Introduction and Operations 1
The first Starbucks opened in 1971 as a single store in Seattle’s historic Pike Place Market. It offered some of the world’s finest fresh-roasted whole bean coffees. The name Starbucks was inspired by Herman Melville2 Novel, Moby Dick, and evoked the seafaring tradition of the early coffee traders.
In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) first walked into a Starbucks store. He was impressed by the drink and joined the company a year later. He travelled to Italy in 1983, and became captivated with Italian coffee bars and coffee experience. He planned to bring the Italian coffeehouse tradition back to ...view middle of the document...
3Starbucks ensure all staffs were trained for at least 24 hours before they are ready to serve customers, and were known as Baristas instead of shop assistants. Starbucks ensured consistency of the “Starbucks experience” throughout the cafe through rewards like stock options and higher salary. It aimed to motivate the employees and to increase the morale and shape a loyal employee. Hence, it lowered turnover rates and decreased the costs dramatically. Moreover, satisfied employee will normally provide better customer services. 4
As a leader in this industry, Starbucks introduces new technology features, for instances, it was the first to introduce wireless internet services in the café. It uses supply chain operations to forecast and schedule the primary activities. It ensures JIT (Just-In-Time) is achieved while decreasing costs incurred in storage and transportation of the goods.
Starbucks is dedicated to creating a workplace that values and respects people from diverse backgrounds, and enables its employees to do their best work. They honour the unique combination of talents, experiences and perspectives of each partner, making Starbucks success possible.
[[[[For example, Starbuck’s employee turnover is said to be less than a third that of the average for the retail food industry. This is attributed to Starbuck’s socially responsible practices (including a full benefits package for part-time employees) and provides economic efficiencies due to lower costs of staff recruitment and training.5
Contribution to the community finds a different guise at Starbucks. All proceeds (and a minimum of $75,000) from the Georgetown Starbucks in Washington, D.C. are donated to The Starbucks Memorial Fund. Established following an armed robbery of the store in 1997 that left three employees dead and shocked Starbucks employees and the wider community, the Fund contributes to violence prevention and victim assistance programs in the D.C. area.
Starbucks in Washington, D.C. are donated to The Starbucks Memorial Fund. Established following an armed robbery of the store in 1997 that left three employees dead and shocked Starbucks employees and the wider community, the Fund contributes to violence prevention and victim assistance programs in the D.C. area.
Linking operations and corporate strategy
Starbucks focused on food aswell as coffee, therefore quality of products went down.
The overall strategy is based on purchasing and roasting high quality whole been coffees and selling them with 6
Company strategy may be keeping the prices up artificially since demand is higher than supply.
Strategy may be leverage, credibility, ...
Growing too quickly, they were not able to monitor the supply chain strictly. Supply requires greater coordinations.
Supplier need to be flexible.
How the organisation ensures products/service meets the quality expectations of customers?
Starbucks is considered one of the...