Management & Operations: Leadership, Management, and Operational Excellence at Starbucks

This report examines the role of leadership and management in achieving business objectives, focusing on Starbucks as a case study. It explores different leadership theories and their application in various situations, including slow, moderate, and fast changes. The report also delves into key operations management approaches like Six Sigma, TQM, Kaizen, and queuing theory, analyzing their impact on Starbucks' success. Furthermore, it assesses the factors within the business environment that influence operational management and decision-making, including corporate social responsibility (CSR) and stakeholder management. The report concludes by highlighting the importance of leadership and management in driving operational excellence and achieving business goals.

QUALIFICATION: PEARSON BTEC HNC IN BUSINESS
Unit 4: Management & Operations
Unit code: R/508/0488 Unit type: Core
Unit level: 4 Credit value: 15
TQT: 150
Assessor / Tutor: Internal Verifier: Muhammad Ismail
Assignment Approval Date: 22/07/2020 Date issued to Students: 14/09/2020
Draft Submission Date: 25/10/2020
Final Submission Date: 13/12/2020

MANAGEMENT & OPERATIONS
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Executive summary
The art of motivating people for achieving a common goal sets a leader to the new benchmarks
to meet company’s objective. In order to determine the role of the managements and leaders and
link it up with the business objectives and functions, this report focus on the business culture and
function of Starbucks. Primarily, the business culture background and the success factors of the
company has been provided, which in later part aligns with the appropriateness of the leaders and
managers of the company to deal with the slow, medium and fast changes respectively. A wide
range of theories has been provided to understand the scenarios well and compare the existing
strengths of the company with the available scopes and opportunities.
Besides, the report also focuses on the approaches of the operations management of Starbucks
along with concentrating on the Six Sigma, TQM, Kaizen Concept and Queuing theory. On
further analyzing the importance of value of operations management in achieving the company’s
goal and objective, the supply chain management of the company and the product process,
distribution and delivery channel has been provided special highlight. In order to assess the
factors that influences the business environment and the CSR standards, the values, ethics and
environmental protection standards of the company are discusses. It can be found from this
particular section that the company has business alignment with neighborly to deal with the
societal changes and get involved with the local charity all across the globe. Ultimately, the
report highlights the stakeholder management strategies of the company where it can be
observed that involving stakeholders for bringing new innovation and ideas within the business
operations is the prime focus for the management of Starbucks.
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Table of Contents
Task 1- PowerPoint Presentation.....................................................................................................4
Task 2-REPORT..............................................................................................................................9
References......................................................................................................................................20
Appendix........................................................................................................................................24
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Task 1- PowerPoint Presentation
Introduction
A successful organization requires good management along with great leadership for directing
the team towards achieving the objectives. Leadership is all about developing transparency and
creating the vision among the people while management involves administering the daily
activities for progress. This presentation would discuss the concept of leadership and
management separately regarding Starbucks. Furthermore, different theories would be evaluated
for comparing the functions and roles of the managers and the leaders at Starbucks.
Define and compare the different roles and characteristics of a leader and a manager using
examples from your chosen organization.
Leadership is defined as the method of inspiring and motivating the people for enhancing their
spirit to achieve all the business objectives. Leadership involves setting direction and building
the vision among the people, encouraging them to increase their potentiality. Leaders in
Starbucks focus on team building and maintaining good communication for directing the
employees fulfilling the organizational objectives. On the contrary, the concept of management
involves setting principles and regulations related to planning the functions for the work.
Management also involves increasing the competitiveness of the firm by using the principles to
guide and control the daily activities of the employees (Rahbi et al., 2017). The managers at
Starbucks are responsible for supervising the administrative functions and supervise the
employees, ensuring that all the tasks are executed following the administrative rules.
The following functions are carried out by the management team in Starbucks:
 Planning: The managers are responsible for planning the goals and allocating the
employees with framing the timelines for the respective tasks. Planning involves
checking upon the team progress and deciding the work methods. Furthermore, planning
by the management also includes integrating the regulations.
 Organizing: The managers are also responsible for organizing the internal structures and
directing the workflow by allocating the tasks to suitable teams.
 Controlling: The role of the team members are decided and allocated by the management
along with supervising their progress. Moreover, the managers at Starbuck also monitor
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the daily progress of the team which helps them to control the workflow (Nawaz and
Khan, 2016).
