StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Best Practices in OPS Management : Starbucks Corp:Clouds in your Coffee Case Analysis - Essay Example

Comments (0) Cite this document
Summary
Executive summary This paper analyses the case study “Starbucks Corp.: Clouds in Your Coffee”. It begins with a summary of the case’s background that informs us of the dilemma facing Starbucks’ CEO, Howard Shultz. The dilemma is herein presented as the problem statement…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.8% of users find it useful
Best Practices in OPS Management : Starbucks Corp:Clouds in your Coffee Case Analysis
Read Text Preview

Extract of sample "Best Practices in OPS Management : Starbucks Corp:Clouds in your Coffee Case Analysis"

Download file to see previous pages Table of Contents Table of Contents 1 2.0.Problem statement 3 3.0.Analysis 3 4.0.Conclusion and recommendations 5 References 6 1.0. Background The vision for Starbucks was largely based on Howard Shultz’s (the founder cum CEO’s) observation of the operations and experience of Italian espresso bars (Zimmerman & Weiss, 2007). This implies that the company’s initial growth strategy was one based on differentiation through its so called “Starbucks Experience”. This strategy implied that Starbucks had to focus on ensuring that its customer experience was World Class through investing significant resources in the hiring, training, and retention of employees; store ambience that created an aura of theatre and romance; and customization of the store to match their locales and make them the place to go between home and office. At this juncture, Starbucks market positioning was an upscale brand and as such in order to support this market positioning, the company’s operation strategy was predominantly market-led. However, the industry’s profitability went down as a result of: (1) increased threat of substitutes from the rapidly growing US quick service restaurants and US ready-to-drink coffee beverage markets; (2) increased competitive rivalry within the industry; and (3) increased buyer power resulting from (1) and (2), which made switching costs minimal for customers. The decrease in industry profitability coupled with Starbuck’s rapid global expansion forced the company to implement techniques to reduce costs such as automating their espresso machines, standardizing and remodeling their stores to accommodate more customers and introducing new products. Moreover, Starbucks has also broadened its target market from the well-defined upmarket market at its inception to its current target market that includes every individual of every age. The problem with this new strategy is that it carries with it new risks such as disenfranchising Starbuck’s most loyal customers who cherished its tradition and heritage, employee resistance due to the shift of focus from customer experience to cost and time management and possible devaluing of the Starbucks brand as it appears no different from any other quick service restaurant. 2.0. Problem statement As a company seeking global expansion, pursuing cost-based strategies such as standardization and automation guarantee Starbucks of maintaining its product quality and maximizing its revenues; however, these same strategies are weakening Starbucks ability to sustain its competitive advantage which is its market positioning. 3.0. Analysis Starbucks competitive advantage has been its market positioning. To the consumer Starbucks does not just sell a cup of coffee, it stands out because it sells an experience. The company therefore assumed a market-led operations strategy that emphasized order winning factors such as customer-barista intimacy, restaurant ambience and aroma and so on. However, as Starbucks expanded its target market to include everyone as well as its physical presence globally, operations factors that it previously did not have to focus on have become vital for its success. For example, whereas previously Starbucks was an upscale brand that could price its products high, it is now a mass market brand that has to be affordable to the masses. Also, with a bigger market and more customers to serve, Starbucks has to cut the lead times between when a customer orders a product and when they receive it or else its cafes ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Best Practices in OPS Management : Starbucks Corp:Clouds in your Essay”, n.d.)
Best Practices in OPS Management : Starbucks Corp:Clouds in your Essay. Retrieved from https://studentshare.org/business/1441641-best-practices-in-ops-management-starbucks-corp
(Best Practices in OPS Management : Starbucks Corp:Clouds in Your Essay)
Best Practices in OPS Management : Starbucks Corp:Clouds in Your Essay. https://studentshare.org/business/1441641-best-practices-in-ops-management-starbucks-corp.
“Best Practices in OPS Management : Starbucks Corp:Clouds in Your Essay”, n.d. https://studentshare.org/business/1441641-best-practices-in-ops-management-starbucks-corp.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Best Practices in OPS Management : Starbucks Corp:Clouds in your Coffee Case Analysis

Starbucks in Chinese Market

In the year 1996, the coffee giant marked its global presence. Up until 2004, the Chinese government prohibited Starbucks to operate its own stores in China. As a result, the coffee giant enters the Chinese market by joint-venturing with Chinese food and beverage companies and licensing other companies to own and operate its stores--differs from its domestic approach. But the company was able to easily overcome its initial obstacles and marked its presence in China very quickly and successfully with great brand recognition and customer satisfaction. The company also tailors its stores to match the local atmosphere. This is a transnational strategy. “For example, the Starbucks strategy in Shanghai is to attract middle to high...
7 Pages (1750 words) Case Study

The Idea of Liberty in Sam Slime Case

The first, when Sam Slime mugs you outright is a matter for governmental law and order. Cleary there is a criminal (Sam) and a victim (you). In the second scenario the government, in the guise of a benevolent company decides to rehabilitate Sam and gives him your hard-earned money through further taxation, another kind of economic stimulus perhaps. In this case when you resist, as you would have in the first case, you are the criminal because this master says that you have to pay and suddenly you are on the wrong side of justice. But, how can this be if the laws of the land are written to explicitly prohibit this kind of injustice? In these two cases, stealing is occurring and there is no difference whether it is through the gover...
8 Pages (2000 words) Coursework

