Starbucks Operations Management

Howard Schultz initially joined Starbucks in 1982 as the Director of Operations and Marketing when only four stores were established. He left the company in 1987 to pursue his own initiatives and returned in 1987. With the assistance of local investors, purchased the entire company and currently serves as the president and CEO of a globally branded company.

The purpose of this essay is to identify the relevancy of Fayol’s managerial functions to the current system of management. Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. Management is very important for an organization because without an effective management it is very difficult for an organization to succeed and perform well. A manager is “a person who coordinates and oversees the work of other people so organizational goals can be accomplished” (Robbins & Coulter, 2014, p. 32). The manager selected for this essay is Howard Schultz, the chief executive officer (CEO) of Starbucks Corporation. Starbucks is the largest coffeehouse company in the

Starbucks is an American coffee company and coffeehouse chain which founded in Seattle and Washington from 1971, Starbucks already operated more than 20000 locations worldwide. (Starbucks Coffee Company, 2016) As one of the bestselling coffeehouse chain, Starbucks need to find a long term corporation supplier to provide coffee beans. Costa Rican coffee beans are considered among the best in the world. (Kummer, 2003)

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality

* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco

In 1981, the chairman, president and chief executive officer of Starbucks, Howard Schultz first went into a Starbucks shop. A year later, in 1982, he became a part of Starbucks. In 1983, he went to Italy and wanted to make Starbucks’ coffee similar to the coffee there. He left for a while and then bought Starbucks in 1987 and renamed the II Giornale coffee shops he owned. The first Canadian Starbucks store opened that year.

Furthermore, Starbucks always involves with its customers and the community, providing customers with everything they want, and being continuously loyal to the customers while providing products that are good quality. Moreover, Starbucks also makes sure that the provided products are good at the beginning, rather than provides low quality products and makes improvement in the future. In order to do this, Starbucks gets the best ingredients possible and trains its partners properly so that is can prevent any defects in the products. To ensure that all products are with good quality, Starbucks always listens to feedbacks from its partners and its customers in order to better the process in which the products are made and the end result itself (Sandhu, M., Singh, R., Ratra, R. et

Howard Schultz is the current CEO of the famous and well-known Starbucks Coffee. He was born on July 19, 1953, and grew up in a Brooklyn, New York housing project. Schultz got a football scholarship from Northern Michigan and was the first in his family to graduate from college. He first got a job working as a salesman for Xerox Corporation. He later moved back to New York to sell kitchen equipment and housewares for a Swedish company before landing a marketing job at a small coffee bean store called Starbucks. He traveled to Italy and was inspired to open an espresso bar in the United States. His bosses at Starbucks immediately said no, so he started a rival store in 1987, making his java with Starbucks beans. Two years later he

Starbucks a coffee company not only the best coffee maker in the world but also a best place to work around the global but still Starbucks is facing an issue in maintaining customers satisfaction and due to this problem Christine Day, senior vice president of administration had planned to invest $40 million annually to speed up the work load in 4,500 stores by providing 20 hours of labor a week. However Day and her associates still are not sure about the impact of this investment on sales and profitability.

Starbucks is one of the famous coffee shop in the world. It was established in 1971. The first store was opened in Seattle, Washington. The store was initially sold only coffee bean and coffee machine instead of drinks that they sell now. Today, Starbucks has expanded to more than 22,500 stores around the world. The timeline below contains events of Starbucks, which shaped the Company into the industry it is today.

The Starbucks Company is a purveyor of gourmet coffee that was founded in 1971 at Seattle’s Pike Place Market (Retrieved March 10, 2015, from http://www.starbucks.com/about-us/company-information). At that time Starbucks was a single storefront that offered premium, fresh roasted whole bean coffees. Since opening that single store Starbucks has grown to an international presence with branding that is recognizable worldwide. In addition, Starbucks has increased their product line beyond hot and cold coffee beverages to include hot and cold teas, packaged whole bean and ground coffees, high quality, fresh foods and coffee making equipment and supplies. Starbucks operates a total of 19,767 company operated and licensed stores and operates in 62 countries. In addition to the Starbucks’ brand the company also owns and operates other well-known brands such as Teavana and Seattle’s Best Coffee. (Retrieved March 10, 2015, from http://news.starbucks.com/uploads/documents/Starbucks_Fiscal_2013_Annual_Report_-_FINAL.PDF)

-high performance design for quality control, Starbucks has a specialized process for roasting the perfect coffee bean. It is implemented with the roaster determining by sight, smell, hearing, and computer, if the beans are perfectly done. Additionally, the colour of the beans is tested in an Agtron blood-cell analyzer. If the sample is deemed imperfect in any of these processes, the whole batch is discarded. Starbucks’ departmental systems are organized into functional and production divisions such as Supply Chain Operations, Human Resources, Accounting, etc... Starbucks employs approximately 15,000 individuals to operate its retail stores and regional offices, and 1,600 individuals to work on administrative, sales, real estate, direct response, roasting, and warehousing operations.

Starbucks Corporation was established in 1985 as the premier roaster, marketer and retailer of specialty coffee in the world, identifying them as one of the most recognized and admired brand. As of 2016, Starbucks operates in 75 countries comprising of two types of stores: company-operated and licensed in each market. In addition, there are four reportable

As the number one specialty coffee retailer, Starbucks offers hot and iced drinks, breakfast and pastry items, as well as boxed meals and sandwiches to customers in over 18,000 coffee shops in 60 countries. Also known as the premier roaster, Starbucks has created a high level of brand reputation because of its top quality services they prove to their customers. Starbucks wants to create top quality for their customers as well as create unique customer experience for each individual customer. They use premium coffee beans that they roast with great care to ensure a great, bold taste in their coffee. Starbucks also makes sure that each store is more of a community feeling, rather than a store establishment, and

Integrated business operations – In this type of franchise the company is combined with two or more operations but operates as a single business unit. It is a type of collaboration which offers cost savings and will also result into increase in efficiency.