The following functions are carried out by the Leaders in Starbucks:
 Motivation: the major function of leadership and the leaders at Starbucks ensures that the
people are motivated to increase their potentiality and achieve the goals.
 Goal Setting: The leaders evaluate the skills of the team members and delegated the
goal-oriented tasks according to their ability. This helps to fulfil the goals within the time
frame.
 Communication: The leaders are responsible for maintaining good communication with
the employees, to understand their needs for improvement and factors that influence
them.
 Coordination: Teamwork needs high coordination, which is successfully executed by the
leaders through good communication and effective decision making (Ahmad et al.,
2017).
Manager Leader
 Functions involve supervision,
organizing, and planning
 Plans administrative tactics
 Applies transactional style for
managing people
 Handles employee compliance
 Functions involve guiding and
motivating to improve
 Plans strategies for improving skills
 Applies transformational style for
managing people
 Handles employee satisfaction
Table 1: Difference between managers and leaders
Leadership Theories
Transformational Leadership
This style involves inspiring and encouraging the team members by the leaders for shaping the
success in business. The leaders following transformational leadership focus on setting examples
for the people, which drives them to increase their skills and efforts (Hussain and Hassan, 2016).
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Figure 1: Transformational Leadership
(Source: Drucker, 2016)
Transformational leaders motivate others to take up responsibility and increase their efforts.
This leadership style appreciates people to come up with creative solutions for handling issues.
Transformational leaders focus on building good communication in the team.
Transactional Leadership
Transactional leadership includes supervising the performance of the people and motivating
them through rewards. The transactional leaders guide the people but also expects them to make
decisions and manage the tasks up to some extent (Drucker, 2016). This leadership style is also
known as managerial leadership and the leaders focus on group performance than individual
performance. The leaders tend to use rewards for keeping the people motivated following the
leadership theory at Starbucks.
Action centered Leadership
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The Action centered theory in leadership involves achieving all the goals in the task, team
development, and improving the individual skills of the team members.
Figure 2: Action Centered Leadership Model
(Source: Cashman, 2017)
The three elements overlap one another and are connected to fulfill the duties of the leaders. This
leadership style is beneficial for understanding people and achieve high scale motivation and
productivity.
Management theories
Classical management theory
This theory is developed based on the concept that only the physical needs of the employees are
important for managing them. Therefore, management following this theory only focuses on
meeting the monetary needs of the people to increase their efforts (McGrath and Bates, 2017).
Therefore, this management theory would not be effective in the current scenario as it is also
important to focus on the personal needs of the employees to keep them motivated. The classical
management style only focuses on maximizing business profit, high productivity, and labor
specialization.
Behavioral theory
This theory of management focuses on human relations to evaluate the psychology and attitudes
of the employees in the workplace. The managers following the behavioral theory believe that
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understanding human behavior would be beneficial to understand the factors that would motivate
them. This further helps the management team to plan the administrative rules and tasks in a way
that would keep the people motivated and improve productivity. The management of Starbucks
can use this theory to monitor the behavior of the people, which would support a better
understanding of employee needs and motivational factors. Furthermore, the managers would be
able to understand the factors influencing progress and productivity and implement strategies
according to the requirements.
Contingency theory
This theory states that management depends upon certain situations and different management
behaviors. This depicts that the management needs to decide their methods for managing the
people based on the different circumstances that arise in the workplace.
Figure 3: Contingency Theory
(Source: Fiedler, 2018)
The managers at Starbucks evaluates the internal and external scenarios related to the projects
and then decides the actions that would help to mitigate challenges and complete the work
(Maylor et al., 2018) This theory is effective for planning appropriate solutions for different
issues focusing upon the needs and the situation.
8

‘Hard’ management skills and ‘soft’ leadership skills
Both hard skills and soft skills are necessary for effectively managing the people in an
organization. Hard skills are the ones gained through training and learning by the individual,
while soft skills are more like personal traits of the people (Indeed.com, 2020). The hard skills
for management purposes are gained through practice and training, while soft skills are often
natural traits and behavior. For instance, the hard skills of the managers at Starbucks include
handling the technology, equipment, and different software, while the soft skills of the leaders
include empathy, honesty, decision making, and communication skills. However, both skills are
important for enhancing productivity and executing the tasks in the organization.
