This document is a group project for an Operations Management class on Starbucks Coffee. It contains background information on Starbucks, describing how since 1971 it has been committed to ethically sourcing high quality coffee. It then discusses Starbucks' products, markets, and strategies. Sections are divided among group members and cover topics like Starbucks' expansion internationally, quality strategies, inventory management techniques, strengths, opportunities, weaknesses, threats, and references. The overall document provides an overview of Starbucks' business operations and strategies.

1. BS in Management Science
OPERATIONS MANAGEMENT - MGT214
Group Project
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE
Instructor’s Name: Ms. Dalal Bamufleh

2. Alaa Gain – 06120012
Shoroq Al-Khateeb – 09120108
Ebtehaj Lafi – 08220255
Afnan Al-Gain – 09120068
Abrar Muzain – 08120002
Alaa Muzain - 08120011
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

3. BACKGROUND
Since 1971, Starbucks Coffee
Company has been committed to
ethically sourcing and roasting
the highest quality Arabica coffee
in the world. Today, with stores
around the globe, the company is
the world’s premier roaster and
retailer of specialty coffee.

4. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

5. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

6. Starbucks Corporation offers coffee products and café
services throughout the world. It sells high-quality whole
bean coffees (from around the world) along with other types
of freshly brewed coffees, premium teas and espresso
beverages, hot and cold. It also offers various sodas and
juices, pastries and confectionery, coffee-related accessories
such as the Starbucks mugs, and other café related
products such as the Starbucks CD. Starbucks sells its
special products through its company-operated retail stores,
warehouse club chains, office coffee distributors, institutional
foodservices such as hotels and airlines, mail-order
catalogs, and through its electronic store.

7. “ Establish Starbucks as
the premier purveyor of
the finest coffee in the
world while maintaining
our uncompromising
principles while we grow.” “ Starbucks is committed
to a role of environmental
leadership in all facets of
our business.”

9. STRENGTH
- Starbucks is the market leader in the coffee
Market.
- Customers are satisfied with the quality and taste
of Coffee.
- High brand equity.
- Operating in 40 countries worldwide.
- Huge number of employees’ approx. 13 thousand.
OPPORTUNITY
- Entry into Asian market like Pakistan, India and
Bangladesh.
- Market penetration in International countries.
- Co-branding with other food manufactures.
- Whole bean sales in supermarkets like.
WEAKNESS
- Pricing are higher as compared to the
competitors.
- High operating cost·
- The business profits are highly dependent on
coffee product.
THREATS:
- Numbers of competitors are increasing, like Barista,
Café coffee Day, Gloria jeans coffee.
- Variation in coffee prices in developing countries·
- People started to become more health conscious·
- Labour Unions issues in US and international countries·
- Starbucks facing huge resistance in international
countries over cultural and political issues.

11. BY ALAA
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

12. - Businesses moving from domestic to an international strategy give the firm
greater return on its investments.
- In 1995, due to the saturation of the United States market, Starbucks started
to expand its business overseas.
- By 2001, Starbucks had more than 150 stores and plans to continue its
success.
- The company began by entering into joint ventures with local businessmen.
- Starbucks a strong expansion campaign, opened in foreign markets by
2001.
- This plan made the opening of over 600 stores located out of the United
States possible.
- More than 200 units including China, Japan, Kuwait, Lebanon, New
Zealand, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and
Thailand.

13. BY ALAA
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

15. BY SHOROQ
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

16. QUALITY
STRTEGY
For Starbucks, quality simple means.
The company even uses "mystery
shoppers“.
Starbucks coffee buyers spend about
18 weeks each year visiting coffee
growers and suppliers.
Starbucks gets the first pick of some
of the world’s best coffee crops.

17. • be welcoming
• be genuine
• be considerate
• be knowledge
• be involved
• Continuous improvement .
• Just-in-time (JIT).

18. BY EBTEHAJ
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

19. - Modules combined for many output options (many cup types
& same cap type)
- Repetitive operations
- Just-in-Time inventory
- Fixed, well-known costs, due to experience
- Specialized equipment (coffee machines, customized
blenders, etc.)
- Well-trained staff (Starbucks’ policy to train coffee specialists)

20. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

22. BY AFNAN
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

23. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

24. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

25. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

28. BY ALAA & ABRAR
IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

29. Inventory
management
means all the
goods that are
available to sell in
the warehouse.
The techniques that
Starbucks company use it to
manage their inventory are
JIT
MRP

31. Reduce their price by producing a new product of coffee using
cheaper beans or may come out with special discounts
promotions to increase the sales.
Starbucks can effectively pursue Focus-Based Strategy in
conjunction with differentiation or cost leadership based strategy.
Advertisement can develop through internet that services convinced for
users to access, give the brochures, do road shows, so that public come
to know more about Starbucks details.

32. 1. Outstanding Quality of the coffee.
2. Excellent service provided at the stores
3. Fast growth of new stores all around the
world.

33. Starbucks Official Site
http://www.starbucks.com/
Starbucks Details Strategy for Profitable Growth
http://news.starbucks.com/news/corporate+news/financial/2009+annual+meeting+of+shareholders.htm
Starbucks - Design of Goods and Services
http://www.oxbridgewriters.com/essays/finance/design-of-goods-and-services.php
Starbucks Strategy
http://www.slideshare.net/tommy2cruise/starbucks-strategy
Starbucks SWOT Analysis
http://www.slideshare.net/shahkiran79/starbucks-swot-analysis
Starbucks Marketing
http://www.slideshare.net/Heekuk/starbucks-marketing
Starbucks Global Strategy
http://brainmass.com/business/international-business/402609
Operation Management
http://dc169.4shared.com/doc/XnYqb0C-/preview.html
Starbucks Final Presentation
http://www.slideshare.net/guest020532/starbucks-final-presentation
Berger, A., Buchman, J., Chase, D. & Hsu, S. (2003). Starbucks. Retrieved on November 12, 2009 from,
http://74.125.153.132/search?q=cache:z1kF8ZdXtXoJ:www.loudoffice.com/donald/resume/portfolio/Starbucks.ppt+STARBUCK
S+
B+managing+quality&cd=2&hl=tl&ct=clnk&gl=ph.
Thompson, A. & Gamble, J. (1999). Starbucks Corporation. New York: The McGraw-Hill Companies. Retrieved on November
12, 2009
Starbucks Website (2009). Starbucks, Inc. Retrieved on November 12, 2009 from, http://news.starbucks.com.

34. IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE