarism.
online library on the VLE. You can
use the following link to access this information:
http://bpp.libguides.com/Home/StudySupport
assessments. In proven instances of

plagiarism or collusion, severe punishment will be imposed on
offenders. You are advised to read
the rules and regulations regarding plagiarism and collusion in
the GARs and MOPP which are
available on VLE in the Academic registry section.
Cover sheet. Any submission without this
completed Assignment Cover sheet may be considered invalid
and not marked.
2. Assessment Brief
OVERVIEW
Starbucks operates globally serving millions of customers on a
daily basis. The company
operates internationally with more than 30,000 retail stores in
80 countries1. Its global
operations depend on the service provided through a number of
international partners, and
in particular a worldwide network of franchises and licensed
Starbucks cafes. This allows for

local responsiveness through a degree of decentralised decision-
making, while providing the
advantage of operational efficiencies by leveraging global
standards and core competencies.
This assessment is based on the operations of Starbucks and
requires you to consider both
global and local aspects of its operations. Your submission is in
the form of a report in two
parts, A and B.
PART A (Max. 1500 words, 40 Marks)
Using Starbucks as the main case, and drawing on information
within the public domain and
your own observations, complete a:
(1) Four Vs analysis,
(2) Performance Objectives Analysis and
(3) Design Analysis
comparing the operations of Starbucks to that of Greggs2, the
largest bakery chain in the
United Kingdom. You will recall from lecture and seminar
activities, that the true power of
these analysis lies in comparative analysis. In completing the
analyses (1)-(3), you may draw

on information obtained through direct observation, or within
the public domain. As a point
of convenience, both companies have operations within close
proximity of the BPP University
Shepherds Bush campus. Starbucks has a licensed store located
at 62 Uxbridge Road,
Shepherds Bush, London, ENG W12 8LP, while Greggs is
located a few feet away at 68
Uxbridge Rd, Shepherd's Bush, London W12 8LP (See Figure
1).
Important: while you are encouraged to visit the stores above to
observe the operations in
person, you should not question or interview staff. Information
gained from your own
observations, and available in the public domain are sufficient
to complete the assessment.
Hint: In this part of the assessment you will have to agree your
unit of analysis, for example,
global or specific store level.
1 Starbucks website: www.starbucks.com
2 Greggs: https://www.greggs.co.uk/

http://www.starbucks.com/
https://www.greggs.co.uk/
Figure 1. Location of Starbucks Café and Greggs Store (Source:
Google.com)
Part A of the report should have the following sections. For
each section a general word guide
is provided and the maximum marks available. A further
breakdown of these marks can be
found in Section 3, under the marking guide.
Comparative Four Vs Analysis (Approx. 525 words, 14 Marks)
Carry out a four Vs comparison of Starbucks and Greggs. In
doing so, create a Four Vs profile
of both operations, and briefly explain each aspect of the two
profiles. Explain why you
think the profiles look the way they do, and the differences (if
any) between the profiles of
the two operations. In doing so, remember to justify and where
possible evidence all
arguments put forward.
Comparative Performance Objectives Analysis (Approx. 600
words, 16 Marks)
Compare the current operations performance of Starbucks café
operations to those of
Greggs. Map on a polar diagram the current performance of
both operations. You must

explain what the various operations performance objectives
mean, and justify based on the
use of evidence, your comparisons. Your discussion should
consider whether the markets
for Starbucks and Greggs are different, and to what extent this
affects the importance of
each operations objectives.
Design analysis (Approx. 375 words, 10 Marks)
On the basis of the previous analysis, how have the Four-Vs and
Performance Profile of the
two operations influenced (1) the design of the customer service
process, and (2) store
layout, at a typical store? I say typical, because both Starbucks
and Greggs have multiple
store locations. In your response, explain how process and
layout design decisions allow
the operation to cope with core operations characteristics (Four
Vs), and how these design
decisions are affected by performance and performance trade-
offs.
PART B (Max. 2000 words, 60 Marks)
Using the case of Starbucks as well as a minimum of eight (8)
published journal articles, and
secondary sources such as company reports, produce PART B of

the report. This part of the
report requires you to critically discuss the role of ONE of the
following five key areas of
operations management in the success of Starbucks:
As a detailed guide to this part of the report, you must consider
in one way or another, the
following:
1. Overview (Approx. 150 words, 5 Marks). Introduce the
operational area and its scope
within the operations of Starbucks. For example, if you choose,
“Supply chain
management”, discuss to what extent the operations of Starbuck
are shaped and
influenced by management of its supply chain, and its
contribution to organisational
performance.

