ASSIGNMENT#2

BENCHMARKING

QUESTIONS:-

ANS#1:-
The purpose of Starbucks is to provide the quality coffee to its customers. For
that, they take coffee from the farmers and do machining process to improve its texture
after that supply to Starbucks shops where they make coffee for customers.

For the expansion of Starbucks company, they focus on some of the principles
such as nearby shops where the customers can easily buy coffee and enjoy, to make it an
international brand, train their workers and appreciate their hard work and also provide the
service of Wi-Fi for the customers which want to do office work.

ANS#2 (a):-
When we compare both companies in terms of customer service, then we see
that Starbucks offers for customer facilities then that of costa coffee. It is important because
customers will be attracted to that organization where there will be more customer facility.
Costa coffee gives customer facilities but they are fewer than Starbucks which include like
Costa coffee club card, Charity into the ”coffee community” etc.

Ans#2 (b):-
If we compare both organizations on the basis of supply chain, then we see
that Starbucks work on a single global logistics system and they ensure the earning of its
confidence and stay focused on their mission for delivering products. Whereas Costa plans
on multiple supply system to ensure on-time distribution of products. They gave
transporters the contracts.

Ans#2 (c):-
Starbucks purchases material at outright prices whereas Costa uses only
sustainable sourcing strategy. Starbucks builds direct relationship with the farmers whereas
Costa has worked with the group of farmers. Starbucks have signed long term contracts for
the materials they want to purchase whereas Costa are committed to only support the
British dairy industry.

Ans#2 (d):-
Starbucks uses their own tumblers and also they recycle it and they also ensure
that the coffee is not over produced. The negative and major fact of this organization is that
they waste millions of liters of water per day. Costa coffee uses the scheme which is
“simply cups” recycling scheme in which they use the cup and then recycle the cups to use
again. In this way they produce less waste by recycling. The organic waste (i.e. coffee
ground) is to a process for bio fuel usage.

What can Starbucks learn?

Starbucks can learn from Costa in such a way that they can build relationship with more
farmers than the group of farmers. They can also learn in terms of prices that Costa offers
cheaper coffee than Starbucks. They can improve it by giving discount to the customers or
they can undercut costa by offering student pricing.

Ans#3:-
If we see the overall comparison of both organizations, then we see that
Starbucks provide more customer facilities than that of Costa coffee. Costa coffee needs to
improve their customer service to attract the customers. Starbucks wastes a lot of water as
mentioned above which should be improved. Starbucks as compared to Costa coffee build
good relationships with the farmers. Costa coffee send their organic waste for the biomass
fuel which is good from this we can create gas for the power stations.

Submitted by : MUHAMMAD ABUBAKR SIDDIQUE

Registeration No. BSME01163213

Section : C