Table of Contents

1.0 Introduction 2-3

2.0 Starbucks Supply Chain Management Characteristics 4-6

3.0 Coffee Supply Chain Process 7-8

4.0 Competitive strategy 9-10

5.0 Stakeholders Analysis 11-14

6.0 Elements of the Supply Chain Strategy of Starbucks 15-17

7.0 SWOT Analysis 16-20

8.0 Primary Activities 21-23

9.0 Starbucks Sustainability Phase Model Analysis 24-25

10.0Recommendations 26-27

11.0Summary 28

12.0Reference 29-30

13.0 Appendixes 31-33

1.0 Introduction

Starbucks was established in 1971 by three local businessmen to sell high quality whole
beans coffee. In 1981 when Howard Schultz visited the store he plan to build a strong company
and expand high quality coffee business with the name of Starbucks. Starbucks air is to provide
high quality of coffee to its consumer and aim to achieve product innovation, retail expansion
and provide service quality for long term. Starbucks open its first coffee store in Seattle,
Washington. In 1990 Starbucks expand its headquarters in Seattle and also build a new roasting
plant. In 1990s Starbucks opens 60 retails shops in United Kingdom. At the end of 2000s
Starbucks total branches was 3500.

Coffee is one of the rapidly growing industry in this world due to its business strategy.
According to national coffee association, USA 49% of American age 18 and more drink coffee
beverage every day. Coffee industry was in peak of its success at the end of 1990s.Starbucks
focuses on consumer habits and share its specialty of coffee with the buyers. In the end of 20th
century there are many changes in market that helped Starbucks getting successful. The most
important change of the last twenty, thirty years is the changes of economic policies over the
world. Starbucks target market was18 years to 24 years young professional because they are not
yet been loyal with coffee industry.

The company's objective is to establish Starbucks as the most recognized and respected
brand in the world. All employees of Starbucks is working towards one common goal set as the
company mission statement and apply the below given guiding principles in their oprations.

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 Starbucks currently have more than 17,000 stores in over 55 countries worldwide. A total of
149,000 employees worldwide company has set up its mission not only to serve finest coffee, but
also providing a great working environment for employee and create positive impact to
communities they served. Starbucks has consistently ranked as one of “100 Best Companies To
Work For” for 1998-2000 and 2002-2020 and is also recognized as one of the Global 100 Most
Sustainable Corporations in the World” by Corporate Knights in 2020 for its positive effort
towards its employee, communities and environment.

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2.0 Starbucks Supply Chain Management Characteristics:

To understand how Starbuck, customize the initiatives to fits its business it is important
to understand the characteristics of its supply chain. Below are the characteristics that
supporting Starbucks supply chain management.

2.1 Two-way information flows:

Starbucks uses several targeted internal communication tools to educate partners
about these efforts and to encourage them to help. The company communicates
through its weekly Scoop operations bulletin that goes to all retail stores, plus the
monthly Siren’s Tale newsletter, which is distributed throughout the entire
organization. Starbucks also disseminates internal information online via its
Partner Portal.

For major announcements of environmental programs, Starbucks executives use

the company-wide voicemail system. At Starbucks, internal communication is a
two-way channel. Mission Review, an on-going opportunity for partners to
provide feedback on projects or programs at Starbucks, allows partners to
question whether a decision, action or program adheres to the Starbucks Mission
Statement or Guiding Principles.

2.2 Customer service:

The managers at Starbucks put tremendous attention into hiring good “people
people.” People who enjoy interacting with and pleasing others. Their hiring and
training process is designed… systematically… to produce events as described
above. It isn’t an accident. It isn’t left to chance. And it’s part of why they win.

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2.3 Supply Chain Relationships:
Starbucks actively supports the sustainable production of coffee through its
C.A.F.E. (Coffee and Farmer Equity) Practices program, which is a supplier
program that promotes improvements in product quality, economic transparency,
social responsibility and environmental leadership at the producer level.