Conclusion
It can be concluded that management and leadership are two important elements that help to
direct and control the employees, supporting them to achieve the goals and increase their
efficiency. The managers use hard skills to plan and structure the tasks with effective methods
and training programs. The leaders on the contrary use soft skills to communicate and guide the
people achieving the goals at Starbucks.
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Task 2-REPORT
Introduction
Maintaining and creating a sustainable business environment requires a stable understanding of
the role of leadership in addressing the personal approaches of the stakeholders (Simiyu, 2015).
This report will significantly focus on the leadership theories, applications, and situational
identification for applying the theories for the renowned organization, Starbucks. Eventually, a
critical focus is made on the operational activities and factors that influence the decision-making
system of the leader. In this context, the use of different management approaches such as TQM
(Total Quality Management), JIT (Just in Time), and Situational leadership theories have been
considered. Further, the study will also shed light on the existing issue that the company is facing
while operating business activities and achieving the organizational objectives. Focusing on the
work-related operations and outcomes, a series of recommendations have been provided prior to
the report's conclusion. Starbucks is an international chain of roasted reserve and coffeehouses,
primarily headquartered in Seattle, Washington (Starbucks.co.uk, 2020). The annual revenue of
the company was reported to be US$24.71 billionin 2018. As of 2018, the total number of
employees in the company were 2, 91,000.
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LO 2
Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts
According to Page and Schoder (2019), various situations drive the managers and the leaders to
adopt different changes in the business system for coping up with the changes. However, the
managers and leaders focus upon the changes to use different tactics as discussed below.
Slow-changes due to low motivation
The leaders are responsible for motivating the people and identifying the needs of the people.
Therefore, when leaders find that there is any issue related to employee motivation, they monitor
and analyze the performance of the people individually. Furthermore, the leaders also use
strategies for understanding, where individuals are lacking skills and help them to overcome
personal challenges. This is referred to as a slow-changing scenario, as the people slowly work
upon their skills and improves them. The leaders also provide feedback and communicate with
the people to understand the issues they may face at the workplace. This motivates the people to
increase their performance and helps to achieve high productivity by the overall team.
Moderate changes due to the behaviour of the team members
People in the team come from different cultures and backgrounds, which results in different
behaviour and attitude by the individuals. Sometimes, attitude and behaviour demonstrated by
the tea members leads to conflicts and often towards low motivation in the team. Therefore, in
this scenario, the leaders need to understand and evaluate the differences and behavioural
attributes of the people. This would help to plan strategies that would help to integrate equality
and control the behaviour of the people. On the contrary, the management would be responsible
for integrating employee policies and regulations that would help to maintain the code of
equality and ethics. This would further help to guide the employees to show discipline and
positive behaviour (Charlesworth, 2016).
Fast changes for Coping with pandemic
The outbreak of COVID-19 has restricted business operations worldwide. This called for
immediate changes in the business operations of Starbucks as well. Therefore, the management
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framed new policies and rules that would help- the employees to maintain health safety and a
hygienic environment at their workplaces.
Apply different theories and models of approach, including situational leadership, systems
leadership, and contingency
Situational leadership
In the context of a relationship-oriented approach for the fast-changing business operations, the
situational leadership can be applied in the company for the coming up with the Covid-19
pandemic outbreak. Since this leadership approach involves directing, coaching, supporting, and
delegating as the primary steps, these can be involved in the company to train and coach the
employees about the hygienic measures and sanitization processes.
Figure 4: Situational leadership model
(Source: Oakes, 2020)
Systems leadership
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In order to bring changes in the system level, the skills and capabilities of the employees can be
enriched by the help of system leadership approach. The primary aim of this leadership approach
is to build insights for mobilizing innovation within a business environment, which in terms of
Starbucks can be applied for slow change due to marginalized motivation. As per the objectives
of the model, it includes three main categories or elements to bring a change in the collaborative
leadership skill at individual, professional and community level. Firstly, the overall change in the
system according to the leadership approach includes changes in the organizational level, which
in case of Starbucks can be included by catalyzing, enabling and supporting the system level
change. It primarily becomes a time consuming model due to the application approach at the
community model. In this case, the leaders usually apply combination of attributes and skill sets
to mobilize a large scale organizational action for the system change at the community level.
