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 wor of administration. The management has to figure out all the vital necessities for the production procedure (!oole " #owe 200$). This research shall loo at the undertaings of %tarbucs Coffee& and the effectiveness of their production methods. 'ore closely& the 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 corporations pillar (erence " Thurman 2009). *ll corporations have to come up with facets of operations management& because this will help them accomplish their ob+ectives. *s presented in figure , numerous numerous activities tae place at %tarbucs %tarbucs Coffee. The coffee beans come come from the farmer& and then the intermediaries& the mill proprietors& and then corporative societies distribute them (-ess 20,0). -ence& the mareting organiations and exporters get the coffee beans. The importers as well as broers own to the duty of supplying the coffee beans to particular locations. %tarbucs have their private private roasters& and they ac/uire coffee beans straight from the importers (-ohpe " oolf 2001). They then roast coffee beans& and then suppl y them to numerous distributors& cafes& restaurants and retails shops. The clients are capable of getting their preferred coffee after the procedure. igure , shows the procedure the coffee undertaes from the smallscale farmer to various clients. rom the roaster phase& that is where the internal undertaings of %tarbucs Coffee begin ('ichelli 2003). *s figure , shows the coffee goes through a number of phase prior to being accessible to to a client. The %tarbucs operations management management group maes sure that the procedure wors as expected. igure 2 shows the structural mechanism of the corporation. %o as for the undertaings of the corporation to succeed& the numerous departments have to match up with each other (4oe 20,0). *s figure 2 portrays the the vast level of administration is made up of the C56& the the financial director& as well as the corporation secretary. 7n addition& it includes the presidents of diverse retail areas as well as the vice presidents responsible for supply management (8hamia 2009). The numerous departments incorporate -:& legal affairs& C%:& international affairs& mareting and the department in charge of /uality of coffee. The head of departments in the corporation wor together with each other to mae sure that the facets of place and time utility are present in the end product. igure 2 displays the map for internal operations at %tarbucs. The operational tactic as well as procedure design vastly relies on the organiational structure (%chult " ordon 20,,). *ll the internal departments of the company have to wor together to mae sure that the goals of the corporation are fruitful. The facets of a suitable operational management system are apparent at %tarbucs. The procedure of coffee brewing is helpful and the cup of coffee reaches the clients at the stipulated time (%chult "
;ang 2003). -owever& %tarbucs 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 (%chult " ordon 20,,). The production criterions are part of the operational management system. %tarbucs coffee brewing processes ought to be able to sustain suitable level of /uality. The roasting practice ought to be suitable& over roasting of coffee beans maes them to have a sour taste (%chult " ;ang 2003). 7t is vital for %tarbucs Coffee to have a /uality assurance branch& as this will enhance the operational efficiency. The %tarbucs worers ought to be ac/uiescent with the numerous operational practices. %tarbucs 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 (8hamia 2009). The personnel of the corporation have to mae sure that the hygiene levels of %tarbucs retail stores are suitable. 6n top of this& the coffee grinders are re/uired to be cleaned and wellept always. round coffee ought not to l ie around in numerous stores& and the moment it is used& it ought to be thrown away instantly (4oe 20,0). *ll this facets are categoried under the scope of operations management& and the %tarbucs administration ought to mae sure that high competence levels are present always. The worers in the corporation have to tae part in the creation of a new operations plan ('ichelli 2003). 'ore clearly& %tarbucs worers ought to stic to the regulations of the company. *ll the staffs have to be responsible for their undertaings. 7t is essential for all the department of the corporation to be responsible& and this will enhance the levels of operational competence (-ohpe " oolf 2001). ith exceptional levels of cleanliness& high worer competence& and responsibility at all stages of %tarbucs Coffee will be undertae successfully. %tarbucs Coffee is able to en+oy great profitability levels at the end of the accounting duration. 6n top of this& the corporation has robust resources that can mae it easy enlarge and expand its commodities (-ess 20,0). *pt use of resources is mandatory in any corporation incorporating %tarbucs Coffee. The corporations staffs ought not to waste time& and they need to focus on corporation duty always and not personal wor (erence " Thurman 2009). *dditionally& there ought to be great understanding when it comes to distribution of money to numerous corporation pro+ects. *pt use of the corporations funds will enhance the facets of operational administration. %tarbucs 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 (!oole " # owe 200$). The business has to follow the prevalent circumstances in the maret. The numerous clients may choose either medium or light roasts. 7f %tarbucs utilies dar roasts& the outcome might be harmful to the corporation (Chaston 2009). The tastes and preferences of the clients are essential in any maret segment. 7t is the administrations role to figure out the phases of customer gratification. 6n top of this& the management ought to find the facets of the competitive setting (!oole " #owe 200$). The management ought to be well versed with the rivals strategies. or instance& if %tump town utilies light roasts and it is effective& %tarbucs ought to focuses on doing the same. :eviewing the rival is obligatory in ascertaining more on aspects of a maret Chaston 2009). %o as for %tarbucs to be operationally competent& it has to figure out the aspects of the maret always.