The Necessity of Job Analysis

The importance of job analysis in human resources is to help the management to ascertain and endorse the use of certain activities which take place in employment such as employment procedures such as training, choice of the appropriate employees, reparation as well as evaluation and appraisal. It helps in developing an organized database containing information concerning the job (Singh, P 2008 pp. 82-84).
Job analysis is significant into the employers when selecting the employees who are suitable for a particular position in the organization. In the recruitment process, it is usually possible to make mistakes with regard to employee selection. It enables the management to understand the content of advertisements for vacant po...
7 Pages (1750 words) Coursework

Diversity Management in Organisations

...Managing Diversity in Workforce Contents Introduction 2. Diversity Management: Challenges and Benefits 2 3. Managing Diversity 3 3 Significance of Involvement culture 3 3.2 Impact of Organizational Ethnicity on diversity 4 4. Best Practices to Manage Diversity 4 5. Conclusion 5 6. Bibliography 6 1. Introduction “Diversity” characterizes the massive amount of individual divergences that subsists amid persons. Workforce diversity is a gathering of the resemblances and discrepancies between workers in such sorts as “age, sexual category, cultural inheritance, physical capability and race.” (POLLITT, David, 2006) As of today, diversity in the place of work is widely acknowledged as an advantage that contributes to a business institution’s base...
6 Pages (1500 words) Case Study

Comparative Family Analysis

The second component of this essay will be a comparative analysis with the American family to the Arab family, generally speaking, but also clearly described by Homa Hoodfar, in her book Between Marriage and the Market. This essay will discuss the impact of globalization on different types of families in different societies and cultures. The terms ‘traditional’, ‘modern’ and ‘postmodern’ will be defined, elaborated upon and discussed on a continuum of change. Social change, in the face of globalization, will be discussed in relation to how cultures and families have grown or resisted the forces of globalization. We now turn to an exploration of the types of families in the world and follow...
6 Pages (1500 words) Coursework

Economic Analysis of India

The country’s economy is fast growing with a stable political system that encourages foreign investment although with certain restrictions. The country generally has good energy, transport and communication systems which make the cost of doing business affordably.

The Republic of India found South of Asia is by far the world’s most populous democracy and ranks seventh largest in terms of geographical area (Brown, 1994). India is also the second most highly populated country in the world. The country has a rich culture with four major religions having originally emerged from it; Sikhism, Buddhism, Hinduism, and Jainism. The Indian Republic consists of seven union territories and 28 states and ranks twelfth la...
8 Pages (2000 words) Case Study

Analysis of Educational Website

...) to make an impression that inclined the research to select this website for the analysis. Home Page (SE, 2010) of the selected website gives a simple and soothing look with the picture of a tree that somehow indicates the motive of the institution to provide educational resources to individuals, and tree seemed the best possible picture to illustrate such motive of the institution. Unlike other educational websites, this website (SE, 2010) has a more corporate look with no jumping animations that show the formal educational perspective of the institution. In addition, home page of the institution welcomes visitors with different categories to cater education-seeking individuals effectively. In this regard, whole website...
7 Pages (1750 words) Article

Analysis of Articles about Climate Change

Can we imagine an Earth where there are no green mountains, no deep blue seas, and no living creatures? No. But a disaster of such magnitude and dimension is looming over Earth. Humans have identified this threat, defined it and given it a name, global warming. 

It was in the 1990s that the world began to hear serious warnings on global warming and climate change. The summary for policymakers prepared as part of the first assessment report by the Intergovernmental Panel on Climate Change was the first-ever in-depth study on this topic (Houghton, Jenkins and Ephirams, 1990). This report explored climate change and stumbled upon revolutionary revelations. This study announced in very clear terms that there is a natur...
6 Pages (1500 words) Literature review

Self Assessment: Conflict Management Style

The assessment also indicated that second to collaborating attitude, I also tend to compromise just to be at peace with the conflict arising and be over it after knowing I had done everything I am supposed to do.

The results of the assessment did not surprise me a bit. And I should say I couldn’t agree more. When presented with random situations that may arise in conflicting ideas or viewpoints, I can say that I am the type of person who approaches issues emphasizing systematic approaches. I usually hear both sides of the discussion and evaluate the issue before I make my own judgment. I am not easily swayed with other people’s opinions even when a lot of them think in the opposite way that I do. When making...
7 Pages (1750 words) Essay

Management Theory and Practice in the Early Childhood Education Industry

...Management Theory and Practice in the early childhood education industry This Report applies management theory into practice in the early childhood industry, especially in the context of women leaders. Management issues play a significant role in the academic sector, because early childhood professionals need higher levels of motivation in order to avoid burnout . As pointed out in a study by Osgood and Halsall (2007) where they carried out research to examine the position of women in leadership or management positions, a “glass ceiling” exists for women in the academic setting, which could significantly impair motivation. Since many of the individuals employed in the early education sector are women, addressing this issue is even more...
6 Pages (1500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Best Practices in OPS Management : Starbucks Corp:Clouds in your Coffee Case Analysis for FREE!

Contact Us