Operations and Supply Chain Management of Starbucks

Case Study of
Starbucks

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analyse the crisis of Starbucks from the perspective of operation principles.......................1
Principles of the 4Ds and the 5 Performance Objectives.......................................................3
Supply-chain objectives for Starbucks...................................................................................5
Calculate the average number of customers arriving at the till and the average time they must
wait before exiting Starbucks Drive-Thru. You are encouraged to use calculations to prove
any challenges if there is any and suggest any solutions, based on the calculations.............6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Starbucks Corporation is basically an multinational chain of coffeehouses founded in 1971
and headquartered in Seattle, Washington, United States. The company has grown from a single
location in Seattle Washington to a multibillion dollar enterprise which has its operations in more
than 17,000 retail stores in around 50 countries. The company use to originally only sells in
ground coffee and coffee beans and afterwards it added cold blended drinks, premium teas,
prepared coffee and beverage related equipment and accessories. In context to the company, the
organisation is disruptively using the COVID 19 pandemic which helps it to further differentiate
and move aggressively as compare to its competitors. The company is taking number of actions
in order to protect the well being and health of the employees and customers for the purpose of
controlling the spread of coronavirus.
MAIN BODY
Analyse the crisis of Starbucks from the perspective of operation principles
The operating principles are considered to be important way through which the companies
get their things done and put their values into practice. In order to get things done fastly, the
organizations rely on operating principles which also influences their values and culture. In order
to analyse and better understand the need of the customer the company conducts 4Vs analysis.
Volume: It involves the number of products that are delivered or created within the organisation.
In context to the organisation, star bucks has a variety of products and has also converted the
bakery into coffee shops (Kimbal, 2021). Moreover, the organisation is firmly involved in
providing variety of coffee and food items to the customers in order to create more and more
volume.
Variety: It involves the variety of products or goods that has been offered by the organisation to
its consumers. As compared to its competitors, star bucks has a lot of products to offer its
customers. The organisation focuses on basically four areas which involve coffee equipments,
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brewages, food and coffee beans. The organisation also offers 11 breakfast choices and also
offers 24 variety of sandwiches, 13 tea options, espresso based drinks etc( Hong and Jung, 2017).
Variation: It involves the changes in the demand of services or products provided by the
company. All these changes can occur due to various reasons which include offers, weekends
and holidays. Although the consumer’s tastes and preferences shifts from time to time and so
their preferences in food also changes. During the peak time, stores which are situated near
universities have rush during early morning and lunch time (Foster and Knox, 2021).
Visibility: It involves the way through which the products catch the attention of the customers. It
involves the way through which products are displayed in a manner that it can be easily visible to
the consumers in order to make them choice. When it comes to star bucks the products are
clearly displayed in a way that it catches the attention of the consumer in a easy way. In context
to star bucks, the company has a unique selling technique where they wrote the name of the
customers on the “Jar” which is marked as a unique selling technique.
In terms of analysing the crisis of star bucks from the perspective of operation principles,
the performance analysis plays a very important role in any organisation and that basically
involves three parameters which involves dependability, speed and flexibility and quality. All
these parameters helps in providing a clear image of the company’s operations and its
performance (Lee , Han and Suh, 2018).
Quality: In context to star bucks, the organisation always focus on being a global brand and is
very particular towards the quality of their products. The company specially put much efforts
into its operations in order to provide best quality services and products to the customers.
Through comparing reviews with its competitors, the organisation has better performance as
compare to its competitors.
Flexible: The organisation being a global brand has always focused on giving priority to its
customers according to different regions. The product and services are being altered according to
the regions and customers. According to study, various regions prefer Tea and Asia milk coffee.
The brand always alters its services and products according to the customer demands.
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