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Operations and Technology Management of Starbucks Executive Summary This report is based on the operation and technology management of Starbucks. Starbucks has recently set some objectives for their business: to return the cash to their shareholders, diversify the business, improve customer engagement, expand business in the US and China, and attain quality in operations. Total quality management as the operation and technology management process has been applied here, showing how Starbucks can achieve its objectives while eliciting Quality function deployment as output. From the discussion, barriers like competitors, market fluctuation, and others have been drawn out. Collaboration with competitors, attaining diversification in price points, and other recommendations are proposed to mitigate them. Introduction This report is based on the operations and technology management of Starbucks. This report shows their current operational strategies and how they operate to attain goals while elaborating on them. The next discussion shows total quality management as a process of operation and technology management, which leads to quality function deployment. Lastly, it elaborates on some barriers and recommendations based on the discussion. About Starbucks Starbucks is an American coffee house company that provides roastery services. It is the world's largest coffee chain ( starbucks.com ). This report shows its aims, operations, and how operation and technology management can improve its business in terms of quality products, better revenue, market growth, and diversification. Business objectives of Starbucks Goals and objectives In 2018, Starbucks published a financial press release announcing its strategic priorities and rational initiative to attain growth and long-term value for shareholders (Starbucks Investors Relations, 2018). In that press release, some of their initiatives were mentioned as they decided their operational strategies. Expanding the brand recognition through creating a global coffee brand alliance and focusing on committing to shareholder's return, adding more digitally registered customers in their Digital Flywheel, returning shareholders cash by 25 billion dollars within the fiscal year of 2020 (Starbucks Investors Relations, 2018). It will also spread more store footprints in the US and China markets, increase net profit in the fiscal year, incorporate G&A efficiency, and so on. Strategic Operation Management Satrbucks' operations and technology management is expected to focus on the business growth of this company in global regions that hold most of the shares and have the potential for high sales; also, it allows them to innovate and diversify products that could revamp the sales ( Iris and Lam, 2019 ). By increasing the net revenue, Starbucks' operations and technology management focus on the returns of shareholders. 4V analysis of Starbucks In this analysis, Starbucks' operation management can be identified that stands in the present; Volume: Starbucks has a high volume business, which suggests that the partners (employees) are not operating multiple tasks individually. For every task, separate automation has been attained by this company, which leads to better catering to the customer's demands.

Figure: Most valuable restaurant brands worldwide in 2023 (Source: Statista, 2023a) As shown in figure 1, they are currently the highest value brand, worth 53.4 billion US dollars, with an immense number of aspiring employees (Statista, 2023a). Hence, the deliverables of this brand are compatible with the demand itself. Variety: Starbucks has a variety of beverages that mainly focus on tea and coffee. Including hot and cold tea and coffee, they have other beverages like cold drinks and so on. They also have breakfast combos, meal options, confectionaries, desserts, and snacks (Starbucks Menu, 2023). Merchandise is also sold by this brand, which means each profile of products, due to its range and variation, can cater to the demand of a vast demographic of customers. Variation: Variation suggests the fluctuation in demand for the company, which in this case is higher as the net revenue of Starbucks increased to 26.58 billion US dollars from 24.61 billion US dollars last year (Statista, 2023b). Visibility: Starbucks' visibility is trying to reach into the US and Chinese markets as those are the largest markets for shareholders (refers to fig. 2; Statista, 2023c). On the other hand, their digital market visibility is also considered a strong strategy for their transparency and recognition.

Figure 2. Countries with the most Starbucks locations globally in 2022 (Source: Statista, 2023c) Strategical deliverance of objectives by operation and technology management Through operation and technology management, Stabucks can attain diversification in its product, which would help it attain its objective. They can capture the US and China markets more through market expansion to increase sales and revenue ( Nair et al . 2021 ). On the other hand, they can retain employees through such management, which would benefit them as skilled human resources can be efficient and cost-effective. Lastly, achieving total quality in every aspect of business, whether it is production, management, or operations, can be a key to their success. Conversion of objectives into performance by operation management Quality management and improvement Total quality management (TQM) refers to the aspiration that the companies will be engaged in such operations and management where the employees will elicit their full potentiality and high standard performance. This operations management would be beneficial for Starbucks as this would ensure that the product quality of this brand gets better and the price point can be competitive ( Musonera, 2021 ). Ensuring the most beneficial region to expand business along with innovative processes, Starbucks can attain its market growth. As per the current position of this business, Starbucks has a set of standards for their suppliers, which includes a code of conduct, food and non-food quality and safety standards, ethical sourcing standards, operations, and paying wage conducts (Starbucks Suppliers, 2023). Starbucks procures its resources from diverse sources, which ultimately elects premium quality coffee along with responsibilities towards the community and environment. Their supplier's quality management team consists of those responsible for compliance with the standards of food and non-food items regarding safety and quality, promptly acting upon any nonconformities, and so on (Starbucks, 2023d). Supervising the production of food that maintains high quality is another responsibility of this team as per the ISO standards. Starbucks provides mandatory training for the partners as per their job roles. It ensures that their operations meet the expectations and attain the standard quality set by the company

