Value Chain Starbuck

1.
Dương Thị Huyền Trang - 20070355

2. Nguyễn Thị Ngọc Ánh - 20070110
3. Nguyễn Thị Thùy - 20070342
4. Vũ Thị Minh Ngọc - 20070277
5. Vũ Khánh Uyên - 20070380
6. Ngô Thị Khánh Hòa - 20070183
PRIMARY ACTIVITIES
- Inbound Logistics:
Starbucks has developed a sophisticated supply chain management system to ensure timely
delivery of high quality coffee beans from around the world.
The beans are carefully selected from the farms and transported to the Starbucks facility for
storage and screening. They undergo a Starbucks-exclusive roasting technique that increases
the shelf life of the beans. The beans are then packaged and sent out for distribution. To
maintain the quality of the coffee beans, the company relies on local suppliers and is not
associated with any third-party suppliers to date. This allows the company to maintain a
consistent level of quality in its products and gives it a competitive edge over its competitors.
- Operations:
Starbucks operations are focused on creating a unique and consistent customer experience.
Unlike other famous fast food or beverage outlets, Starbucks does not support a franchise
system. This means that all Starbucks stores are company-owned or supervised by the
company.
Up to now, the company has more than 32,000 stores in about 83 countries worldwide. It has
been noted that about 80% of Starbucks' revenue is generated by company-owned stores, and
the remainder comes from supervised establishments and its sister brands.
This helps Starbuck to effectively and consistently manage activities from employee training
to product quality management. Effective operations management enhances the company's
overall brand image.
- Outbound Logistics:
Starbucks' distribution network is highly efficient and well-organized. The company uses a
combination of company-owned stores and licensed stores to reach a large customer base.
This has helped Starbucks to expand rapidly and achieve economies of scale.
- Marketing and Sales:
Starbucks is known to have one of the most aggressive marketing strategies in the industry. A
substantial amount is invested by the company to maintain the highest standard of customer
satisfaction in sales.
The company's marketing strategy focuses on creating an emotional connection with its
customers, and it uses a variety of marketing channels to do so. Apart from on-ground
marketing, Starbucks also has a significant online presence on various social media
platforms. It keeps coming up with dedicated marketing plans for product launches, new
establishments, and other events.
- Service:
As per the company reports of Starbucks, the brand has mentioned the following objective:
“To be the leading retailer and brand of coffee in each of our target markets by selling the
finest quality coffee and related products, and by providing each customer a unique
Starbucks Experience.”
Needless to say, the company has certainly lived up to its brand statement by providing the
highest level of customer experience – which has now become a USP for the brand. Apart
from its high-quality beverages, the brand also invests in the service training of baristas as
they provide a unique experience to customers while making and serving their drinks.
SUPPORT ACTIVITIES
- Infrastructure
Since Starbucks has been around for almost 5 decades, it has a strong infrastructure in almost
every department like finance, management, marketing, and so on. The main corporate office
of Starbucks is in Seattle, but the company has several other regional corporate offices
worldwide.
Besides its backend management, the company also has a seamless customer service and
employee management infrastructure.
- Human Resource Management:
Starbucks has over 349,000 employees worldwide that includes its baristas, brewing staff,
corporate employees, and so on. According to a recent survey done by Hewitt Associates,
Starbucks has an employee satisfaction rate of 82 percent, which is one of the highest in the
food and service industry.
The company is widely known to have a pleasant working environment and takes care of its
employee with friendly policies. Their human resource management team has also worked on
elevating its culture and improving the retention rate by keeping its staff motivated.
- Technology Development:
Starbucks has kept up with the ongoing technological advancements in the foods and
beverage industry. The company uses the best-in-class techniques to make the process of
selecting coffee beans and brewing drinks in different locations.
Besides that, all the Starbucks stores provide facilities like high-speed WiFi that helps its
customers work from their coffee shops. Furthermore, Starbucks also has a unique rewards
program and lets us place our orders from its connected stores via numerous food delivery
apps.
- Procurement:
Starbucks' purchasing strategy focuses on building long-term relationships with its suppliers.
Most of Starbucks' procurement comes from internal sources. This allows the company to
guarantee high quality coffee beans at competitive prices.
As listed above, Starbucks does not purchase coffee beans from third-party sources. From the
production of the beans to the packaging, everything is handled in-house. Not only that, this
brand does not license the brand and all of its stores and is under the direct or indirect control
of Starbucks.
→ The most important stage in the operational transition
The operational phase is the most crucial step in the operational transformation. The inputs
collected in the input logistics step are turned into final goods that are sold to the client at this
stage. Competent operations that assure consistent quality and timely delivery are vital to
satisfying customer expectations and delivering a great customer experience, which is an
important component of Starbucks' competitive advantage. Furthermore, good operations
management may assist cut expenses and enhance productivity, both of which can help a
company's total bottom line.

Value Chain Starbuck

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Dương Thị Huyền Trang - 20070355

- Marketing and Sales:

- Human Resource Management:

→ The most important stage in the operational transition

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