Operations Strategy and Process Design in Starbucks Coffee
The element of operations management is extremely significant in any initiative. The corporation will encounter a management disaster in case the suitable structures are not present (Chaston 2009). The stages of success depend on the hard work of administration. The management has to figure out all the vital necessities for the production procedure (Doole & Lowe 2008). This research shall look at the undertakings of Starbucks Coffee, and the effectiveness of their production methods. More closely, the research shall discuss means in which administration can enhance the numerous procedures in the corporation. The elements of operation tactic as well as procedure design function as the corporation’s pillar (Ference & Thurman 2009). All corporations have to come up with facets of operations management, because this will help them accomplish their objectives.
As presented in figure 1 numerous activities take place at Starbucks Coffee. The coffee beans come from the farmer, and then the intermediaries, the mill proprietors, and then corporative societies distribute them (Hess 2010). Hence, the marketing organizations and exporters get the coffee beans. The importers as well as brokers own to the duty of supplying the coffee beans to particular locations. Starbucks have their private roasters, and they acquire coffee beans straight from the importers (Hohpe & Woolf 2004). They then roast coffee beans, and then supply them to numerous distributors, cafes, restaurants and retails shops. The clients are capable of getting their preferred coffee after the procedure. Figure 1 shows the procedure the coffee undertakes from the small-scale farmer to various clients. From the roaster phase, that is where the internal undertakings of Starbucks Coffee begin (Michelli 2007). As figure 1 shows the coffee goes through a number of phase prior to being accessible to a client. The Starbucks operations management group makes sure that the procedure works as expected.
Figure 2 shows the structural mechanism of the corporation. So as for the undertakings of the corporation to succeed, the numerous departments have to match up with each other (Noe 2010). As figure 2 portrays the vast level of administration is made up of the CEO, the financial director, as well as the corporation secretary. In addition, it includes the presidents of diverse retail areas as well as the vice presidents responsible for supply management (Pham-Gia 2009). The numerous departments incorporate HR, legal affairs, CSR, international affairs, marketing and the department in charge of quality of coffee. The head of departments in the corporation work together with each other to make sure that the facets of place and time utility are present in the end product. Figure 2 displays the map for internal operations at Starbucks. The operational tactic as well as procedure design vastly relies on the organizational structure (Schultz & Gordon 2011). All the internal departments of the company have to work together to make sure that the goals of the corporation are fruitful.
The facets of a suitable operational management system are apparent at Starbucks. The procedure of coffee brewing is helpful and the cup of coffee reaches the clients at the stipulated time (Schultz & Yang 2007). However, Starbucks has to restore their allocation mechanisms. The function of administration is to find out the efficiency of all shareholders. The number of coffee providers has to be suitable, and the cafes and restaurants ought to be easy to reach (Schultz & Gordon 2011). The production criterions are part of the operational management system. Starbucks’ coffee brewing processes ought to be able to sustain suitable level of quality. The roasting practice ought to be suitable, over roasting of coffee beans makes them to have a sour taste (Schultz & Yang 2007). It is vital for Starbucks Coffee to have a quality assurance branch, as this will enhance the operational efficiency.
The Starbucks workers ought to be acquiescent with the numerous operational practices. Starbucks coffee is classified under the group of the food and beverage sector. The sector standards give a directive that there are certain stages of hygiene essential in the retails stores as well as restaurants (Pham-Gia 2009). The personnel of the corporation have to make sure that the hygiene levels of Starbucks’ retail stores are suitable. On top of this, the coffee grinders are required to be cleaned and well-kept always. Ground coffee ought not to lie around in numerous stores, and the moment it is used, it ought to be thrown away instantly (Noe 2010). All this facets are categorized under the scope of operations management, and the Starbucks administration ought to make sure that high competence levels are present always. The workers in the corporation have to take part in the creation of a new operations plan (Michelli 2007). More clearly, Starbucks workers ought to stick to the regulations of the company. All the staffs have to be responsible for their undertakings. It is essential for all the department of the corporation to be responsible, and this will enhance the levels of operational competence (Hohpe & Woolf 2004). With exceptional levels of cleanliness, high worker competence, and responsibility at all stages of Starbucks Coffee will be undertake successfully.