The Cocoa Practices is designed to enhance buying companies’ ability to work

with a diversity of suppliers to foster deeper sustainability throughout the cocoa
supply chain from farm to factory to final product. Ultimately, the goal of the
scoring system is to establish a long-term relationship with preferred suppliers by
awarding the strategic supplier with better pricing or financial premium (share
reward), eliminating uncertainty and volatility (or share risk) of prices that
dominates the industry.

2.4 Inventory:
There is no clear indication of the Starbucks in term of the supply chain Pull or
Push systems, but, by referring to the nature business of the Food and Beverage
(F&B), I believe Starbucks is using the push system to promote the varieties of
the products to the downstream market.

Nevertheless, in accordance to the strong participation of Starbucks under the

C.A.F.E. program, the visibility of the supply chain upstream networks is much
easier as the partnership among the farmers or producers until it reach Starbucks,
are recorded under the C.A.F.E indicator and will be evaluated by the 3 rd parties
in the yearly basis. In additional, the entire supply chain network is managed by
the 3rd party logistic (3PLs) company to handle the shipment for the global
distribution centers.

2.5 Landed Cost:

In referring to the Starbucks C.A.F.E. (Coffee and Farmer Equity) Practices
program towards the supply engagement towards the entire supply chain to build
the long term strategic supplier, Starbucks can have a good coordination of supply
chain activities which may lower the landed cost.

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The long term customer-supplier relationship was built and evaluated yearly to
further establish and develop the 2nd tier of suppliers in the future. The Starbucks
C.A.F.E. which promote the share rewards or risks towards the suppliers will
further improve the supplier participation in the overall supply chain costing,
including the landed cost.

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3.0 Coffee Supply Chain Process

Supply chain is the sequence of activities and processes required to bring a product from
its raw state to the finished goods sold to the consumer. It takes a well-run supply chain to
ensure that a barista pours a good cup of Starbucks coffee. That's because the journey from bean
to cup is a complicated one, which includes several activities such as coffee planting, cultivation,
harvesting, extraction, selection, roasting, blending, grinding, packaging and finally turns into a
cup of coffee that are enjoyed by many.

Coffee and other merchandise must be sourced from around the globe and then
successfully delivered to the Starbucks Corporation's retail stores. To ensure effective supply
chain, Starbuck have reorganized its supply chain structure and simplify it to fall into the four
basic supply chain functions: plan, source, make, and deliver. Starbuck also have developed an
efficient distribution model to enable the distribution of the coffee beans to its processing plants,
with the goal of manufacturing in the region where the product is sold.

As part of Starbuck sustainability effort initiated C.A.F.E. (Coffee and Farmer Equity)
Practices to evaluate, recognize, and reward producers of high-quality sustainably grown coffee.
C.A.F.E. Practices is a green coffee sourcing guideline developed in collaboration with Scientific
Certification Systems (SCS), a third-party evaluation and certification firm. C.A.F.E. Practices
seeks to ensure that Starbucks sources sustainably grown and processed coffee by evaluating the
economic, social and environmental aspects of coffee production against a defined set of criteria,
as detailed in the C.A.F.E. Practices Guidelines. C.A.F.E Practices also enable smallholder
coffee farmers to sell their beans directly to importers, roasters and retailers at favorable
guaranteed prices by eliminating few middlemen layers.

Starbuck also implemented GPS tracking system using the RFID technology to track
cargo containers used to ship coffee after the suppliers drop off raw materials at the designated
collection centers. This system is use to monitor its shipment progress to Starbucks joint roasting
plants till they gather in the distribution center and later distributed to its licensed stores, outlets
and its joint business partners, like supermarkets and grocery stores.

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4.0 Competitive strategy

Now, let’s focus on some innovative elements that have given Starbucks a competitive
edge and allowed it to position itself in the coffee production and service market as a global
leader.

First, Starbuck was able to create its own niche in response to a market that did not exist
at the time. At the time of the creation of Starbuck there was a growing demand for quality
coffee because the supply was very limited or absent. So they brought a proposal based on a
coffee offer with an authentic quality that was one of the core value propositions of Starbucks.
Indeed, as we said earlier, till the mid-1980s, Starbucks was selling only coffee beans, which the
consumer could buy and take home, grind and prepare their own coffee.

