...Introduction Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 63 countries. In 2007 the company was in a need of transformation. Peter Gibbons was hired to manage the supply chain of Starbucks. The company was reorganized and the supply chain has changed dramatically since then (Starbucks, 2012). Here is a diagram showing the supply chain network of Starbucks in 2014: ... Components of the supply chain Starbucks has commitment to sell only the finest coffees and coffee beverages. To ensure compliance with their coffee standards, they control coffee purchasing, roasting and packaging, and the global distribution of coffee used their operations. The company purchases green coffee beans from multiple coffee-producing regions around the world and custom roast them to the exacting standards for our many blends and single origin coffees. The price of coffee is subject to significant volatility. Although most coffee trades in the commodity market, high-altitude Arabica coffee of the quality sought by Starbucks tends to trade on a negotiated basis. Both the premium and the commodity price depend upon the supply and demand at the time of purchase. In addition to coffee, Starbucks also purchases significant amounts of dairy products, particularly fluid milk, to support the needs of Company-operated stores. Products other than whole bean coffees and coffee beverages sold in Starbucks® stores include tea and a number of ready-to-drink...
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...SupplyChain algerie Comment StarbuCkS a tranSformé Sa Supply Chain amélioré votre logiStique aveC m.belkaCemi Comment StarbuCkS a tranSformé Sa Supply Chain pour maintenir les dépenses sous contrôle et parvenir à un équilibre entre le coût et la performance, Starbucks à apporter des modifications importantes à ses opérations. voici un regard sur les étapes gibbons et ses collègues ont pris et les résultats qu’ils ont obtenus. les deux premières choses gibbons a fait dans son nouveau poste étaient d’évaluer la façon dont la chaîne d’approvisionnement a été de servir les magasins, et de trouver où les coûts venaient. il a vite appris que moins de la moitié des livraisons de magasins arrivaient à l’heure. “mon diagnostic rapide a été ... que nous n’avons pas passé suffisamment d’attention à quel point nous étions à la prestation de services aux magasins», se souvient-il. Suite à cette évaluation, gibbons a commencé à visiter les magasins de détail Starbucks pour voir la situation par lui-même et obtenir la participation des employés. “les visites ont été effectuées afin de confirmer que notre chaîne d’approvisionnement pourrait s’améliorer de manière significative», explique t-il.”les meilleures personnes pour juger de la nécessité d’un changement étaient ceux de la clientèle face à une partie de notre entreprise.” à fait bon: les coûts d’exploitation de l’entreprise vec les coûts d’exploitation en hausse et la baisse des ventes, le pourvoyeur mondial du café aà...
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...Introduction Starbucks started in 1971 as a single store in Seattle’s historic Pike Place Market. It offered fresh-roasted whole bean coffees in the store. There is a group of coffee lovers which shared a passion for quality coffee and exotic teas included English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker, they put investment and finally opened a store called “Starbucks Coffee, Tea, and Spice” in Seattle, WA. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) noticed that a little company in Seattle, WA, was placing orders of a certain coffeemaker, in larger volumes than the big US store Macy’s; he decided to pay them a visit to see what was going on. Gordon Bowker, the magic, mystery, and romance man, must have shared his passion for quality coffee and tea with Howard Schultz at this time, because he got hooked right away. This Starbucks store that Schultz visited was more than just a regular coffee shop; it had a soul, a passion and authenticity. People there were educated to quality coffee, and they in turn were educating their customers. Right after trying cup of Sumatra (one type of coffee), Howard was drawn into Starbucks and the seeds of the Starbucks Corporation were planted there: deep knowledge of the product and service, trust and credibility. Schultz understood that something is needed by Starbucks which is creating an atmosphere and bonding with customers around a cup of coffee. In 1980's,...
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...Internal environment analysis: Resources: Tangible: 1. Starbucks has a lot of real estates. 2. Starbucks has a very effective and efficient supply chain. 3. Starbucks has a very good and advantage roasting and blending technology. 4. Through the financial statement, the revenue of starbuck increased from 1994 to 1999E which means its revenes increased every years. Intangible: 1.high quality brand image 2. Holding the largest market share and having a high reputation in the specialty coffee industry. Capabilities: 1. Starbucks diversified the source of its coffee beans. It can make sure that they have less risk of the supplier and other factors that can effect the coffee beans. 2. Starbucks keeps a very good relationship betweent themselves to customers and suppliers. They directly connect to the customers. 3. Starbucks treats their employees and suppliers. They teach their employees coffee knowledge to satisfied the more and more educated customers problems. Strengths: 1. High quality brand image. 2. Advantage roasting technology. 3. Effective and efficient supply chain management/ 4. Loyal employee and friendly valued, and honest partners. 5. Well strategy to acquire retail store location and real estate. Weakness: 1. Expansion to international market without suitable infrastructure which may hurt starbucks high quality brand image. 2. Starbucks did not forcus on its products different from other brand strategy. Core competences: ...
