Preview

Starbucks and Their Value Chain Essay Example

Satisfactory Essays
Open Document
Open Document
745 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks and Their Value Chain Essay Example
How Starbucks makes the customer a part of their value chain.
Starbucks value chain consists of the following factors: * The Firms infrastructure: This is the way Starbucks want their organization set up and how best to conduct systems such as planning, finance, quality control and their information technology management.

* Human Resource Management: HR is the activities associated with recruiting, managing, training, developing and rewarding people within the organizations. In order to make sure Starbucks continues to deliver great service to their customers, Starbucks show that they value all their employees as equal, even the ones who work part time can receive bonuses such as free coffee and health care coverage. This keeps Starbucks staff happy and motivated which in turn helps them deliver great service to the customers. Starbucks also introduced for store staff, a twenty four hour training programme that staff have to complete before being allowed to directly work with customers.

* Technology Development: Starbucks have a large amount of areas where it uses technology from regulating their stock levels to cash registers. Starbucks now have the technology which enables their customers to order their coffee over the internet and pick it up from the store when they get there. The majority of their stores also posses free wi-fi for their customers and have computers on site to allow easy access to the internet.

* Procurement: This is the process Starbucks goes through for acquiring the various resource inputs into primary activities. For example, the method of obtaining the grade A coffee beans from suppliers to use in the Starbucks coffee. This makes sure that Starbucks customers get the highest quality of coffee.

* Marketing and Sales: This is how Starbucks get people to become aware of their coffee and encourage them to purchase it. Starbucks is a worldwide company and people now recognize their name and brand and associate the brand image

You May Also Find These Documents Helpful

  • Powerful Essays

    The Starbucks business commerce is trade, and the products include coffee drinks and coffee related products. Since the company has thousands of branches throughout the world, it is very convenient to “run in and out” and grab a coffee. Starbucks has a very loyal customer base and high profit margins. Through the loyal customer base and always being innovative with new coffee drink ideas, the company is able to charge more for its product; it is more than likely that the Starbucks followers will pay any price to get their coffee fix.…

    • 5361 Words
    • 22 Pages
    Powerful Essays
  • Best Essays

    * Robert Gibson. (2007). Starbucks Corporation: How to Improve the Current Marketing Strategy. Available: www.plu.edu. Last accessed 29 September 2011.…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Satisfactory Essays

    Starbucks Score Card

    • 1216 Words
    • 5 Pages

    * Information system capabilities – In an era of rapidly changing environment and technological developments it is necessary for Starbucks management information system to be flexible in adding more evaluation and data analysis tools to it’s current system which is quite rigid.…

    • 1216 Words
    • 5 Pages
    Satisfactory Essays
  • Better Essays

    A311 Case 1

    • 1423 Words
    • 5 Pages

    A. The business nature of Starbucks is mainly selling coffee drinks, tea beverages, and fresh food items along with producing and selling a variety of ready-to-drink beverages. Starbucks not only makes money by selling its specialty through cooperated-owned stores but also by licensing its trademarks through other channels.…

    • 1423 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Stock Market and Starbucks

    • 1144 Words
    • 5 Pages

    2) Sourcing System: Starbucks has a diversified source of its coffee beans to offer a greater palette of coffees to its customers while being able to maintain a hedged position. Besides, it maintained a very good relationship with the exporters by working directly with them and providing training to them. Such close relationship enabled Starbucks to be the first to get the best quality coffee beans. Also, since Starbucks is the biggest high quality coffee buyer in the world, it can enjoy the benefit of economies of scale.…

    • 1144 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    This report evaluates all the components required in organizational strategy. The Five Forces Industry and SWOT Analysis discovers Starbucks’ competitive position in the coffee industry. Starbucks’ competitive advantage will be determined after completing a competitive analysis of their top competitors. With an in-depth look at Starbucks’ mission, we can see whether they are embodying it and if they are showing organizational effectiveness. Then, we will look at which kinds of corporate and positioning strategies Starbucks is employing and assess which companies they might benchmark against. Lastly, a thorough analysis of their external environments will illustrate how Starbucks’ external factors influence their strategies.…

    • 4989 Words
    • 18 Pages
    Good Essays
  • Satisfactory Essays

    Starbucks' global corporate goal is to become the leasing coffee seller and brand in each of its expansion targets. They aim to do this through their finest quality coffee and other products, and by means of their high-quality customer service.…

