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Starbucks Operations Management

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Starbucks Operations Management
Individual Assignment – Operations Management
Company STARBUCKS

These days Starbucks owns more than 18,000 stores in 62 countries and is the premier roaster and retailer of exclusive coffee in the world. Back in 1971, when the first Starbucks opened, the company already had two intentions to give to people every single day till now: share specialty coffee with friends and help to make the world a little better.
In 1981, Howard Schultz, the chairman, president and chief executive officer of Starbucks, walked into a Starbucks store for the first time. Highly impressed of the great coffee and the company’s concept, he joined Starbucks a year later. In 1983 he traveled to Italy, where he became fascinated with the coffee culture in Milan. The role of the neighborhood espresso bars in Italians daily life impressed him the most. After his return, he convinced the management of the company to set up an espresso bar in the corner of its only downtown Seattle shop and as a result this bar became the prototype for his long-term vision. His idea was to create a chain of coffeehouses, which would become the “third place” in America, apart from home and work. He wanted to build up a place where everybody could go to relax and enjoy a great coffee. Schultz said once: “I envisioned a place that would be separate from home or work, a place that would mean different things to different people.”1
A few years later, Starbucks founders offered Schultz the opportunity to buy the company, on which he agreed. After his takeover he opened new stores. By 1992, Starbucks already had 140 stores in Northwest of America and Chicago and the number of stores rapidly increased until today.

Regarding Human Resource Strategy Starbucks employs around 60,000 “partners”, which are called baristas. Most of them work in retail stores and the company wants them to be satisfactory with their job as their satisfaction leads to customer satisfaction. Consequently, Starbucks’ goal

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