Starbucks Operations | Supply Chain Management

Running head = STARBUCKS OPERATIONS 0
Starbucks operations
Supply chain management
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Starbucks operations
1
Contents
Overview..........................................................................................................................................1
Operation management strategy of Starbucks.................................................................................2
Design for Goods and services.....................................................................................................2
Quality management....................................................................................................................2
Location strategy..........................................................................................................................3
Layout strategy.............................................................................................................................3
Human resources..........................................................................................................................3
Process capacity and design.........................................................................................................3
Inventory management.................................................................................................................3
Scheduling....................................................................................................................................3
Maintenance management............................................................................................................4
Supply chain management...........................................................................................................4
Challenges in supply chain management.........................................................................................4
Analysis of Starbucks supply chain management...........................................................................5
Recommendation.............................................................................................................................7
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8

Starbucks operations
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Overview
Starbucks is an American coffee organization with its coffeehouse chains spread throughout the
world. The growth of the organization since its foundation in 1971 to date is has attracted many
researchers towards the study of operational management at Starbucks. The major products
offered by the organization in their coffee shop are Coffee beans, pastries, freshly brewed coffee,
and confectionaries (Gallaugher & Ransbotham, 2010). The major driving source for the
organization is there differentiation strategy along with its targeting of the premium consumer
with its approach in premium pricing. Operations have a decisive role in the growth of the
organization; it covers the whole pathway starting from the procurement of raw coffee beans to
delivery to a consumer in the form of freshly brewed coffee (Paryani, 2011). Supply chain
management in operational management strategies play a significant part as a tool for the
attainment of the organization goal. Present report provides a brief overview of the operational
strategy with an emphasis on supply chain management.
Operation management strategy of Starbucks
The strategies adopted by the organization for their smooth operation in business could be
categorized into 10 parts. The 10 categories are the different areas of operation and approached
by the organization with different policies. The organization’s coffee and farmer equity policy in
supply chain management provides examples of organization policy in its operation management
system (Azriuddin et al., 2020). The 10 decisions of operational management strategies
adopted by Starbucks are:
Design for Goods and services
The distinction and superior pricing policy adopted by Starbucks as their universal approach of
the organization, hence resulting in a highly tailored methodology targeting the need of
consumers on the individualistic basis who has visited their store. One of the examples of the
tailored approach of Starbucks service is the naming of the customer on the cups (Susanty &
Kenny, 2015).

Starbucks operations
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Quality management
It involves the overall quality in the context of planning, assurance, control and improvement
quality. For example, the coffee beans are under the standards established by Starbucks and in
accordance with environmental sustainability (AlMaian et al., 2015).
Location strategy
The high-class customers of Starbucks are placed throughout the world, in most of the major
cities. The location selection is based on the population demographic and generally, stores are
opened in the area has a high density of middle and upper-middle-class population. In terms of
way of people eating Starbucks devise its strategy for the store location, as in the case of the
united kingdom, Starbuck has planned to open drive-through stores.
Layout strategy
The Starbucks café is designed to provide enough leg space for the customers along with the
innovative design in the placement of various equipment of the store helps in maximizing the
workflow efficiency (Wu & Liu, 2014).
Human resources
Team with the specific responsibility towards the performance management of the employees,
along with that the human resource department also makes sure that the adopted strategies are in
accordance with the vision of the organization. A special emphasis is made at the time of
requirement; hired employees have values similar to the values of the organization (Xue, 2017).
Process capacity and design
It has been reported in the literature, that the organization's production capacity must be in
accordance with the demand of the product. The staff training program ensures that the staff
could work efficiently during peak hours (Simon, 2011).
Inventory management
It governs and makes sure that the material flow should be continuous, such as from the stating
source, which could be a manufacturer to the stores (Gibbons, 2011).