Managing Business Operations: Analysing Starbucks Crisis and Supply Chain Management Strategies

Managing Business
Operations

TABLE OF CONTENTS
TASK...............................................................................................................................................4
(1) Analysing the crisis of Starbucks taking perspective of operation principles.......................4
(2) Principles of 4D's and 5 Performance objectives, discussing Starbucks turned around.......5
(3) Starbucks company's supply chain management strategies .................................................7
(4) Calculation.............................................................................................................................8
REFERENCES..............................................................................................................................10

TASK
(1) Analysing the crisis of Starbucks taking perspective of operation principles
Operation management refers to the management of the practices of the business that
used to create the goods and services of the organization. It is basically includes the overall
processes that used to transform the raw material into the final products. This management
includes the process such as planning, organizing and supervising in order to ensure the higher
productivity and profitability in the business. It also helps to improve the overall efficiency in
managing the operations of the organization (Liu and Li, 2021). In the year 2008, Starbucks was
not sure that its supply chain management was meeting the planned objectives of the business or
not. This is because the operation cost of the organization was rising even when there was not
selling of more product. The expenses of the managing the supply chain was rose in the US but
the sales were dropped by 10% in the same year. The organization is themselves is responsible
for creating the crisis and decreases its success in the market. There were some areas o which the
organization is more focused that was designing of goods and services as it emphasizes on
providing the premium quality of goods and services.
As they used to design and manufacture their own goods like Starbucks coffee mugs
which makes the customers attract to have that products. The organization used to provide and
maintain the premium quality of services to their customers. This used to ensure the leadership
and have the friendly culture in the organization. The organization used to find that there are
small competitors and they have launched the new technologies in order to maintain its image
and reputation in the market. Starbucks company was itself the victim of its success as they have
opened many stores around the world at the rapid and continuous basis. The organization has to
keep focus on the doing the expansion in different countries of the world. In order to grow at the
rapid pace the company have faced the increasing the operating expenses and which causes the
crisis in the operation principles. The cost of supply chain was increasing very fast which makes
the company to be in crisis.
In order to cope up with the crisis the company have many operation management
principles which makes them to increase its reputation worldwide. The organization is always
focused on the location strategy which is basically opening its stores in the urban areas as middle
calls and upper class people can only afford the coffees' ad other products of the Starbucks. In