Although in case of Starbucks, the community level changes are very much stable and
remarkable, but there yet remain some scopes which when compared to the available scopes of
cocoa production, distribution and facility provided to the farmers can be much more efficient
and well-suited.
Contingency
In this particular aspect the personality of the leader is provided with the greatest emphasize
based on the situation where the operation of the leader is being carried out. Focusing on the very
elementary level the motivations of the leaders are categorized to be task oriented and
relationship oriented for applying the contingency theory of leadership. In case of Starbucks, the
relationship oriented motivation can be effective as at the Least Preferred Co-Worker Scale (LPC
scale) for measuring the leadership style, the scores of the leaders will be higher due to the
diversified tasks and need for changes in different dimensions of operations in the company.
13

LO 3:
Explain the key approaches to operations management and the role that leaders and
managers play
Approaches to operations management
In the present era of globalization, companies across the globe need to operate in an extensively
dynamic environment (Majukwa and Haddud, 2016). In this environment, the available resources
are limited and the uncertainties in the business environment are extensively higher. The target
market where a company or a firm operates imposes higher standards for efficiency with a firm
unable to meet the demands are immediately marginalized (Battistoni et al., 2013).
Concentrating on the business operations of Starbucks, to the customers, it is considered as the
upward movement of status while opting for the services and cuisines offered by the company
(Gupta et al.,2018). As per the report, the company inaugurated 6443 outlets in the CAP (China
and the Asia Pacific) region which ultimately counts for 25.7% total stores and 14% to the
overall revenue of the company (Gupta et al., 2018).
However, according to the report of (Matyszczyk, 2019), the willingness of the people to opt for
the Starbucks services are decreasing. The company therefore increasing the sales by raising the
prices and ultimately encouraging the existing customers to buy the available products at higher
costs rather than increasing the number of cuisines(Peinadoet al.,2018). This has resulted in
marginalizing the increased number of customers to the company, thereby reducing the
trustworthiness and business saturation to the firm.
Six Sigma
Focusing on the identified issues above, the Six Sigma technique can be applied to identify the
Key approaches to operations management of the company. The below table caters the Six
Sigma tool for Starbucks:
Recog
nize
Define Measure Analyze Improve Control
Degrad
ing
The existing loyal
customer claim
Due to the Covid-
19 Pandemic, the
With the help
of
Once a
standard
Gradual
incremen
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custom
er
satisfac
tion
level
that they need to
spend $13 more
than the previous
prices to get
qualified for the
free drink Reward
(Matyszczyk,
2019)
overall industry is
cutting the cost to
promote
businesses. In this
situation, if
Starbucks
emphasizes
creating a third
place for loyal
customer culture
against the reward
and premium price
strategy, it can
escalate the
customers to opt for
the services
crowdsourcing,
strategic and
innovative
ways can be
involved to
engage the
customers with
the quality
experience
provided by
the company.
Alongside, it
will capture
their feedbacks
and opinions
parameter is
set among
the
customers,
the further
focus can
be reflected
on
undertaking
water
conservatio
n and forest
energy to
encourage
environmen
tal
reconstructi
on and
recycle
t in
reusable
cups and
complete
ly
banning
the
plastic
straws
will
reflect on
the
environm
ental
conservat
ion
measures
to the
customer
s.
Table 2: Six Sigma for Starbucks
(Source: As created by the author)
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Figure 5: growth strategy of Starbucks
(Source: Matyszczyk, 2019)
The above image shows the growth strategy of Starbucks to compete with the other renowned
brands that are implemented bylean production management in the company. It holds the largest
market share in the US that includes Dankin Brands, Krispy Kreme Doughnuts, Coffee, and
Bagel along with Starbucks Corporation. In the UK market, the marketing team of Starbuck
develops an innovative strategy for all the touchpoints in the customer journey map of Starbucks
as well as in the digital marketing plane. The strategies mainly involve campaigning customer
favorites (most voted and preferred drinks) such as Pumpkin Spice Latte and digital marketing
campaigns that include programs like Starbucks Card, mobile, eCommerce promotions, and
social media advertisements.
