Beruflich Dokumente
Kultur Dokumente
Product lines
1. Handcrafted beverages
Freshly brewed coffee
Hot and iced espresso beverages
Coffee and non-coffee blended beverages
Vivanno Smoothies
Tazo Teas
2. Bakery items
Pastries
Sandwiches
Salad
Oatmeal
Fruit-cups
3. Merchandise
Mugs
Tumblers
CDs
Coffee and tea brewing equipment
Other gift items
4. Seasonal products
Chestnut Praline Latte
Smoked Butterscotch Latte
Holiday Spice Flat White
Mission Statement
6 Principles: They emphasize on six basic principles.
Target Market
Starbucks has a well-defined target audience that includes
Adults
Account for 49% of its total businesses
It grows at a rate of 3% annually
Young adults
Account for 40% of Starbucks sales
It grows at a rate of 4.6% annually
Kids and teens
Account for just 2% of Starbucks sales
Most items for kids are purchased by the parents.
Operations Management
Starbucks Coffees business fulfills 10 decisions of operations management
through varying strategic initiatives for productivity and management in different
areas of the organization.
1. Design of goods and services
Starbucks has a broad differentiation generic strategy, along with its
premium pricing strategy.
Broad differentiation generic strategy
Starbucks continues innovating to ensure differentiation in the long
term. This generic strategy could lose its strength when competitors
also find ways to stand out. To address this issue, Starbucks keeps
innovating its product mix and supply chain.
In applying the broad differentiation generic strategy, Starbucks
focuses on specialty ingredients and products, such as baked goods
that do not have high-fructose corn syrup.
Starbucks also innovates its supply chain to satisfy its generic strategy
through a continuing search for the most sustainable and finest
ingredients.
2. Quality management
Starbucks also uses several quality systems to provide adequate service to
the customers.
Random check-ins
It uses random check-ins from district managers wherein they check the
baristas, talk to the customers to acquire feedback, and check drinks to
ensure quality.
EcoSure
It also uses EcoSure to perform checks of the required qualifications every
six months for all the stores to ensure that the quality standards are
maintained including cleanliness, order of equipment, unpleasant odors etc.
The team then assigns points to address whether a store has passed or failed
the assessment.
Employee Empowerment
Moreover, Starbucks considers empowering employees as a quality system
by mobilizing them to become brand evangelists and providing them with
sufficient employee benefits. Discounted stock purchase options, health
coverage, adoption assistance, College achievement plan, time-off programs,
30% instore and online discounts.
Quality of Design
It has a cross-functional design team, including members from
marketing, engineering, operations, and other departments are
responsible for the quality of design.
Customer needs are taken into consideration during this process.
The CEO of the company added even more choices after spending
time in Italy
They experiment with many different combinations and flavors, which
is what makes them so popular today.
Quality of conformance and Availability
Starbucks meets specifications by allowing customers to have their
coffee to their liking, non-fat, decaffeinated, foam, a shot of espresso,
and other personalized options.
Starbucks has more than one machine in each store and each
employee is trained to service the machine to ensure that its working,
which makes them more reliable as well.
To maintain each machine, employees clean them every night and
have proper training to use them correctly.
On occasions when a machine needs to be fixed, everything gets back
to normal within a period of three days.
3. Process and capacity design
The companys processes are highly efficient, as observable in its
cafs.
Starbucks optimizes capacity and capacity utilization by designing
processes to meet fluctuations in demand.
For example, processes at the firms cafs are flexible to adjust
personnel to a sudden increase in demand during peak hours.
Starbucks aims to maximize cost-effectiveness though efficiency of
4. Location strategy
Starbucks location strategy focuses on urban centers, especially those
with large middle and upper class populations.
Most of its cafs are in densely populated areas.
Starbucks occasionally uses strategic clustering of cafs in the same
geographic area to gain market share and drive competitors away.
5. Layout design and strategy
The layout design of Starbucks cafs maximizes workflow efficiency.
It also supports a warm and friendly ambiance to match the