...11 Diversification 12 Reference: 13 2.1 Recommend with justification, appropriate actions to overcome the identified weakness in business: After 40 KPI analyses above, we can know that some disadvantages which Star coffee has coped with and then, the coffee has to find way to overcome these weakness: For marketing: The Star coffee's Facebook page like coffee: many customers still do not know the personal Facebook page of the Star coffee, so, how much to increase the number of customers who can know Star Brand via facebook to support the brand image of Star coffee. In addition, coffee Star has not focused on their FB page if Star coffee concentrates more on his Facebook page and make the broaden for this like share the menu or the beverage of the coffee, customers will know more about Star Coffee. One thing that is very easy to realize at Star Coffee has almost no marketing campaign in a year. Star. It is true that Star Coffee has a stable number of customers who come to the coffee every day but without marketing campaign it maybe have bad effect on the business. No marketing campaign means always old customers come back again and again, nearly zero new customers. Therefore, they should do at least one a year, even it is very simple. For example, hanging the banner in front of the shop to catch the eyes of customers, give the leaflet to the people in the street, give...
Words: 3342 - Pages: 14
...the delivery of service quality”, Journal of marketing, 1988. Working Sessions: • Individual • Computerized • Classical Manuals: • commented transparencies (Culb IAG, web) • exercise manual (Culb IAG, web) • readings (Culb IAG) • personal notes • Chase and Aquilano, Production and Operations Management, Irwin (Edt). • McLain, Thomas and Mazzola, Operations Management: Production of goods and services, Prentice Hall (Edt). Objectives / Exam ... Winnie the Pooh spent the rest of the day by walking and happily humming a new hum, all about the common sense approach and what The Stranger has been teaching them and the hum went like this: Select the problem of the day Finding one that’s right to do, You can choose it either way, You pick it ot it picks you. Observe it very carefully, “Where do I start? Where am I going?” And don’t forget about the bee, “What’s in the way of doing or knowing?” Prod 2100/2110 Introduction 1 Introduction What is POM ? What kind of problems are studied in POM ? 1. DEFINITIONS.................................................................................................................................... 3 1.1 PRODUCTION AND OPERATIONS .......................................................................................................... 3 1.2 PRODUCTION SYSTEM ......................................................................................................................... 4 1.3 EXAMPLES OF PRODUCTION SYSTEMS...
Words: 3161 - Pages: 13
...standardization is the processes making the organizations to focus their attention in provide a great customer service. It is satisfying the customer expectations and needs. The motivation for standardization comes from a number of sources. “These include the aspiration for reducing costs and improving reliability of systems. By promising that reliable and interoperable standard exists, it is possible to dodge being locked into specific vendor’s products and ensure healthy race to improve quality, reduce costs, and guarantee reliability of supply.” (Ratha and Govindaraju, 2008, p. 473) I am agree with the statement that standardization of hospitality services provides customers with consistent quality and ensure that staffs are able to deliver it. It is a great way to give excellent services to customer. Nowadays, standardization of hospitality services can be seeing everywhere, even all over the world. This is done to promise that the finished product made has consistent quality, and that any...
Words: 2575 - Pages: 11
...Author: Group 2 Course: Operation Management SERVICE QUALITY IN STARBUCKS COFFEE An in-depth study ABSTRACT This report has been prepared to analyze the processes and strategies such as control of operations systems, design and planning of Starbucks. Theoretical frameworks have been applied to evaluate the company’s operational strategy in terms of its products and services offering. While the report considers Starbucks overall strategy, it also focuses on the daily operations of Starbucks franchises. The study evaluates how Starbucks has been able to position itself as a leader in its market segment and analyses the strengths and weakness in the company’s existing strategy. Upon dissecting various aspects of the company’s processes, it provides an appreciation of the company’s efforts to continuously evolve in the changing market conditions by incorporating new product design and being innovative to stay at parity with its competition. Finally, upon identifying the areas of improvement in the company’s existing strategy, the report conclusion discusses about lesson learned and possible recommendations that can be incorporated in order to further ensure operational efficiency thereby maximizing profits and increasing its value offering. Page 1 of 31 Table of Contents ACKNOWLEDGEMENT .............................................................Error! Bookmark not defined. ABSTRACT ..........................................................
