Why Starbucks Has Used Information Systems

Starbucks uses IMS called Intelligent Restaurant Information System (IRIS). The system records information about different operations carried out within the organization. For instance, financial transactions carried out within the organization are automatically recorded in the system. For instance, the system records information about the payments made to the employees. Also, the system stores information from external stakeholders such as customers and suppliers. The system has two major components (Gaamil, 2011). One of the components is the called Point of Sale (POS) system. The POS is integrated into the computers and other devices used during different operations, such as moving products in and out of store and selling coffee and other products to customers. POS also records information about the marketing operations of Starbucks. The second component of IRIS is the Manager Work Station (MWS) (Gaamil, 2011). The MWS is a central point that is made up of a computer that manages

Use the following sections to guide your development of your integrated IT plan for your chosen business strategy. Part 2 IT Enablers Opportunity You are interested in introducing several information technology solutions as enablers to deal with some of your new coffee shop issues. Background Given your new strategic focus for your grandfathers coffee shop, what specific IT Enablers will help you with your business strategy implementation and thereby realize your value proposition for the future Example IT Enabler opportunities may include, but are not limited to, the areas of order management, inventory management, marketing and customer outreach, web site implementation and wi-fi. Be certain that you are creative in choosing your IT Enablers so your IT Enabler Opportunity is a very strong value proposition for your new coffee shop and customers. Your value proposition should include value creation activities to enhance productivity, maximize convenience, and improve communications. Task Document the IT Enablers investment which your grandfathers coffee shop could use to increase revenue, reduce costs, and thereby create value. A few questions you might want to address in your documentation for your team report include What IT Enablers would you deploy at your coffee shop and how will your business strategy benefit from the

Starbucks is rated as the number one World’s leading coffee distributor. Customers satisfactions are always be in the center of their business and the company works consistently to maintain it as customer look forward to a unique experience when visiting one of Starbuck stores. With over 12,000 stores worldwide, Starbucks has always aimed at achieving and maintaining competition in the industry.  Starbucks success reside in many factors :  the company is admire and respected worldwide,employees are recognized and respected for what they contribute to the success of the company. Open communication

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from competitors?

The story of Starbucks transformation from a small independent coffee shop tucked away in a corner of Seattle’s Pike Place Market to a cultural phenomenon spanning the globe is legendary. A number of factors have been attributed to the success - one being a keen understanding of its patrons. There are multiple methods used to obtain customer information and the value derived therein. Customer lifetime value is one.

Several key success factors exist for Starbucks, a leader in the coffee industry. They include

As a well-established coffee retailer and over 35 years of success, Starbucks is at the maturity stage in the product life cycle. It is in this stage that Starbucks needs to shift gears and focus on marketing program modifications by increasing the number of customers and customer visits (Kotler, 2009, pg. 185). While improving service will attract first-time customers and retain current ones, further marketing modifications will need to be made if it wants to continue to grow. More advertising, distribution, sales promotions, and personal selling are a few of the ways to modify the marketing program.

Starbucks roasts high-quality coffee beans to make espresso drinks and sells coffee products through multiple retail channels. The company has over 24,000 stores in 70 countries. Starbucks target market is affluent adults ages 18-40. This market segment makes up 49% of the company’s sales. In addition to targeting a specific market, the company employs a differentiation strategy. Along with the high-quality coffee, the company offers an experience within their stores which justifies higher products. Some aspects of this “coffee experience” include free Wi-Fi, friendly baristas, fast service, and comfortable seating. Also, the company relies on new product development as a strategic choice. This includes adding alcoholic beverages and food to its coffee shop. All of this is done with the idea of making the higher priced product worth it for the consumer.

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

The company is also investing in introducing complimentary products such as take home coffee beans and coffee accessories for customers. Apart from this, Starbucks is also partnering to sell their coffee through other intermediaries.

Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to
pay for
your
drinks
and
earn
rewards
for
your purchase (Starbucks Coffee Company, 2011).
Furthermore, in‐store
promotions
accompanied
by
new
products and
amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).

Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

and see what points have been earned in the My Starbucks Rewards program. End users can use