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Operations management at Starbucks - Research Paper Example

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Operations management at Starbucks Name Class Professor About Starbucks Corporation Starbucks Corporation is a coffee shop company based in America. The global coffee house chain has its head offices in Seattle, Washington. It is regarded as the world’s largest coffee house with over 20, 890 stores situated in 62 countries…
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Download file to see previous pages Taiwan has 271 stores, Thailand houses 171 while India has 10 stores. This distribution makes a total of 20,891 stores spread across all over the world (Stacey 2004, 91). Starbucks deals in a range of products. Although its products are basically coffee based, the company has come up with formidable methods to diversify its lean range of products. With the use of a high innovative management and market research, the company has dominated the service of hot and cold beverages. It serves micro-ground instant coffee, whole-bean coffee, full leaf teas, snacks and pastries. In addition, most of its stores stock and sell packed food items such as cold and hot sandwiches. It has increased its merchandise to include stylish mugs and tumblers among other utensils. The company has diversified its range of products to include others that are not coffee oriented. This is in an attempt to remain relevant in the market as well as improve its sources of income. It has evening locations that offer a variety of beer and wines. These locations also serve appetizers and light food stuffs past 4 pm. Starbucks has entertainment division that thrills its revelers with a wide assortment of music. The Starbuck Entertainment Division markets music, publications and films. Since the company operates in several locations with varied tastes and preferences, its products are specific to the communities in their areas of operation. Many of its products are seasonal and specific to the locality of a particular store. Other than selling its products in its stores only, the company also stocks some of its products in general stores across the globe (Paul 2010,94). Such products include Starbucks-branded ice creams and coffee in groceries, supermarkets and other consumer outlets. History of Starbucks The company was founded in 1971 as a local coffee bean retailer and roaster in Seattle. It has since expanded rapidly to be established in over 60 countries worldwide. It currently opens an average of a store a day. Until 1987, the company operated exclusively in the United States and Canada. Its first overseas branch was officially opened in the mid 1990s. Presently, the overseas branches and stores constitute over one third of the total company’s premises. The company had a target of opening 1900 new stores outside the United States and Canada by 2012. This target has been despite closing a total of 300 stores within the boundaries of the United States since 2008 (Rapley 2005, 83). 30th March 1971 saw the opening of the first Starbucks in Seattle, Washington. The local coffee shop was founded by three partners; Jerry Baldwin, Gordon Bowker and Zev Siegel. The three entrepreneurs who met s students in the University of San Francisco were inspired to serve high quality coffee beans. They were equipped with unique coffee roasting techniques of Alfred Peet, a famous coffee roaster. The original name of Starbucks Corporation at its founding was Pequod (Whaling ship from Moby-Dick). Some of the co-founders rejected the name later and renamed the store after the Chief Mate of the ship Pequodo; Starbucks. The three partners bought green coffee beans from their mentor, Peets. Later, they began buying the beans directly from farmers (Rapley 2005, 81). Sale and Expansion of Starbucks Starbucks bought their mentor company, Peets from Alfred Peets in 1984. The total sales of coffee in the United Sta ...Download file to see next pagesRead More
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