management term paper.docx

8/9/2019 Management Term Paper.docx

1/8

The

Operational

Management

Strategies

and

Proposal for

additional

strategy

and change

of some old

strategy inthe

Production

of

STARBUCKS

Corporation

S u b m i t t e d t o : P r o f e s s o r G e r m i l a T a b i g n e

S u b m i t t e d b y : R e n e l y n G o n z a l e s


2/8

Backgrou

Starbucks is an American global coee company and coeehouse

chain based in Seattle !ashington" Starbucks is the

largest coeehouse company in the #orld ahead of $% ri&al 'osta 'oee

#ith ()*+* stores in ,+ countries and territories including --.-) inthe $nited States -/., in 'hina -//( in 'anada -)0( in 1apan and **(

in the $nited %ingdom"

Starbucks locations ser&e hot and cold be&erages #hole2bean coee micro

ground instant coee full2leaf teas pastries and snacks" 3ost stores also

sell pre2packaged food items hot and cold sand#iches and items such as

mugs and tumblers" Starbucks 4&enings locations also oer a &ariety

of beers #ines and appetizers after /pm" Through the Starbucks

4ntertainment di&ision and 5ear 3usic brand the company also markets

books music and 6lm" 3any of the company7s products are seasonal or

speci6c to the locality of the store" Starbucks2brand ice cream and coee

8og

The logo in is a siren #ho is a storyteller

carrying the lore of Starbucks ahead and

remembering our past" 9n a lot of #ays shes a

muse ;al#ays there inspiring us and pushing

us ahead"

And shes a promise too in&iting all of us to

6nd #hat #ere looking for e&en if its

somethin #e ha&ent e&en ima ined et"

http://en.wikipedia.org/wiki/Coffeehttp://en.wikipedia.org/wiki/List_of_coffeehouse_chainshttp://en.wikipedia.org/wiki/List_of_coffeehouse_chainshttp://en.wikipedia.org/wiki/Seattlehttp://en.wikipedia.org/wiki/Washington_(state)http://en.wikipedia.org/wiki/Coffeehousehttp://en.wikipedia.org/wiki/Costa_Coffeehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Pastrieshttp://en.wikipedia.org/wiki/Whiskey_tumblerhttp://en.wikipedia.org/wiki/Beerhttp://en.wikipedia.org/wiki/Winehttp://en.wikipedia.org/wiki/Hear_Musichttp://en.wikipedia.org/wiki/List_of_coffeehouse_chainshttp://en.wikipedia.org/wiki/List_of_coffeehouse_chainshttp://en.wikipedia.org/wiki/Seattlehttp://en.wikipedia.org/wiki/Washington_(state)http://en.wikipedia.org/wiki/Coffeehousehttp://en.wikipedia.org/wiki/Costa_Coffeehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Pastrieshttp://en.wikipedia.org/wiki/Whiskey_tumblerhttp://en.wikipedia.org/wiki/Beerhttp://en.wikipedia.org/wiki/Winehttp://en.wikipedia.org/wiki/Hear_Musichttp://en.wikipedia.org/wiki/Grocery_storeshttp://en.wikipedia.org/wiki/Coffee


3/8

Company Mission Statement:

< 4stablish Starbucks as the premier pur&eyor of the 6nest coee in

the #orld #hile maintaining our uncompromising principles #hile #e

gro#"=

Environmental Mission Statement:

< Starbucks is committed to a role of en&ironmental leadership in all

facets of our business"=

Goals:

• Building a 'ompany #ith Soul"

• >pposing ?ranchising because of @uality 'ontrol and 'ulture"

• >nly selling coee beans #ithout arti6cial a&ors"

• Satisfy customers by all means"

• 4mployees contributio2n and in&ol&ement in making Starbucks a

better company"

Produc

Starbucks 'orporation oers coee products and caf ser&ices

throughout the #orld" 9t sells high2Cuality #hole bean coees Dfromaround the #orldE along #ith other types of freshly bre#ed coees

premium teas and espresso be&erages hot and cold" 9t also oers

&arious sodas and Fuices pastries and confectionery coee2related

accessories such as the Starbucks mugs and other caf related products

such as the Starbucks '" Starbucks sells its special products through its

company2operated retail stores #arehouse club chains oHce coee

distributors institutional foodser&ices such as hotels and airlines mail2

order catalogs and through its electronic store"

3issi


4/8

Repetiti&e ?ocused Strategy is an


5/8

Recommendation

The follo#ing are recommendations to further impro&e operations at

Starbucks retail stores:

• >er more types of roasted coee after noon"

• e&elop other light roast coees that #ill bring in customers that

normally a&oid Starbucks because of the peration Strategy for

3RP


6/8

materials is a listing of all the ra# materials component parts subassemblies

and assemblies reCuired to produce one unit of a speci6c 6nished product"

9 suggest that Starbucks can use SAP as their system #hich is an industry

speci6c application soft#are from the soft#are &endor SAP AG and is focusedon the global retailing"

#imension: $%&ective speci'cs

9n&entory:

• >rder the right ingradients

• >rder the right Cuantity

• >rder at the right time

Priorities:

• >rder #ith the right due date

• %eep the due date &alid

?orecasting

http://en.wikipedia.org/wiki/Application_softwarehttp://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Application_softwarehttp://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Retailing


7/8

Since 9 am suggesting that the Starbucks should use the 3RP and SAP as

their system they #ill ha&e an easy #ay to record and compute the daily

demand of their products e&ery day #eek or month" And this could be

helpful as they can use it as intelligent information that they can use in

forecasting future demands"

They can use speci6c forecasting techniCues like use of 4JponentialSmoothing"

?t M ?t2- N ∞ [At-1 – Ft-1]

Where:

?t M the ne# forecast or forecast for period

?t2- M the pre&ious forecast

∞ = smoothing constant

At-1= actual demand or sales for period

?or eJample #e #ill make an eJponential smoothing for the pre&ious -) months

sales or demand in Starbucks #ith the use of a smoothing factor of ()*(

P4R9>

DmonthE

A'T$A8

43AO

?>R4'AST 4RR>

R

* 0) 2 2+ 0( 0)")) (, / 0)"() 2("(- 0- /.". -")(. 0) 0)") )") 0/ 0)")* +".+0 0( 0)"/, -"0/1 0) 0)",- 2)",-2 00 0)"00 /"/0

*( 0+ 0- (** 0-"()

- ( + / 0 , * . -) --

//

/,

/

0)

0(

0/

0,

emand

?orecast

4rror

4Jponential Smoothing is the forecasting

method of choice"

Pro&ides more accurate results

4asy to use and reCuires little

computationStarbucks should consolidate to a single

distribution center

$niform ate

8o#er 3aintenance 'ost


8/8

>ther

!hank 3ou

management term paper.docx

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