GIS Solution: Starbucks Technology and Business Impact

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This report examines Starbucks' application of Geographic Information Systems (GIS) to enhance its business operations. It details how Starbucks utilizes GIS for strategic store location selection by analyzing demographic data, traffic patterns, and consumer behavior. The report explores the types of data presented by the technology, including demographics, income levels, and consumer spending habits, and its technological benefits to the organization. It also discusses the present and future impacts of GIS on Starbucks' supply chain management and asset management. Furthermore, the report identifies areas where Starbucks can expand its use of GIS, such as social media analytics and supply/demand tracking. The conclusion summarizes the importance of GIS as a tool for data integration, analysis, and decision-making, ultimately aiding Starbucks in gaining insights and making informed choices regarding business growth and market strategies.
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Table of Contents
Introduction......................................................................................................................................2
Technology used by Starbucks........................................................................................................2
Data presented by Technology........................................................................................................3
Technological benefits to organization............................................................................................3
Present and Future impact of technology from business.................................................................4
Areas in which the organization can expand...................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................7
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Introduction
GIS stand for Geographic Information system has been designed for storing, retrieving,
managing and analyzing various kind of data. It is helpful in creating maps and other kind of
graphic display for complete information analysis (Leduc, 2017). The software help in building
maps and other kind of graphic displays compete geographical details. It is needed for complete
analysis and presentation. By making use of these capabilities, GIS stand out to be valuable tool
needed for visualize for spatial data for building decision support system (Langford, Higgs &
Dallimore, 2019). This is merely required for use in most of the organization.
In the coming pages of report, the use of GIS technology in Starbucks. The next section
deals with data presented by technology. In additional, it focus on technological benefits for
organization. An explanation has been done regarding present and future effect of technology
from the perspective of business. Different areas of the organization can improve by making use
of GIS technology.
Technology used by Starbucks
Starbucks makes use of collected data from different geographic information system
where it allow various coffee chain to completely optimization of its store location (Mohamad,
Yunus & Harith, 2019). Starbucks is very much smart in terms of data analytics as it does not
optimizes the operational store but even customize is menu offering by various location. So, as a
result it merely optimizes much significant amount of value (Lin, 2019). To have an assess to
potential of new location of store, Starbucks collects data from Atlas along with in-house
mapping and platform of business intelligence created by Eri that is GIS.
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Atlas aims to provide Starbucks with all kind of data related to consumer in relation to
demographics, population density, level of income, patterns of auto-traffic and stops of public
transport. In addition, this focus on stores in various location which are under complete
evaluation (Campbell & Helleloid, 2016). By carrying out much careful analysis of the data,
Starbucks can easily project a foot traffic with average speed of the provided location. This
merely helps the organization to analyze economic viability in terms of opening up the store at
various location (Zhu et al., 2018). In addition, this also builds some value of customers by
giving them with convenient location in order to grab the coffee.
Data presented by Technology
In the year 2000, Starbucks team were helped in order to create a complete and detail
data fabric of their customers for various location. As soon as Starbucks has created optimal
decision needed by the store (Sisson & Bowen, 2017). ATLAS has also helped the Starbucks to
analyze their menu offering. The collect data has helped the organization to analyze some of the
areas which has highest number of alcohol consumption. The collected information merely
helped Starbucks to analyze their stores which can be a start to serve the alcohol being a part of
some special menu known as “Starbucks Evening” (Langford, Higgs & Dallimore, 2019). It was
launched in Seattle in the year 2010 which is based on growing number of stores.
Starbucks make use of Atlas in order to predict the heat wave which can occur in this
Memphis (Ronald & Amelia, 2017). This merely launched for Frappuccino promotion which can
coincide with the outside weather. All the menu for data-driven offering aim to provide some
additional ways required for capturing the value. This was completely beyond after charging the
premium for Coffee.
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Technological benefits to organization
Starbucks make use of GIS technology so that they can easily select the location of new
store. It merely allows the user to completely visualize, question, interpret data, question so that
they can have better understanding of patters, relationship and trends in the given location (Liu et
al., 2017). GIS merely helps in application algorithm that in highlighting areas where sales are
high. In addition, this also help in finding location that are safe and also help in comparing the
performance of store in different areas.
The investment of the organization in this system has come up with a lens completely
backed by hard data (Langford, Higgs & Dallimore, 2019). It merely helps in making clear and
completely rational business decision about the area to locate.
