STARBUCKS

Starbucks Corporation's Operation Management

Executive Summary

Starbucks Corporation is the ranked number one in the coffee retailer. Starbucks own about 9000 coffee shops in different countries. Starbucks president and CEO Mr. Howard Shultz, follow a philosophy that a company should value its employees so that employees will value its customer. We can define operations management as the area of Business Administration dedicated to both research and the implementation of all those actions that tend to generate greater value added through the planning, organization, direction and control in the production of both goods and of services, all aimed at increasing quality, productivity, improve customer satisfaction for customers and reduce costs. In this study, we try to explore the concept of operations management with respect to the Starbucks Coffee shop in a holistic context.

Table of Contents

Executive Summary1

Introduction3

External Analysis4

External Environment Threats4

External Environment Opportunities4

Internal Analysis4

Internal Environment Strengths4

Internal Environment Weakness5

Starbucks Coffee: A Brief History5

A Statement and Analysis of the Problem6

Significance of Operation Management and Strategic Planning at Starbucks7

Starbucks Operation Management and Current Macroeconomics7

SWOT Analysis8

Strengths8

Weaknesses9

Opportunities9

Threats10

Key Success Factors behind the Efficient Operation Management12

Critical Analysis of Available Options for Operation Management15

Strategies to Increase the Revenues through Operation Management16

Recommendations17

References20

Starbucks Corporation's Operation Management

Introduction

Operations management, to begin with a simple definition, is defined as a set pattern of rules, regulations and processes that would help and align all the core components of business operations, in the midst of producing or delivering quality goods or services. Operations management must be inculcated into the organization for the sole purpose of managing all courses of action that prevail in cost-effective and timely execution of operations and smoothly running a business. Activities that come under the head of operations management include primary activities that cover the discipline of quality assurance (QA), environmental protection and responsibility, production, manufacturing, warehousing, inventory, supply chain, logistics, packaging, etc.

Although the first Starbucks opened in 1971 it wasn't until the 1990s that the company became the iconic coffee symbol of America. Starbucks' popularity exploded alongside a changing generation of young Americans who were on the move and connected to the world-wide-web, while yearning for bigger and better, no matter the cost. This generation quickly became known as the “Starbucks Generation” and now, a decade later; it's spilling over into a thriving China. Starbucks entered China in 1999 and has now made it their number one target for growth (Starbucks Annual Report, 2007).

The strategy of operations is a vision of the role of operations depending on the direction or general impulsion for the decision plan. This vision must be integrated with business strategy and often, but not always, reflected in a plan formal. The operations strategy should result in a consistent pattern of decision making in the operations and competitive advantage for the company.

External Analysis

External Environment Threats

The biggest threat facing Starbuck is the possibility of increased competition or over expansion by Starbucks itself. Starbucks need to maintain consistency throughout it stores around the world. This issue is more important now, as Starbucks is looking to expand ...