Decision-making and strategic controls imply the establishment of a reliable information system (IS).

In an
unstable environment, this information system is a decision-making aid for managers and reduces the level of
uncertainty.
The quality of the SI contributes to the quality of the decision making and thus to the performance of the
organization. It also allows it to address information to its environment.
The information system is no longer merely a tool to help the organization function but is a real leverage of
competitive advantage.

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 I. Overview of organization
a. Type of business organization

Starbucks appeared in Seattle in 1971. Jerry Baldwin, Zev Siegel and Gordon Bowker, respectively English
professor, history teacher and writer, joined forces to open their first coffee shop. The name of their boutique,
Starbucks, is a character from the novel Moby Dick and their logo represents a two-tail siren. In 1982, the team
grew and welcomed Howard Schultz, who was conquered by the concept of Starbucks.

After his trip to Italy Howard Schultz proposes to his associates to evolve the Starbucks stores to make coffee
salons. They did not like the idea, and Howard eventually left the boat to found his own caf, Il Giornale, one of
the main shareholders of which is none other than Starbucks. Finally, Howard Schultz will buy Starbucks in
1986, thanks in part to financial support from Bill Gates' father, and the two companies will merge in 1987 to
become Starbucks Corporation. Despite some financial difficulties, Starbucks continues to grow and opens new
coffee shops across the United States. The chain of cafes, which entered the market in 1992, now has 165
brands. Starbucks begins its international expansion by tackling the Asian market in the late 1990s. A risky but
successful bet, since Japan alone is the second biggest Starbucks market after the United States. It was also
during this period that Starbucks opened its first coffee shops in Great Britain, before attacking continental
Europe in 2001, with the opening of a coffee shop in Zurich, Switzerland. To settle in Europe, Starbucks has
made several joint ventures, notably with Grupo Vips for Spain and France. To date, there are more than 17,000
Starbucks stores in more than 50 countries around the world. The company employs more than 137,000
"partners" and realized in 2012 a turnover of more than 10 million euros. Over the years, the Starbucks logo has
evolved from brown to green. In 2011, the brand even offered the luxury of no longer display its name on its
logo, like ultra-famous brands like Apple or McDonald's.

b. Product and service

The "third place"

In his biography, Howard Schultz describes Starbucks coffee shops as "the third place", which comes after
home and work. Its ambition is to make its cafs a privileged place where consumers could come to spend a
pleasant moment in a familiar, pleasant and comfortable place. To make it happen, the layout and decorations of
the cafes were designed to make it a warm and friendly place, where it is nice to spend time. Warm colors,
comfortable armchairs, free Wi-Fi ... everything is brought together to make you experience a pleasant
experience and make you come back, as if you were at home.
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Starbucks adapts its range according to the needs and desires of each country.

It is true that a perfect cup of coffee and a delicious little snack can make your day better. Come and discover
our "perfect weddings" in our coffee rooms. We make sure that every product you choose is of the highest
quality. After all, should not life be so?1

Starbucks also offers complementary coffee products to its retail outlets: cups, coffee makers, decorative
objects. To generate interest around the sale of its mugs, Starbucks launched the concept of the City Mug. The
idea of the company is to propose for each large city where it is located a personalized mug to the graphic codes
of the city in question. Drinks purchased for on-site consumption are served in white cups marked with the
company's logo. Starbucks Coffee constantly expands its range of products every season to satisfy the greatest
number and at any time of the day.

c. Segmentation and target

The main target of Starbucks Coffee is characterized by being:

Rather young (15 - 40 years)

Urban
Students, young workers, employees, higher intellectual professions
Revenue AB.
The company's core business meets the same criteria, but it is especially in big cities and ultra-connected, they
are mainly digital native (15-29 years).

d. Mission, vision and philosophy

1. Mission

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https://www.starbucks.com/
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Our mission: to inspire and enrich the spirit with the meetings, coffee after coffee, in each of the districts
where we are located.

Here are the principles that govern our everyday actions:

Our coffee
Quality is and will always be at the heart of our concerns. We strive to select coffee from responsible culture
and ethical trade, to roast them with the utmost care and to improve the lives of farmers.
This constant concern is the very essence of our philosophy and our constantly renewed efforts.

