Starbucks is very well known for use of information technology not only for coffee related processes...
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Starbucks is very well known for use of information 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 suggestions given via this forum. Starbucks also uses Apple's iBeacon System wherein customers can order their drink through the Starbucks phone app and get a notification when they walk in the store. Starbucks selects 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 supplied 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 function to ensure high quality standards right from the point of selection of coffee beans. Starbucks goes into great lengths to professionally buy 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. Question: As a group, read the "Starbucks Value Chain Analysis" and identify: (1) The most valuable primary activity, and (2) The most valuable support activity that adds to the competitive advantage. Firm Infrastructure Human Resource Management Support Activities Technology Development Procurement Inbound Operations Outbound Logistics Logistics Primary Activities Marketing and Sales Service Margin Margin Starbucks is very well known for use of information 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 suggestions given via this forum. Starbucks also uses Apple's iBeacon System wherein customers can order their drink through the Starbucks phone app and get a notification when they walk in the store. Starbucks selects 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 supplied 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 function to ensure high quality standards right from the point of selection of coffee beans. Starbucks goes into great lengths to professionally buy 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. Question: As a group, read the "Starbucks Value Chain Analysis" and identify: (1) The most valuable primary activity, and (2) The most valuable support activity that adds to the competitive advantage. Firm Infrastructure Human Resource Management Support Activities Technology Development Procurement Inbound Operations Outbound Logistics Logistics Primary Activities Marketing and Sales Service Margin Margin
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Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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