2. Starbucks global operations strategy and surrounding macro-
environment (Approx. 350
words, 10 Marks)
Discuss how this operations area is affected by, and enables
Starbucks to respond to the
wider macro- and business-environment. As part of this
discussion, explain the global
operations strategy adopted by Starbucks and consider how this
area supports that
strategy. Ensure that you clearly explain and justify your
understanding of Starbucks’
global operations strategy.
3. Key requirements, capabilities and challenges (Approx. 350
words, 10 Marks)
Describe the key operations requirements and challenges faced
by Starbucks in achieving
excellence in the chosen area of operations. Requirements
should relate to the day to day
needs of the operation, and consider what is required for the
effective functioning of that
are of Starbucks’ operations. Discuss the capabilities of
Starbuck in this operations area,

for example, the people, systems and infrastructure. Finally,
discuss at least two (2)
specific challenges/problems faced as a result of realising these
requirements.
For example, if quality management is chosen, then a
requirement may be maintaining
high levels of product and service quality. A challenge may be
responding to changing
customer needs or the impact of technology on service quality
delivery.
4. Analysis and evaluation of chosen operational area (Approx.
650 words, 20 Marks)
Discuss the management of resources within this operations area
of Starbucks, and how
it impacts the organisations operations performance. Examine
and evaluate how the
organization manages its resources within these areas to fulfil
the requirements above,
and how it responds to the challenges/problems identified. In
your discussion, you should

draw on theory, concepts and tools within this operational area
and examples from
Starbucks.
For example, if ‘Planning and control’ is chosen, you are
expected to discuss how
Starbucks manages one or more areas of its planning and control
activities and the impact
on Starbucks’ operations. In this case relevant theory may relate
to loading, sequencing
or scheduling of Starbucks’ activities.
5. Recommendations (Approx. 350 words, 10 Marks)
What recommendations would you make about how to improve
this aspect of Starbucks
operations? Identify 2 to 3 improvements based on the analysis
in the previous sections,
that is, there should be a clear link between the previous
discussion of
challenges/problems, and the described improvements.
6. Conclusions (Approx. 150 words, 5 Marks)
Conclude your report by summarizing the work done, the main
findings and

recommendations for improvement.
Important: Your PART B report should strive for a good balance
between theory and practice
in discussing the case of Starbucks, and to be concise in the
presentation of the case. It is
crucial that you use evidence from Starbucks throughout your
report.
3. Marking Guide
PART A
Criteria Maximum mark
available
1. Comparative Four Vs Analysis
a. Four Vs profile diagram
b. Definition of each of the Four Vs in the context
of the operations
c. Explanation of each profile and discussion of
differences
d. Use of appropriate evidence and/or further
illustrations

(14%)
2%
2%
6%
4%
2. Comparative Performance Objectives Analysis
a. Performance map (Polar diagram)
b. Definition of each operations performance
objective in the context of the operations
c. Explanation of each operations performance
and discussion of differences across the five
objectives
d. Use of appropriate evidence and/or further
illustrations
(16%)
2%
3%
7%
4%
3. Design Analysis
a. Impact on design of customer service process

b. Impact on design of store layout and flow
(10%)
5%
5%
Total 40%
PART B
This table below details the weightings of the various sections
of the PART B report and the
basis on which your work will be assessed.
Criteria Maximum mark
available
1. Overview
a. Introduction of operations area
b. Scope of operations area
c. Linking operations area to Starbucks
performance
(5%)
1%
2%
2%
2. The global operations strategy and macro-
environment
a. Explanation of Starbucks’ global operations
strategy

b. The role of the chosen operations area in the
global operations strategy
(10%)
3%
5%
c. The influence of the macro- and business-
environment
2%
3. Key requirements, capabilities and challenges
a. Discussion of key requirements and capabilities
b. Discussion of challenges/problems
(10%)
5%
5%
4. Analysis and evaluation of chosen operations area
a. Evaluation of management of resources and
capabilities in the chosen area.
b. Impact on operations performance in the

chosen area
c. Response to challenges/problems
d. Use of appropriate theory or concepts
(20%)
10%
2%
3%
5%
5. Recommendations
a. Description of recommendations
b. Justification for recommendations with links to
challenges/problems
(10%)
5%
5%
6. Conclusions (5%)
Total 60%
End of Assessment

of the submission. The sheet
should be before the cover/title page of your submission.
Programme MSc Management with Streams
Module name Financial Decision Making
Schedule Term Spring 2020
Date of Submission
(Please attach the confirmation of
any extension received)
of BPP School of Business and Technology.
appendices, is ___ words.
Student Reference Number: Date:

