Operational Change (Essay Sample)

Starbucks operational change
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Table of Contents TOC \o "1-3" \h \z \u Starbucks operational change PAGEREF _Toc425042039 \h 2Introduction PAGEREF _Toc425042040 \h 2Starbucks operational change PAGEREF _Toc425042041 \h 3Enhance operations management PAGEREF _Toc425042042 \h 3Strategic leadership improvement PAGEREF _Toc425042043 \h 4Formulate strategic marketing PAGEREF _Toc425042044 \h 5Outsourcing PAGEREF _Toc425042045 \h 7Advantages of outsourcing in operations management PAGEREF _Toc425042046 \h 7Disadvantages of outsourcing in operations management PAGEREF _Toc425042047 \h 7Advantages of strategic marketing PAGEREF _Toc425042048 \h 9Disadvantages of strategic marketing PAGEREF _Toc425042049 \h 10Criteria used to identify the suitable improvement method PAGEREF _Toc425042050 \h 10Choice of improvement PAGEREF _Toc425042051 \h 11Referencing list PAGEREF _Toc425042052 \h 12
Starbucks operational change
Introduction
Starbucks coffee company is a worldwide Coffeehouse and coffee company that has its headquarters in Washington, United States, and it operates in 60 countries with a total of 18000 retail stores. Starbucks started its operations way back in 1971 in Seattle. The company started its operations by supplying coffee to espresso bars and restaurants. The idea of a coffee house was introduced in the mid-1980s by Howard Schultz. Starbucks then started growing swiftly and opened numerous outlets all over the world. The companies faithfulness to its mission and together with an insistent utilization of the global market development plan have contributed to more than US$ 73.5 million from US$1.3 million in the year 1987. Furthermore, Starbucks entered the United Kingdom market in the year 1998, and presently it runs 607 stores in the United Kingdom (UK), and there exist 128 Starbucks stores that have been licensed in the UK. Starbucks success in the coffee business boomed all over the world. Despite its overpriced the company still attracted numerous customers.
Due to this investors started creeping in since they saw Starbucks as a profitable investment. For sure, the swift success of the company is a mystery in the coffee business. Nevertheless, this trend changed and the company’s fast-paced development suddenly stopped, and it experienced a 50% drop in profit by the completion of the 2008 financial year. In 2011 financial year, the company had $11.7 million worth of revenues. This being even low compared to the past years. Like any other company, Starbucks is also faced with some significant challenges in the UK market and the world in general ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "DOI" : "10.2217/pgs.11.87", "ISSN" : "17448042", "PMID" : "21919604", "abstract" : "Pharmacogenomic Innovative Solutions Ltd (PGXIS) was established in 2007 by a group of pharmacogenomic (PGx) experts to make their expertise available to biotechnology and pharmaceutical companies. PGXIS has subsequently established a network of experts to broaden its access to relevant PGx knowledge and technologies. In addition, it has developed a novel multivariate analysis method called Taxonomy3 which is both a data integration tool and a targeting tool. Together with siRNA methodology from CytoPathfinder Inc., PGXIS now has an extensive range of diverse PGx methodologies focused on enhancing drug development.", "author" : [ { "dropping-particle" : "", "family" : "Starbucks Coffee Company", "given" : "", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Folklore", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2011" ] ] }, "page" : "1253-6", "title" : "Starbucks Company Profile", "type" : "article-journal", "volume" : "12" }, "uris" : [ "/documents/?uuid=8f7a6a5f-a04e-4595-b9a0-620b9e7d2ac5" ] } ], "mendeley" : { "formattedCitation" : "(Starbucks Coffee Company 2011)", "plainTextFormattedCitation" : "(Starbucks Coffee Company 2011)", "previouslyFormattedCitation" : "(Starbucks Coffee Company 2011)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Starbucks Coffee Company 2011). A set of key issues are faced by the company and, therefore, there is a need for change so that the company may continue upholding its top position in the worldwide market. Some of the changes that the company should do are to enhance operations management, Strategic leadership improvement and formulate strategic marketing. This paper is going to discuss the methods that can be used to implement the above changes in Starbucks coffee company.
