Operational Principles and Supply Chain Objectives of Starbucks

MBO Starbucks

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysation of crisis of Starbucks from the operational principles.............................................3
PRINCIPLES OF 4 D AND THE 5 PERFORMANCE OBJECTIVES.....................................5
DISCUSSION ON SUPPLY CHAIN OBJECTIVE OF STARBUCKS.....................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Starbucks corporation is a USA based multinational organization of coffee-houses and
roastery reserves that are headquarters in Seattle. The strategic direction of this organization has
been to expand its operations in the international market through multiple stores in different parts
of the world. The products of this organization was primarily different types of coffee however it
differentiated from different practices and application of organizational operations. In this project
the analysation of a crisis faced by Starbucks from the perspective of operations principles have
been discussed. In this project the use of 4Ds and the 5 performance objectives have been
discussed for Starbucks for turning around the company and its performance. With the help of a
chart the supply chain objective of start bucks and its rationale is provided. In this project
calculation of average time for waiting at thee Starbucks cafe in Swansea has been provided. Due
to the Covid-19 pandemic the business of Starbucks like every other organization was also
affected. This resulted in company facing an overall loss of $915 Million till now. This was due
to the decrease in the revenue which the company experienced in its business. The organization
said that it was able to totally recover its down fall from the sales it made in the US for the first
three months of the pandemic. After that the organization started to expand its digital business to
improve the productivity of the organization and also be able to grow in these dark days.
MAIN BODY
Analysation of crisis of Starbucks from the operational principles
The crisis which the Starbucks faced was in its supply chain. This crisis was upon this
organization in 2008 in which it faced issues with its supply chain and as a result of which its
operations were affected. As a result of supply chain which was considered to be the reason of its
supply chain expansion which it did. It can be said as the victim of its own success which was
due to the rapid expansion it made for its work in the world (Li, 2018). Thus according to the
operational principles the analysation of the organizational crisis can be done in the following
ways,
Quality :
In this crisis the mistake made by the organization was not in reducing the quality of the
product rather it was the due to the increase in the application of the right thing. The right thing
which was needed to be done in the situation Starbucks was at the beginning of its operation was