Pom Processing of Material Starbucks

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School of Management

Group assignment – Running case discussion Group 1
SECTION A – INTRODUCTION Question 1: Identify what proportion of your companies activities are material processing, information processing and customer processing.

Company: Starbucks Coffee Company (Focused on: Retail Coffee Shops) Answer: As the mind map below shows the activity proportions are: Material processing activities: Information processing activities: Customer processing activities: 11 % 80 % 9%

School of Management

This result could be expected for a service operation. But this proportion doesn´t express the share of the activities which are adding value to the transformation process. Although the major amount of activities is related to process information’s it is reasonable that the most value is added in the material & customer processing areas. References: www.starbucks.com (05-2010)

Question 2:

Identify your organizations volume of output (either daily, weekly or annually), its variety (product range), variation in demand over time and visibility.

Company: Starbucks Coffee Company (Focused on: Retail Coffee Shops) Answer: The total revenue of Starbucks had been $ 8.232 B in 2009 (Starbucks Annual Report 2009). This revenue was generated by producing and selling coffee, coffee-beverages, teabeverages and other cold drinks as well as different food specialties, merchandising products and whole coffee beans. The portfolio share of beverages is quiet high, 99 different off-theshelf products are offered in the stores ((http://www.starbucks.com; 05-2010). In addition every customer has the opportunity to create his own Starbucks product through individualizing OTS-products in the following dimensions: 1.) 2.) 3.) 4.) Espresso (extra shot, décaf, half-décaf) Sirup (vanilla, caramel, almond, hazelnut, raspberry, peppermint) Specials (cream, milk cream, ice-cold, extra-hot) Milk (fresh milk, half-fat milk, fat reduced milk, soya milk, lactose free milk)....
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