Operational management - Essay Example

The name Starbucks is actually known to have originated from an American novel named Herman Moby. In 1982, a man named Howard Schultz decide to join Starbuck as he was ones impressed by the culture and popularity of Starbucks’ services and by 1990 Starbucks had expanded beyond the borders of Seattle to the rest of the world (Bussing-Burks, 2009, pp. 1-2). 1.1. Evolution of its strategy over time Starbucks strategies have changed over time since it started its operations in the coffee industry. Mr. Schultz, the CEO has changed the culture of its operations from the small shop in Pike place market in 1971 to the now big company that is known all over the world.

Starbucks actually changed the manner in which people perceived and drank coffee. Today Starbucks offer their services with Wi-Fi server customers on the sofa as well as on the sub ways which never used to happen back then. With the management of Mr. Schultz, Starbucks expanded so fast and at some point some of its stingy customers abandoned it (Deresky, 2008). Therefore, the company was faced with financial constraints as there sales volume decreased and its competitors in the industry somewhat overtook them.

Starbucks later revived its operation leading again in the industry in 2008 with the help of Mr. Schultz’s management. Mr. . Therefore, its mission is to inspire and nurture the human spirit at an individual level one at a time with a cup of coffee and in one neighborhood. Some of the company’s objectives is to offer quality products and services through sourcing of the finest coffee beans as well as improving the lives of the coffee farmers. With all the mission statements therein, the company has fully grown internationally (Griffin, Management, 2010, p. 206). 1.3. How effective is the Corporate governance The corporate governance is seen to be very effective since it’s been responsible for overseeing the activities of the corporate powers and ensuring that the firm’s daily activities are followed to the latter with intentions to foster the company’s goals and objectives.

The corporate has also ensured that the necessary skills and experiences needed to meet the company’s goals and objectives are provided for at the correct times (Mullerat & Brennan, 2010). The corporate has been responsible for the welfare of its partners and has, therefore, ensured that the working environment is free from health hazards. It has further ensured that they offer high standard coffee to its customers by purchasing and roasting fresh coffee (Aras & Crowther, 2011, p. 544). The corporate governance has been quite effective in its management since understand that profitability is an essential tool for the future success. 2.0.

External Environment Analysis Starbucks has for a long time benefited from its international operations since 1990. Today, Starbucks does not only depend on the U.S. market but greatly enjoys the international market as they have gone overboard in offering their goods and services purposely to boost their revenue and maintain the rate at which it is