Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 179 views

    Value Chain Analysis

    Uploaded by

    komal Agrahari
    Starbucks engages in several primary activities that are essential to its business operations. These include inbound logistics of procuring high quality coffee beans from regions around the world and roasting them in regional distribution centers. Starbucks also operates over 31,000 company-owned and licensed stores globally as of 2019. The company focuses on positioning its stores in high traffic locations. Starbucks utilizes various marketing and sales channels including spending over $245 million on advertising in fiscal year 2019 to promote its brand. Superior customer service is also a core part of the Starbucks experience.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Value Chain Analysis

    Uploaded by

    komal Agrahari
    179 views2 pages
    Starbucks engages in several primary activities that are essential to its business operations. These include inbound logistics of procuring high quality coffee beans from regions around the world and roasting them in regional distribution centers. Starbucks also operates over 31,000 company-owned and licensed stores globally as of 2019. The company focuses on positioning its stores in high traffic locations. Starbucks utilizes various marketing and sales channels including spending over $245 million on advertising in fiscal year 2019 to promote its brand. Superior customer service is also a core part of the Starbucks experience.

    Original Title

    Value chain Analysis

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Starbucks engages in several primary activities that are essential to its business operations. These include inbound logistics of procuring high quality coffee beans from regions around the world and roasting them in regional distribution centers. Starbucks also operates over 31,000 company-owned and licensed stores globally as of 2019. The company focuses on positioning its stores in high traffic locations. Starbucks utilizes various marketing and sales channels including spending over $245 million on advertising in fiscal year 2019 to promote its brand. Superior customer service is also a core part of the Starbucks experience.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    179 views2 pages

    Value Chain Analysis

    Uploaded by

    komal Agrahari
    Starbucks engages in several primary activities that are essential to its business operations. These include inbound logistics of procuring high quality coffee beans from regions around the world and roasting them in regional distribution centers. Starbucks also operates over 31,000 company-owned and licensed stores globally as of 2019. The company focuses on positioning its stores in high traffic locations. Starbucks utilizes various marketing and sales channels including spending over $245 million on advertising in fiscal year 2019 to promote its brand. Superior customer service is also a core part of the Starbucks experience.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Primary Activities

    1. Inbound logistics
    Inbound logistics mainly includes the activity for receiving of raw materials or products from
    supplier to warehouses. In context with Starbucks, the inbound quality coffee beans are pulled
    from Asia, Africa and Latin America to US and Europe via sea. Green coffee beans purchased
    from multiple coffee producers regions are then delivered to six regional distributions centers
    ranging from 2,00,000 to 3,00,000 square feet after which those beans are roasted and packaged
    and delivered to central distribution centers, few of which are company-owned and others
    operated by other logistics companies . Starbuck doesn’t outsource its procurement so as to
    maintain high quality standard of coffee beans.
    Value for the company: Starbucks operates eight farmer support centers monitored by
    agronomists and experts who work with coffee farming communities to promote the coffee
    quality and yields which is major source of value for the company.
    2. Operations
    Operating stores are vital for business as they provide collective information about market
    tendencies in general in a direct manner. According to Starbucks by type- statistics 2020, by end
    of 2019, Starbucks has over 31000 company-operated and licensed stores which were 6 %
    increase from the prior year.
    Company-operated Stores: By end of 2019, it has around 16000 company-operated stores
    which accounted for 51% of total stores. In FY 2019, 665 new stores were opened resulting in 12
    % increase over year.
    Licensed stores : There are 15,700 licensed stores out of which 8183 stores are located in
    America, 4205 are located in China and Asia pacific and rest are in Europe, Middle East and
    Africa. In 2019, 377 operated stores company in Thailand were switched to License store and 82
    company-operated stores in France and Netherland transferred to fully licensed store.
    Value for the company: Starbucks positioning of stores in high traffic, high visibility locations,
    moreover, company’s ability to vary the size and format of its stores have turned to be main
    source of value for the company.
    3. Outbound Logistics:
    Customers can easily get Starbucks products from company-operated and licensed stores. For
    certain range of products such as packaged tea, coffee, drinks online sales channel is also
    utilized.
    Value for the company: The absence of intermediaries such as resellers or wholesalers is the
    main source of value for the company in terms of outbound logistics as Starbucks keeps the
    margin to themselves that would have gone to intermediaries.
    4. Marketing and Sales
    Starbucks focusses on superior quality products and high level of customer service. In its FY
    ending in September 2019, Starbucks spent 245.7 million U.S Dollars on advertising. This
    budget is invested into various elements of print and media advertising, sales promotion, public
    relations and marketing.

    Starbucks Corporation's Advertising Spending Worldwide (FY


    2011-2019)
    282.6

    260.3
    Spending in million U.S Dollars

    248.6 245.7
    227.9

    205.8
    198.9
    182.4

    141.4

    2011 2012 2013 2014 2015 2016 2017 2018 2019


    Fiscal Years

    Source: www.statista.com
    Vale for the company: High level of integration of social media and technology into sales
    process is one of the major source of value for Starbucks.
    5. Services
    Superior customer service such as greeting customers in a polite manner, handling the
    customer’s complaints effectively Moreover, providing regular customers with free of charge
    coffee as a reward are the some of the sources of Starbucks competitive advantage. 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.”

    You might also like