In: Operations Management
Assignment: Using research of a chosen business environment or a company you are familiar with, please gather, interpret and analyze the current state of business operations to strategize methodology to achieve the three principles (eliminate waste, remove variability, and improve throughput) of lean. Please defend your answers on a tactical level by explaining how these recommendations (proposed methodology when applied conceptually) will balance cost and quality.
Break the paper into the following sections:
• Introduction - describe the company in general and what it does
• Using the three principles as section headings, analyze the company along each principle
• Conclusion - is the company balancing cost and quality? Why or why not?
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INTRODUCTION:
Starbucks is an American coffee company that has a worldwide chain of coffee houses. The coffee houses serve both hot and cold coffee, which ranges from espresso, latte, mocha etc. It also offers teas, pastries, and snacks. Jerry Baldwin, Zev Siegl and Gordon Bowker founded the business in 1971. The Seattle opened the first shop or coffee house. The company operated 6 stores in Seattle by 1986. The year 1987 saw the original owners sell Starbucks to Howard Schultz. Schultz was a former Starbucks employee and took an aggressive stance at Globalization. Starbucks is actually present in 66 countries worldwide.
BODY:
Whereas some coffee shops are run individually as small businesses, others are part of an vast network of cozy coffee houses, such as those belonging to the Starbucks Corporation chain. The Starbucks Company's structure varies drastically from the corporate framework of mom and pop coffee shops dotting the corners of small towns. This disparity is due to the difficulties associated with developing and sustaining something as a gigantic brand, at least in part.
The Starbucks Company structure isn't unusual. Starbucks executives run the organization from its headquarters in Seattle, Washington, the city of its founding. District managers are managing regional groupings of stores across the world. These district managers report to Starbucks Corporation, directly. There is a store manager serving as the chief at each store. Under this store manager is a group of shift supervisors who are working on duty as managers while the store manager is out. The majority of the workers, called baristas, are below the shift supervisors.
Starbucks Coffee Corporation has a problem improving leadership. Creation of leadership is a very critical problem in the whole organisation. Starbucks is a multinational American coffee company. On 30 March 1971, the first Starbucks opened in Seattle, Washington, were three partners, Jerry Baldwin, Zev Siegl and Gordon Bowker.
Starbucks apply the push to the early theory of leadership. Starbucks leaders set a high standard of commitment in their organisation. Their members have faith in themselves and many followers look to them for a lack of self-doubt. Howard Schultz is Starbucks' head of intelligence. He was skill in collecting, synthesizing, and collecting a lot of knowledge to solve problem and make the right decision. Starbucks also apply a Principle of the Path-Goal.
Starbucks' goal is to inspire the human spirit and to preserve it. They still offer their coffee in good condition. To hold each other to the level they still love and integrity together for their partner. They are always still full of kindness just for a moment in their stores so that their customers enjoy themselves. They take on their duty to be good neighbors and enjoy the success their shareholders are rewarded with.
CONCLUSION:
Operational expenses, administrative costs, production costs, and labor costs are the different costs faced by strarbucks. The key expenses faced by the strabucks are the rates charged for coffee beans, the running costs of different outlets, salaries paid to managers and other staff. Over time starbucks have been able to minimize their costs in different ways. For example, starbucks has bought several coffee farms from corporations to produce the high-quality beens by themselves and cut the middleman's cost. Also, due to low automation, various operational costs were also reduced. These reduced costs help to increase the company's profitability.
Starbucks is well known for its quality. Starbucks' core strength has been the ability to successfully exploit product differentiation and expertise by delivering a mix of high-quality drinks and snacks. It's brand value is focused mainly on providing the finest quality coffee and the finest quality expertise in the form of customer service, stores, etc. It is one of their HR principles and leveraged in building supplier and partnership with third parties.
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