Our partners
Our collaborators are "partners" because our work is also our passion. Together, we cultivate diversity to create
an environment where everyone can be themselves. We maintain relationships based on respect and dignity.

Our clients
Everything begins with the promise of a perfectly prepared drink, but our ambition extends far beyond it: To
meet our customers, with a simple smile or by exchanging a few words to make their day unforgettable.2

Our coffee rooms

The privileged connection we have with our customers allows our coffee rooms to be a true link between home
and work. A meeting point for those in a hurry as well as a place to relax with friends and have a good time.

Our communities
We invest fully in the life of the neighborhoods in which we operate. Each shop is an engine that brings
together its partners, customers and community on a daily basis. As a company, Starbucks must show
leadership through responsible behavior.

Our shareholders
Through our commitments in each of these areas, we can see the success our shareholders want.
The sustainability of Starbucks and all those involved in our adventure will be ensured.

2. Vision

Starbucks Coffeefdoesenot nreadilyppresentdits visionrstatement. However, arcarefulrreadingrofrthe

companysrwebsiterrevealsrthatritr visionrstatemenr is to establish Starbucks as the premier purveyor of the
finest coffee in the world while maintaining our uncompromising principles while we grow.
Thisrvisionrstatementrhasrtherfollowingrcomponentsrrelevantrto Starbucks:

Premier purveyance

2
Smith, M. D. (1996). The empire filters back: consumption, production, and the politics of Starbucks Coffee. Urban Geography,
17(6), 502-525.
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 Finest coffee in the world
Uncompromising principles
Growth
3. Philosophy
Starbucks buys coffee in more than 25 countries. Some coffees are bought to be sold in the form of pure coffee
origin, others only to enter the composition of the blends. Starbucks' philosophy of creating blends is based on
buying the best coffees in the world and assembling them to create an interesting blend of flavors and flavors. In
some cases, coffees from several regions and combining various roasts are assembled to obtain a more complex
product.

e. Structure

3
Corporate Governance Starbucks Coffee Company.
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II. Analysis of current competitive environment

a. Current environment
To better understand the sector on which Starbucks is located (the coffee market), we will use the PESTEL
model.
This tool provides an overview of the political, legal, economic, sociological, technological and environmental
factors that can influence the company on the market.
1. Micro environment

The Micro Environment includes raw material suppliers (in the case of Starbucks, coffee suppliers) who supply
the Company (and sometimes its competitors) who supply the distributors who ultimately sell their products to
consumers.

2. Macro environment

Political constraints:
A large part of coffee exporting countries are underdeveloped countries often in conflict (Colombia, Cuba,
Ethiopia, Nigeria,)
In addition, some conflicts between exporting and importing countries are taking place, such as Ethiopia, which
requires that the origin of coffee be registered on its product, which may result in Boycott of Starbucks
products.

Economic constraints:
The price of coffee is very flexible.
Starbucks is therefore obliged to align its prices at the market price so as not to store too much loss.
(There is a development of fair trade between the countries of the North and the countries of the South.)

Sociological constraints:
Having stores in different countries, Starbucks has to face sociological and cultural constraints. The approach
will be different if a Starbucks store is in China, the United States or France. Because they did not take into
account the sociological character of the French for example that Starbucks had some problems to make profits
in this country because the French are adept of the moments of relaxation privileged the cafes on the spot rather
than to take away.
Some countries prefer a full-bodied coffee, others a sweet coffee, it is necessary to know how to play with
different cultures to be able to increase its clientele.

Technological constraints:
Given the tough competition, Starbucks has to keep increasing its research and development budget. Not to
mention the increase in the Espresso machine market (such as Nespresso) and the ease of making good coffees
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thanks to pods (such as Senseo). These machines have the same quality as coffee bars at home. Starbucks must
constantly renew itself to keep its loyal clientele.

Environmental Constraints:
The raw materials used by Starbucks are predominantly climate dependent. The main raw material, coffee, the main
exporters, Colombia, Brazil and Vietnam, suffered severe climatic damage that slowed production.
In 2009 Vietnam experienced a rather intense rainy season, which slowed down production; Brazil had a 20% decline.
In addition every two years the feet of Arabica coffees must no longer be exploited to allow them time to regenerate
which affects production.

Legal Constraints:
Starbucks uses fair-trade coffee in all its establishments, it must use a specific label "Fairtrade: Max Havelaar"
and must respect certain constraints such as passing before the administrative council of Max Havelaar and
before the administrative board of Fairtrade Labeling Organization.)
Moreover Starbucks is not only a company that produces kinds of coffees already existing; it creates its own
products so it must file different patents to protect its inventions and innovations.

b. Competitive environment
Bargaining power of
suppliers:
anovercrowded
market,
risingopricespof
coffeesbeans, choose

Thread of new
Bargaining power of Rivalry: Competitors entrants:
buyers: sellingpsimilar controlledpaccess of
morepoptionspdue products, distributionochannels,
toonumberpof specialtypcoffee and innovation & product
competitors, high quality food differentiation
largepvariety of product

Thread from substitutes:

tea, soft drinks, juices,
smoothies

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III. Analyses of the current status of IS implantation in the
organization
The information system is the set of coordinated actions for research, processing, distribution and protection of
useful information. Underpinning all decisions, it puts computer technologies and networks at the service of
information content.

a. Current IS implementation in organization

The information systems used at Starbucks:

Transaction Processing System: A transaction processing system, also referred to as transaction processing
system, executes and records daily and routine transactions associated with perfectly identified events.

Supply Chain Management System: Flux of products and information along logistics processes from the
purchase of raw materials to the delivery of finished products to the consumer. The supply chain includes all
service providers and customers.

Decision Support System: Decision support systems are designed to facilitate decision-making at the
enterprise level. A well-designed decision support system is interactive software that helps decision makers
generate useful information from raw data, documents, personal knowledge and business models to identify and
resolve incidents and take decisions.

Customer Relationship Management system: A Customer Relationship Management software is a customer

database that allows a company to have a clear and constant vision of its customers and prospective customers.
It therefore represents the set of tools used to identify prospects and then process, analyze and retain customers.
The goal is to ensure a personalized follow-up, offering the best quality service possible. This tool allows the
client to be placed at the heart of the company, by listening to him and by having a better knowledge of his
expectations and needs.

Geographic information systems: A Geographic Information System (GIS) is an information system designed
to collect, store, and process, analyze, manage and present all types of spatial and geographic data.

b. The selected information systems being deployed in the

organization

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Increasingly, companies are taking advantage of IT (Information Technology) to transform raw data, habits,
and statistics into exploitable business intelligence. The US company International Data Corporation
(IDC) predicts that the amount of integrated data would be multiplied by 50 by 2020.

1. Geographic information systems (GIS)

Starbucks runs coffee all over the world. Behind the service of the drink so much appreciated by the consumer the
American company has put in place a system based on the data of its users to optimize its performances.
The ability to exploit them for commercial purposes has never been greater. Starbucks perfectly embodies this scenario,
enabling it to retain the edge in its field. Entrepreneur Jennifer Ross said, "When we talk about Starbucks, we
immediately think of cream and ice, and even music, but we rarely associate it with databases.
By combining its store-opening planning tool with Esri's ArcGIS geographic information system, Starbucks' US food chain
has developed a formidable commercial development weapon.
The right placement at the best location. This is the motto that could be adopted by the giant Starbucks which has
put in place a process to better identify where to place its new points of sale.
One of Starbucks' most important tools in its arsenal is Atlas, a mapping and decision analysis platform developed by
Esri, a geographic information systems (GIS) company, . This tool has helped the channel to keep tabs on changes in
weather conditions so that it can react quickly and promote hot or cold drinks over time. Intelligence software also
played a key role in the selection of locations for the opening of new exhibitions. Starbucks does not just place a lounge
at the end of each main street. The company also studies sites based on key measures such as traffic direction,
population density, transportation networks and average income levels. This information thus provides a good
indication of the possible return on investment of a show.
However, Starbucks does not just use IT for the sole purpose of locating and distributing its shops. It can also use
demographic data to locate the number of smartphones present in a specific area of a state. This enables them to
establish accurate rebates to the My Starbucks Rewards consumer application.
Weather forecasts allow Starbucks to anticipate heat waves that could affect the city. Thanks to this, the firm can launch
the promotion of its Frappuccino (iced drinks and coffee beans) to compensate for the rise in temperature. Data
collection also allows Starbucks to predict consumer needs even before they become aware of them. The multinational
chain of coffee believes hard as iron that "the customer is the keystone for coffee or IT", a slogan that she claims every
day.

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 2. Customer Relationship Management system(CRM)

Since their first store opening in Seattle in 1971, this coffee chain has become the largest in the world. It is one
of the largest food distributors and one of the most recognized brands. If Starbucks is here today, it's because it
has created a unique "digital experience" around its stores.

o Starbucks and the digital experience :

How to achieve a digital transformation? At Starbucks, digital experience is at the heart of business strategy. It
attracts more than 35 million visits per month thanks to its website, social networks and its mobile application.
94% of Facebook users are either Starbucks fans or they own a friend who is (Source: Capgemini Consulting) a
presence worthy of the greatest media.
But let us reassure ourselves, Starbuck has not always been a company at the forefront of digital transformation.
She quickly realized the benefits that the adoption of new technologies could bring her. Its mobile online
payment application includes more than 7 million users.

o Creating engagement around its brand with social networks

Starbucks uses social networks to build its reputation. With more than 54 million fans on Facebook, 3 million
on Instagram, 7 million followers on Twitter and 500,000 on LinkedIn, it now has an exceptional number of
points of contact with its customers.
It uses social networks to drive product innovation. By giving voice to its customers, it is better able to make the
right choices in R & D. Beyond these millions of fans, Starbucks has a real community. The My Starbucks Idea
site has collected more than 50,000 ideas submitted by its customers to improve products, customer experience
and corporate strategy.

o Combining in-store experience and online experience

For Starbucks, the customer experience is not limited to in-store experience. In the Malaysia, each store provides access
to a unique platform, the Starbucks Digital Network, with free Wi-Fi access. You can enjoy the Starbucks coffee by taking
advantage of the international media (New York Times, The Economist, The Wall Street, etc.) and local media.

c. Impact of the information systems on Starbucks

1. Impact of GIS

What we can retain with Starbucks is the power of simplicity. The company used to generate 300-page reports,
but these were too complicated for management and regional officials to process and exploit. Starbucks now
focuses on 11 key performance indicators that are easy to view and help ensure that data is processed correctly.

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As is often the case, data analysis has enabled Starbucks to improve its efficiency by optimizing inventory and
productivity, as well as by reducing waste. But what's much more interesting is how Starbucks uses its data to
create new recipes, pick locations for new fairs, customize menus and offer promotional offers.

2. Impact of CRM

CRM has several advantages:

Facilitate access to information on client needs.
Master the relationship with customers.
Satisfy and retain existing customers.
Attract new customers.
To increase the sales.
Improve the company's brand image

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The information system is an essential part of the business these days. Companies are ready to invest large sums
in order to obtain an efficient information system adapted to their activity. It is also a major challenge for the
competitiveness of the company.
In an unstable environment, the information system is, based on strategic intelligence, a decision support for
executives. By collecting information and processing it, it will decrease the level of uncertainty as much as
possible. The information system must allow having a precise knowledge of the environment and the internal
situation so that the leaders choose the best strategic orientations. By disseminating reliable, timely and relevant
information to decision makers, the IS will facilitate strategic decision-making by reducing the risk of
significant uncertainty caused by decisions with far-reaching effects in an unstable environment.
Internally, the information system makes it possible to make relevant decisions in various fields. For example,
for the marketing department, the IS collects information about customers, consumers, competitors and market
trends. Thus, the service will be more efficient in its forecast of sales, in its relationship with customers, in its
product management or in its external communication actions (advertising campaigns, promotions ...).
Outside, it will contribute to the dissemination of information. While these may be mandatory (for example, for
tax or social organizations), others are purely strategic: to make the organization known, to ensure its publicity,
to convey an image...

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REFERENCES:

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