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Starbucks Value Chain Analysis

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The passage discusses Starbucks' value chain and various activities like procurement, logistics, operations, marketing and sales according to Porter's model.

Starbucks manages its human resources through activities like recruiting, hiring, training, development and compensation with generous benefits and incentives. It also emphasizes employees' values and principals.

Starbucks' primary activities according to Porter's value chain model include inbound logistics like procurement, operations like processing green beans, and outbound logistics like distribution.

Michael Porter’s Value Chain

Form infrastructure
• It consists of functions or department such as legal, finance, planning, public affairs, government relationship, quality
assurance and general management.
SUPPORT ACTIVITIES • Employees dress code(green aprons)
Human resources management
• It consists of activities recruiting, hiring, training and development and compensation of all types of personals
• Motivations through generous benefits and incentives
• Value and principals
• Job analysis

Technology department
• All activities related to know- how, research and development, product design, process improvement And IT development
• Used to increase efficiency and to cut costs
• Computerized coffee roasters
• Wi-Fi in stores
• Starbucks express-trial apps to pre-order on smartphone
• Automatic espresso machine to speed service
• Voice ordering and delivery service in china

Procurement
• Purchase material at costs to maintain and increase margins
• Eliminate middle man
• Centralized system
• Reducing waste and inefficiencies
PRIMARY ACTIVITIES
Inbound Logistics Operations Outbound Logistics Marketing & Sales Service
Policy • More than 31000 • Company store • Consistent branding • My Starbucks ideas
• Strategic relationship stores in two format • Licensed store and customer • Customer travel mug
with suppliers -Operated by company • Shipped retailed store experience • Make everyone feel
• Starbucks farmer itself from • Great product comfortable
support center -Licensed based - Warehouse • Experimental locations • My Starbucks rewards
• Operates in 87 - Distribution store • Loyalty program • Give back to the
Sources countries • Online channels • Social media marketing community
• Latin America • Operations at • Available on Walmart • The Starbucks mobile • Customer loyalty cards
• Africa convenient location & target store apps
• Asia- pacific • Business segments and • Sales through company • Corporate social
revenue store and licensed responsibility
Process - Americans-69% store • Word of mouth
• Green &unroasted - Internationals-23%  
beans procured - Channel
directly from the farms development -8%
• Transported to storage
• Roasted & packed
• Some are distributes
by own company
• Some are operated by
other logistics
company

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