Case Application 1 Stirring Things Up

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Stirring Things Up 

Before to place a cup of coffee to a customer hand at a Starbucks store place there is a vast job is to be completed. At first the coffee beans is to be plucked from the coffee fields or coffee garden. The coffee beans are also known as berries. Starbucks knows very well that there is the vital role of every participant in the value chain is to be played for every step from harvesting to storage of coffee beans and from roasting to serving to retailer and lastly to distribute the cup of coffee to the consumer.

Case Application 1 Stirring Things Up 6Starbucks provides a vast range of coffees throughout the world and the best coffee lovers know it very well. The coffee purchasers buy the topmost quality Arabian beans moving here and there of coffee harvesting areas of Latin America, Asia, Africa and other regions of the world. Starbucks have total five roasting centers in Washington, South Carolina, Pennsylvania, Nevada and Amsterdam. When the coffee beans reach in any of these roasting centers then the magic of Starbucks is started. Starbucks is actually a master professional roaster.

They start to create rich signature roast coffees of the company and mix all important flavors to make it attractive and valuable to the buyers. There are so many skilled and experienced roasters work in Starbuck’s factory and they make only high quality of coffee in the factories. Several challenging attitudes are taken during the processes of changing the raw elements into the highest quality product that the customers expect from the Starbucks. Lots of issues such as shipping as well as logistics, political interference, technology and other issues are involved with the production of coffee and Starbucks face all of these issues and resolve the same with a skilled and expertise managerial attitude. Among several significant challenges in respect of operation management, one of the most important challenging issue that Starbucks facing is balancing its goal of the Starbucks coffee experience equally with the authenticity of selling a minimum pieces say only 4 dollar latte in the present competitive market. Presently lots of coffee lovers take Starbucks coffee as an expensive luxury item.

However, at the age of economic slump the revenue as well as profits has been decreased and that’s why How and Schultz, CEO has realized a massive change in operation system is essential for the survival of the company. The Starbucks Company who built as the anti-fast-food, but the increased competition tendency has forcefully turned to business most streamlined. Implementing several positive and creative initiatives it has been possible to make the company more productive and more active the employees. They are now the instance of a successful business organization throughout the world. The employees have succeeded to save the money reducing the cost price for production of coffee by reducing the rate of wastage and drainage of coffee beans.

They also help their customers in all respects so that the customers can buy their needed coffee easily and comfortably. Starbucks implement the lean techniques at her one of the first stores. By doing so, the store manager observed that the employees have inspired vastly and their efficiency has been generated and they are doing right work in write time such as keeping the significant item at proper place, making drinks and placing the same to the customers at a friendly atmosphere. Ultimately with two months’ time her company had succeeded to enhance the transaction by 10% applying this new method.

Case Application 1 Stirring Things Up 7



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