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...to the store, where they’re prepared in the open kitchen behind the cashiers. You’ll see a few folks eating at the restaurant’s tables or tucking into their food outdoors on patio benches, but most customers come in with a handful of cash—no credit or debit cards, thank you—and head back out with their meals. Four is In-N-Out Burger’s innovation fulcrum—the point at which the number of products strikes the right balance between customer satisfaction and operating complexity. Four means simple purchasing, simple production, and simple service. And, it turns out, in a world where fast-food restaurants are forever adding formats and menu items, simple means harvard business review • november 2005 profitable growth. With its chain of about 200 restaurants...
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...International Management Part 1: The Global Manager’s Environment Part 2: The Cultural Context of Global Management Part 3: Formulating Strategy Part 4: Global Human Resources Management The University of Western Australia Strategic Planning and Strategy Strategic Planning • The process by which a firm’s managers evaluate the future prospects of the firma and decide on appropriate strategies to achieve long-term objectives Strategy • The basic means by which the firm competes., that is, its choice of business or businesses in which to operate and the ways in which it differentiates itself from its competitors 63 How does globalisation, risk, political-legal-ethical and culture affect the value chain that a firm manages and operates to create ‘value’ = strategic planning +strategy = STRATEGIC FIT between ‘inputs’ and ‘outputs’ Porter, M (1985) Competitive Advantage: creating and sustaining superior performance. NY: Free Press The University of Western Australia Steps in Developing International and Global Strategies Mission and Objectives Environmental Assessment and Scanning (PEST, PESTEL, Risk) Internal and Competitive Analysis (SWOT) Global Integrative and Entry Strategy Alternatives (Export, JV, Strategic Alliance, CAGE) Strategic Choice, Implementation, Feedback, and Control (Governance) Copyright ©2014 Pearson Education Realize that much of international business is conducted through strategic alliances...
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...responsibility gradually rise in the past decades for corporate. Organizations use corporate social responsibility (CSR) to set up activities in order to achieve and respond these expectations. Jamali and Mirshak (2007) state that CSR approach helps to attract global attention and acquire a new resonance in the worldwide economy. However, Frankental (2001) claims “Do CSR is a public relations (PR) invention?” and company focus on promoting itself, getting an edge on its revivals rather than being ethic to protect the environment or maintain human welfare. Therefore, in this essay, author is going to discuss about the different between CSR as well as PR. Moreover, it will apply an example of IKEA to examine the effectiveness of its CSR in supply chain and analyze CSR as a business strategy to maintain the sustainability of business, financial control and risk management. Afterwards, author will highlight the limitations of CSR policy and finally provide some recommendations to improve the CSR strategy for corporates in order to maintain the sustainable resources and increase the brand value as well as profit. Definition of PR According to Clark (2000) points out that public relation (PR) as a communication field from public information to reputation management to relationship management, it is emphasized on the promoting corporate image or two-way communication to gather audience feedback....
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...International Food and Agribusiness Management Review Volume 14, Issue 2, 2011 Agricultural Value Chains in Developing Countries A Framework for Analysis Jacques H. Trienekens Associate Professor, Wageningen University-Management Studies and Maastricht School of Management Hollandseweg 1, Wageningen, The Netherlands Abstract The paper presents a framework for developing country value chain analysis made up of three components. The first consists of identifying major constraints for value chain upgrading: market access restrictions, weak infrastructures, lacking resources and institutional voids. In the second component three elements of a value chain are defined: value addition, horizontal and vertical chain-network structure and value chain governance mechanisms. Finally, upgrading options are defined in the area of value addition, including the search for markets, the value chain- network structure and the governance form of the chain. Part of this component is the identification of the most suitable partnerships for upgrading the value chain. The three components of the framework are derived from major theoretical streams on inter-company relationships and from the literature on developing country value chains. The framework is applied in a case example of a developing country value chain. Keywords: Developing country value chains, research framework, upgrading Corresponding author: Tel: + 31 317 484160 Email: Jacques.Trienekens@wur.nl 51 2011 International Food...
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...Table of Contents Introduction 3 1.1 Brief Company Overview 3 1.2 Speciality Coffee Industry and Starbucks Coffee Supply Chain 3 1.4 Problem Definition 4 Literature Review 4 2.1 Current Situation of Starbucks and Older Supply Chain Method 4 2.2 Supply Chain Visibility 5 2.5 C.A.F.E (Coffee and Farmer Equity Practices) Practices 6 Findings 7 3.1 Starbucks’ Operations 7 3.1.1. Material Flow 7 3.1.2 Purchasing System 9 Discussion and Analysis 10 4.1 Starbucks’ 3PLs Strategy 10 4.2 Value Change Analysis 10 Conclusion 11 Appendix A 15 Appendix B 16 Appendix C 17 Appendix D 18 Appendix E 19 Appendix F 20 Appendix G 21 Appendix H 22 Appendix I 23 Introduction 1.1 Brief Company Overview Starbucks is the world’s #1 speciality coffee retailer with more than 20,000 stores n 65 countries (See Appendix G). It operates an estimate of 8,800 of its shops, while licensing and franchises operate the remainder of the stores. The company also owns Seattle’s Best Coffee, Torrefazione Italia coffee brands, Teavana, Tazo, Evolution Fresh, and La Boulange (SCC 2014). Starbucks offers consumers various products including: coffee, handcrafted beverages, merchandise, fresh food, and consumer products of coffee and tea and ready-to-drink (RTD) goods (SCC). 1.2 Speciality Coffee Industry and Starbucks Coffee Supply Chain The speciality coffee industry has seen drastic growth with increase in sales between the 1980s and 1990s. A great number of coffee specialists...
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... Introduction This paper will analyze a case analysis focused on Starbucks’ supply chain. Starbucks’ business model and supply chain strategy will be reviewed. Also, the global supply chain challenges the company faces will be analyzed. Further, the importance of aggregate planning and demand forecasting to Starbucks’ supply chain will be discussed. Finally, ways in which Starbucks utilizes pricing promotions to influence demand will be highlighted. Starbucks’ Business Model & Supply Chain Strategy Starbucks is a global coffee chain with over 21,000 outlets in 60 countries. The company is built on its brand which demands an experience and service above all other coffee chains. Until recently, Starbucks retained full ownership and control of its outlets. Franchising is relatively new transition for the organization. Yet, Starbucks takes a different approach to franchising than other large organizations like Dominos or Subway. Starbucks is extremely selective about who they franchise to. They take steps to ensure everyone they partner with will operate in sync with Starbucks’ culture and brand emphasis, as well as align with their environmental sustainability commitment. (Curtis, 2015) The fact that Starbucks was able to grow into a global organization with over 21,000 outlets speaks to the strength of their supply chain. Their supply chain strategy is built on a make to stock model which focuses on utilizing real time demand to efficiently...
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...Reflections Assignment Starbucks went through a logistical transformation in 2008 when they revamped their supply chain strategy once they realized that the company’s operational costs soared while sales were declining. Between October 2007 and October 2008, supply chain expenses in the United States rose from $750 million to more than $825 million, yet sales for U.S. stores that had been open for at least one year dropped by 10 percent during that same period. Another problem that Starbucks faced was that they were opening up new stores at such a rapid pace, the supply chain expansion couldn’t be maintained. The executive vice president of global supply chain operations said, “We had been growing so fast that we had not done a good enough job of getting the supply chain fundamentals in place”. The Senior Vice President made several visits to different Starbuck locations to analyze how they could improve the supply chain performance. A cost analysis revealed excessive outlays for outsourcing; 65 to 70 percent of Starbuck’s supply chain operating expenses were tied to outsourcing agreements for transportation, third-party logistics, and contract manufacturing. Outsourcing had been used to allow the supply chain to expand rapidly to keep up with store openings, but outsourcing had also led to significant cost inflation. A 3 step supply chain transformation was developed and submitted to the board of directors. The plan consisted of first reorganizing its supply chain organization, simplifying...
