BS in Management Science

OPERATIONS MANAGEMENT - MGT214

Group Project
Instructors Name: Ms. Dalal Bamufleh
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
 Alaa Gain 06120012

Shoroq Al-Khateeb 09120108

Ebtehaj Lafi 08220255

Afnan Al-Gain 09120068

Abrar Muzain 08120002

Alaa Muzain - 08120011

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

BACKGROUND

Since 1971, Starbucks Coffee

Company has been committed to
ethically sourcing and roasting the
highest quality Arabica coffee in
the world. Today, with stores
around the globe, the company is
the worlds premier roaster and
retailer of specialty coffee.
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
 Starbucks Corporation offers coffee products and caf
services throughout the world. It sells high-quality whole bean
coffees (from around the world) along with other types of
freshly brewed coffees, premium teas and espresso
beverages, hot and cold. It also offers various sodas and juices,
pastries and confectionery, coffee-related accessories such as
the Starbucks mugs, and other caf related products such as
the Starbucks CD. Starbucks sells its special products through its
company-operated retail stores, warehouse club chains, office
coffee distributors, institutional foodservices such as hotels and
airlines, mail-order catalogs, and through its electronic store.
 Establish Starbucks as the
premier purveyor of the
finest coffee in the world
while maintaining our
uncompromising principles
while we grow. Starbucks is committed
to a role of environmental
leadership in all facets of
our business.
 STRENGTH
- Starbucks is the market leader in the coffee
Market.
- Customers are satisfied with the quality and
taste of Coffee.
- High brand equity.
- Operating in 40 countries worldwide.
- Huge number of employees approx. 13
thousand.
WEAKNESS
- Pricing are higher as compared to the
competitors.
- High operating cost
- The business profits are highly dependent
on coffee product.
OPPORTUNITY
- Entry into Asian market like Pakistan, India and
Bangladesh.
- Market penetration in International countries.
- Co-branding with other food manufactures.
- Whole bean sales in supermarkets like.
THREATS:
- Numbers of competitors are increasing, like Barista,
Caf coffee Day, Gloria jeans coffee.
- Variation in coffee prices in developing countries
- People started to become more health conscious
- Labour Unions issues in US and international
countries
- Starbucks facing huge resistance in international
countries over cultural and political issues.
 BY ALAA

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

 - Businesses moving from domestic to an international strategy give the firm
greater return on its investments.
- In 1995, due to the saturation of the United States market, Starbucks started to
expand its business overseas.
- By 2001, Starbucks had more than 150 stores and plans to continue its success.
- The company began by entering into joint ventures with local businessmen.
- Starbucks a strong expansion campaign, opened in foreign markets by 2001.
- This plan made the opening of over 600 stores located out of the United States
possible.
- More than 200 units including China, Japan, Kuwait, Lebanon, New Zealand,
Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand.
 BY ALAA

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

 BY SHOROQ

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

QUALITY STRTEGY

For Starbucks, quality simple means.

The company even uses "mystery

shoppers.

Starbucks coffee buyers spend about

18 weeks each year visiting coffee
growers and suppliers.

Starbucks gets the first pick of some of

the worlds best coffee crops.
 be welcoming
be genuine
be considerate
be knowledge
be involved

Continuous improvement .
Just-in-time (JIT).
 BY EBTEHAJ

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

- Modules combined for many output options (many cup
types & same cap type)
- Repetitive operations
- Just-in-Time inventory
- Fixed, well-known costs, due to experience
- Specialized equipment (coffee machines, customized
blenders, etc.)
- Well-trained staff (Starbucks policy to train coffee
specialists)
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
 BY AFNAN

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
 BY ALAA & ABRAR

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

 The techniques that
Inventory Starbucks company use it to
management manage their inventory are

JIT
means all the
goods that are
available to sell in
the warehouse. MRP
Reduce their price by producing a new product of coffee
using cheaper beans
or may come out with special discounts
promotions to increase the sales.

Starbucks can effectively pursue Focus-Based Strategy in

conjunction with differentiation or cost leadership based
strategy.

Advertisement can develop through internet that

services convinced for users to access, give the brochures, do
road shows, so that public come to know more about Starbucks
details.
1. Outstanding Quality of the coffee.
2. Excellent service provided at the
stores
3. Fast growth of new stores all around
the world.
Starbucks Official Site
http://www.starbucks.com/
Starbucks Details Strategy for Profitable Growth
http://news.starbucks.com/news/corporate+news/financial/2009+annual+meeting+of+shareholders.htm
Starbucks - Design of Goods and Services
http://www.oxbridgewriters.com/essays/finance/design-of-goods-and-services.php
Starbucks Strategy
http://www.slideshare.net/tommy2cruise/starbucks-strategy
Starbucks SWOT Analysis
http://www.slideshare.net/shahkiran79/starbucks-swot-analysis
Starbucks Marketing
http://www.slideshare.net/Heekuk/starbucks-marketing
Starbucks Global Strategy
http://brainmass.com/business/international-business/402609
Operation Management
http://dc169.4shared.com/doc/XnYqb0C-/preview.html
Starbucks Final Presentation
http://www.slideshare.net/guest020532/starbucks-final-presentation
Berger, A., Buchman, J., Chase, D. & Hsu, S. (2003). Starbucks. Retrieved on November 12, 2009 from,
http://74.125.153.132/search?q=cache:z1kF8ZdXtXoJ:www.loudoffice.com/donald/resume/portfolio/Starbucks.ppt+
STARBUCKS+
B+managing+quality&cd=2&hl=tl&ct=clnk&gl=ph.
Thompson, A. & Gamble, J. (1999). Starbucks Corporation. New York: The McGraw-Hill Companies. Retrieved on
November 12, 2009
Starbucks Website (2009). Starbucks, Inc. Retrieved on November 12, 2009 from, http://news.starbucks.com.
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE