Efficiency Efficiency is defined as the quantity of inputs it takes to produce an output. Coffee takes nothing more than coffee beans. Starbucks seeks the highest quality beans grown in Latin America, the Pacific Rim, and East Africa. They do not deal directly with the bean growers but instead deal with exporters with whom by from also do not buy directly from the growers. Though Starbucks is more than capable of growing their own beans due the entry barriers being extremely low they have elected not to and instead provide the exporters with extensive training to insure excellent relationships and quality of the beans they receive. In addition to their coffees Starbucks also provides coffee makers, grinders and various logoed merchandise. They have worked hard to establish a network ensuring the merchandise is the same throughout North America in every store. Though their merchandise is the same across the board in all their stores they do not have “cookie cutter” stores. Starbucks has designers on staff that can fit a store into any prime real-estate no matter the size; they are more concerned with projected coffee drinker traffic than with all the stores looking the same.
Quality
Quality is of the upmost importance to Starbucks. They devote a great deal of energy in order to train and maintain excellent relations with exporters and in order to ensure a high quality bean they puts all shipments through a 3 sample test. First before the purchase is made, than before
Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).
There are 15,756 Starbucks stores in 44 countries. To have that many stores, serve that many people, and ensure they still maintain the best and highest quality of beans, really sets some doubts. Starbucks has truly become the McDonald’s of the coffee industry because of the supply and demand. In the Starbucks business, quantity is greater than quality because quantity equals to money, where as quality costs more money. There is no win/win situation with this equation when your business is serving practically the world.
Starbucks started by just making and selling coffee and coffee making equipment but now they sell everything from thermoses to delicious frappachinos. They currently have over 22,000 stores around the world. They’ve recently opened stores in panama Colombia, Brunei, India, Costa Rica, Monaco and Norway. The company is a publicly traded company on the stock market. Starbucks specializes in food service and product supplies.
Starbucks lose its uniqueness when baristas used to grind beans throughout the day whenever a new pot of coffee had to be brewed which was at least every eight minutes. Many baristas began to grind all of the day’s coffee beans in the morning and store the rest of the day. Baristas now use push-button machines to make espresso drinks. That stores no longer smell like coffee and that every store looks cookie-cutter.
To ensure brand richness, Starbucks bring the best ingredients and quality control, they also assure that all the employees are constantly involved and be aware of its mission and vision.
Starbucks is one of the most recognizable coffee retail chains in the world. Their brand focuses on high quality coffee using specialized roasting of beans from many countries around the world.
Starbucks’s has been able to surpass its rivals and continue being one of the premier roaster and retailers of specialty coffee in the world since its inception in 1985. Such an accomplishment has been sustainable due to a concrete company strategy. When Starbucks’s first debuted back in 1985 it was the first coffee shop to bring specialty coffees to the mass market in the United States. Along with only purchasing and roasting top quality coffee beans they designed their strategy in a way which gave the customer the ability to customize their drinks to meet each person’s individual preference. They also included free Wi-Fi in all of their stores, which in turn increased an already competitive advantage even more by not only offering customers
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
Starbucks is a unique organization with a unique structure (Gallos, 2012), "Starbucks is an amazing success story. In the 1990’s, it was opening a new store almost every day and is now the world’s largest coffeehouse company with more than 18,800 stores in 55 countries and more than 10 billion U.S. dollars in annual revenues ” (1). Our company
Starbucks had a very tight value proposition that matched the needs of the well conceptualized target customer base. Its mantra was ‘Live Coffee’. Their unique value proposition was based on three elements, premium coffee, the right ambience and best service. Starbucks claimed its coffee quality to be the best in the world. A lot of their revenue came from the sale of whole beans. They strived to get a perfect ambience. The labors were trained on honing their soft and hard skills to provide “Customer Intimacy”.
As Starbucks continues to expand, more profits and more risks are in store. The corporation’s brand and reputation may be put at risk as the quality of the products supplied by third parties is outside of the company’s control (―Starbucks Corporation Fiscal 2009 Annual Report‖, 20). Partnering with farmers and suppliers meant letting go of control over the quality of certain products. In order to retain customers and protect their brand, Starbucks must establish and maintain effective working relationships with reputable farmers and suppliers, which could increase costs.
Starbucks’ full control of the roasting process allows the company to ensure that the beans are roasted at a high quality. Consequently, Starbucks is able to offer a product that satisfies the demand for premium coffee. Moreover, the resulting difference in quality between Starbucks’ coffee and their competitors’ allows Starbucks to differentiate itself and gain market share.
The question is what exactly goes into the process from cocoa beans in a field to a steaming cup of delicious coffee. Starbucks has created an amazing strategy of Supply Chain Management that spans across almost nineteen countries, that means cocoa beans can come from one country while milk could come from an entirely different nation hundreds of miles away. Through this global resource span Starbucks can expand the company and reach more countries than ever before. Starbucks also makes sure that they supply the best ingredients to their coffee drinkers for a lower price. All raw materials are sent to roasting manufacturing and packaging plants. Starbucks itself has six roasting manufactories, which seems very few for such a big company, but they are using a very effective centralized system.
According to the case, in order to serve their customers with more than mere coffee, Starbucks strived to create their stores with a distinct feel, yet comfortable, relating to the cultural setting of a location. This made Starbucks fit its interior décor to the local architecture, especially in historic buildings. Also, Starbucks was willing (flexible) enough to adapt the food it offered in-store to local taste. For example, in Asia, Starbucks offers curry puffs and meat buns contrary to what is offered in North America or Britain.
The Starbucks stores are inherent a wide range of ways – the nature of the espresso, the nature of the general population, the 'third place ', the feeling of outline and group and the non-verbal signs that exist. Every one of the stores will have a feeling of style and class. Starbucks promoting from one and only store over 30 years prior in Seattle to its as yet developing domain today with a large number of outlets in the United States and in remote nations, the Starbucks Coffee Company is undoubtedly a surely understood example of overcoming adversity everywhere throughout the world. Starbucks presently works in more than 50 nations over the six landmasses of Africa, Asia, North America, South America, Oceania and Europe. Its home office is still in Seattle at the Starbucks focus which is a previous Sears,