Supply Chain Management in Starbucks and its impact on Company Performance

Contents

Chapter 1: Introduction4

1.1 History of Coffee4

1.2 Formation of Starbucks4

1.3 Company Overview4

1.4 The speciality coffee industry and the Starbucks coffee Supply Chain5

1.5 The Company Mission Statement6

Chapter 2: Literature Review7

2.1Starbucks' Products7

2.2 Green Supply Chain (GSC)7

2.3 Supply Chain Visibility8

2.4 Corporate Social Responsibilities (CSR)8

2.4.1 Ethical Sourcing9

2.4.2 Environmental Stewardship11

2.4.3 Community Involvement13

Chapter 3: Research Methodology15

3.1 Primary Research15

3.2 Secondary Research15

Chapter 4: Findings16

4.1 Starbucks' Objectives16

4.2 Supply Chain Management and its impact16

4.2.1 Green Supply Chain16

4.2.2 Starbucks' Operations17

Chapter 5: Discussion/ Data analysis22

5.1 Starbucks' Strategy22

5.2 Operational elements22

5.3 Value Chain Analysis23

5.4 Porter's Competitive Forces Model26

5.5 Survey analysis29

Chapter 6: Conclusion33

References34

Appendix 136

Chapter 1: Introduction

1.1 History of Coffee

Evidence proposes that coffee was first found out as a warm beverage in Eastern Africa throughout 11th 100 years, in a locality reNowned today as Ethiopia. Today, coffee is a monster international commerce using more than 20 million people. This product ranks second only to petroleum in periods of dollars swapped worldwide. With over 400 billion cups spent every year, coffee is the world's most well liked beverage. In the United States, sales of premium specialty coffees have come to the multibillion-dollar grade, and are expanding considerably on a yearly basis. (Coffee Universe, 2011)

1.2 Formation of Starbucks

In 1985, Starbucks was created below the authority and management of Howard Schultz. Schultz presently assists as the Chairman of the Board as well as directs visionary of the trade. Starbucks buys roasts and sells first-class whole bean coffees mainly through Trade-operated retail stores. (Starbucks website, 2010) In supplement, it deals fresh coffees, Italian-style espresso beverages, chilled and combined beverages, a assortment of complimentary nourishment pieces, coffee associated accessories and gear, along with a assortment of premium teas and a line of compact computer discs,

1.3 Company Overview

The first Starbucks was formed in 1971 by three academics- English educator Jerry Baldwin, history educator Zev Siegel and author Gordon Bowker who opened the first shop in Seattle that they called “Starbucks Coffee, Tea, and Spice”. These partners entitled the emblem Starbucks after the coffee-loving first friend in Melville's Classic Novel “Moby Dick”. The title resonated with the romance of the high oceans and seafaring coffee traders. The logo of Starbucks Company was founded on an vintage 16th 100 years Norse woodcut: a two followed mermaid siren encircled by the Store's initial title The Company increased gradually and by the early 1980s had a baking vegetation and 4 retail shops that traded whole-bean coffee in the Seattle area. Starbucks has been money-making every year since it commenced trading.

In March 1987, Jerry Baldwin and Gordon Bowker determined to deal the entire Starbucks procedure in Seattle - the shops, the baking vegetation and the Starbucks name. Schultz increased capital and directly acquired the company. The new title of the blended businesses was Starbucks Corporation. When Howard Schultz was 34 years vintage, he became Starbucks' leader and CEO.

In 1989, Schultz conveyed in Howard Behar who was well renowned with unfastening and running multiple units. The next year, Orin Smith connected Starbucks as their Chief Financial and Operations ...