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...suppliers and organizing the supply chain management. Starbucks doesn’t outsource the procurement to maintain its high quality of standards right from the selection of coffee beans. Operations: - Starbucks operates in 65 countries either as direct stores or as licensed stores Currently Starbucks has approximately 21000 stores internationally which includes Starbucks Coffee, Teavana, Seattle’s Best Coffee and Evolution Fresh Retails. The company has generated approximately 79% of its revenue from its direct stores and 9% from the licensed stores during year 2013. Outbound Logistics: - Starbucks generally sells its product through its stores without any intermediates. However, the company has launched a new range of single origin coffee which will be sold through some leading retailers in the U.S.; these are Guatemala Laguna de Ayarza, Rwanda Rift Valley and Timor Mount Ramelau. Sales and Marketing: - Starbucks does not heavily invest in marketing and advertising. Its marketing strategy relies on word of mouth achieved through the high quality of products and high level of customer services. However, need-based marketing activities are carried out during the launch of new products which is generally in the form of sampling in areas around the stores. Customer Service: - Starbucks aims to provide superior level of customer services at its stores. The company staff is trained to deliver highest levels of customer services which are in sync with Starbucks retail objective “to be the...
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...Functional View of Work Processes Businesses do not think in terms of product or service lines as much as business functions. For example, a company that makes shoes will have manufacturing, packing, shipping, human resources, marketing, etc. as basic functions that must occur across all types of shoes they manufacture. To have quality products or services, each of these functions must work with the other functions. If there’s a problem with how one function is accomplished, this will impact the other functions. As a result, businesses must pay attention to the quality of each function and how the different functions interact with one another in their overall impact on the business. This functional thinking is what has allowed for the growth of outsourcing—companies identify the functions that are core to the quality of their business and then outsource the other ones. Many companies have also begun to sell their expertise in their core functions, recognizing that another service they can provide is to either show other companies how to do what they do best, or to actually take over the function for the other company. Standard Setting Another key business principle in a flat world is standard-setting. For each business function and sub-function, businesses set two kinds of standards. Process standards identify how a function must be performed. Outcome standards identify the key results of the performance of a particular function. Setting standards allows companies...
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...According to news reports, Singapore's economy there will be no performance space in next year 2014. But Starbucks coffee shop chains business in Singapore, it is in a growth in the state. Starbucks is expected next year will increase by 15% of the employees. These messages are provided by the general manager of Starbucks Coffee Singapore. Starbucks Coffee Singapore within a year to open 12 chain stores. There are already more than 80 chain stores and 1,300 employees to increase of 10% a year ago in Singapore. And Starbucks global revenues grew at a rate of 20%. This proves that Starbucks Coffee Singapore of business will not be affected by the economic recession, but because of consumer demand and growth. This also proves that the people of Singapore to improve the standard of living, began to pursue a noble enjoyment of life. The consumers favored products of the best quality (Mario, Hans & George, 2008). Starbucks' success is also a reason. It will not only listen to customer feedback, and also will listen to employees of the voices and opinions. Employees can be said that the company's most valuable asset (Meers, 2007). Therefore, the implementation of the two programs of Starbucks. The first program is called “Beverage Routine”, which is the employee training program. Starbucks believes that employees around the world regarded as "partners", such as business partner. Because the employees training and development can help to expand the scope of available skills...
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...SPOTLIGHT RADICALLY REINVENT YOUR SUPPLY CHAIN Spotlight ARTWORK Michael Johansson, Self Contained, 2010 containers, caravan, tractor, Volvo, pallets, refrigerators, etc. 8.2 x 10.8 x 2.4 m HBR.ORG Hau L. Lee (haulee@ stanford.edu) is the Thoma Professor of Operations, Information, and Technology at Stanford Graduate School of Business and the director of the Stanford Global Supply Chain Management Forum. He is on the board at Esquel, one of the companies discussed in this article. Don’t Tweak Your Supply Chain— Rethink It End to End October 2010 Harvard Business Review 63 by Hau L. Lee H SPOTLIGHT RADICALLY REINVENT YOUR SUPPLY CHAIN Hong Kong–based Esquel, one of the world’s leading producers of premium cotton shirts, faced a quandary in the early 2000s. Apparel and retail customers such as Nike and Marks & Spencer had begun asking the company about its environmental and social performance. Its leaders anticipated scrutiny from other customers as well, since more of them were demanding that a greater portion of the cotton in their shirts be grown organically. But the crop required a lot of water and pesticides, especially in poor and rapidly developing countries, where Esquel’s cotton was grown and processed. Though Esquel’s executives wanted to strengthen the company’s already serious commitment to social and environmental sustainability, they realized they couldn’t simply demand that the farmers who supplied extra-long-staple cotton just reduce...
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