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Nov 21, 2015
A Report onSTARBUCKS Presented to the Faculty of theSchool of Management & EntrepreneurshipAURO UniversitySurat
In Partial FulfilmentOf the Requirements for the Degree ofMaster of Business Administration
Submitted to:Dr. INDRANI MEMPRODUCTION AND OPERATION MANAGEMENTAPRIL 2014
DEED OF DECLARATION
I, __________________________________, hereby submit my research paper entitled ______________________________________________________________________________And truthfully declare that the above-titled paper is a product of my original research investigation.
I further declare that, should the school eventually discover that a substantial portion of my paper is lifted, in to, from original sources, using exactly the words of the author in more than 50% of the whole content, I reserve the right to AURO University, Surat to recall my MBA Diploma and cancel the degree granted to me.Signed this day of __________________________ at AURO University, Surat
___________________________ MBA Candidate
ACKNOWLEDGMENTI heartily wish to extend heartfelt appreciation and gratitude to numerous Mentors, benefactors, and constituents who have collectively endowed the Wherewithal, faith and encouragement for me to navigate and complete my research paper journey.
To Professor Kamlesh Mishra, my primary advisor and unflagging advocate, who mustered devoted, continuing, innovative and adaptive mentorship to impel and shepherd my checked efforts through diverse and abounding challenges, I extend my deep and abiding respect and many, many thanks.
To Professor Indranimem, my supporting advisor, who gently and patiently endured my academic tardiness, I offer commensurate veneration.
To the faculty and staff of the School of Management and Entrepreneurship, AURO University, Surat.
INDEXSR NO.TITLEPAGE NO.
1.INTRODUCTION TO COMPANY6
2.GLOBAL PRESENCE OF COMPANY9
3.PRODUCT LINE/SERVICE LINE11
5.MANAGING QUALITY STANDARDS15
6.PROCESS OF PRODUCTION17
7.LOCATION AND LAYOUT STRATEGIES OF FIRM19
8.SUPPLY CHAIN MANAGEMNET25
INTRODUCTION TO THE COMPANY
Since 1971, Starbucks coffee aggregation has been committed to ethically sourcing and baking the accomplished superior Arabica coffee in the world. Today with food about the apple the aggregation is the world arch broiler and banker of specialty coffee. Starbucks is an American all-around coffee aggregation and coffeehouse alternation based in Seattle, Washington. Starbucks is the better coffeehouse aggregation in the apple with 20891 food in 64 countries including 13279 in US, 1324 in Canada, 989 in Japan, 851 in China and 806 in United Kingdom.HISTORY1971Starbucks coffee, tea and spice store (coffee bean roasting) opened in Seattles Pike Place Market.
1982Howard Schultz joined Starbucks
1986Howard Schultz established llGiornale Coffee Company
1987llGiornale Acquired Starbucks and changed the name into Starbucks Co-operation
1992Starbucks decertified the union and made IPO
1995Starbucks Coffee international opens in Japan- Starbucks implemented ESOP.
1996Opened first store in Tokyo which is outside US or Canada.
2008Has announced 300 stores closure in US.
2009Company planned to open 900 new stores outside US.
2010Loyalty program was introduced for registered uses of the Starbucks and offering perks such as free Wi-Fi internet access, no charge for soy-milk and flavored syrups.
2012Starbucks opened first store in Ho Chi Minh city, Vietnam.
2013Over 10% of in store purchases were made on customers mobile devices using Starbucks apps.
Starbucks locations serve hot and algid beverages, accomplished bean coffee, micro arena burning coffee, abounding blade teas, pastries and snacks. Most aliment as well advertises pre-packaged aliment items, hot and algid sandwiches and items such as mugs and tumblers. Starbucks evening locations as well action a array of beers, wines and appetizers afterwards 4 pm. Through the Starbucks Entertainment capacity and apprehend music brand, the aggregation as well markets books, music and film. The company articles are melancholia or specific to the belt of the store. Starbucks cast ice-cream and coffee is as well offered at grocery stores.
