Starbucks Operations

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Operation as a competitive weapon by: Andrew Luo
Operations Management is defined as the systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external, customers. Moreover, Starbucks uses the bean stock to improve their operations through many decades. In the year 1991, Starbucks was the first U.S. privately owned coffee company in the history to offer stock options called “bean stock”. The current CEO of Starbucks is Howard Schultz, he replaced Jim Donald to turn Starbucks around from struggling in the coffee world and he is now currently focusing on the Internet projects for the company, also managing Starbucks with the stock-option called bean stock. This idea is mainly given to managers, baristas and employees inside the manufactures. Bradley Honeycutt, a woman in Starbuck’s human resources department, came up with the name “Bean Stock” and stated that “it’s not only a playful reference to the coffee beans we sell but also evokes Jack’s beanstalk, which grew to the sky.” This is why bean stock has its own uniqueness and no other company has a stock-option plan that is as widely used as bean stock. Bean stock is the main difference between the operations in Starbucks and other manufactures in the same industry, because Starbuck’s operation focuses on turning every employee into a partner, in other words, bean stock forms a big family within Starbucks Company. This bean stock option is the core process of Starbucks which can be defined as a chain of activities that delivers value to external customers. The board of directors and CEO believe that the bean stock began to affect the attitudes and performance of employees quickly after they started this new stock option of bean stock. Moreover, with this bean stock idea, employees’ relationships are a lot closer than any other companies that have to deal with customer relations and are known as customer relationship process, a process that...
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