This is the case study analysis about Starbucks. It introduced the company background and struggling issues faced by Starbucks. This analysis is mainly focus on how Starbucks using the W Edward Deming’s 14 points to apply on their international business. The sources such as news were applied in this analysis in order to prove that the matters were happened during Starbucks struggling season. On the other hand, the total quality management that Quality Management (TQM) practices is primarily found in larger and multinational organizations but little has been written on how TQM has been applied in Starbucks. It had using some example that existing in the company in order to show how the company manage their product quality. Lastly, this case study analysis was also stated about how the customer values provided by Starbucks are affecting their value chain activities. It had explain how the Taylorism can applied in Starbucks and how they using the skills to operate their business in today competitive market.
Dr. W. Edwards Deming taught that by creating and adopting W Edwards Deming’s 14 points, organizations can increase quality and simultaneously reduce costs and meanwhile, in the same time, reducing rework, staff attrition, works and litigation while in the sametimes increasing customer loyalty. The key is to practice continual improvement and think of manufacturing as a system and adopt new philosophy (Gabor, 1992).
Customer value is also created when the perceptions of benefits received from a transaction exceed the costs of ownership (Daniels, S., 2000). Moreover, value is the ratio between perceived benefits received and the costs associated with receiving these benefits. Perceived value is a consumer’s overall assessment of the utility of a product based on perceptions of what is received and what is given. Increase the market capital by using new system and leadership development in marketing and product, as what W. Edwards Deming quote before, “Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them”.
It is important to emphasize on technology which is always occur in a collective form and therefore, the teams of technology have to access to many systems which typically compare the features of one technology rather than account for team to use of multiple technology (Evans, G. 2002). In the end, transformation of company is needed to reach the market demand and change of company philosophy is also requiring in the meantime. Dr. W. Edwards Deming also has quote, “It is not enough to do your best; you must know what to do, and then do your best”.
Starbucks started in 1971 in Seattle, Washington. It is the company that adopts high quality whole bean coffees and develops the market along with rich-brewed, Italian style espresso beverages, a variety of pastries and confections. It also uses the coffee-related accessories and appliance which primarily through its company operated retail stores. On the other hand, Starbucks also sells whole bean coffees through their specialty sales group and hypermarket in order to operate through their company operated retail stores. Additionally, Starbucks sells the bottled Frappuccino coffee drinks due to market opportunities and a line of premium ice creams through its joint venture. Starbucks is intent to establish their brand as the most well-known and respected brand in the world. To achieve the objective, Starbucks propose to continue to develop its retail operations, rapidly grow its sales volume and franchise operations, and look for opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels. Services of Starbucks
Starbucks management has a good planning when they closed all of their 7,100 stores for 3 hours. It intended to retrain their baristas on creating the...