By submitting this coursework you agree to all rules and
regulations of BPP regarding
assessments and awards for programmes. Please note,
submission is your declaration
you are fit to sit.
educational purposes and
may request that work be published for a wider audience.
2
MSc Management with Streams
Financial Decision Making
[FIN 7040]
Spring Term 2020
Submission deadline: 23:59hrs 28th April 2020

Submission mode: Turnitin online access
3
• Your summative assessment for this module is made up of two
elements: this
Coursework submission which accounts for 80% of the marks
and an Online Quiz
(MCQs) which accounts for 20% of the marks.
• The deadline for submission of both elements is 23:59 hrs on
28th April 2020. Please
note late submissions will not be marked.
• You are required to submit all elements of your assessment via
Turnitin online access.
Only submissions made via the specified mode will be accepted
and hard copies or any
other digital form of submissions (like via email or pen drive
etc.) will not be accepted.
• For coursework, the submission word limit is 3,500 words.
You must comply with the
word count guidelines. You may submit LESS than 3,500 words
but not more. Word
Count guidelines can be found on your programme home page
and the coursework
submission page.

• Do not put your name or contact details anywhere on your
submission. You should
only put your student registration number (SRN) which will
ensure your submission is
recognised in the marking process.
• A total of 100 marks are available for this module assessment,
and you are required to
achieve minimum 50% to pass this module.
• You are required to use only Harvard Referencing System in
your submission. Any
content which is already published by other author(s) and is not
referenced will be
considered as a case of plagiarism.
online library on the VLE.
You can use the following link to access this information:
• BPP University has a strict policy regarding authenticity of
assessments. In proven
instances of plagiarism or collusion, severe punishment will be
imposed on offenders.
You are advised to read the rules and regulations regarding
plagiarism and collusion in
the GARs and MOPP which are available on VLE in the
Academic registry section.
• You should include a completed copy of the Assignment Cover
sheet. Any submission
without this completed Assignment Cover sheet may be
considered invalid and not
marked.

4
2. Assessment Brief
2.1. Case Study - ROAST LTD
Your role
You work in the finance department of Starbucks UK. Your
Chief Financial Officer (CFO) has
asked you to review the financial statements and other material
sourced for you below, of
Roast Ltd, an independent UK chain of coffee houses. The
objective is to assist her in
evaluating the attractiveness of the company as a target for
acquisition by Starbucks.
Task
Prepare a 3,500 word business report for your CFO providing
analysis and business advice to
address the requirements below.
Format: business report with headings, sub-headings and
paragraphs 1 mark
Executive summary – key highlights/findings drawn from each
task below to answer the
central question: should Starbucks acquire Roast Ltd or not? 5
marks
Note: no introduction or conclusion is required except where
stated as part of the

requirements. No marks will be awarded for an introduction or
conclusion.
Part 1: Industry Review
Using your own independent research, provide a top-line review
(in bullet point format) of
the current UK coffee house industry. This should include a
summary of who the key players
are, how well it is performing, and any challenges or
opportunities that you find. 5 marks
Part 2: Business Performance Analysis
You will need to calculate and use appropriate ratios in your
analysis for the sections
required below:
2.1 Statement of Profit or Loss
Analyse and comment on the financial performance of Roast Ltd
using all relevant
information from exhibits 1 and 2. Your analysis should
critically evaluate the lines of the
Statement of Profit or Loss. 20 marks
2.2 Statement of Financial Position
Analyse and comment on the financial position of Roast Ltd
using all relevant information
from exhibits 1 and 2. Your analysis should critically evaluate
the lines of the Statement of
Financial Position. 15 marks
2.3 Statement of Cash Flows
Use the Statement of Cash Flows (exhibit 1) and identify what
has happened to the cash
position of Roast Ltd during 2018. 4 marks
Calculate and explain Roast Ltd’s Operating Cash Cycle (OCC)
for 2018 and 2017. 3 marks
Critically evaluate the company’s 2018 dividend policy and