Continuous improvement (Kaizen) and queuing theory
With an increasing number of a competitor, Starbucks can mark a strong foot in the market by
implementing the queuing theory and continuous improvement (Kaizen) strategy. As reported by
Glover (2020), the Kaizen philosophy or concept has been included in the coffee-making process
way before it got implemented in other competitors of Starbucks. As per the study, the coffee
residue called crema remains in the shot glass after the espresso was poured into the glass that
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gave the coffee a fuller and sweeter taste, thereby reducing the coffee preparation time by 5
minutes. Moreover, it also indicated an innovative measure of the managers if Starbucks to waste
management. However, with the changing customer demands, the business operations of the
company also need to change. In the present business scenario, the Kaizen concept can be
applied in the company by increasing the number of stores and additional services to the
customers. With more options for Work from Home, the customers are willing to opt for the
restaurant services, which will be much more appreciated if available in the local areas.
Additional services such as free HealthCare Checkups, stress-relieving, and soothing
environment can add an initial setback in the pandemic situation. According to Fakokunde et al.,
(2017), since the queuing theory aims at managing the best way to use the limited resources to a
business, it can be well applied in Starbucks by considering the above-discussed strategies.
Principles of Total Quality Management (TQM), Justin-Time Inventory
TQM can be defined as the management approaches that focus on the long term success of the
company along with achieving the customer needs and demands. The improvement of the
process products and services achieves the customer satisfaction level with the help of this
model. Belo image shows various aspects of TQM:
Figure 6: Aspects of the TQM model
(Source: Luburić, 2013)
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In order to maintain the TQM standards in the company, Starbucks launched Starbucks VIA™ a
readymade brew coffee in the year 2009 in 16,635 stores across the globe (Fakokunde et al.,
2017). The main feature of the product was that it was made without any artificial Trans fats,
flavors, or dyes. The primary customer target was the young generation people with tight
schedules in the profession and high concern towards healthcare. Moreover, the company
inaugurates stores in the interior localities of Aruba and Poland. Further, it also became the
largest buyer of Fair Trade Certified™ coffee in the world reflecting on the fact that overall
standard maintenance in the quality and services is the prime focus to the company.
In terms of the Justin-Time Inventory, the positive approach of the company can be noticed when
the anti-globalization activists pointed towards Starbucks for exploiting third world farmers
(Matyszczyk, 2019). The direct threat was abolished by involving the strategy of a reward
system for the farmers who cultivated in an environmentally sustainable process, which further
actively involved the sustainable sourcing of the raw materials and boosted up the company’s
growth.
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LO 3:
Explain the importance and value of operations management in achieving business
objectives
The operation management includes the processes that plan, supervise, control, and executes
production, manufacturing, and service delivery. It aims at effectively managing the internal
workplace operations to achieve the desired outcome.
The objective of the Starbucks retail is to become the leading retailer and an exclusive brand of
coffee in every target markets by producing and selling the finest and purest quality of coffee and
other related products of brewing (Starbucks.co.uk, 2020). Unanimously it aims at providing
each of the customers with a unique Starbucks experience.
In order to determine the importance and value of operation management in achieving the above-
mentioned business objectives of the company, the following aspects can be identified for
Starbucks Operation management:
● Control and Distribution Systems: In the UK stores the company ensures that the
suppliers are available throughout the serving times for the customers and the baristas.
It extensively involves mandatory assets such as cups, straws, chairs. The efficient
outbound delivery team managers ensure 5000 deliveries every week to the retail stores
of Starbucks (Starbucks.co.uk, 2020).
● Transformation of raw material into finished goods/services: According to
Schedlitzki and Edwards (2014) a company prefers to manage every dimension of the
supply chain on its own. Relating to the chosen company, the franchise in the
developing countries, the locked long term cost of the green coffees (for example 0.50
cents in 1994) ensures the standard quality of the product with a stable cost. The green
coffees when supplied from developing countries might get compromised with the
quality due to changing weather conditions, inconsistency in soil quality, and political
instability. Therefore, it is able to ensure a stable quality of the product by providing
extensive rewards and monetary benefits to the farmers, so that the quality of the
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roasted beans are never compromised. Moreover, the water used in brewing coffee also
affects the quality and taste, therefore it is ensured by the well trained and experienced
employees in the company that the beans never sit for more than 20 minutes in the pot
to maintain the freshness.
Figure 7: Process design of Starbucks
(Source: Starbucks.co.uk, 2020)
● Capacity management: Presently the company is working with Quantis and World
Wildlife Fund for creating accuracy in the carbon emission and waste management.