Words: 6103 - Pages: 25
...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, Howard Schultz joins Starbucks in 1982. In 1990's, the demand for great coffee allows Starbucks to expand beyond Seattle, first...
Words: 8506 - Pages: 35
...Background of Case 1: Coffee Pot Coffee Pot is a company whose business is selling coffee drinks to consumers. Balkis, the daughter of Coffee Pot late president, takes over his job as the new president of the company after the death of her father. The company has been making losses in recent years. Since the company cannot compete with Starbucks, based on the quick strategic analysis, the company needs to come up with new strategy to attract customers. By using her knowledge in bio-chemical engineering, she manages to come up with the new technology of coffee brewing which enables higher productivity and lower cost of production. Therefore, with lower cost assured, Balkis chooses a strategy of targeting price-sensitive drinkers to improve the company’s profitability. However, the latest quarterly financial report, still reporting loss. In addition the company is also unable to pay the monthly loan. She seeks help from her bookkeeper, auntie Sofiah who only finishes secondary school. She noticed that the quarterly report lacks detail and there is decreasing pattern of earnings from the previous reports. She decides to get help from her friend, Jannah to look into the company’s problems. Meanwhile, Johari, the manager of the Administration, Purchasing and Human Resource division manages to earn his quarterly bonus by beating the previous quarter number. He often changes the suppliers to get the lowest prices. He also managed to reduce purchasing and training costs. However...
Words: 1982 - Pages: 8
...organization stands in relation to their industry. These five forces also help increase awareness of a trend towards suppliers and buyers bargaining power as well. Unlike SWOT analysis which is company specific explained in the next portion of this project, Porter’s five forces framework is industry focused. Furthermore, the five variables in the porter analysis are the industry suppliers, buyers, potential new entrants, substitute products and competition among existing firms. This section provides a thorough examination of the five forces affecting Starbucks’ coffee industry environment. Potential for new entrants The first force in Porter’s model analyzes potential new entrants which may impact Starbucks’s business competition. The threat of entry will depend on the existence of barriers to entry and the reaction of existing competitors (Henry, 2011). In the case of Starbucks, their status is first entrant to the specialty coffee market which gives them an advantage over new entrants. Possessing geographical areas in prime markets is complementary to their status. Starbucks not only...
Words: 6201 - Pages: 25
...name, functionality, styling, quality, safety, packaging, repairs and support, warranty, accessories and services. In OldTown White Coffee, the product refers to local foods and products offered to consumers. OldTown White Coffee used its own uniquely Malaysian taste (the authentic Ipoh White Coffee) to introduce a product to the market in Malaysia. In Malaysia, the OldTown White Coffee set its base at Ipoh, Perak. In mere time span of 5 years, OldTown White Coffee has grown up to over 176 outlets since the first outlet in 2005 in Malaysia. OldTown White Coffee has became the first largest kopitiam restaurant chain in Malaysia OldTown White Coffee‟s products include tangible elements. Tangible elements are the things that customers are able to see, touch, feel, taste, and smell. These all tangible elements OldTown White Coffee were done as perfectly and completely. To satisfy the palate of local population in country, OldTown White Coffee uses the localized version of its product. In other words, OldTown Coffee offers local foods and meals in Malaysia. For example, the meals included Nasi Lemak Special, Prawn Noodles, Kaya or Butter Toast and Asam Laksa. While, hot and cold beverages included, Hazelnut White Coffee, Old Town White Coffee Signature Freeze, Old Town White Coffee, and Old Town Nanyang O. With the intention to provide quality white coffee to Malaysian households, its founders formulated their own blend of 3-in-1 instant white coffee and commenced manufacturing in...