In the 1970s, most of the coffee market was held by Europeans. Thus, as a new player in
this industry, and wishing to have vertical control of its supply chain, Starbucks had to gain the
confidence of connoisseurs and the general public regarding its legitimacy to enter this selective
market. Competitive Strategy is about choosing a different set of activities to deliver a unique
mix of value » Michael Porter.

Starbucks does by choosing to vertically control its supply chain. For example, we can
give the e ample of his attention to the roasting process, which is a determining factor in the
quality and taste of coffee. This involves a precise selection of seeds, with work in collaboration
with coffee growers (more than 3,000,000 for Starbucks); and the training of roasters according
to Starbucks considerations.

Its competitive advantage has been the development of partnerships with international
coffee seed producers and the negotiation of contracts that would be respectful and sustainable
for all parties to work together over the long term. Thus, in addition to its innovation in terms of
service, the brand has developed a competitive advantage in terms of quality and authenticity. By
showing through the control of its supply chain vertically that it applies its values and its quality
strategy at all levels.

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 Another major competitive advantage that Starbuck has proposed and that has
revolutionized the perception of service is its ability to create a sales e experienced and build a
personalized customer relationship that is associated with its name. Indeed, they have a
personalized approach to customer service with its small gestures that make the difference like
asking and putting the name of the customer on his order. In addition, the atmosphere created in
the stores that resembles a particular living room, with comfortable sofas, a kind of relaxing
music and internet available is a unique environmental composition of Starbucks which is one of
the essential parameters for the loyalty of its customers and its international reputation. The
customer is not only looking to buy a coffee but to e experienced the service at Starbucks. This
justifies the acceptance of the high prices that Starbucks adopts in comparison with other
competitors of the same niche.

So we can say that Starbucks competitive advantage lies in its differentiation, on the one
hand by the quality of the product it offers and the uniqueness of its control; but also by the
service and the innovative spirit that Starbucks has brought to the consumption of coffee,
building an atmosphere around this e experienced for the customer.

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5.0 Stakeholders analysis:

Stakeholders are individuals or organization who are actively involved in the

organization and whose interest may be positively or negatively affect the result of the company.
Stakeholder analysis is important as through this analysis we can understand what stakeholders
want from the company and what are the company’s expectations towards them. But having
deeper understanding with stakeholders, the company can then develop engagement strategies to
gain their interest and support

In this study, we will focus Starbuck’s stakeholder analysis to five of its key stakeholders,
which are shareholders, employee, retailers, customers and coffee farmers. Shareholders and
employees are internal stakeholders while retailers, customers and coffee farmers are external
stakeholders.

In this study we measured Starbucks stakeholders based on 4 dimensions which is power,

commitment, interest and impact. Power is defined as the stakeholder’s ability to influence
company decision, commitment measuring the stakeholder’s obligation to the company, interest
depicts the level of concern towards the company decision/performance and lastly, impact
measures the effect of their actions towards the company.

The table below shows the measurement of the stakeholders and their degree of power,
commitment, interest and impact to Starbucks. Shareholders have high power because they can
easily influence the company’s decisions. They have high commitment and high interest because
the well being of the company will ensure that they get good returns. For big shareholders, if
they decide to sell their shares, this may impact the company ie. Change in management.

Employees have low power because they cannot easily influence the strategic decisions
of a company. However, they have high commitment and interest in the company’s well being
because it will influence their future development and job security. Employees have high impact
on the company because they are the working force and if any union or strike occurs it may
cripple the company’s day to day operations.

Coffee farmers are the main suppliers of Starbucks. They have high power because
Starbucks is dependent on them to provide consistent supply of good quality beans. On the other

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hand, they have high interest and commitment to Starbucks because Starbucks provide consistent
demand to the coffee farmers and take care of their well-being through programs such as the
C.A.F.E. Coffee farmers have high impact to Starbucks because they can choose to supply
Starbuck’s competitors if they are not happy with the business agreement with Starbucks.

