OPERATION MANAGEMENT

Operation Management at Starbucks



Table of Contents

Introduction3

Project objective8

How And Why Operations Process Helps Or Hinders In The Achievement Of The Operations Objectives8

Method11

The logic behind this Method (interview)12

Conclusion12

References14

Operation Management at Starbucks

Introduction

The purpose of this assignment is to select a department or an organization and critically assess the operational methods and strategies adopted to provide the product(s) in a way that give(s) maximum satisfaction to the customers or clients. For the purpose of this assignment, we have selected Starbusks. We have examined the operational management process of Starbucks along with a critical appraisal of the operational methods and strategies adopted to provide the products.

Customers & the Operations Objectives of Starbucks

Starbucks is an international coffee company selling and specialising in hot beverages from frappaccinos to expressos, they also sell a range of cakes, biscuits, chocolate, sandwiches and pannini's. (Mintle, 2005, pp. 115)Based in Seattle, USA, It was founded and born in Seattle in 1972 and today has thousands of coffee houses spanning over 5,886 locations across the globe. It has been opening over 1000 coffee houses around the world every year since 1999 and so needless to say the operations management of each and every one of these restaurants is important to the whole structure and well being of the company. (Zann, 2004, pp. 75)

Operations objectives at Starbucks (to be known henceforth as SB) are run to a very tight and demanding schedule, their employees are subject to the mercy of a highly sophisticated piece of software called 'star labour'. (Mintle, 2005, pp. 115) Star Labour uses information about an employee such as their level of training and how many coffees per day sold, and it creates tailor made working schedules for each of its employees in every SB restaurant. (Fame, 2009, pp. 30)This as a result means that the computer maximises and uses all the available staff in a restaurant to its utmost potential generally designating half or quarter day shifts to maximise output, minimise waste and maximise profit. There are no Barista's/Partners (these are terms SB uses for its employees) in full time employment at SB all staff are part time workers which means that Starbucks don't have to promise work and employees don't gain the benefits that traditionally, full time employees would, for instance pension plans. (Humming, 2007, pp. 75)This has great benefits for the company as no money is being spent frivolously on items and time that won't directly help the company. (Fame, 2009, pp. 30)

To look further into the SB machine and assess the operations first hand primary research was conducted into one of its restaurants. Starbucks coffee house, Clifton, White ladies Road. Immediate and local competition is from Chandos Deli, Metro Espresso and Goodfellas coffee shop. Although SB tend to favour cannibalisation (putting so many SB next to each other that competition is driven out and they then begin competing against each other) this particular SB is the only one within about a 1mile radius and is surrounded by shops, offices and educational establishment of ...