Besides, the company is also planning to formalize the 2030 standards from the very
first quarter of 2021 which will ensure the company in becoming a resource positive
company that will store more carbon than emits. This will enable more freshwater
provisions and eliminate waste (Cosgrove, 2020).
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● Logistics and inventory management and Scheduling: In order to nurture the day to
day operations, the store manager and the assistant store managers play an integral role
in the local and national communities. The retail stores are provided constant support
from the London Support Centre for the UK operations. The primarily prioritizes the
projects and ensures the partners to exceed the customer expectations (Starbucks.co.uk,
2020).
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LO 4:
Assess the factors within the business environment that impact operational management
and decision-making by leaders and managers
Relationship between leadership, management and CSR measures
A company takes over a visible and prominent place in the competitive business environment
when it goes beyond the set benchmarks of core business values focused on the benefit of the
society (Gorski, 2017). A corporate Social responsibility is an indifferent approach for any
company to set a new benchmark. In order to maintain the ethical values and beliefs, intact in the
global platform, Starbucks work with over 300,000 farmers who are spread across 30 countries
across the globe (Starbucks.co.uk, 2020). The prime responsibility of the company is to ensure
an adequate supply of fertilizers and additional benefits to produce the finest quality of coffee
beans. Apart from the patent coffee selling services, the TEVANA, tea producers of the company
are also nurtured with ethical values and benefits to escalate the set benchmark in the tea and
beverage industry. The cocoa that is produced by the company are ethically sourced and are of
high quality. This standard is maintained when Cocoa is brought for the extreme localities rather
than supplying the company self-produced coffee beans. Besides, the assets that are brought
from the suppliers such as straws, glasses, and chairs are also checked with the quality and the
supplier commitment to maintain standard social responsibility. Starbucks also has a business
partnership with a company called Neighbourly that surveys local communities and built
connections with renounced organizations. Starbucks takes the opportunity to link up with the
local charities and projects to encourage people funding, livelihood, and producing coffee
(Starbucks.co.uk, 2020).
A diversified workforce environment demands escalated inclusion for the leaders and managers
to respect, appreciate and respond to the values, needs, culture, and beliefs of the diversified
workforce (Morais et al., 2014). Globally Starbucks is known for its acceptance of diversified
cultures of the employees. The company not only encourages equal opportunity Employer but
also promotes special program which extensively includes Supplied Diversity Program to
encourage the start-ups to get involved with the company's minority-owned businesses and
ultimately promote workplace diversity. The CFO-CAO of Starbucks Troy Alstead believes that
Supplied Diversity is a smarter approach to make exclusive business decisions. It helps in
22

delivering and identifying the services and products across all the business channels along with
driving economic development and values.
In long run, if the company fails to identify the impact the workplace diversity which it plays in
boosting up the business operations, it will lead the Starbucks managers and leaders to face the
three most obvious impacts of lacking diversity (Morais et al., 2014). First is the impact of a
global lawsuit. Since the company has global brand recognition, any discrimination based on
gender, race, national origin, and religion will actively apply Title VII of the Civil Rights Act of
1964. The other two will be increased absenteeism and higher employee turnover rates that will
eventually lead to a decrease in the morale of the employees.
The relationship with stakeholders and meeting stakeholder expectations in the context of
encouraging, developing, and sustaining entrepreneurship and intrapreneurship
As a source of bringing new innovation, ideas, and services to the businesses of Starbucks, it
encourages both entrepreneur and intrapreneur individuals to get connected with the business
practices. In terms of intrapreneurs, that is individuals working within the company coming up
with new ideas to add or change the existing business models are highly encouraged. This
process is flourished in the company by practicing two primary methods: exhaustive wellbeing
scope for fully qualified and low maintained stakeholders and value in the company through
Bean Stock (Kanta, 2017).
Conclusion
From the above discussion, it can be concluded that Starbucks offers premium quality services to
its customers and maintains a high standard in the drinks in the beverage industry of global
market. The online and offline modes of campaigns and programs involve grater reach of the
company to the customers even in the interior localities of developing countries. The report
suggests varies tools, techniques and theories for identifying the existing issues in the company
and search for scopes and opportunities that might work in favour of existing policies of
Starbucks. Besides, the report also focus on the CSR practices of the company which reflects to
the fact that supply chain management of the company are of high standards, which can be very
difficult for any new entrants or existing competitor to reach the set standards by Starbucks.
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