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STARBUCKS
BS in Management ScienceOPERATIONS MANAGEMENT - MGT214
Group Project
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
Instructor’s Name: Ms. Dalal Bamufleh
Alaa Gain – 06120012
Shoroq Al-Khateeb – 09120108
Ebtehaj Lafi – 08220255
Afnan Al-Gain – 09120068
Abrar Muzain – 08120002
Alaa Muzain - 08120011
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
STUDENTS NAMES
BACKGROUND
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting the highest quality Arabica coffee
in the world. Today, with stores around the globe, the company is the world’s premier roaster and
retailer of specialty coffee.
HISTORY
1971 – Starbucks Coffee, Tea, and Spice
store (coffee bean roasting) opened in Seattle’s Pike Place
Market.
1982 – Howard Schultz joined Starbucks.
1986 – Howard Schultz established Il Giornale
Coffee Company.
1987 – Il Giornale acquired Starbucks and changed the name into Starbucks Corporation.
1992 – Starbucks decertified the union
and made IPO.
1995 – Starbucks Coffee International
opens in Japan − Starbucks
implemented ESOP.
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
LOGO
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
PRODUCTS
Starbucks Corporation offers coffee products and café services throughout the world. It sells high-quality whole
bean coffees (from around the world) along with other types of freshly brewed coffees, premium teas and espresso
beverages, hot and cold. It also offers various sodas and juices, pastries and confectionery, coffee-related
accessories such as the Starbucks mugs, and other café related products such as the Starbucks CD. Starbucks sells
its special products through its company-operated retail stores, warehouse club chains, office coffee distributors,
institutional foodservices such as hotels and airlines, mail-order catalogs, and through its electronic store.
Company Mission
Statement:
“ Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining
our uncompromising principles while we grow.”
Environmental Mission Statement:
“ Starbucks is committed to a role of environmental leadership in all facets of
our business.”
MISSION
Building a
Company with Soul.
Opposing Franchising because of Quality
Control and
Culture.
Only selling coff ee beans
without artifi cial fl avors.
Satisfy customers by all means.
Employees’
contributio-n and
involvement in
making Starbucks a better
company.
GOALS
STRENGTH- Starbucks is the market leader in the coffee
Market.- Customers are satisfied with the quality and
taste of Coffee.- High brand equity.
- Operating in 40 countries worldwide.- Huge number of employees’ approx. 13
thousand.
OPPORTUNITY- Entry into Asian market like Pakistan, India and
Bangladesh.- Market penetration in International countries.- Co-branding with other food manufactures.
- Whole bean sales in supermarkets like.
WEAKNESS- Pricing are higher as compared to the
competitors.- High operating cost·
- The business profits are highly dependent on coffee product.
THREATS:
- Numbers of competitors are increasing, like Barista, Café coffee Day, Gloria jeans coffee.
- Variation in coffee prices in developing countries· - People started to become more health conscious·
- Labour Unions issues in US and international countries·
- Starbucks facing huge resistance in international countries over cultural and political issues.
SWOT ANALYSIS
GLOBAL STRATEGY
COMPRTITIVE STRATEGY
QUALITY STRATEGY
PROCESS STRATEGY
LAYOUT STRATEGY
INVENTURY MANAGEMENT
OPERATION MANAGEMENT
GLOBAL STRATEGY
BY ALAA
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
International Strategy
- Businesses moving from domestic to an international strategy give the firm greater return on its investments.
- In 1995, due to the saturation of the United States market, Starbucks started to expand its business overseas.
- By 2001, Starbucks had more than 150 stores and plans to continue its success.
- The company began by entering into joint ventures with local businessmen.- Starbucks a strong expansion campaign, opened in foreign markets by 2001.
- This plan made the opening of over 600 stores located out of the United States possible.
- More than 200 units including China, Japan, Kuwait, Lebanon, New Zealand, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand.
GLOBAL STRATEGY
COMPETITIVE STRATEGY
BY ALAA
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
Focused differentiation by serve niche buyers better
than rivals.
Buyers have distinctive preferences, special
requirements, or unique needs.
Have unique capabilities to serve
needs of target buyer segment.
Big enough to be profitable and offers
good growth potential.
Costly or difficult for multi-segment
competitors to meet specialized needs of
niche members.
Starbucks has resources and capabilities to
effectively serve an attractive niche.
COMPETITIVE STRATEGY
QUALITY STRATEGY
BY SHOROQ
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
QUALITY STRTEGY
For Starbucks, quality simple means.