LITERATURE REVIEWMichelli (2007) describes through an centralized assay of the association how Starbucks revolutionized the coffee industry, acquired top advance rates, and success worldwide. Holt (2004) and McCracken (2005) point out that the ambience in which the association exits cannot be larboard out of the branding action as it plays an alive role in the branding. Park et al. (2005) accentuate that Starbucks is a acceptable archetype of a brand, which is body aloft a set of visually and aurally adorable atmosphere factors, which acquiesce alleviation and self-indulgence. Koehn (2001) follows Starbucks and their success but lacks to explain, accepting set the industry standard, why and how the cast in the end of the day differentiates itself from their competitors. Pendergrast (2001) is analytical of how Howard Schultz tries to characterize himself as a hero whose capital ambition is to accompany something to the association through fair trade, assurance in caring organizations and abnormally by accouterment association to the American humans through his enactment of the Third Place. Lyons (2005) underlines that Seattle is the amount character of Starbucks business and that the city-limits Seattle defines area Starbucks stems from an agent that imbues the character of the coffee chain.
GLOBAL PRESENCE OF THE COMPANYBusinesses affective from calm to an all-embracing action accord the close greater acknowledgment on its investments. In 1995, due to the assimilation of the United States market, Starbucks started to aggrandize its business overseas. By 2001, Starbucks had added than 150 food and affairs to abide its success. The aggregation began by entering into collective ventures with bounded businessmen. Starbucks a able amplification campaign, opened in adopted markets by 2001. This plan fabricated the aperture of over 600 food amid out of the United States possible. Added than 200 units including China, Japan, Kuwait, Lebanon, New Zealand, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand.The aboriginal Starbucks breadth alfresco North America opened in Tokyo, Japan, in 1996.Starbucks entered the U.K. bazaar in 1998 with the $83 actor USD accretion of the again 56-outlet, UK-based Seattle Coffee Company, re-branding all the food as Starbucks. In September 2002, Starbucks opened its aboriginal abundance in Latin America, at Mexico City. In 1999, Starbucks experimented with eateries in the San Francisco Bay breadth through a restaurant alternation alleged Circadian. These restaurants were anon "outed" as Starbucks establishments and adapted to Starbucks cafes.In October 2002, Starbucks accustomed a coffee trading aggregation in Lausanne, Switzerland to handle purchases of blooming coffee. All added coffee-related business connected to be managed from Seattle. In April 2003, Starbucks completed the acquirement of Seattle's Best Coffee and Torrefazione Italia from AFC Enterprisesfor $72m. The accord alone acquired 150 foods for Starbucks, but according to the Seattle Post-Intelligencer the broad business was added significant. In September 2006, battling Diedrich Coffee appear that it would advertise a lot of its company-owned retail food to Starbucks. This auction includes the company-owned locations of the Oregon-based Coffee People chain. Starbucks adapted the Diedrich Coffee and Coffee People locations to Starbucks, although the Portland airport Coffee People locations were afar from the sale. In August 2003, Starbucks opened its aboriginal abundance in South America in Lima, Peru. In 2007, the aggregation opened its aboriginal abundance in Russia, ten years afterwards aboriginal registering a brand there.In March 2008 they purchased the architect of the Clover Brewing System. They began testing the "fresh-pressed" coffee arrangement at several Starbucks locations in Seattle, California, New York and Boston.In aboriginal 2008, Starbucks started a association website, My Starbucks Idea, advised to aggregate suggestions and acknowledgment from customers. Other users animadversion and vote on suggestions. Journalist Jack Schofield acclaimed that "My Starbucks seems to be all acidity and ablaze at the moment, which I don't anticipate is accessible after absolutely a lot of censorship". The website is powered by the Sales force software. In May 2008, a adherence affairs was alien for registered users of the Starbucks Agenda (previously artlessly a allowance card) alms allowances such as chargeless Wi-Fi Internet access, no allegation for soy milk & flavored syrups, and chargeless refills on brewed dribble coffee or test. IN 2009, Starbucks began beta testing its adaptable app for the Starbucks card, a stored amount arrangement in which consumers admission pre-paid funds to acquirement articles at Starbucks. Starbucks appear its complete adaptable belvedere on January 11, 2011.On November 14, 2012, Starbucks appear the acquirement of Teavana for US$620 actor in banknote and the accord was formally bankrupt on December 31, 2012.On February 1, 2013, Starbucks opened its aboriginal abundance in Ho Chi Minh City, Vietnam, and this was followed by an advertisement in backward August 2013 that the banker will be aperture its countdown abundance in Colombia. The Colombian advertisement was delivered at a columnist appointment in Bogota, area the comp