Pearson Education Limited. A number of business writers, editors and academicians have attributed the growth of Starbucks to its excellent operations management and marketing strategy. The discussion question further requires us to analyze the operational strategy of one of the companies that we are familiar with to understand how they are winning their customer’s trust along with exploring the impact of OFD in the operations process. Therefore, in this discussion question, I will be exploring the operational strategy of Starbucks. It is the result of a careful planning and a thorough understanding of the buyer’s behaviour, values and preferences. Your email address will not be published. When the company has covered its market in the US, the company went for a global strategy to expand its business beyond borders that helped it to reach huge customers and earn a high return on investment. Starbucks Corporation: Building a Sustainable Supply Chain GS-54 p. 3 In March 1987, Jerry Baldwin and Gordon Bowker decided to sell the whole Starbucks operation in SeattleŠthe stores, the roasting plant, and the Starbucks name. Technology and Operations Management ... A “bike-powered coffee cart that could take on Starbucks” according to Fast Company. According to Peter D. Gibbons, Starbucks executive vice president of global supply chain operations, “We had been growing so fast that we had not done a Many people view Starbucks as a traditional store where customers drop in, enter an order, pay cash or by credit card for coffee or other products, consume their choices in the store, and go on about their business. The Operation Management Strategies of Starbucks 1. Some of the operations strategy adopted by the company is described below: This increases customer loyalty and trust as the customers will always be able to get what they wanted from Starbucks and are never returned back from the cafe because of stock-out. Download PDF (157K) Starbucks Corporation Nominating and Corporate Governance Committee Charter. Market saturation is when a company or firm has covered an area so thoroughly with its presence, that it can no longer experience growth. Operations strategy (5th ed.) Starbucks uses a vertically integrated supply chain, which means that the company is involved in every step of its supply chain process, all the way from the coffee bean to the cup of coffee sold to consumers. Speed is an essential aspect, for the business, because the speed of their processes affects them in many ways. | Organizational Behavior, Question Paper of Entrepreneurship Fall Semester 2017 | Pokhara University. GREGORY, L. (2017, January 31). The company uses automation for the possible things in the office and manual monitoring as well. Starbucks emphasizes premium design for its goods and services. Its global operations depend on the service provided through a number of international partners, and in particular a worldwide network of franchises and licensed Starbucks cafes. Management can check the production processes and upon the outcome, it can evaluate the performances of the employees working in the company (Mbanote, 2011). Because of the Quality Customers become ready to pay the price and get satisfied. Further, the company uses various TQM tools like continuous improvement and the JIT approach to make the products better. Starbucks Operation Management • Human recourse management Starbucks is know for its highly knowledge base employees. Journal of Mechanical and Civil Engineering, 3(6), 27–35. The company sells its product both physically (café, retailers, distributors, etc.) Activities involved in operations, management including choice of location of plat, allocation of resources, design of, operations, provision of products and services, scheduling of activities, and enhancement of, quality are most fundamental and are more strategic in business-oriented organizations, (Stevenson, 2017). Research Paper on Operations Strategy and Process Design in Starbucks Coffee. It is not always easy to implement QFD especially in case of the large organizations. Jaiswal, E. S. (2012). finance, marketing, purchase, and supply chain networks (Heizer & Render, 2007, p. 78). Operational Strategy of Starbucks and Winning Customers In simple words, operations strategy is defined as the action plan prepared by the company in reconciliation with market requirements and operational resources that help to reach the overall objectives and mission of the company efficiently and effectively (Nigel Slack, 2017). management of all of these brands pulled together represents the Starbucks portfolio in most Starbucks locations. Resources include Partner Resources, Marketing, Partner & Asset Protection, Food & Beverage, Coffee, and Retail Implementation departments. [E-book]. Other firms, such as manufacturers, are also involved in the design of some goods like Starbucks mugs. Because operations management is a management function, it involves managing people, equipment, technology, information, and all the other resources needed in the production of goods and services. This preview shows page 1 - 4 out of 25 pages. Founded in 1971 as a single coffee shop in Washington, Starbucks is one of the leading American multinational Coffee Company. As it is based on premium experience the more space you use premium price is charged. Design of Goods and Services. | Business Law, Employee and Independent Contractor – Differences and Examples | Business Law, Types of Contract – Express and Implied Contract | Business Law, Managerial Versus Entrepreneurial Decision making - Fundamentals of Entrepreneurship | Management Notes, Importance of Organizational Behavior - What is OB? The company researches certain locations regarding its population density, income level, etc. To maintain a better quality of products, the company invests its time and effort in selecting and picking the best quality of coffee crops by visitors to the farmers and suppliers around the world. This poses a hint of the rationale for the study of operations management and, gives a brief background of the subject. The branch of operations management is a, dynamic one and is crucial in any business organization. The Starbucks operations management group makes sure that the procedure works as expected. It is the planning tool that figures out the most important areas where the effort is to be made. Starbucks operations management pdf. Figure 2 shows the structural mechanism of the corporation. As the customer’s needs are prioritized it helps to gain customers satisfaction. Studies and statistics show that over 50 percent of all, jobs in business-oriented organizations relate to operations management and its specific, segments include planning production, control, schedule, and design of jobs, inventory, taking, in-sale and after-sale services to the consumers amongst others. Starbucks can compute the output with respect to its internal operations. The company also sells products like Handcrafted Beverages and Merchandise. 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