Retailers have high power and high impact because they are the end of Starbuck’s supply
chain and are directly dealing with Starbucks customers. Hence the service provided by retailers
will reflect on Starbucks company image. They have high commitment and interest in Starbucks
decision because it will also influence their business decisions ie. promotions and CSR efforts.

Lastly, Starbucks customers have high power and impact to the company. Customers can
influence the decisions of Starbucks because they can demand what they want and Starbucks will
try to fulfill customer needs in order to make profit. They also have high impact because the
switching cost to other coffee providers is almost free. Customers have no commitment or
interest in the company’s well being because there are other alternatives which can provide
coffee.

Stakeholder Chart

The table below lists down Starbuck’s main stakeholders, what they contribute to the company,
what they expect from the company and what the company expects from them. The table below
also lists the strategic implications that these stakeholders have over Starbucks.

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 Now that Starbucks understands its stakeholders and its stakeholders strategic
implications over the company, Starbucks can think of ways to keep them engaged. Keeping
stakeholders engaged will benefit the company by ensuring loyalty, morale, close collaboration
etc. There are certain communications strategies that Starbucks can adopt to engage its
stakeholders such as face to face interactions and focus groups. This will ensure Starbucks
include them in decision making that involves or impacts them. For example, Starbucks can
include coffee farmers in focus groups to discuss decisions about C.A.F.E. This will make the
coffee farmers feel that they are part of the decisions and also ensure their voice is heard. It is
also important for Starbucks to create a communication channel for customer feedbacks. This
way the company and gage the market trends and if their products are pleasing the customers.

Starbucks can collaborate with its retailers to rollout strategic programs to ensure that
they are aligned on the company goals and direction in these programs. This is especially on the
CSR programs that Starbucks is trying to achieve.

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 Without the corporation from its retailers, it would not be possible. To ensure
engagement and loyalty from its employees, Starbucks should empower them and involve them
in the company’s decision making. All these are examples of engagement strategies Starbucks
can take on to manage their stakeholders well and as a result all stakeholders who are fully
engaged will be interested to help make Starbucks supply chain flawless.

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6.0 Elements of the Supply Chain Strategy of Starbucks
Supply chain management is about managing the different requirements for an effective
and efficient flow of goods and services such as raw materials and other inputs needed to
produce final products. For Starbucks, considering that its business centers on selling coffee
beverages and other food products, its raw materials and production inputs revolve around
agricultural products, food products, and materials used for packaging or food presentation.

The company experienced challenges with its supply chain due to its rapid global
expansion. It needed to source inputs and ship them to thousands of stores located across the
globe. The entire process was expensive because its chain of supplies had grown complicated
alongside its business expansion. Nevertheless, in considering these challenges, the goal of its
supply chain strategy revolves around reducing costs, improving efficiencies, and reducing risks.

6.1 Process Optimization: Reducing Costs and Improving Efficiency

It was in 2008 when the company decided that it needed to reexamine how it procures
and distributes supplies. Note that the costs of its supply chain had skyrocketed while the sales
performance of its stores was either stagnant or declining. Chief executive Howard Schultz
tapped Peter D. Gibbons to oversee the supply chain management at Starbucks. It was revealed
that the bulk of its costs came from outsourcing agreements for transportation, third-party
logistics, and contract manufacturing.

Gibbons came up with a supply chain strategy centered on optimizing how the entire
chain works to reduce costs and improve efficiency. This entailed restructuring supply chain
activities into four main categories: plan, source, make, and deliver.The company regrouped
more specific supply chain functions in one of these four categories while also building newer
capabilities around each. This approach allowed it to remove redundancies, negative
externalities, and other wasteful activities.

