Managing Business Operations: A Case Study of Starbucks

Business operations

Table of Contents
Main Body.......................................................................................................................................3
1 The crisis of Starbucks from the perspective of operation principle...................................3
2 The principles of the 4Ds and the 5 Performance Objectives, discuss how Starbucks was
turned around..........................................................................................................................4
3 Supply-chain objectives for Starbucks, based on the Case Study, with rationale............6
4 Calculation of customers’ average arrival rate and waiting time......................................7
References........................................................................................................................................9

Main Body
1 The crisis of Starbucks from the perspective of operation principle
As reflected in the above case study the mentioned company focused on opened the
several stores around the globe. As Starbucks products gained the popularity in between the
peoples due to their unique taste and marketing approaches. As the popularity in their business
operations has encouraged them in order to diversify their business in several regions. As they
choose to sell their products and services to its customers through mass distribution channels as
well as also expanded their physical stores rapidly. In regard to this the mentioned company
opened almost 15,000 stores globally as well as also announced to diversify their business even
further to new locations with around 40,000. as all these practices clearly showed that company
aimed to increase their business rapidly in the global market. As, these traits majorly impacted
their overall operational performance. Hence, below are the some operational activities of
Starbucks that created the kiosk in the company operations. As these principles of Starbucks
initiated the crisis in their operational activities;
 Supply chain fundamentals- One of the major issues that derives the crisis in the
company operations was due to their rapid growth of their stores around the globe
without reviewing or improvising their supply chain management approach. In result to
this the mentioned company faced the financial crises in the year between 2007 to 2008.
as their supply chain expenses were thriving due to their ineffective operational practice.
In result the operational cost as well as their performance were conflicting with each
other.
Their cost of operating the supply chain management were increased rapidly that ultimately
slowed their growth as well impacted the entire operational functions. As result to this the late
deliveries of products due to ineffective supply chain process influencing the high operating
prices as well as rapidly depreciated their revenue. As the mentioned company also faced the
domestic competition in their performing market. As the respective company provides the
premium products to its customer with a premium pricing strategy. Hence, there were number of
other domestic outlets that offers the significant products in a justified price. Therefore, these