COLLEGE FOR RESEARCH AND TECHNOLOGY OF CABANATUAN

Burgos Ave., Cabanatuan City, Nueva Ecija

FINAL OUTPUT
IT109
A CASE STUDY OF ERP IMPLEMENTATION

Submitted by:

Ma. Naidlly Hope Lira

Joselle M. Santarina
Geraldine Ramos
BSIT-4A CRT CABANATUAN

Submitted to:

Maam Ederlyn Ramos

2022 - 2023

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 COLLEGE FOR RESEARCH AND TECHNOLOGY OF CABANATUAN
Burgos Ave., Cabanatuan City, Nueva Ecija

ERP
CASE STUDY: STARBUCKS

Starbucks opened its doors on March 30, 1971, in Seattle, Washington. It was
formed by business partners Jerry Baldwin, Zev Siegl, and Gordon Bowker, who first
met as undergraduates at the University of San Francisco. Coffee roasting entrepreneur
Alfred Peet inspired the trio to sell high-quality coffee beans and equipment. Bowker
remembers that one of his business partners, Terry Heckler, thought words beginning
with the letters "st" were powerful, prompting the founders to compile a list of terms
beginning with "st" in the hopes of finding a brand name. They chose "Strabo," a
mining town in the Cascade Range, and from there, the gang remembered "Starbucks,"
the chief mate in the novel Moby-Dick. "Moby-Dick had nothing to do with Starbucks
directly; it was merely accidental that the sound seemed to make sense," Bowker
explained.

Like other international firms, Starbucks has developed an ERP system to collect
and disseminate data about its products, operations, processes, and activities.
Starbucks is a globally recognized specialty coffee store. Starbucks is headquartered in
Seattle, Washington, and the company has been focused on selling high-quality coffee
since its foundation in 1971. in its retail outlets. However, the company's product
portfolio has grown over time (Seaford & Brooks, 2012). Starbucks, for example, has
just begun selling high-quality tea, milk, sandwich items, soft beverages, and film and
music discs. Initially, the company only had one store in Seattle. It was owned by
Gordon Bowker, Zev Siegl, and others at the time. as well as Jerry Baldwin. Howard
Schultz, a former Starbucks manager, bought the company from its original owners in
1987. (Seaford & Brooks, 2012). During the ownership transition, the company had only
six locations. Starbucks began aggressively expanding soon after the shift in ownership.
By 1992, the company had over 140 outlets, some of which were outside the United
States (Simmons, 2012).

Starbucks' shop count grew significantly as it expanded throughout the global

market. The corporation has grown significantly in the twenty-first century. Between
2002 and 2007, the company's shop count expanded from roughly 5,886 to 15,011.
(Seaford & Brooks, 2012). Despite this, the tremendous development was offset by the
obstacles that developed during the 2008 Global Financial Crisis. Starbucks, on the
other hand, continued to grow when the crisis ended. The corporation currently has
over 24,000 stores in over 70 countries and employs over 238,000 people (Starbucks
Coffee Company, 2017). Starbucks is also a publicly traded company. In June 1992, the
company's inaugural shares were traded on the stock exchange. Managers rely on all
critical information to make decisions educated and effective decisions. Similarly,
Starbucks managers on other continents can only make excellent decisions if they can

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 COLLEGE FOR RESEARCH AND TECHNOLOGY OF CABANATUAN
Burgos Ave., Cabanatuan City, Nueva Ecija

access
information about the company, other stores, different departments, customers,
products, suppliers, staff, prices, and sales. Starbucks uses Oracle OLAP ERP software.

A. Why did they implement ERP?

For their company to have a good income or outcome. To improve reporting and
planning, as well as to manage and integrate the essential parts of their business. Often
via software to connect planning, sales, finance, marketing, and human resources and
to standardize business processes.

B. What are the failure that they encounter?

During this pandemic, the failure they encounter is finding customers because, at
the height of the pandemic, people were afraid to go out and socialize, so only a few
people were going out. So finding customers at that time was hard, so this was a failure
at that time. They needed help finding, hiring, and retaining talented staff when they
started.

C. How did they implement?

First, having a successful business plan, they implemented it, so they also had a
successful outcome. Before that success, they initially started with difficulty but
recovered when their business became successful. Starbucks they have the first step of
having a business write a mission, vision, and values. This vital step clarifies what the
business is about and what it is trying to achieve. Furthermore, it also determines the
values and guiding principles used to make business decisions—the company's strategic
plan.

D. What are the advantage and disadvantage of using ERP in

their company?

The advantages of Starbuck's implementation of a new Enterprise Resource

Planning System. The ERP system will help Starbucks provide better customer service
by enabling the company to access and analyze customer data more quickly and
accurately. This will help the company identify customer trends and offer tailored
services. The ERP system will help Starbucks gain better insight into its operations,
giving the company more visibility into its processes, inventory, and supply chain. This
will help the company make better decisions and optimize its operations. The ERP
system will help Starbucks save money by reducing manual labor costs associated with
manual processes. Additionally, the system will help the company reduce inventory

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 COLLEGE FOR RESEARCH AND TECHNOLOGY OF CABANATUAN
Burgos Ave., Cabanatuan City, Nueva Ecija

management and supply chain optimization costs.

The disadvantages of Starbuck's implementation of a new Enterprise Resource

Planning System. Implementing a new ERP system can be expensive, and Starbucks
may need to invest in additional hardware, software, and staff training to ensure a
successful transition to the new system. The Security Risks Any new system poses
security risks, and Starbucks must ensure that the new system is secure and compliant
with applicable laws and regulations.

E. What are the factors that makes their company failed or

success in using ERP?

Poorly planned implementations can lead to the failure of ERP systems in any
company. If the company has yet to plan correctly out the implementation of the ERP
system, it may end up with an inefficient and unsupported system. Lack of training and
user adoption If the employees do not have adequate training and knowledge of the
new system, they will not be able to use it effectively. This will lead to a lack of user
adoption, and the system will not be utilized to its full potential. Poor support If the
company has a sound support system, any issues with the system may be addressed on
time. This could lead to a decrease in users.

Starbucks has invested in strategic planning to ensure that the ERP system aligns
with its goals and objectives. This has enabled them to successfully identify areas of
improvement and take action to ensure that the system is optimized. Starbucks has
designed the ERP system to be flexible and adapt to changing market conditions and
customer needs. This allows them to keep up with their competitors and stay ahead of
the game. Starbucks provides excellent customer support for its ERP system. This
ensures that any issues that may arise can be quickly and efficiently resolved.