Words: 1582 - Pages: 7
...1. INTRODUCTION The history of Starbucks starts in Seattle in 1971. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet coffee beans and brewing and roasting accessories. In 1981 Howard Schultz first walked into Starbucks as a sales representative for a Swedish kitchen manufacturer. He immediately wanted to work for the company as he got so inspired by Starbucks but it took him a year to finally persuade the owners to hire him. The owners were reluctant initially to hire Schultz because they thought his style and high energy might not blend with the existing culture of the company. However in 1982 Starbucks hired Schultz as the new head of retail operations and marketing and shortly thereafter was sent to Milan to attend an international housewares show in Italy. When he arrived, Schultz found himself infatuated with the exciting coffee culture of Italy. Schultz went to Verona and had his first caffe latte. But he observed something more important than the coffee. The cafe customers were chatting and enjoying themselves while sipping their coffees in the elegant surroundings. That’s when Schultz was struck with an inspirational idea. In 1987 the owners of Starbucks Coffee Company decided to sell their coffee business, along with the name for $3.8 million. Schultz raised the money by convincing local investors of his vision. Now with over 17,009 stores in 55 countries...
Words: 3320 - Pages: 14
...Michelle Ton 1 Executive Summary Starbucks Corporation has arguably been the most successful coffee chain in the past few decades, using their aggressive expansion strategies to push out much of its competition. Through its expansion, Starbucks has focused on creating a dense network of stores all around America, while also opening up new locations all around the world. By leading the retail coffee market, Starbucks is able to sell its coffee for a premium price and increase their profitability. Its success can be seen in the gradual rise of its stock prices from 1992 – 2007, reaching almost 6000% of their initial public offering 1 . Yet, in the recent year, the market has shown Starbucks to be in constant decline, as their stock has dropped about $15/share, a value they have been above since 2004. Also, looking at Starbucks’ SEC filings, we can see that its comparable store sales have decreased significantly in US markets since 2004. This has prompted Team Macchiato to evaluate Starbucks’ current strategies in addition to the retail coffee market as a whole. To evaluate the problem, one of the biggest questions to consider is to what extent is the “designer coffee” market just a fad. In other words, will the allure of gourmet Starbucks coffee be maintained or will more appealing options threaten the success of Starbucks’ primary product? If the designer coffee market is indeed a fad industry, we need to evaluate Starbucks’ possible options to avoid further decline...
Words: 6815 - Pages: 28
...transactions are based on negotiation and agreement. With this, it will be a great opportunity for Oldtown White Coffee to expand their business in Finland’s market and make a profit out of it. Economics Economic factors affect the purchasing power of consumers and the firm’s cost of capital. The Gross Domestic Product (GDP) in Finland contracted at an annual rate of 0.40 percent in the last reported quarter. Based on statistic, from 1975 until 2010, Finland's average quarterly GDP Growth was 0.56 percent reaching an historical high of 5.00 percent in September of 1980 and a record low of -5.30 percent in March of 2009. Wages and salaries of worker in Finland increase 5.5% of national income from year 2005 until 2009. Finland has continues to attract foreign investment due to its economic success. With the strong economic status, Finland is surely suitable country for Oldtown White Coffee to expand their business. Social-Cultural Social factors are very important because they can easily affect the consumer needs and the size of the potential markets. One of the social factors is the cultural aspects of the external macro environment. Finland ranked among the biggest coffee-consuming countries in the world. In Finland there are roughly 5.4 million populations, and their top priority in life is improving their life quality. They would want the best for them, from a simple cup of coffee to many others bigger things. Due to this, Fins are very innovative. They will keep on innovating and...
Words: 1626 - Pages: 7
...Nespresso is a subsidiary of Nestlé and one of the world’s leader on the coffee market. The brand became famous through its coffee makers working with pods, it is also Nespresso who opened the coffee pod segment as it was the first company to launch coffee makers working with pods. Nespresso wanted to innovate by creating the “Nespresso experience”. In this case, we will analyze the company and its strategies through the SWOT. SWOT analysis Internal diagnosis STRENGTHS A high visibility internationally: Nespresso, is part of Nestlé, which is one of the worldwide leader concerning consumer goods products: the turnover represents 58 billion euros, the company employs 250 000 people in 85 countries. So, Nespresso takes benefit from the visibility and the financial power of Nestlé. It enables Nespresso to have a better access to R&D and communication skills. Being part of the Nestlé Group helped Nespresso to become the European leader in the production of espresso machines. A high focus on the clients: One of the key factor of the success of Nespresso, it is that their strategy is based on their relationship with their clients. They listen carefully to the consumer needs and demands in order to promote fidelity within their clients. Excellence and high quality products are part of their strategy. Hence, the products have some particularity in order to enhance the unique aspect of Nespresso: - Very high quality products and a large range or aromas (12). - Airtight capsules in order...
Words: 3624 - Pages: 15
...SUMMARY ABOUT STARBUCKS Starbucks Corporation is an international coffee and coffeehouse chain. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also sold at grocery stores. Starbucks establish as the premier purveyor of the finest coffee in the world while maintaining their uncompromising principles as they grow. The following six guiding principles are the main company mission. First of all they provide a great work environment and treat each other with respect and dignity. Secondly they embrace diversity as an essential component in the way we do business. Moreover they apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Also they develop enthusiastically satisfied customers all of the time. Furthermore they contribute positively to our communities and our environment. And finally they recognize that profitability is essential to our future success. The company’s environmental mission statement is that Starbucks committed to a role of environmental leadership in all facets of our business. QUESTION...
Words: 3699 - Pages: 15
...Michelle Ton 1 Executive Summary Starbucks Corporation has arguably been the most successful coffee chain in the past few decades, using their aggressive expansion strategies to push out much of its competition. Through its expansion, Starbucks has focused on creating a dense network of stores all around America, while also opening up new locations all around the world. By leading the retail coffee market, Starbucks is able to sell its coffee for a premium price and increase their profitability. Its success can be seen in the gradual rise of its stock prices from 1992 – 2007, reaching almost 6000% of their initial public offering 1 . Yet, in the recent year, the market has shown Starbucks to be in constant decline, as their stock has dropped about $15/share, a value they have been above since 2004. Also, looking at Starbucks’ SEC filings, we can see that its comparable store sales have decreased significantly in US markets since 2004. This has prompted Team Macchiato to evaluate Starbucks’ current strategies in addition to the retail coffee market as a whole. To evaluate the problem, one of the biggest questions to consider is to what extent is the “designer coffee” market just a fad. In other words, will the allure of gourmet Starbucks coffee be maintained or will more appealing options threaten the success of Starbucks’ primary product? If the designer coffee market is indeed a fad industry, we need to evaluate Starbucks’ possible options to avoid further decline...
Words: 6815 - Pages: 28
...and chocolate syrup, of course. You then make your way to a cozy chair in the corner, where you set up your laptop and books. The atmosphere is perfect. The store design is perfect. The employees are perfect. And the coffee is…well, that is up for debate. As consumers, many of us know Starbucks as being one of the most popular brands in the coffee industry. Many people also know that Starbucks offers Fair Trade certified coffee, which the company often uses in its marketing campaigns to demonstrate how ethically responsible it is. Some consumers are not aware, however, that Fair Trade certified coffee is not as humane and virtuous as it seems. In fact, it is not really fair in any sense of the term. From a deontological ethical standpoint, Starbucks does not live up to ethical ideals in its promotion and sales of Fair Trade certified coffee. History of Fair Trade Certified Coffee The trend toward Fair Trade certified coffee stems from the Contra Movement, which occurred in Nicaragua during the 1980s. The Contra Movement resulted from the Nicaraguan government’s unfair treatment of coffee farmers. The United States supported the farmers in their rebellion (Stanley and Argenti 11). “When President Ronald Reagan banned Nicaraguan imports, Thanksgiving Coffee owner Paul Katzeff imported Nicaraguan beans through Canada and donated $.50 a pound to the Sandinistan farmer” (Stanley and Argenti 11). After numerous other countries hopped on the bandwagon and established Fair Trade...
Words: 2166 - Pages: 9
