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The Operation Management Strategies of Starbucks

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The Operation Management Strategies of Starbucks

  1. 1. BS in Management Science OPERATIONS MANAGEMENT - MGT214 Group Project IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE Instructor’s Name: Ms. Dalal Bamufleh
  2. 2. 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
  3. 3. 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.
  4. 4. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  5. 5. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  6. 6. 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.
  7. 7. “ Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” “ Starbucks is committed to a role of environmental leadership in all facets of our business.”
  8. 8. 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.
  9. 9. BY ALAA IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  10. 10. - 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.
  11. 11. BY ALAA IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  12. 12. BY SHOROQ IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  13. 13. 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.
  14. 14. • be welcoming • be genuine • be considerate • be knowledge • be involved • Continuous improvement . • Just-in-time (JIT).
  15. 15. BY EBTEHAJ IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  16. 16. - 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)
  17. 17. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  18. 18. BY AFNAN IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  19. 19. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  20. 20. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  21. 21. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  22. 22. BY ALAA & ABRAR IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
  23. 23. 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
  24. 24. Reduce their price by producing a new product of coffee using cheaper beans or may come out with special discounts promotions to increase the sales. Starbucks can effectively pursue Focus-Based Strategy in conjunction with differentiation or cost leadership based strategy. Advertisement 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.
  25. 25. Starbucks Official Site http://www.starbucks.com/ Starbucks Details Strategy for Profitable Growth http://news.starbucks.com/news/corporate+news/financial/2009+annual+meeting+of+shareholders.htm Starbucks - Design of Goods and Services http://www.oxbridgewriters.com/essays/finance/design-of-goods-and-services.php Starbucks Strategy http://www.slideshare.net/tommy2cruise/starbucks-strategy Starbucks SWOT Analysis http://www.slideshare.net/shahkiran79/starbucks-swot-analysis Starbucks Marketing http://www.slideshare.net/Heekuk/starbucks-marketing Starbucks Global Strategy http://brainmass.com/business/international-business/402609 Operation Management http://dc169.4shared.com/doc/XnYqb0C-/preview.html Starbucks Final Presentation http://www.slideshare.net/guest020532/starbucks-final-presentation Berger, 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, 2009 Starbucks Website (2009). Starbucks, Inc. Retrieved on November 12, 2009 from, http://news.starbucks.com.
  26. 26. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

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