The company even uses "mystery shoppers“.
Starbucks coffee buyers spend about 18 weeks each year visiting
coffee growers and suppliers.
Starbucks gets the first pick of some of the world’s best coffee crops.
Quality means conformance to standards:• be welcoming• be genuine• be considerate• be knowledge• be involved
TQM tools:• Continuous improvement .• Just-in-time (JIT).
QUALITY STRATEGY
PROCESSSTRATEGY
BY EBTEHAJ
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
Repetitive Focused Strategy for
Frappuccion/Milkshakes
- Modules combined for many output options (many cup types & same cap type)- Repetitive operations- Just-in-Time inventory
- Fixed, well-known costs, due to experience- Specialized equipment (coffee machines, customized
blenders, etc.) - Well-trained staff (Starbucks’ policy to train coffee
specialists)
PROCESS STRATEGY
PROCESS STRATEGY
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
- Is the process designed to achieve competitive advantage in terms of
differentiation, response, or low cost?
Yes, it is. Repetitive Focused Strategy is an „intersection”
between Process Focused Strategy and Product Focused
Strategy, hence it incorporates advantages of the two.
- Does the process eliminate steps that do not add value?
Yes, it does, thanks to the specialized
equipment and well-trained personnel.
- Does the process maximize customer value
as perceived by the customer?
Yes, thanks to incorporating „House of
Quality” tool in the design process.
Will the process win orders?
It is possible, as Starbucks strives to
take over the „coffee shakes”
market niche with its product.
PROCESS STRATEGY
LAYOUTSTRATEGY
BY AFNAN
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
The idea behind the Starbucks’s stores layouts was to recreate the experience in the espresso bars in Italy
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
In the U.S. customers want take-out service and a place to sit inthe store while having a drink
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
Starbucks has become a “third” place for customers to go to get away from daily hectic
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
Starbucks Coffee Store Layout in a City in Michigan
LAYOUT STRATEGY
Recommendations and suggestions
LAYOUT STRATEGY
INVINTORYSTRATEGY
BY ALAA & ABRAR
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
Inventory management
means all the goods that are
available to sell in the warehouse.
The techniques that Starbucks company use it to manage their inventory
are
JIT
MRP
INVENTORY STRATEGY
Corporate levelReduce their price by producing a new product of coffee
using cheaper beans or may come out with special discounts
promotions to increase the sales.
Business levelStarbucks can effectively pursue Focus-Based Strategy in conjunction with differentiation or cost leadership based
strategy.
Functional levelAdvertisement can develop through internet that
services convinced for users to access, give the brochures, do road shows, so that public come to know more about Starbucks
details.
INVENTORY STRATEGY
Starbucks success is achieved through a few factors:
1. Outstanding Quality of the coffee.2. Excellent service provided at the
stores3. Fast growth of new stores all around
the world.
These factors not only have increased the sales but also the reputation among the coffee lovers.
CONCLUSION
Starbucks Official Sitehttp://www.starbucks.com/Starbucks Details Strategy for Profitable Growthhttp://news.starbucks.com/news/corporate+news/financial/2009+annual+meeting+of+shareholders.htmStarbucks - Design of Goods and Serviceshttp://www.oxbridgewriters.com/essays/finance/design-of-goods-and-services.phpStarbucks Strategyhttp://www.slideshare.net/tommy2cruise/starbucks-strategyStarbucks SWOT Analysishttp://www.slideshare.net/shahkiran79/starbucks-swot-analysisStarbucks Marketinghttp://www.slideshare.net/Heekuk/starbucks-marketingStarbucks Global Strategyhttp://brainmass.com/business/international-business/402609Operation Managementhttp://dc169.4shared.com/doc/XnYqb0C-/preview.htmlStarbucks Final Presentationhttp://www.slideshare.net/guest020532/starbucks-final-presentationBerger, A., Buchman, J., Chase, D. & Hsu, S. (2003). Starbucks. Retrieved on November 12, 2009 from, http://74.125.153.132/search?q=cache:z1kF8ZdXtXoJ:www.loudoffice.com/donald/resume/portfolio/Starbucks.ppt+STARBUCKS+B+managing+quality&cd=2&hl=tl&ct=clnk&gl=ph.Thompson, A. & Gamble, J. (1999). Starbucks Corporation. New York: The McGraw-Hill Companies. Retrieved on
November 12, 2009Starbucks Website (2009). Starbucks, Inc. Retrieved on November 12, 2009 from, http://news.starbucks.com.
REFERENCES
THANK YOUIT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE