New Starbucks Brew Attracts Customers - Dissertation Example

New Starbucks Brew Attracts Customers More than often, it is necessary for business to consider the selection of their location to ensure that it is easily accessible to its customers. Considerably, the choice of the company's market location depends on the choice of business as it determines the most critical aspects for business enterprise success in terms of proximity and strategic location for customers to access products and services. As a result, the operations manager’s decision in the choice of an outlet location affects costs like the operations management costs, rent costs, transportation cost, as well as human resource accessibility within the area. More significantly, location decisions remain closely tied to the different organization’s strategies, especially the increased convenience to attract market share, based on the increased levels of capacity and flexibility, operating costs, revenues, operations, competitive advantage, and importance to supply chains. Notably, Starbucks management seeks to reduce cost and increase customer accessibility as the operations manager is able to consider convenient and marketable location for the business enterprise. This is because, the choice of location factor in the food and beverage industry is considered as one of the important reasons why consumer chooses specific coffee shop (Daft 55). As a result, majority of Starbucks coffeehouse are strategically located within the reach of its customers in shopping malls and areas near the commercial centers and areas. More so, the choice of location of Starbucks allows the business enterprise to become the number one choice of the coffee shop as compared to its competitors for different consumers because they perceive that coffee bars as a third place customers choose to go to as an essential place to relax from busy lifestyles. In addition, customer experience is considered one way of providing exceptional services as a service provider. As an entity that considers its customers as esteemed, each Starbucks store ensures that it gives customer satisfaction and adds value from the comments availed through customer comment cards available at the condiment stations. As a result, Starbucks gets useful feedback from comment cards as the management continuously keep in touch with what customers want from the coffee products and other services the different outlets offer to its customers. More considerably, Starbucks operations management consider the use of cards as a way to give the customer a chance to judge its advancements based on the experience they just had as their feedbacks give an opportunity for suggestions on new products. More so, Starbucks management offers a guaranteed promise to its customers to offer fully satisfying services as its promise states that customers can get a coffee drink the way they want it (Shim and Siegel 38). As a result, Starbucks management portray its flexibility to suit customer satisfaction because it allows for the customer to receive satisfaction in case they are not comfortable because another drink another will be made to their satisfaction. In addition, customers have an opportunity to sample different varieties of coffees from the free sample the baristas give before making a choice on their preferred flavor. As a company, focused on building increased customer satisfaction the operations of Starbucks Coffee outlet seeks to provide a great work environment and treat every customer with respect and dignity. More notably, the chain of outlets seek to give its consumers increased service reliability, high product quality, and management of operations as it seeks to increase its business growth and sustainability. Considerably, the approach used at Starbuck seeks to reinforce the increased operation management concepts of control, service reliability, management of quality, and efficient operations in action as its key strategic aspect in operations management. More than often, increased emphasis in operations management that seeks to provide high quality, reliable products and service at Starbucks have led to its increase in market share, profitability and productivity. Unlike its competitors, Starbucks seeks to offer it services at a higher level of excellence standard in all aspects of purchasing, fresh delivery of coffee and roasting in all its outlets worldwide. In addition, the culture of management at Starbucks seeks to allow its employees to embrace cultural diversity by developing increasingly enthusiastically satisfied customers who access their services (Stevenson 23). As a result, Starbucks always seeks to offer support for projects that contribute positively to its surrounding communities and environment as it seeks to increase its profitability level that remains essential for the company’s future success. As a company that seeks to remain competitive in the beverage industry and ensure marketability, Starbuck’s management always seeks to provide high quality products with increased provision of affordable cost, timely delivery and flexibility amongst its competitors. Nonetheless, the management through the operations managers always seeks to have the ability to differentiate the product offered by offering efficient decision-making policies that meet the expectations of the widely distributed outlets (Russell and Taylor 50). As one of the fastest growing brand in the food and beverage industry Starbucks Coffee, management seeks to come up with unique and competitive brand in the market. More significantly, the company’s operational strategy of the Starbucks Coffee seeks to attain their business enterprise based on their rapid expansion that relate to retail operations in the global market scene. At Starbucks quality operations management is undertakes in the strategic critical decisions in the product and design decision. This is because, as a continuously growing company its product and service designs leads to increased change and transition approach the management undertake while making operations decisions. As a result, the management seeks to identify the costs of operations and the quality of the offered products or services to ensure there is an improvement in quality in Starbuck. In addition, the management undertakes the development of product design approaches to suit the quality improvement changes in accordance with the changes and trends in the market place as the entire management of Starbuck seeks to sustain marketability and market share of the business enterprise (Michelli 25). As Starbucks seeks to attract more customers and make their outlets a preferable third home the business enterprise management it seeks to offer increased outstanding services as purchases and roast of high quality whole coffee beans is highly recommended. In addition, the roasted coffee is sold out to customers with enriched Italian style espresso coffee beverages that are sold at all Starbuck stores and branches along with confections and pastries and other coffee-related products (Michelli 30). As a result, the key to increased customer satisfaction is based on three main reasons that make Starbucks the coffee outlet of their choice this include the coffee itself, the experience gained in the stores and employees who give them exceptional services. More significantly, Starbucks coffee remains exceptional for its customers as it is brewed by highly trained baristas who bring the product to life from high-quality gourmet coffee beans, as they are able to make a coffee drink, understand and explain the diverse coffee varieties. On the other hand, the management of Starbucks focuses on offering the baristas higher wages than the industry average, company stocks, as they remain partners in the entity and health care benefits in order to reduce high turnover level. As Starbucks strive to remain as a “third” place for its loyal customers apart from their home and work place the outlets exceptional experience is encountered when a customer walks into a store based on the highly designed coffee stores based on the ambiance and spirit of an Italian espresso bar. In addition, Starbucks give the chance to customers to view as the coffee is brewed using the old style espresso machines used by the baristas undertake the coffee-making process as an attempt to gain back market share (Thompson, Strickland and Gamble 45). As a result, the already grinded coffee produces an increased pleasant aroma of fresh coffee that attracts customers as they walk in at any Starbucks outlet. In addition, Starbucks seeks to meet the different customer expectations as it also provides coffee bean products that suit the specialty of the different sales groups as well as other retail industries. As a result, the management of Starbucks continuously make an attempt to innovate some of their coffee products to different varieties as compared to their competitors that make their clients become more interested. More significantly, its products range from the frapuccino coffee drinks and coffee latte that give the sweet aroma when brewed by the baristas and other premium product teas produced by Starbucks subsidiary like Taso Tea Business enterprise (Thompson, Strickland and Gamble 48). As a business entity, which seeks to attract more customers the choice of layout design remains as a critical priority in operations management decision-making of the organization. As a result, the increased selection based on the right approaches in making decisions on suitable layouts and process remains one of the major factors that affect management decisions to consider specific technology that suit the specific chosen layouts. This is because, the choice of the layout should be done in line with the procurement of resources as the management seeks to develop suitable maintenance approaches. As a result, Starbucks strategy in layout design remains relevant in its outlets as they consider technologically advance layout design (Daft 34). In addition, Starbucks management has undertaken an outstanding online strategy of its layout design by considering wifi-enabled branches and stored. More significantly, Starbucks as a business enterprise permits diversification of their products as it recently acquired a music outlet Hear Music that remains devoted in assisting their customers to discover great music at their outlets..More than often, it is necessary for business to consider the selection of their location to ensure that it is easily accessible to its customers. Considerably, the choice of the company's market location depends on the choice of business as it determines the most critical aspects for business enterprise success in terms of proximity and strategic location for customers to access products and services. As a result, the operations manager’s decision in the choice of an outlet location affects costs like the operations management costs, rent costs, transportation cost, as well as human resource accessibility within the area. More significantly, location decisions remain closely tied to the different organization’s strategies, especially the increased convenience to attract market share, based on the increased levels of capacity and flexibility, operating costs, revenues, operations, competitive advantage, and importance to supply chains. Notably, Starbucks management seeks to reduce cost and increase customer accessibility as the operations manager is able to consider convenient and marketable location for the business enterprise. This is because, the choice of location factor in the food and beverage industry is considered as one of the important reasons why consumer chooses specific coffee shop (Daft 55). As a result, majority of Starbucks coffeehouse are strategically located within the reach of its customers in shopping malls and areas near the commercial centers and areas. More so, the choice of location of Starbucks allows the business enterprise to become the number one choice of the coffee shop as compared to its competitors for different consumers because they perceive that coffee bars as a third place customers choose to go to as an essential place to relax from busy lifestyles. In addition, customer experience is considered one way of providing exceptional services as a service provider. As an entity that considers its customers as esteemed, each Starbucks store ensures that it gives customer satisfaction and adds value from the comments availed through customer comment cards available at the condiment stations. As a result, Starbucks gets useful feedback from comment cards as the management continuously keep in touch with what customers want from the coffee products and other services the different outlets offer to its customers. More considerably, Starbucks operations management consider the use of cards as a way to give the customer a chance to judge its advancements based on the experience they just had as their feedbacks give an opportunity for suggestions on new products. More so, Starbucks management offers a guaranteed promise to its customers to offer fully satisfying services as its promise states that customers can get a coffee drink the way they want it (Shim and Siegel 38). As a result, Starbucks management portray its flexibility to suit customer satisfaction because it allows for the customer to receive satisfaction in case they are not comfortable because another drink another will be made to their satisfaction. In addition, customers have an opportunity to sample different varieties of coffees from the free sample the baristas give before making a choice on their preferred flavor. As part of the operations management, it remains essential for a business enterprise to reduce its employee turnover ratio as it seeks to lead to right and efficient decision that meet the capacity needs, purchasing decisions, human resource requirements, as well as inventory requirements. As a result, Starbucks strive to maintain its well-trained human resource personnel as it has an employee turn-over rate that is120% less than the industry average for retail coffee shops (Michelli 12). This is based on the operations management focus on ensuring employee satisfaction through increasing its hourly wages to exceed the industry average leading to high salaries for its employees. In addition, the company offers its employees who are considered partners increased health care benefits, and well structured company stock plan when they work more than 20 hours per week. As a result, of reduced turnover rates Starbucks management has been able to reduce on training costs as well as allow customers to build relations with the employees especially the baristas as they serve coffee (Schultz and Jones 56). Considerably, Starbucks management can effectively plan for increased customer satisfaction as the low-turnover levels in the company contributes to a reliable “Starbucks Experience” and customer loyalty. As a company focused on increasing its services to consumers, there is a need for increased innovativeness in its services, operations and products offered. More significantly, Starbucks management has been able to undertake increased innovative services as compared to its competitors that adhere to other critical decisions in operations management and increase customer satisfaction (Adamy 29). As a result, the operations management decision of the business enterprise has had increased influence in the company based on their decision to expand Starbucks through their' flexibility as well as innovation. In addition, the operations manager of Starbuck has been able to cope with the effects of market sustainable competitive advantage, by being able to expand and improve the business enterprise in the global market where it conducts business operations. In addition, Starbucks has become a prestigious brand in the global market because of increased market expansion through the store presence of its brand in various parts of the world. In most service industry business the establishment of advanced and consistent customer loyalty for their clients, increases market profitability and stability, which remains essential in operations management. As a result, the operations manager of Starbucks remains focused in meeting the needs of their clients, as a way of increasing the greater possibility to gain customer loyalty. More significantly, the increased levels of establishing a strong brand loyalty allow for the company to sustain competitive advantages as compared to its competitors and give them the market opportunity to charge a premium price for its coffee products to their clients. Therefore, Starbucks operations management continuously carries out periodic market research that seeks to understand the preferences of their clients. As a result, Starbucks management have been able to introduce a relaxing environment for its clients away from the workplace and home wherein their can relax or conduct business. More importantly, Starbucks has come up with increased use of broad-band Internet access within its prestigious coffee lounges that allow individuals to keep in touch with each other in a meeting while enjoying in their coffee offers. More than often, the establishment of any food outlet shop should take into consideration the flexibility of supplies, accessibility to the raw material and the time delivery. As Starbucks operates globally through it branches and store that are widely distributed while it offers services that suit its increased goal it also provides high quality services through increasing the value of its coffee products and services (Russell 50). There exists an increased need for the operations manager to consider the increased consistency in the efficient deliveries of their supplies while undertaking into consideration the efficient demand forecasts of coffee products as a way to enable effective business operations in every locality that it serves it customers. As a result, the operations manager of Starbucks not only takes into consideration the availability of supply, but also consider cost-effective as well as product placements, time efficiency and storage approach in the achievement of the organizations achievements as it remains as one of the most recognized coffee market industry. More than often, the cost of the products and packaging play an essential part in determining the consumers as it increases the company’s capacity and capability process. More significantly, Starbucks strategic operation management has been able to serve diverse customers from its changes in packaging, special offers besides the establishment of convenient stores that provide diverse variety in the coffee market to meet changing needs and demands of their consumers (Michelli 60). As a result, Starbucks Coffee globally has been able to competitively stay as a preferable brand in business catering specifically to middle-class to high class consumers. More so, Starbucks Coffee remains highly considered as an entity that seeks to target its niche market by focusing on the values of quality and economical purchasing behavior. In general, Starbucks stands out as a distinct outlet that allows various people in the different individual market segment to select freely from the stores broad range of coffee products. In addition, the operations managers take high consideration of the increased likelihood of their coffee products perishability as well as tangibility because Starbucks seeks to give its customers exceptionally fresh and quality coffee. As a result, priority is given in the analysis of the continuous trends in coffee products demands and strategic operations management depending on different seasons that essentially makes it possible for the Starbucks to continue its operation and initiate expansion plans to other locations (Daft 23). More essentially, Starbucks operations management remains highly concerned with the increased challenge in the coffee market industry that is normally speedy solutions for reliable delivery system of the raw materials because the business operations requires to remain essentials to compete competitively in today’s global trade. More considerably, Starbucks operations management focus on increased human resource management, Starbucks has been able to consider recruiting personnel from varied cultural diversity. As a result, the company has been able to reach out the international market by utilizing management styles, which consider transformation view, social responsibility view, power and paradigm shift (Greasley 30). Notably, Starbucks employees have been able to remain as a good source of providing and meeting the changing needs of the global market. Indeed, through human resource management Starbucks operations managers have been able to continuously meet their business goal. In conclusion, Starbucks remain as one of largest and most recognized coffee industry in the global scale because of its efficient management approach, specifically in their operations. As a result, it remains a priority for the company’s operations management to focus on the aspects of decision making for Starbuck to remain as a highly preferable brand. More so, Starbucks remains to excel because its business enterprise’s success is based on the fulfillment of the company’s mission, vision and objectives. Works Cited Adamy, Janet, New Starbucks Brew Attracts Customers, Flak, The Wall Street Journal Online, Page B1, 2008, Retrieved on November, 29, 2012 from http://online.wsj.com/article/SB121487042116217787.html Daft, Richard, Management. 6th Ed, 2003, Cincinnati, Ohio: Thomson South-Western. Greasley, Andrew. Operations management. Los Angeles: SAGE Publications, 2008. Michelli, Joseph, The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, New York, NY: McGraw Hill, 2005. Russell, Roberta. and Taylor Bernard, Operations Management: Creating Value Along the Supply Chain, 7th Edition, John Wiley & Sons, Inc. New Jersey, 2011. Russell, Roberta, Operations Management: Creating Value Along the Supply Chain: John Wiley & Sons, Inc. New Jersey, 2008. Schultz, Howard and Jones Yang, Pour Your Heart Into It: How Starbucks Built a Company One Cup At A Time. New York, NY: Hyperion, 1997. Shim, Jae. and Siegel, Joel. Operations management. Hauppauge, NY: Barron's Educational Series, 1999. Stevenson, William, Operations Management, 10th Edition, McGraw-Hill Irwin, New York, 2009. Schultz, Howard and Jones Yang, Pour Your Heart Into It: How Starbucks Built a Company One Cup At A Time. New York, NY: Hyperion, 1997. Thompson, Arthur, Gamble, John and Strickland, Alonzo “Starbucks in 2004:  Driving for Global Dominance”, Crafting and Executing Strategy (Fourteenth Edition), McGraw-Hill, New York, pp. C2-C32, 2005. Read More