explain whether you think Roast
Ltd was right not to make a dividend payment in 2018. 3
marks
5
Part 3: Investment Appraisal
Critically evaluate the investment appraisal information (exhibit
3).
Your evaluation should challenge the management forecast in
the first part of your answer.
Then, in the context of Roast Ltd, critically evaluate the
following investment appraisal
techniques considering the benefits and limitations of each
technique. You need to give a
clear assessment as to whether the company was right to
proceed based on the results of
each appraisal technique and what we now know.
Use the following sub-headings to structure your answer:
3.1.a Management Forecast 5 marks
3.1.b Investment Appraisal Techniques
- Payback period 3 marks
- Accounting Rate Of Return 3 marks
- Net Present Value 3 marks
3.2. Sources of Finance
Given that Roast Ltd is considering a further investment, this
time into Italy of £400,000
from 2019, assess the benefits and drawbacks of two alternative
sources of finance for this
further investment, including an assessment of their

appropriateness in this case. Give a
clear conclusion as to what course of action you recommend.
10 marks
Total 80 marks
The word limit is 3,500 words excluding numerical tables,
bibliography and appendices. The
executive summary is included in the word count.
To assist you with this task you have been supplied with the
following information:
• Exhibit 1: Extracts from Roast Ltd’s Financial Statements for
2018, including the
Statement of Profit or Loss, Statement of Financial Position,
Statement of Cash flows
and Statement of Changes in Equity.
• Exhibit 2: Notes from a meeting between the Loan Officer at
Finance Bank and Roast
Ltd’s Chief Financial Officer, Dan Shaw.
• Exhibit 3: Investment Appraisal – Romania expansion figures
drawn up in 2016 for
2017 onwards.
6

CASE STUDY – ROAST LTD
Roast Ltd is an independent coffee house chain that was
established in the UK in 2008. It
has become a well-established part of the popular café culture
that has developed alongside
the emergence of the digital age, with workers taking their
mobile devices to their local café
to benefit from wifi, a caffeine boost and possibly something to
eat, as an alternative
location to their desk.
To face off competition, Roast Ltd has built its brand strength
on the fact that it is
independent. Paola King, the chair of the company since their
inception, and formidable
driving force behind their success to date, cites their USP as
follows: “We offer an
alternative to the big brands: we are all about employing local
people, and giving something
back to the high street; our coffee shops are not cookie-cutter
duplications of each other,
they all have a certain character depending on their location,
and that’s important to us in
this increasingly globalised and corporate world. This is a
family business, proud of its Italian
heritage and inspiration: my parents were from Rome, and we
use only the best Italian
technology in our coffee machines and follow Italian brewing
processes to ensure that every
cup of Roast coffee is on a par with what you’d get in a top
Italian caffè.”
It may be smaller in size than its big brand competitors, but that
hasn’t limited Roast’s

ambitions, as it is currently in the middle of a two-phase
expansion strategy:
• Phase one – which commenced at the start of 2017 was the
opening of a chain of coffee
shops in Romania. This has been slow to get going: the launch
was initially anticipated
for midway through 2017, but ultimately sales only started in
January 2018.
• Phase two – In 2019 Roast Ltd is seeking to use its strong
supplier contacts in Italy to
acquire a share in a coffee machine manufacturer for which it
needs to secure finance of
a further £400,000.
7
Exhibit 1: Extracts from Roast Ltd’s Financial Statement for
2018
Roast Ltd Statement of Profit or Loss for the year ended
31/12/18
2018 2017
£'000 £'000

Revenue 2,534 2,022
Cost of Sales (1,990) (1,505)
Gross Profit 544 517
Other operating income 60 0
Operating Expenses: (477) (466)
Operating Profit/(Loss) 127 51
Finance costs (26) (6)
Profit/(Loss) before Tax 101 45
Income Tax expense (20) (9)
Profit/(Loss) for the period 81 36
Note 1 - Extract of supporting notes for the Statement of Profit
or Loss
2018 2017
Operating Expenses £'000 £'000
Employee expenses 227.7 269.9
Directors remuneration 35.1 51.8
Bad Debt charges 7.9 5.3
Utility costs 22.8 26.2
Legal and Professional fees 3.6 28.7
Depreciation charges 31.7 20.9
Store maintenance 72.2 27.6
Distribution costs 29.2 8.9
Marketing & Advertising costs 46.8 26.7
477.0 466.0
8