Starbucks Coffee is able to enjoy great profitability levels at the end of the accounting duration. On top of this, the corporation has robust resources that can make it easy enlarge and expand its’ commodities (Hess 2010). Apt use of resources is mandatory in any corporation incorporating Starbucks Coffee. The corporation’s staffs ought not to waste time, and they need to focus on corporation duty always and not personal work (Ference & Thurman 2009). Additionally, there ought to be great understanding when it comes to distribution of money to numerous corporation projects. Apt use of the corporation’s funds will enhance the facets of operational administration. Starbucks’ management has to enhance decency and honesty in the use of all its commodities, and this will guarantee that the corporation has turned out to be operationally established (Doole & Lowe 2008).
The business has to follow the prevalent circumstances in the market. The numerous clients may choose either medium or light roasts. If Starbucks utilizes dark roasts, the outcome might be harmful to the corporation (Chaston 2009). The tastes and preferences of the clients are essential in any market segment. It is the administration’s role to figure out the phases of customer gratification. On top of this, the management ought to find the facets of the competitive setting (Doole & Lowe 2008). The management ought to be well versed with the rivals’ strategies. For instance, if Stump town utilizes light roasts and it is effective, Starbucks ought to focuses on doing the same. Reviewing the rival is obligatory in ascertaining more on aspects of a market Chaston 2009). So as for Starbucks to be operationally competent, it has to figure out the aspects of the market always.
Starbucks Coffee has to take care of the bearable needs of the corporation always. Administration has to make sure that it guarantees that it protects the future of the corporation (Ference & Thurman 2009). The stock management systems ought to at all-time match with high levels of operational efficacy. Any business with rickety suppliers fails to achieve its set objectives. On top of this, Starbucks Coffee has to undertake a SWOT analysis always (Hess 2010). The corporation ought to make sure that the strengths and opportunities act as its merits. The core goal of any corporation is to get high profitability levels, and this is easy to achieve if Starbucks makes use of its strengths and opportunities (Hohpe & Woolf 2004). The company has to shun its’ weak points and all the dangers it faces. This will guarantee that the corporation safeguards it’s’ future and this will aid in the procedure of finding out the sustainability needs.
The central activity at Starbucks is the production of beverages. This area shall look at the brewing process of coffee. The numerous kinds of coffee incorporate cappuccino, espresso, caramel macchiato, and mocha chino (Michelli 2007). As displayed in figure 3 coffee has to undertake a number of procedures prior to being available to the client. The commodity growth incorporates creating recipes that will be usable in the coffee brewing procedure. On top of this, this phase finds out that the commodity is planned for production is practical as well as cost-effective (Noe 2010). The bean and ingredient picking incorporates getting the coffee beans from the marketing importers and boards. This procedure has to figure out that the quality of coffee beans is satisfactory. If the quality of the coffee beans is unsuitable, the effect on the last cup of coffee will be adverse (Pham-Gia 2009). The distribution systems have to take care of the steady supply of coffee beans to the retail stores and restaurants. As soon as the retail stores get the coffee beans they undertake the roasting, brewing and grinding procedures. These retail stores then unleash the last cup to the customers.
Figure 4 shows the suggested procedures that will link well with the coffee production practice. Along with the commodity growth, and bean selection there is the facet of international growth. The purpose of international growth is to ensure that the coffee at Starbucks is acquiescent with the applicable standards (Schultz & Gordon 2011). Products have to be consistent with the set industrial rules. This will play the helpful role in the practices of diversification as well as expansion. The other advancement to the primary process is the unveiling of the facets of cloud computing. The launching of instant coffee online is important in the production practice (Schultz & Yang 2007). VIA is the latest trend in the coffee sector, and Starbucks management ought not to hesitate in endorsing it.
The use of mobile applications restores the production procedure. Via mobile applications, the corporation is can interact with the clients openly (Noe 2010). Administration can utilize mobile applications to get the client’s viewpoints regarding the operational efficiency of the corporation. On top of this, the quality of the last cup of coffee will enhance if only the clients are contented (Hess 2010). In summary, the operational competence of the corporation has to include falling in line with the market trends, fruitful utilization of available commodities, and establishment of the facets of sustainability. In addition, it is essential for Starbucks to include the facets of the latest trends in its processing undertakings. High echelons of operational efficacy will make sure Starbucks prospers always.
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Figure 1: Different Functions and the Map of their Relationship in Starbucks Coffee
Cafes & Restaurants
Figure 2: Starbucks Organizational Chart
Figure 3: Starbucks Initial Coffee processing chart
Figure 4: Starbucks Recommended Coffee Processing Chart