STARBUCKS CORPORATION

Starbucks Corporation- Business Operations and Systems

Starbucks Corporation- Business Operations and Systems

Introduction

The study is related to the Starbucks Corporation which particularly focuses on the business operations and systems of the Starbucks Corporation. The study aim to evaluate the operation process of the Starbucks Corporation which mainly focuses on the environmental or technological change and also provide an option to eliminate the gaps to meet Starbucks' performance expectation. After providing a new system to the manufacture, how can Starbucks Corporation react with following problem that might have occurred. The study explains how the input and output of service operation is use, and analyze the operation by using a typology of the operation. In addition, we evaluate the process design in the way then what need to improve to meet the Starbucks' performance expectation and what strategy to be use to meet customers' satisfaction.

Furthermore, we illustrate and explain the distribution process that is considered amendable to be effective and provide faster service. We explain how the Starbucks Corporation operates the automated system in sales department for a real-time stock list. The last part is implementation of new system, how it works and what problems might have occurred and provides the solutions to cope with the following problems that might affect the new system.

Importance of the External Environment and Business Operations of Starbucks

Starbucks Corporation is a premier roaster and retailer of specialty coffee. The company operates in the US, Asia Pacific, the Europe Middle East Africa (EMEA) region, and Latin America. Starbucks is headquartered in Seattle, Washington and employs 137,000 people.

The company recorded revenues of $10,707.4 million during the financial year ended September 2010 (FY2010), an increase of 9.5% over FY2009. The operating profit of the company was $1,419.4 million in FY2010 compared to an operating profit of $562 million in FY2009. The net profit was $945.6 million in FY2010 compared to a net profit of $390.8 million in FY2009.

Starbucks's financial year ends on the Sunday closest to September 30. The financial year ended October 3, 2010 was a 53-week period whereas the financial year ended September 27, 2009 was a 52-week period.

Starbucks Corporation transformed their materials in order to meet their customers' needs and satisfaction, by use of their machinery, facilities, staff and equipment. For transformation process, they manufacture products, sell and deliver to the customers. The output of the operation is customers who received the product and services. (See figure 1)

Figure 1 Service Operation

Figure 1 Manufacturing operation

Figure 2 Typology of Operation

Starbucks Corporation is a retailer of specialty coffee; we analyse operational process by using A Typology of operation (see figure 2). The volume of the product is very high. They have very low variety of products because they produce only sugar, they have limited range of product which may not suit for some industry but most of their product can be widely used in most type of industries; food, candy, pharmaceutical and sweetening. Their variation of demand is medium; the amount of demand is the same all over the year, especially ...