%tarbucs Coffee has to tae care of the bearable needs of the corporation always. *dministration has to mae sure that it guarantees that it protects the future of the corporation (erence " Thurman 2009). The stoc management systems ought to at alltime match with high levels of operational efficacy. *ny business with ricety suppliers fails to achieve its set ob+ectives. 6n top of this& %tarbucs Coffee has to undertae a %6T analysis always (-ess 20,0). The corporation o ught to mae 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 %tarbucs maes use of its strengths and opportunities (-ohpe " oolf 2001). The company has to shun its wea points and all the dangers it faces. This will guarantee that the corporation safeguards its future and this will ai d in the procedure of finding out the sustainability needs. The central activity at %tarbucs is the production of beverages. This area shall loo at the brewing process of coffee. The numerous inds of coffee incorporate cappuccino& espresso& caramel macchiato& and mocha chino ('ichelli 2003). *s displayed in figure < coffee has to undertae 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. 6n top of this& this phase finds out that the commodity is planned for production is practical as well as costeffective (4oe 20,0). The bean and ingredient picing incorporates getting the coffee beans from the mareting importers and boards. This procedure has to figure out that the /uality of coffee beans is satisfactory. 7f the /uality of the coffee beans is unsuitable& the effect on the last cup of coffee will be adverse (8ham ia 2009). The distribution systems have to tae care of the steady supply of coffee beans to the retail stores and restaurants. *s soon as the retail stores get the coffee beans they undertae the roasting& brewing and grinding procedures. These retail stores then unleash the last cup to the customers. igure 1 shows the suggested procedures that will lin well with the coffee production practice. *long with the commodity growth& and bean selection there is the facet of international growth. The purpose of international growth is to e nsure that the coffee at %tarbucs is ac/uiescent with the applicable standards (%chult " ordon 20,,). 8roducts 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 (%chult " ;ang 2003). =7* is the latest trend in the coffee sector& and %tarbucs management ought not to hesitate in endorsing it. The use of mobile applications restores the production procedure. =ia mobile applications& the corporation is can interact with the clients openl y (4oe 20,0). *dministration can utilie mobile applications to get the clients viewpoints regarding the operational efficiency of the corporation. 6n top of this& the /uality of the last cup of coffee will enhance if only the clients are contented (-ess 20,0). 7n summary& the operational competence of the corporation has to include falling in line with the maret trends& fruitful utiliation of available commodities& and establishment of the facets of sustainability. 7n addition& it is essential for %tarbucs to include the facets of the latest trends in its processing undertaings. -igh echelons of operational efficacy will mae sure %tarbucs prospers always.