Starbucks operational change
Whereas Starbucks is still viewed as the leading coffee chain company, in the current years, its grip on the coffee business has considerably loosened. The competition the company is facing is not from newcomers in the coffee industry, but from the older coffee companies that have augmented customer loyalty. Therefore, so as to curb these issues the company has to implement different strategies so as to ensure it still maintains a good position in the competitive market. For instance, Companies like McDonald’s have increased their sales by 8.2% after they started scaling up their services. Having determined the changes that should be implemented so as to ensure Starbucks gets back to becoming the once vibrant organization in the coffee market, it is important to frame a plan that will address these problems. Strategic transformation cannot be attained without laying down which actions are to be carried out. Since the major problems that need to be addressed have been identified, plans for the remedy require to be formulated ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "DOI" : "10.1108/17465681011079473", "ISBN" : "0262171031", "ISSN" : "1746-5680", "abstract" : "Purpose \u2013 The purpose of this paper is to revisit and rationally reconstruct the role of planning, strategic management, and strategic balance, in a context of managing change. The general problem dealt with is: \u201cWhen is it possible to design and manage a balanced strategic change process under conditions of rapid high-frequency change?\u201d Design/methodology/approach \u2013 The paper revisits the development of strategic management and contains a rational reconstruction of core assumptions relevant to managing change. In the first section, the historical origin of strategic managements approach to change is rationally reconstructed. The next sections analyze and interpret core assumptions underlying the strategic management approach to planning and change. The next section explicate the conceptual strategic hierarchy showing that developments in strategy make theories of planning and control more abstract and complex, but nevertheless preserve the idea of planning and control as a demand for strategic balance. The last section inserts this discussion into a change management framework pointing to a practical paradox emerging and addressing a possible solution. Findings \u2013 It is argued that a practical paradox emerges between the time horizon inscribed in concepts of strategic management and planning and the empirical demands to it under the pressures of high frequency change. Originality/value \u2013 The paper directs attention to a new perspective on managing change as an experienced change/stability ratio, which may help dissolving the practical paradox managers faces in keeping up with strategy.", "author" : [ { "dropping-particle" : "", "family" : "Bordum", "given" : "Anders", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" } ], "container-title" : "Society and Business Review", "id" : "ITEM-1", "issue" : "3", "issued" : { "date-parts" : [ [ "2010" ] ] }, "page" : "245-258", "title" : "The strategic balance in a change management perspective", "type" : "article", "volume" : "5" }, "uris" : [ "/documents/?uuid=f515c9f0-5939-491c-8de9-b9c9ba23c066" ] } ], "mendeley" : { "formattedCitation" : "(Bordum 2010)", "plainTextFormattedCitation" : "(Bordum 2010)", "previouslyFormattedCitation" : "(Bordum 2010)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(Bordum 2010). Therefore, founded on the above assessments, the following endorsements should be put into action. To start with is how to enhance the operations management of Starbucks Company so as to gain competitive advantage.
Enhance operations management
Starbucks requires to advance the operations management of its stores. Operational effectiveness denotes to the performance of the same activities well than how other competitors can perform them. Nevertheless, operational effectiveness is not adequate to gain or uphold competitive advantage. ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "abstract" : "The case explores the opportunities and challenges confronting Starbucks in the early 21st century. For more than 15 years, Starbucks has grown swiftly and successfully, helping create a large, dynamic market for specialty coffee, building one of the world's most powerful brands, and forging a new business model based on industry disrepair and responsible global citizenship. In 2008, Starbucks leadership faces a range of issues--inside and out of the company--related to that success. This case examines these issues in the context of a changing economy, increased competition, evolving consumer priorities, and the organization's place on the larger global stage.", "author" : [ { "dropping-particle" : "", "family" : "Miller", "given" : "Katherine", "non-dropping-particle" : "", "parse-names" : false, "suffix" : "" }, { "dropping-particle" : "", "family" : "Besharov", "given" : "Marya", "non-dropping-particle" : "", "parse-names" : false, "su...