6.2 Vertical Integration: Improving Control and Reducing Risks

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 Part of the supply chain strategy of Starbucks is a specific vertical integration strategy.
The company has acknowledged it needs to lessen the bargaining power of the suppliers to
manage its overall competitive environment and competitive position. Vertical integration is part
of the improvements introduced by Gibbons beginning in 2008. Its specific goal is to reduce
costs associated with a complicated chain of suppliers and supplies while also improving control
and reducing risks for disruptions.

The company now owns six several storage and processing facilities tasked to process
raw materials and store processed inputs and end-use products. These inputs and products are
then transported to a distribution center and further to regional warehouses. Owning and
operating facilities needed for processing, storage, and distribution allow Starbucks to streamline
the logistical requirements of its thousands of stores in more than 60 countries while also
ensuring that standards and quality controls are observed.

6.3. Relationship Management: Creating Win-Win Situations with the Suppliers

The company still outsources several aspects and requirements of its supply chain. Part of
its approach to supply chain management is the more specific supplier relationship management
aimed at building and maintaining relationships with the suppliers. Starbucks sources its coffee
beans and other raw materials directly from about 30000 farms and food producers in countries
in South America, the Middle East, and Asia. Suppliers are selected based on its Coffee and
Farmer Equity and Coffee Sourcing Guidelines.

Each potential supplier must meet its standards. Existing suppliers undergo regular audits
to ensure that these standards remain in place. The company also provides regular training and
support to improve the capabilities of its suppliers. Mandating adherence to standards and
protecting the interests of the suppliers are critical to Starbucks. These two activities promote
quality assurance, determine and mitigate risks, uphold innovation and sustainability, and build
competitive advantage.

6.4. Sustainable Approaches: Ensuring Long-Term Business Success

Take note that sustainability is another critical element of the supply chain strategy of
Starbucks, as well as an important principle and practice in its entire value chain management,

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corporate social responsibility, and overall business strategy. Starbucks has committed itself to
sourcing raw materials and other inputs ethically. Remember that its suppliers need to follow
strict standards and guidelines that take into consideration environmental protection and fair
labor practices.

The company also rolls out training and programs to make its suppliers more sustainable.
These include activities and structures that support sustainable practices including energy and
water conservation and improved waste management. Starbucks supports the mainstream
consensus that companies need to factor in sustainability in their business models as part of their
responsibilities to society and in accordance with their long-term vision as thriving business
organizations.

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7.0 SWOT Analysis

Thus we will end here by illustrating Starbucks' position with a SWOT analysis before
describing in detail the actions that Starbucks undertakes in its daily activity to bring a dimension
of sustainability to its supply chain.

STRENGTHS

● Unique client service and atmosphere

● Worldwide presence

● International supply chain management

● Very high brand recognition

● Strong financial performance and growth (Consolidated net revenues : $6.2 billion in
2020)

WEAKNESSES

● Customization according demand and culture is limited

● High price

● Easily imitable

● High employee turnover

● High rental and leasing costs (High-priced locations)

OPPORTUNITIES

● Easy implementation worldwide

● Increasing demand from developing countries

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● Business and Product diversification

● Partnerships

● Online channels and delivery services

THREATS

● Not Healthy-friendly

● Low-cost competitors

● Small local coffeehouse preference

● Regulations (E : California - 2018)

● COVID-19 crisis and global recession (sales declined 9% in 2020)

Starbucks, would reorganize and simplify its supply chain with clearly defined functional
roles. Starbucks' supply chain involves parties who are directly or indirectly involved in meeting
a customer's demand. Their primary goal in the supply chain is to make a profit while satisfying
the customer in order to provide the highest quality to retain their customers and partners. By
following ethical business practices, and requesting the environment. To be supportive and
accommodating to the growers and suppliers of Starbucks products.

This goal is achieved not only with the help of manufacturers and suppliers, but also with
the valuable help of transporters, warehouses, retailers and, finally, the customers themselves. In
each of these organizations, the supply chain performs all the functions necessary to receive and
satisfy a customer's request.

It wasn't until 2008 that the company took significant steps to simplify and centralize its
previously fragmented supply chain. The team reorganized it so that each role belonged to one of
four basic functional groups: plan, create, produce and deliver.

These functions include marketing, distribution, finance and sometimes new product
development. The supply chain therefore begins with the customer's order and ends with the

18
satisfied customer having paid for the purchase made. It can therefore be said that the movement
of "goods, information and funds" takes place in the supply chain in both directions.

8.0Primary Activities

8.1 Inbound Logistics

The inbound logistics for Starbucks refers to selecting the finest quality of coffee
beans by the company appointed coffee buyers from coffee producers in Latin America,
Africa and Asia. In the case of Starbucks, the green or unroasted beans are procured
directly from the farms by the Starbucks buyers. These are transported to the storage sites
after which the beans are roasted and packaged. These are now ready to be sent to the
distribution centers few of which are company owned and some are operated by other
logistic companies. The company does not outsource its procurement to ensure high
quality standards right from the point of selection of coffee beans.
8.2 Operations
Starbucks operates in 65 countries either in the form of direct stores operated by
the company or as licensed stores. Starbucks has more than 21,000 stores internationally
which includes Starbucks Coffee, Teavana, Seattle's Best Coffee and Evolution Fresh
retail locations. According to its annual report, the company generated 79% of the total
revenue during fiscal year 2013 from its company operated stores while the licensed
stores accounted for 9% of the revenue.
8.3 Outbound Logistics
There is very little or no presence of intermediaries in product selling. Majority of
the products are sold in their own or licensed stores only. As a new venture, the company
has launched a new range of single-origin coffees which will be sold through some
leading retailers in the U.S.; these are Guatemala Laguna de Ayarza, Rwanda Rift Valley
and Timor Mount Ramelau.

8.4 Marketing and Sales

Starbucks invests in superior quality products and high level of customer services than
aggressive marketing. However, need based marketing activities are carried out by the company

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during new products launches in the form of sampling in areas around the company during new
products launches in the form of sampling in areas around the stores.

8.5 Service

Starbucks aims at building customer loyalty through high level of customer service at its
stores. The retail objective of Starbucks is, as it says in its annual report, "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.

8.6 Infrastructure

This includes all departments like management, finance, legal, etc which are required to
keep the company's stores operational. Starbucks well designed and pleasing stores are
complemented with good customer service provided by the dedicated team of employees in
green aprons.

8.7 Human Resource Management

The company's committed workforce is considered a key attribute in the company's

success and growth over the years. Starbucks employees are motivated through generous benefits
and incentives. The company is known for taking care of its workforce and this is perhaps the
reason for a low turnover of employees, which indicates great human resource management.
There are many training programs conducted for employees in a setting of a work culture which
keeps its staff motivated and efficient.

8.8 Technology Development

Starbucks is very well known for use of technology not only for coffee related processes
(to ensure consistency in taste and quality along with cost savings) but to connect to its
customers. Many customers use Starbucks stores as make a shift office or meeting place because
of the free and unlimited wifi availability. The company in the year 2008 also launched
mystarbucksidea.force.com as a platform where customers can ask questions, give suggestions
and openly express opinions and share experiences. The company has implemented some of the

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suggestions given via this forum. Starbucks also uses Apple's Beacon System wherein customers
can order their drink through the Starbucks phone app and get a notification when they walk in
the store.

8.9 Procurement

This involves procuring the raw material for the final product. The company agents travel
to Asia, Latin America and Africa for the procurement of high-grade raw material to bring the
finest coffee to its customers. The agents establish strategic relationship and partnership with a
supplier which is built up after reconnaissance and communication about the company standards.
High quality standards are maintained with direct involvement of the company right from the
base level of selecting the finest raw material which is coffee beans in case of Starbucks.

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9.0Starbucks Sustainability Phase Model Analysis

In today’s business environment, supply chain sustainability is increasingly recognized as

a key component of corporate responsibility. Sustainability is key maintaining the integrity of a
brand, ensuring business continuity and managing operational costs. It helps to create, protect
and grow long-term environmental, social and economic value for all stakeholders involved in
bringing products and services to market.