References C-*%T64& 7. (2009). Entrepreneurial management in small firms. #os *ngeles& %*5. http>??public.eblib.com?5@#8ublic?8ublic=iew.doApti7!B
Faplan
8ub. -5%%& 5. !. (20,0). Smart growth: building an enduring business by managing the risks of growth. 4ew ;or& Columbia @usiness %chool 8ublishing. -6-85& .& " 66#& @. (2001). Enterprise integration patterns: designing, building, and deploying messaging solutions. @oston& *ddisonesley. '7C-5##7& G. *. (2003). The Starbuks e!periene: " priniples for turning ordinary into e!traordinary . 'aidenhead& 'craw-ill. 465& :. *. (20,0). Employee training and development . 4ew ;or& 'craw-ill 7rwin. 8-*'7*& F. (2009). Marketing strategy of #Starbuks $offe% . 'Hnchen& :74 =erlag mb-. http>??nbnresolving.de?urn>nbn>de>,0,>,20,009,02<<9. %C-E#TI& -.& " 6:!64& G. (20,,). &nward: how Starbuks fought for its life without losi ng its soul . est %ussex J5nglandK& iley " %ons. %C-E#TI& -.& " ;*4& !. G. (2003). 'our your heart into it how Starbuks built a ompany up at a time. 4ew ;or& 4;& -yperion.
Appendix Customer
Figure 1: Different Functions and the Map of their Reationship in Starbucks Coffee
:etail 6utlet Cafes "
:estaurants
one
!istributor
:oaster 7mporter
@roer
Mill Owner Cooperative 'areting @oard 8rivate 5xporter
LEGAL &COPERATEAFFAI igure 2> %tarbucs 6rganiational Chart igure <> %tarbucs 7nitial Coffee processing chart igure 1> %tarbucs :ecommended Coffee 8rocessing Chart
Ch. 5 Strategic Capacity Planning for Products and Services Ed i t 01 5 3 …
Chapter ! This chapter examines how important strategic capacity planning is for products and services. The overall ob+ective of strategic capacity planning is to reach an optimal level where production capabilities meet demand. Capacity needs include e/uipment& space& and employee sills. 7f production capabilities are not meeting demand& high costs& strains on resources& and customer loss may result. 7t is important to note that capacity planning has many long term concerns given the long term commitment of resources. 'anagers should recognie the broader effects capacity decisions have on the entire organiation. Common strategies include eading capacity& where capacity is increased to meet expected demand& and foo"ing capacity& where companies wait for demand increases before expanding capabilities. * third approach is tracking capacity which adds incremental capacity over time to meet demand. inally& The two most useful functions of capacity planning are design capacity and effective capacity. Design capacity refers to the maximum designed service capacity or output rate and the effecti#e capacity is the design capacity minus personal and other allowances. These two functions of capacity can be used to find the efficiency and utiliation. These are calculated by the formulas below> 5fficiency B *ctual 6utput? 5ffective Capacity x ,00L Etiliation B *ctual 6utput? !esign Capacity x ,00L Chapter ! Strategic Capacity Panning for Products and Ser#ices Capacity refers to a systemMs potential for p roducing goods or delivering services over a specified time interval. Capacity planning involves longterm and short term considerations. #ongterm considerations relate to the overall level of capacityN shortterm considerations relate to variations in capacity re/uirements due to seasonal& random& and irregular fluctuations in demand. 5xcess capacity arises when actual production is less than what is achievable or optimal for a firm. This often means that the demand in the maret for the product is below what the firm could potentially supply to the maret. 5xcess capacity is inefficient and will cause manufacturers to incur extra costs or lose maret share. Capacity can be b roen down in two categories> !esign Capacity and 5ffective Capacity> refers to the maximum designed service capacity or output rate. 5ffective capacity is design
capacity minus personal and other a llowances. 8roduct and service factors effect capacity tremendously. Chapter D focuses on capacity planning for products and services. Capacity is the ability of a systems potential for producing goods or delivering services over a specific time interval. The capacity decisions within a company are very important because they help determine the limit of output and provide a ma+or insight to determining operating costs. @asic decisions about capacity often ha ve long term conse/uences and this chapter explains the ramifications of those choices. hen considering capacity planning within a company& three ey inputs should be considered. The three inputs are the ind of capacity to be determined& how much of the products will be needed& and when will the product be needed. The most important concept of capacity planning is to find a medium between long term supply and capabilities of an organiation and the p redicted level of long term demand. 