This is the case study analysis about Starbucks. It introduced the company background and struggling issues faced by Starbucks. This analysis is mainly focus on how Starbucks using the W Edward Deming’s 14 points to apply on their international business. The sources such as news were applied in this analysis in order to prove that the matters were happened during Starbucks struggling season.
On the other hand, the total quality management that Quality Management (TQM) practices is primarily found in larger and multinational organizations but little has been written on how TQM has been applied in Starbucks. It had using some example that existing in the company in order to show how the company manage their product quality.
Lastly, this case study analysis was also stated about how the customer values provided by Starbucks are affecting their value chain activities. It had explain how the Taylorism can applied in Starbucks and how they using the skills to operate their business in today competitive market.
Introduction
Dr. W. Edwards Deming taught that by creating and adopting W Edwards Deming’s 14 points, organizations can increase quality and simultaneously reduce costs and meanwhile, in the same time, reducing rework, staff attrition, works and litigation while in the sametimes increasing customer loyalty. The key is to practice continual improvement and think of manufacturing as a system and adopt new philosophy (Gabor, 1992).
Customer value is also created when the perceptions of benefits received from a transaction exceed the costs of ownership (Daniels, S., 2000). Moreover, value is the ratio between perceived benefits received and the costs associated with receiving these benefits. Perceived value is a consumer’s overall assessment of the utility of a product based on perceptions of what is received and what is given. Increase the market capital by using new system and leadership development in marketing and product, as what W.