Founded back in 1971, Starbucks Coffee Company opened its first store in Seattle’s Pike Place Market (Starbucks, 2010 c). After going through a lot of trials and failure during its first few years in the business, Starbucks managed to survive when Howard Schultz was introduced to the company during the early 1980s (Ostdick, 2010).
Having a good vision about the company, Schultz purchased Starbucks with the support of local investors in 1987. Through diversification of products and services, intensive expansion all over the world, and joint-ventures with Earvin “Magic” Johnson’s Johnson Development Corp. (1998) known as the Urban Coffee Opportunities, LLC (UCO), etc. (Benzaken et al., 2010) Today, Starbucks is considered as the world’s leading retailer, roaster and a well-known brand serving close to 44 million customers per week throughout North America, Europe, Middle East, Latin America and the Pacific Rim (Duffie, 2010).
Given the size of Starbucks’ operations around the world, this study will focus on analyzing the inventory process of Starbucks. After describing the current operation of Starbucks in terms of information, inventory, transportation, and location, this report will discuss the operation capabilities of Starbucks in relation to its current organizational structure. Eventually, the operational strengths and weaknesses of Starbucks’ inventory process will be identified ub relation to the gaps or misalignment between the operational structure, strategy, processes, culture, tasks and people. Upon analyzing the case of Starbucks’ inventory process, recommendations for redesign based on analysis will be provided using applications of logical frameworks and theories. Strategic ways on how the recommended redesign will be implemented will also be included in this report.
As the global