6rganiations also have to plan for actual changes in capacity& changes in consumer wants and demand& technology and even the environment. hen evaluating alternatives in capacity planning& managers have to consider /ualitative and /uantitative aspects of the business. These aspects involve economic factors& public opinions& personal preferences of managers. This chapter describes capacity planning as a ey factor in designing systems. The capacity decision is strategic and longterm in nature. Capacity planning is described as matching the capabilities of an organiation with the predicted level of future demand. 'any organiations become involved with capacity planning due to changes in demand& technology& the environment& etc. 6rganiations have capacities or limits that their system can handle. Three ey inputs to capacity planning> ,. The ind of capacity that will be needed 2. -ow much capacity will be needed <. hen will it be needed O*ccurate forecasts are critical to the planning process Defining And Measuring Capacity hen selecting a measure of capacity& it is best to choose one that doesnMt need updating. hen dealing with more than one product& it is best to measure capacity in terms of each product. or example& the capacity of a firm is to either produce ,00 microwaves or 3D refrigerators. This is less confusing than +ust saying the capacity is ,00 or 3D. *nother method of measuring capacity is by referring to the availability of inputs. 4ote that one specific measure of capacity canMt be used in all situationsN it needs to tailored to the specific situation at hand. Deter$inants of %ffecti#e Capacity
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Faciities: The sie and provision for expansion are ey in the design of facilities. 6ther facility factors include locational factors (transportation costs& distance to maret& labor supply& energy sources). The layout of the wor area can determine how smoothly wor can be performed. Product and Ser#ice Factors: The more uniform the output& the more opportunities there are for standardiation of methods and materials. This leads to greater capacity.
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Process Factors: Puantity capability is an important determinant of capacity& but so is output /uality. 7f the /uality does not meet standards& then output rate decreases because of need of inspection and rewor activities. 8rocess improvements that increase /uality and productivity can result in increased capacity. *nother process factor to consider is the time it taes to change over e/uipment settings for different products or services. &u$an Factors: the tass that are needed in certain +obs& the array of activities involved and the training& sill& and experience re/uired to perform a +ob all affect the potential and actual output. 5mployee motivation& absenteeism& and labor turnover all affect the output rate as well. Poicy Factors: 'anagement policy can affect capacity by allowing or not allowing capacity options such as overtime or second or third shifts Operationa Factors: %cheduling problems may occur when an organiation has differences in e/uipment capabilities among different pieces of e/uipment or differences in +ob re/uirements. 6ther areas of impact on effective capacity include inventory stocing decisions& late deliveries& purchasing re/uirements& acceptability of purchased materials and parts& and /uality inspection and control procedures. Suppy Chain Factors: Puestions include> hat impact will the changes have on suppliers& warehousing& transportation& and distributorsA 7f capacity will be increased& will these elements of the supply chain be able to handle the increaseA 7f capacity is to be decreased& what impact will the loss of business have on these elements of the supply chainA %xterna Factors: 'inimum /uality and performance standards can restrict managementMs options for increasing and using capacity. 7nade/uate planning can be a ma+or limiting determining of effective capacity.
The most important parts of effective capacity are process a nd human factors. 8rocess factors must be efficient and must operate smoothly& if not the rate of output will dramatically decrease. -uman factors must be trained well and have experience& they must be motivated and have a low absenteeism and labor turnover. 7n resolving constraint issues& all possible alternative solutions must be evaluated. This is possible by using C=8 analysis and the @rea5ven 8oint formula.