    • 475 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Human resource policies have been exceptionally powerful on the organizational execution of Starbucks. The organization has executed five corporate methods: offer best quality items, guarantee greatest infiltration in business sector, offering an exceedingly social air, give unwinding, create the best working conditions and expansion the gainfulness of the organization by offering high edge items and lessening the expenses (Dyer & Reeves, 2007). It has embraced the Laissez Faire administration style…

    • 1950 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Starbucks Attractiveness

    • 612 Words
    • 3 Pages

    Starbucks currently operates within three industries: Fast-Food Restaurants, Coffee and Snack Shops, and Specialty Coffees. Which are defined by NAICS (North American Industry Classification System). Although all three are separate segments Coffee and Snack Shop and Specialty Coffee basically carry various similarities. Despite this fact that this industry is somewhat narrower when compared to the fast food industry that they are also considered to be a part of, the coffee and snack shop aspect of their overall industry. Attractiveness is their bread and butter. Starbucks currently represents 32% of this industry and continues to grow, making them one of its largest players. This is the industry that they need and have focused the most on. One of the main factors of success are clearly related to their plans for global expansion because Starbucks has all but halted their domestic expansion (Global Data) and focused almost exclusively on the former. Another fact that illustrates the need to concentrate on this segment is the advancement of overall industry attractiveness their specialty coffees segment (consisting of retail store sales) only comprises 7% of their total revenue. Starbucks operates its largest segment in Fast Food Restaurant Industry, despite their relative insignificance as compared to giants like McDonald’s. It is worthwhile for them to pay close attention to this segment, because McDonald’s and Starbucks may differ in market share, but Starbucks holds a larger market share of the segment that McDonald’s wants/needs to capitalize on: Coffee. So to operate in parallel industries makes for a key success factor dependent on the level of information on competitors that also drive change. Although focusing on its most important segment, the Coffee and Snack Shop, Starbucks should also pay careful attention to this segment as well in order to achieve their optimal industry attractiveness.…

    • 612 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Starbucks Case Study

    • 9028 Words
    • 37 Pages

    Executive Summary..................................................................................................................................3 Market Segmentation ...............................................................................................................................4 Methods of Segmentation................................................................................................................4 Lifestyle Segmentation in the Specialty Coffee Market ..............................................................5 Segments ................................................................................................................... 5 Identifiable ................................................................................................................ 6 Sizeable...................................................................................................................... 6 Actionability .............................................................................................................. 6 Accessibility ............................................................................................................... 7 Sustainable Competitive Advantage......................................................................................................8 The Path to Protection. ....................................................................................................................8 Raising the Bar – Starbucks Advantage.........................................................................................8 Customer Loyalty....................................................................................................... 9 Location .................................................................................................................. 10 Vendor & Supply Chain Relations…

    • 9028 Words
    • 37 Pages
    Powerful Essays
  • Best Essays

    Starbucks Research Paper

    • 3399 Words
    • 14 Pages

    Over the course of a decade, Starbucks has successfully made specialty coffee part of the American experience. Beyond that, Starbucks seized growth opportunities in other markets that now make them an intense competitor with businesses outside of the coffee industry. Starbucks not only sells the world’s finest coffee but also manufactures and sells other products to the public. They created a name that is internationally known due to the heightened sales of their coffee and other products.…

    • 3399 Words
    • 14 Pages
    Best Essays
  • Good Essays

    The texts Paul Bunyan, Mister Fox, Jack and the Talking Crow, The Split Dog, and Catching a Thief all have in common being written as folk tales. The text’s share the traits of being orally passed down from generations, which is why most folk tales have unknown authors and usually have several versions. Folk tales are made up of fables, fairy tales, old legends, and urban legends, another reason why there might be several versions to a folk tale. In addition, to sharing the form in which they are written, the texts share features like utilizing everyday language, exaggerated details, and problems being solved in silly ways. An example of a conflict being solved in a silly way is when, Paul Bunyan doesn’t have food for his men, he solves the…

    • 510 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Starbucks Hrm Paper

    • 6776 Words
    • 28 Pages

    Obloja, Elena. (2011, December 15). Starbucks HR policies and practices.scribd.com. Retrieved from http://www.scribd.com/doc/75800799/Starbucks-HR-Policies-and-Practices. Not a creditable source…

    • 6776 Words
    • 28 Pages
    Powerful Essays
  • Satisfactory Essays

    Star Bucks Case Analysis

    • 422 Words
    • 2 Pages

    Concise target group of people with average income level of 80000 dollars serve the purpose for market targeting.…

    • 422 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    products, which the customers are willing to pay for. Hence, the firm is not reluctant to…

    • 327 Words
    • 2 Pages
    Satisfactory Essays