Importance of decision making in Starbucks

Starbucks Corporation's operation management is based on organizational decisions involving

official corporate activities and coffeehouse operations. The decision-making in Starbucks can

influence the productivity and operational efficiency of licensees and franchisees. The strategic

decision-making in the project's management steers the business toward the attainment of

Starbuck's business mission and vision statements (Xu, 2020). However, the diversity of the

coffee markets on a global scale needs the company to embrace different business strategies to

enhance business sustainability in operational management and adapting to new business

environments. Franchised and Licensed Starbucks locations can flexibly adjust to local markets

in local conditions. Thus, Starbuck's objectives in decision-making engage strategies from

business industry leaders, such as Coffee and Farmer Equity (C.A.F.E.) in supply chain

management.

Starbucks Corporation needs to make decisions on goods and services. The corporation

requires solid decision-making in the characteristics of business processes to observe their target

characteristic and the quality of Starbucks' products. This decision-making strategy lies with

operational management but affects other areas in the coffeehouse business. For instance, the

precision of Starbucks roasted coffee beans establishes the quality and cost limits needed in

corresponding production operations (Barreto Peixoto et al., 2023). The coffee company

emphasizes high-quality value and premium designs in production, which triggers a small margin

of error to support high quality. The corporation's distribution channel affects service design,

beverage, and food-making decisions in operations management areas. For instance, Starbucks

packaging considers inventory and logistics in distribution channels and retailers like Amazon.
 Also, quality management ensures that the corporation's products align with Starbucks's

quality standards and customers' quality expectations. The decision-making in the Coffee

Company's operations department ensures that the company operations management adjusts

policies in the production process to meet Starbucks's products standards and expectations

(Madar, 2020). For instance, Starbucks gets its coffees from farmers who adhere to Starbucks'

quality standards. Also, the firm prefers getting its products from Coffee Farmer Equity

Program's certified Farmers because the Starbucks corporation's generic competitive plan and

intensive sales growth strategies align with its quality specifications as a selling point.

Additionally, Starbuck's process and capacity design decisions have contributed to its success.

The company uses its operational management to standardize its process for efficiency, as

displayed in its café. Also, the firms use optimizes capacity utilization to meet the fluctuating

demand for food products and coffee (Madar, 2020). For instance, the company has its food

processing processes flexible to adjust personnel during the peak hours in the business. In this

decision area, the strategic planning department at Starbucks work to maximize the company's

productivity by lowering the cost of production through effective processes and workflows.

Additionally, Starbuck's location strategy focuses on urban centers. The operational

management in Starbucks has most of its stores located in densely populated areas with high

coffee and coffee products demands. The company uses strategic clustering of its café in some

markets to gain significant market share and drive its competitors away. Strategic effectiveness

serves operations management with attractive market strategies to foster profitability.

Furthermore, the company has the role of maintaining human resources, which supports

Starbucks' operation’s needs. The coffee house keeps a team of baristas to assist in the business's

daily operations and client satisfaction (Madar, 2020). Also, in other parts of the company,
Starbucks operates an inventory management and marketing system that needs people.

Therefore, the operational management in Starbucks keeps integrating the organizational

cultures, which helps in job satisfaction, reduces employee burnout, and ensures high

productivity and operational efficiency.

Moreover, Starbuck's maintenance decisions are concerned with the availability of resources

to support the coffeehouse chain. The strategy decision-making here is to achieve and observe

the high reliability of Starbuck's capacities and resources, such as the raw material for production

processes. The company uses third-party service providers and employees to maintain the

facilities and equipment, like coffee bean roasting machines (Madar, 2020). Also, in operation

management, Starbucks holds human resources capacity via its training programs and retention

strategies, which satisfies the company's workforce needs for corporate facilities and offices and

supports licensees and franchisees.