Roast Ltd Statement of Financial Position as at the end of
31/12/18
2018 2017
ASSETS £'000 £'000
Non-current Assets
Property, Plant and Equipment 996 670
Current Assets
Inventories 299 120
Trade and other receivables 148 93
Cash and cash equivalents 0 134
447 347
Total Assets 1,443 1,017
EQUITY AND LIABILITIES
Equity
Share Capital 200 200
Retained Earnings 660 579
Total Equity 860 779
Non-current Liabilities
Long-term borrowings 275 100
275 100
Current Liabilities
Trade payables 235 138
Bank overdraft 73 0
308 138
Total Liabilities 583 238

Total Equity and Liabilities 1,443 1,017
Note 2 - Extract of supporting notes for the Statement of
Financial Position
Retained earnings column only Retained Earnings
2018 2017
£'000 £'000
Opening balance 579 573
Profit for the year 81 36
Dividend paid 0 (30)
Closing balance 660 579
9
Roast Ltd Statement of Cash Flows for the year ended 31/12/18
2018
Cashflows from operating activities £'000 £'000
Operating Profit 127
Adjustments for:
Depreciation 32
159
(Increase)/Decrease in inventories (179)
(Increase)/Decrease in trade and other receivables (55)

Increase/(Decrease) in trade payables 97
Cash generated from operations 22
Interest paid (26)
Income tax paid (20)
Dividend paid 0
Net cashflow from operating activities (24)
Cashflows from investing activities
Purchase of Property, Plant and Equipment (358)
Net cashflow from investing activities (358)
Cashflows from financing activities
Proceeds from long-term borrowings 175
Net cashflow from financing activities 175
Net increase/(decrease) in cash and cash equivalents (207)
Cash and cash equivalents at the start of year 134
Cash and cash equivalents at the end of year (73)
10
Exhibit 2: Notes from a meeting between the Loan Officer at
Finance Bank and Roast
Ltd’s Chief Financial Officer, Dan Shaw
Purpose of meeting: to begin to consider whether Finance Bank
is willing to finance Roast
Ltd’s second phase of expansion into Italy.

Dan Shaw talked through the company’s latest financial
statements set out in Exhibit 1. The
following points were noted:
• 2018 has been a good year for the company, with the increase
in revenue indicating that
phase one of the expansion strategy has been successful, despite
the delay to the initial
launch that was originally planned for 2017.
• The split of Roast Ltd’s revenue by country is set out below
Country Revenue 2018
Revenue
2017
£'000 £'000
UK 2,184 2,022
Romania 350 0
Total
Revenue
2,534 2,022
• Roast Ltd always prided itself on high quality ingredients, but
the increasingly public
scrutiny of supply chains combined with trends for organic and
fair-trade coffee beans
have led Roast Ltd to experience a small increase in their
product costs, which they have
not been able to pass on to consumers.

• The expansion into Romania required new investment in the
properties and equipment
of a chain of coffee houses based there. All legal costs relating
to this were completed in
2017.
• Early in 2017, a supplier called Caffè Tostato was accused of
stealing and copying a
number of Roast Ltd’s brand designs. This resulted in a lengthy
court case during 2017
and lots of media interest. In January 2018 this case was
decided in favour of Roast Ltd.
Caffè Tostato was ordered to pay them £25,000 in legal costs
and £45,000 in damages.
• Roast Ltd has been focused on cutting costs across the
business and the following was
noted:
o The general reduction in the global price of oil in 2017 meant
that Roast Ltd was
paying less for their power and heat.
o Roast Ltd outsourced various business support areas, which
included payroll,
human resources, finance and customer support teams to an
external service
provider.
o This outsourcing resulted in 13 of Roast Ltd’s employees (out
of a business

support workforce of 20) being transferred to the external
service provider.
11
o The outsourcing exercise did not impact on the company’s
production workforce,
only the support functions.
o This outsourcing exercise also resulted in a review of the
company’s board
structure and various changes occurring in 2018, which
included:
§ Roast Ltd’s previous Marketing and Human Resources
director resigned
his post due to ill-health. Rather than replacing him, Roast
Ltd’s chair
Paola King has decided to combine the role with her role as
chief
executive for no additional salary.
§ In an attempt to make the company leaner and more focussed
on
generating shareholder wealth, it was decided not to re-elect or
replace
its Non-Executive Director, effectively removing this role from
the board’s
structure.
• Roast Ltd’s customer base is almost entirely individual
consumers, but it does also

