Starbucks and Their Value Chain

Only available on StudyMode
  • Download(s) : 440
  • Published : March 15, 2012
Open Document
Text Preview
How Starbucks makes the customer a part of their value chain. Starbucks value chain consists of the following factors:
* The Firms infrastructure: This is the way Starbucks want their organization set up and how best to conduct systems such as planning, finance, quality control and their information technology management.

* Human Resource Management: HR is the activities associated with recruiting, managing, training, developing and rewarding people within the organizations. In order to make sure Starbucks continues to deliver great service to their customers, Starbucks show that they value all their employees as equal, even the ones who work part time can receive bonuses such as free coffee and health care coverage. This keeps Starbucks staff happy and motivated which in turn helps them deliver great service to the customers. Starbucks also introduced for store staff, a twenty four hour training programme that staff have to complete before being allowed to directly work with customers.

* Technology Development: Starbucks have a large amount of areas where it uses technology from regulating their stock levels to cash registers. Starbucks now have the technology which enables their customers to order their coffee over the internet and pick it up from the store when they get there. The majority of their stores also posses free wi-fi for their customers and have computers on site to allow easy access to the internet.

* Procurement: This is the process Starbucks goes through for acquiring the various resource inputs into primary activities. For example, the method of obtaining the grade A coffee beans from suppliers to use in the Starbucks coffee. This makes sure that Starbucks customers get the highest quality of coffee.

* Marketing and Sales: This is how Starbucks get people to become aware of their coffee and encourage them to purchase it. Starbucks is a worldwide company and people now recognize their name and brand and associate the...
tracking img