Present and Future impact of technology from business
GIS technology is merely changing the whole supply chain and management of assets. In
the upcoming days, GIS will be transforming the whole virtual data taking into account GIS data
visualization or virtual reality (Mohamad, Yunus & Harith, 2019). The technology has been
created for making data much accessible and having complete visualization of data in the current
digital age. It merely provides much more easy access to information.
In the future, GIS can be used for in both virtual reality and augmented reality and virtual
reality. Both of these technologies aim to grow as the world-wide user become comfortable with
these technologies (Cavazzi & Dutton, 2016). It will ultimately lead to much more developers by
integration of GIS capabilities into the application. GIS based on AR application can be used by
any individual by any person from architecture to oil workers and municipal services. It merely
focus on understand the location and orientation of object (Mohamad, Yunus & Harith, 2019). In
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the near future, game developers can make use of GIS for creating virtual world in order to serve
the creative mind.
Areas in which the organization can expand
GIS technology has become an integral part of day-to-day life. Starbucks make use of
this technology for both geography and cartography. The technology is expanding in traditional
and technological advanced areas by providing some real-time access to geospatial data
(Campbell & Helleloid, 2016). In business, GIS data can be used for complete mainstream and it
has widespread adoption in most of the business. The technology has been adopted by private
and public inclusive of governments and municipalities.
Starbucks can make use of this technology along spatial analytics in order to keep a track
of social media activity. In addition, it merely helps in identifying the preference of brand and
buying habits in some of geographical location (Zhu et al., 2018). Using this technology, most of
the business geographic and corporation can make decision regarding opening of new outlet
which has more crowd. Starbucks can make use of this technology in order to keep a track of
supply and demand in particular zone. The technology will help in identifying some areas along
with analyzing the competitors market (Sisson & Bowen, 2017). In Starbucks, managers can
access GIS on their phone and tablet. By providing mobile access, they can easily view data as
they can scout the potential location.
Conclusion
From the above pages, the point can be concluded that this report is all about GIS
software in Starbucks. GIS can be stated as the framework needed for complete gathering,
managing and data analysis. GIS aims to integrate various kind of data like this analyzes spatial
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location and different layers of information for complete visualization. It makes use of both maps
and 3D scenes and by making use of unique capability. GIS merely focus on much better insight
of data like patterns, relation and situation which help the user to make some smart decision.
This technology makes use of both geographic science along with proper tools needed for
complete collaboration and complete understanding. This merely helps the people to reach same
goal that is to gain much intelligence from various kind of data. The report highlights both future
and impact of this technology from the perspective of a business.
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References
Campbell, K., & Helleloid, D. (2016). Starbucks: Social responsibility and tax
avoidance. Journal of Accounting Education, 37, 38-60.
Cavazzi, S., & Dutton, A. G. (2016). An Offshore Wind Energy Geographic Information System
(OWE-GIS) for assessment of the UK's offshore wind energy potential. Renewable
Energy, 87, 212-228.
Langford, M., Higgs, G., & Dallimore, D. J. (2019). Investigating spatial variations in access to
childcare provision using network‐based Geographic Information System models. Social
Policy & Administration, 53(5), 661-677.
Leduc, C. (2017). “Onward How Starbucks Fought for Its Life without Losing Its Soul” Book
Review.
Lin, L. (2019). Corporate Governance and Liquidity Risk of Starbucks Company.
Liu, X., Wang, X., Wright, G., Cheng, J. C., Li, X., & Liu, R. (2017). A state-of-the-art review
on the integration of Building Information Modeling (BIM) and Geographic Information
System (GIS). ISPRS International Journal of Geo-Information, 6(2), 53.
Mohamad, I. I., Yunus, M. M., & Harith, N. S. H. (2019, May). Assessment of building
vulnerability by integrating rapid visual screening and geographic information system: A
case study of Ranau township. In IOP Conference Series: Materials Science and
Engineering (Vol. 527, No. 1, p. 012042). IOP Publishing.
Ronald, R., & Amelia, A. (2017). Determinant of Customer-Company Identification (CCID) of
Starbucks in Indonesia.
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Sisson, D. C., & Bowen, S. A. (2017). Reputation management and authenticity: A case study of
Starbucks’ UK tax crisis and “# SpreadTheCheer” campaign. Journal of Communication
Management, 21(3), 287-302.
Zhu, J., Wright, G., Wang, J., & Wang, X. (2018). A critical review of the integration of
geographic information system and building information modelling at the data
level. ISPRS International Journal of Geo-Information, 7(2), 66.
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