Starbucks Operations Management

Only available on StudyMode
  • Download(s) : 822
  • Published : March 14, 2013
Open Document
Text Preview
Abstract
Starbucks Coffee Company was founded in 1971 as a delicate coffee and tea vendor. In 1985, chairman and CEO Howard Schultz altered the business into what it is now - an international coffee brand manufactured on the wisdom of coffee, high-quality goods, and a desire for teaching customers about the values of coffees and teas. Today, Starbucks has expanded from its Seattle roots and markets imported coffee, fine teas, Italian style espresso, cold beverages, food products and coffee fixtures.  It has created lifetime relationships with several coffee bean manufacturers and farmers and has linked a solid brand image to all of its 176,000 employees. It manages 17,000 stores in over 49 countries universally and has a durable brand manifestation in the United States, with more than three quarters of its cafes stationed in its home marketplace.  

Starbucks has become a successful global coffee brand business due to their application of specific operations management principles. The company handles specific operations management issues such as design of goods and services, management quality, location strategy, layout strategy, process and capacity design, supply chain management, scheduling, maintenance, inventory management, human resources, and job design in an extremely positive and effective manner. The results of these decisions are represented in what Starbucks has now become today. They have taken this set of operational management issues and utilized them to prosper into a globally known coffee business. The products and café services from Starbucks are offered all over the world (“Oxbridge writers.”). The company has made several effective operations management decisions in their marketing of fine whole bean coffees along with other varieties of premium teas and espresso beverages (“Oxbridge writers.”). They also offer numerous sodas and juices, pastries and coffee-associated equipment, for instance, Starbucks mugs and Starbucks CD’s (“Oxbridge writers.”). Starbucks vends its exclusive products through its company-managed retail stores, warehouse club chains, office coffee distributors, institutional foodservices such as hotels and airlines, mail-order catalogs, and through its electronic store (“Oxbridge writers.”). The products and services are manifestly offered through the original brand design, which is presented in all their goods and retail stores (“Oxbridge writers.”). The layout of each Starbucks store gives their customers a great quality product and place (“Oxbridge writers.”). The company’s delicious coffee and other enjoyable food items are two of the significant ways this is given (“Oxbridge writers.”). Additional ways include the display racks, tables, chairs, fixtures, and store background music (“Oxbridge writers.”).

The administration of Starbucks is merely accountable for the quality service (“Oxbridge writers.”). To guarantee customer satisfaction they train employees and oversee the operations and food service (“Oxbridge writers.”). By having a happy staff they create happy customers, which creates a happy working environment (“Oxbridge writers.”). Quality service is linked with profitability; therefore the administration is continuously flourishing to accomplish this (“Oxbridge writers.”). To guarantee quality, Starbucks offers surveys in their stores that allow their customers to rate their performance against the company’s high standards (“Oxbridge writers.”). They also have mystery shoppers to ensure that their employees are giving the quality of service that the company expresses in their mission statement (“Oxbridge writers.”). This is constantly improving Starbuck’s operations management issues (“Oxbridge writers.”).

Location Strategy is another operations management issue that Starbucks has mastered (“Oxbridge writers.”). The company bases their site location on site accessibility and cleanliness (“Oxbridge writers.”). The second criterion the company bases their location...
tracking img