At Starbucks, its sustainability programs are also known as Social Responsibility. The
mission statement is to inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time. They believed that businesses should have a positive impact on the
communities they serve. So ever since the first store in 1971, Starbucks dedicated to earn the
trust and respect from customers, partners and neighbors by being responsible and doing things
that are good for the planet and each other.
Starbucks Social Responsibility breaks down to 4 main areas listed below:

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 Starbuck sustainability phase model falls under phase5, strategic proactively. The mix
and diversity are seen as integral and vitally important aspects for the business. Intellectual and
social capitals are used to develop strategic advantage through innovation. Proactive and seek for
stakeholders to involve environmental strategies supporting ecological sustainability are seen as
strategic business opportunities to provide competitive advantage. The organization seeks
competitive leadership through spearheading environmentally friendly products and processes.

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7.0 Recommendations

Even though Starbucks is running the business in a good shape, nevertheless, there are
some recommendations which cover different areas like Corporate Social Responsibilities;
Product & Service and Marketing Strategies.
7.1 Corporate Social Responsibility
Starbucks face challenges to achieve 25% reusable cup serve in store by year
2015. As of Y2010, the reusable cup serve is 1.8%, vs 2009 1.5%. Major
challenges are due to 17,000 stores in over 55 countries world wide. Different
countries have difference practice/focuses on recycling. Our group
recommendation on this is to have more campaign to promote customer
awareness in recycling. Beside, Starbucks could also provide more attractive
compensation for customer who use recycle cup. This will help to encourage and
promote reusable cup usage at the store.

7.2 Product & Service Related Areas

Starbucks could try to extend its menu selection to include drinks related to
particular cultures. For example, the Chinese culture products which focus more
on tea than coffee by introducing boba, a drink that incorporates little balls of
jelly called tapioca while introduce more “Matcha” (green tea) latte and
Frappuccino based in Japan. Besides, Starbucks should increase the varieties of
the bottle drinks like bottled Frappuccinos which is available in supermarkets and
specialty stores, which remain extremely popular among consumers. In additional,
Starbucks should increase the children’s drinks that aim to be a family
environment and cater the needs of all family members, including bakery or
cookies for children and etc.

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7.3 Market Strategies Related Areas

The market strategies recommended to Starbucks are offer mini-meals; increase

worldwide existence and localized products rates. Firstly, increase the mini-meals
set combo would encourage the working group to buy the snacks or meals during
the daily busy schedule. Besides, Starbucks need to improve the products by
aligning it to the local market rates in order to capture bigger groups of the
populations. Lastly, Starbucks can increase the popularity of the company
products towards more rural or outskirts areas which can be reach by allocating
the vending machines around the said areas

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8.0 Summary

Starbucks is progressively improving since it’s downfall in 2008. In 2011, for the first
time, Starbucks was ranked 22nd in the Gartner Supply Chain Ranking. According to Gartner,
“Starbucks is transforming its supply chain into a strategic differentiator”. According to our
group observation, Starbucks has a very strong Sustainability Strategy, if they continue to take
strides in this area they will protect and grow long-term environmental, social and economic
value for all stakeholders.
Finally, it is possible to come to two primary conclusions based on the conducted
analysis of the Starbucks company. First, it is essential to notice that the company’s
organizational performance vastly depends on accomplishing a well-designed and excellent
functioning supply chain management. It is evident from the analysis that Starbucks
implemented its current supply chain strategy to increase the company’s productivity and to be
able to expand successfully across the world.
Secondly, it should be noted that the supply chain strategy design and relationship with
suppliers built upon communication are directly involved in the company’s success. It is also
evident from the analysis that Starbucks was able to build beneficial relationships with its
suppliers. Overall, one can assume that Starbucks’ supply chain is an example of a significantly
successful business strategy.

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of-cli mate-change/

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transformed-its-supply-chain

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Social-Impa ct-Report.pdf

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of-cli mate-change/

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transformed-its-supply-chain

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