1.

How company’s strategy was formulated and aligned to achieve the supply chain
strategy

Starbucks faced serious downfall and misfortune as it was unable to cope up with the supply
chain strategy. The existing tactics when it comes towards management of supply chain indicate
that Starbucks actually had a complex procurement, warehousing and transport along with
distribution system as it was highly responsive system and Starbucks worldwide had most
efficient systems. The company intended to implement a strategy which focuses on to enhance
the operations and make sure Starbucks serves different types of best coffee worldwide and
process it across the stores and offer customers ‘the Starbucks Experience’ which is evident in
more than 20,000 stores. However, Starbucks implemented a strategy to reorganize its supply
chain and make sure the basic functional group concepts: plan, source, make along with deliver
is the strategy followed by the company.

Starbucks focus on reorganization since the global supply chain systems consider it necessary to
take initiative on the system to have cup, coffee, milk and furniture, warehouses and distribution
systems. The supply chain was poorly maintained and was expensive to run by Starbucks as the
reorganization has made accomplishment with every functional group and sourcing and identify
the factors that result in price increase (Wiggins, 2008). The negotiation can be done in better
way while the delivery system and also the emphasis to open a U.S roasting plant was a part of
strategy to reorganize the supply chain system. The company also introduced the transformation
change by focus on weekly scorecards that provide clear details of cost, service along with
productivity metrics. This makes supply chain approach to have common frame of reference
along with goals that ensure the aligned enterprise success and logistics measure with order
receipt in time.

2. What are the changes initiated by organization in 2008 and how it impacted the others?

Starbucks initiated change in 2008 that was a supply chain transformation to be initiated by
Schultz to serve its ability to deal with supply chain stores. The emphasis of Starbucks to deal
with supply chain was inadequate along with poorly manned and expensive to run which had
negatively affected the customers as Starbucks was not able to provide the customers what they
wanted (Dynamic Inventory, 2020). The change initiated by Starbucks was to have global
logistics systems and this has impacted the changes in Starbucks as it provided excellent
customer experience and allowed to get leverage over the company’s supply chain. It has a
positive influence on customers as it enhances the customer delight since there has been better
supply chain expenditure. The control over supply chain acts as a powerhouse and has better
understanding and manages actively the success of the company.

The change to reorganize the supply chain system in Starbucks initiated in 2008 made the
company to have great future investment. The employee was able to deal with the new practices
of the supply chain system and eventually the customers were impacted in a positive manner
since they were able to gain success. The change has impacted others in positive manner since
people were able to manage the order and delivery was swift while the supply chain system
impacted in a way to gain profit in the market. The customers were able to make quick deliveries
and there has been strong connection and relationship with suppliers (Husain et al, 2014). The
customers got a quick response since the outdated supply chain systems were replaced and it
eventually made satisfied results for customers as investing in them created better customer
satisfaction. The changes initiated by 2008 has eventually impacted suppliers in positive manner
as integrated global supply chain brought long term relationships with suppliers and customers.
The supply chain was eventually properly manned and made the company operations to be swift
and responsive and also cost-effective to run which impacted the financial status of the company.
The customers were satisfied by the transformative change since their basic demands were
satisfied and they were able to get the desired product from Starbucks and it guaranteed customer
loyalty.

3. What are the transformative nature roles played by managers in making changes and
what are its effect?

The manager at Starbucks play a transformative role by nature since the use of strategic
framework in different aspects made improved supply chain strategy. The effect of using the
modern technologies with the objective to support the targeted change has made the powerful
lean techniques as Starbucks implemented a successful strategic framework which is used to deal
with the different aspects of supply chain strategy. The managers played an active role to
implement a global supply chain system and this strategy has made managers to use latest
technologies and support the targeted change. The use of powerful lean techniques has made the
firms to be successful and managers worked hard to minimize the concern of success. However,
the senior management plays a huge role to focus and use best social standards. This approach
has made Starbucks to be a leading player in industry and manager to empower the success and
staff by use of reward and training sessions.

The transformative nature roles have made organizational leaders to focus on the best strategies
and support the employees since managers implement the suitable techniques and deal with
resistance (Chakravarty, 2014). Starbucks implemented tactics of change in terms of concept of
leadership in the organization. The traditional approach had many problem resolving issues
while the transformative nature role played a huge role to highlight and focus on the problems.
The employees also were able to assess their job nature and they were also able to know the
wants of their customers.

Thus, Starbucks learned that transformational procedure used by managers to make metric matter
was important. The company learned to value the customers and eventually take improved
decisions for better performance (Schultz, 2014). Starbucks also used transformational leadership
and make sure there are effective training, productivity and well-being for the people. The staff
invested in people and had formalized and enhances the performance of employees. Starbucks
consider major emphasis on investment made with the people for decades and focus on
formalized mentoring and training along with acceleration of excellent degree of people
development. There are different companies along with claims made which consider Starbucks
to be the effort to transform and change the activities by managers and monitor its effect on the
customer interest and develop better relationship.

References

Chakravarty, A.K., (2014). Supply chain transformation. Springer Texts in Business and

Economics.

Dynamic Inventory. (2020). A Look Inside Starbucks' Coffee Supply Chain | Dynamic
Inventory. Retrieved 11 December 2020, from
https://www.dynamicinventory.net/starbucks-supply-chain-management/
Husain, S., & Khan, F. (2014). How Starbucks pulled itself out of the 2008 financial meltdown.
Retrieved 11 December 2020, from https://www.businesstoday.in/magazine/lbs-case-
study/how-starbucks-survived-the-financial-meltdown-of-2008/story/210059.html

Schultz, H. (2014). Starbucks coffee company: Transformation and renewal.

Wiggins, J. (2008). The trouble with Starbucks. Retrieved 11 December 2020, from
https://www.ft.com/content/aa9831ce-c266-11dd-a350-000077b07658