have a branded coffee bar in the offices of a handful of
companies. Normal payment
terms for the business customers are 30 days from receipt of
goods (when the sales
invoice is provided). However, in 2018, one of Roast Ltd’s main
business customers
suffered cash flow difficulties and negotiated an increase in the
payment period
from 30 to 90 days.
12
Exhibit 3: Investment Appraisal – Romania expansion figures
drawn up in 2016 for
2017 onwards
Investment - New Product Lines
Initial Investment £500m
Management Forecast Year 1 Year 2 Year 3 Year 4 Year 5
£'000 £'000 £'000 £'000 £'000
Revenue 300 560 740 900 1,120
Variable costs (240) (448) (592) (720) (896)
Contribution 60 112 148 180 224
Notes: Year 1 = 2017
Contribution represents the cash inflows
Payback Period

Time Cash flow
Cumulative Cash
Flow
£'000 £'000
0 (500) (500)
1 60 (440)
2 112 (328)
3 148 (180)
4 180 0
5 224 224
Assuming that the cash flows occur evenly, payback period will
be 4 years
Accounting Rate Of Return
ARR = Average annual profit from investment x
100
Average investment
Roast Ltd has a target ARR of 10%
Year Cashflow Notes:
£'000 Ave. Annual Profit = (724 -500)/5 years = £44.8m
1 60 Ave. asset value = 500 / 2 = 250
2 112 ARR = (44.8/250) x 100 = 18%
3 148
4 180
5 224
724

13
Net Present Value
Time Cash flow Discount Present
Factor Value
£'000 5% £'000
0 (500) 1.000 (500)
1 60 0.952 57
2 112 0.907 102
3 148 0.864 128
4 180 0.823 148
5 224 0.784 176
NPV 110
Note: The cost of capital is 5%
End of case study
2.2. Assessment Submission Structure
Executive summary

Part 2: Business Performance Analysis
2.2 Statement of Financial Position
Part 3: Investment Appraisal and Sources of Finance
3.1 Investment Appraisal
• Management Forecast
• Investment appraisal Techniques
• Payback Period
• Accounting Rate of Return
• Net Present Value
3.2 Sources of Finance
14
2.3. Assessment Marking Scheme (Student Version)
The assignment is marked out of 80. The following table shows
the mark allocation and the
approach required. Your coursework mark is added to the
results from your MCQs to give a
total out of 100.
Assignment Part Mark Approach
Format 1 Business report with headings, sub-headings
and paragraphs
Executive summary

5
Key highlights / findings from drawn from
each task below to answer the question:
should Starbucks acquire Roast Ltd or not?
5
Using your own independent research,
provide a top-line review (in bullet point
format) of the current UK coffee house
industry. This should include a summary of
who the key players are, how well it is
performing, and any challenges or
opportunities that you find.
Task 2: Business Performance
Analysis
You will need to calculate and use appropriate
ratios in your analysis for the sections required
below:
20
Analyse and comment on the financial
performance of Roast Ltd (exhibits 1 and 2).
Your analysis should critically evaluate the
lines of the Statement of Profit or Loss.
2.2 Statement of Financial
Position 15

Analyse and comment on the financial
position of Roast Ltd (exhibits 1 and 2). Your
analysis should critically evaluate the lines of
the Statement of Financial Position.
10
Use the Statement of Cash Flows (exhibit 1) to
identify what has happened to the cash
position of Roast Ltd during 2018.
Calculate and explain Roast Ltd’s Operating
Cash Cycle (OCC) for 2018 and 2017. Critically
evaluate the company’s 2018 dividend policy
and explain whether you think Roast Ltd was
right not to make a dividend payment in 2018.
Task 3: Investment Appraisal
and sources of finance
3.1 Investment Appraisal
14
Your evaluation should challenge the
management forecast in the first part of your
answer.
Then, in the context of Roast Ltd, critically
evaluate the following investment appraisal
techniques considering the benefits and
limitations of each technique. You need to
give a clear assessment as to whether the
company was right to proceed based on the

15
results of each appraisal technique and what
we now know.
3.2 Sources of Finance
10
Given that Roast Ltd is considering a further
investment, this time into Italy of £400,000
from 2019, assess the benefits and drawbacks
of two alternative sources of finance for this
further investment, including an assessment
of their appropriateness in this case. Give a
clear conclusion as to what course of action
you recommend.
Total 80
End of brief

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