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(Starbucks careers, 2023). Many competitors of this brand are McDonald's, Dunkin's, and others. Starbucks sets a standard bar of being a competitor by selling optimum quality coffee in a competitive price range. The popularity of this brand is also their asset and competitive advantage. Diversifying their product range also impacted brand recognition and demand ( Alwaleed et al. 2019 ). Lastly, their technological incorporations, like introducing espresso roasters, are helping them to gain popularity. Therefore, it could be said that total quality management as operations and technology management is a holistic approach that Starbucks is taking. Quality Function Deployment (QFD) QFD is the outcome of total quality management as an operations and technology management process. QFD is a tool that is used by many companies when they try to reflect the customers' demand for their products. This tool can be used to elicit the expected output that Starbucks is expecting by incorporating TQM. QFD is customer-focused as the company tries to attain the expectations of customers as well as cater to their needs. Analysing what customers and other competitors need ( Aminuddin et al. 2021 ). One of the major measurements of this QFD is keeping the innovation and development time shorter and reducing the cost. Through such measures, quality products and services can be elicited in Starbucks, implying this tool. The process by which operation management aims for operational excellence to drive the business forward in the future There are several ways through which operations and technology management can help Starbucks attain excellence and push it forward. Using several tools, operation, and technology management can be dealt with easily by building up a team. Otherwise, managing quality products and related operations can be complicated for managers ( Permana, Purba, and Rizkiyah, 2021 ). If the innovation and quality operation process is not documented, it cannot be modified. Utilising such automation tools, the innovation process can be streamlined. Planning and scheduling can be done with these tools, which can help employees be on the same page. Remote access to documentation can be done along with digital monitoring of every operation done by employees, which can significantly enhance production quality ( Antunes et al. 2021 ). Starbucks can achieve higher employee retention through such management, which can provide teachers with higher efficiency and reduce costs, which is beneficial for them. Such management efficiency can increase Starbucks' competitive advantage and help them grow. Conclusion and Recommendations From the above discussion, it can be concluded that Starbucks has some barriers in terms of attaining its objectives and goals. One of the major barriers that they face is the other coffee- producing companies that are equally popular in the existing market. The competition comes with unpredictable market trends, such as the customers' preferences for beverages, which can significantly impact the business ( Kee et al. 2021 ). Economic instability is another external factor that can negatively impact this brand's revenue. The market can be stable when the net worth can be negatively impacted. As this company relies heavily on procurement sources if the Starbucks supply chain faces any disruption, the entire company and its business can suffer ( Lombardi, Chidiac, and Record, 2021 ). The labour or employee layoff turnover rate is a challenge if it starts to be heightened. Regarding analysing all the barriers, some recommendations can be developed here to overcome those. It would help Starbucks to attain global expansion, increase growth rate, and achieve quality;

Price differentiation: Starbucks can adopt price differentiation in their business, which can help them attract more customers. For instance, they can separate their premium and regular coffee prices and offer students discounts. Diversification: Diversification of products can also benefit them ( Tsai et al. 2020 ). Starbucks is already popular in the coffee market, but it can also get recognition in the team market or the case of other beverages or confectionery items. Collaborating with competitors: As companies tend to compete with other companies in the same market, Starbucks can use the fame of their and other competitors' businesses and collaborate ( Kim, 2019 ). This collaboration can help them understand competitors' business strategies, and they could profit from the customers' responses.

Reference list Starbucks Menu. 2023. Starbucks menu. Starbuck [Online] Available at: https://www.starbucks.com/menu [Accessed on: 27th December, 2023] Starbucks Investors Relations. 2018. Press release. Starbucks. [Online] Available at: https://investor.starbucks.com/press-releases/financial-releases/press-release-details/ 2018/Starbucks-Announces-Strategic-Priorities-and-Operational-Initiatives-to-Accelerate- Growth-and-Create-Long-Term-Shareholder-Value/default.aspx [Accessed on: 27th December, 2023] Statista. 2023a. Most valuable restaurant brands worldwide 2023. Statista [Online] Available at: https://www.statista.com/statistics/407892/brand-value-of-the-leading-global-fast-food- brands/#:~:text=In%202023%2C%20Starbucks%20was%20the,billion%20dollars%20in %20brand%20value [Accessed on: 27th December, 2023] Statista. 2023b. Global revenue of Starbucks 2003-2022. Statista [Online] Available at: https://www.statista.com/statistics/266466/net-revenue-of-the-starbucks-corporation- worldwide/ [Accessed on: 27th December, 2023] Statista. 2023c. Countries with most Starbucks locations globally 2022. Statista. [Online] Available at: https://www.statista.com/statistics/306915/countries-with-the-largest-number-of- starbucks-stores-worldwide/ [Accessed on: 27th December, 2023] Starbucks Suppliers. 2023. Suppliers. Starbucks [Online] Available at: https://www.starbucks.com/business/suppliers/ [Accessed on: 27th December, 2023] Starbucks. 2023d. Starbucks Guidelines for Food & Beverage Suppliers. Starbucks. [Online] Available at: https://content-prod-live.cert.starbucks.com/binary/v2/asset/137-70081.pdf [Accessed on: 27th December, 2023] Starbucks careers. 2023. Starbucks careers. Starbucks [Online] Available at: https://www.starbucksemeacareers.com/en/Retail?link=training-education [Accessed on: 27th December, 2023] Iris, Ç. and Lam, J.S.L., 2019. A review of energy efficiency in ports: Operational strategies, technologies and energy management systems. Renewable and Sustainable Energy Reviews , 112 , pp.170-182. Musonera, E., 2021. Strategic marketing case analysis: Starbucks. Journal of Business and Social Science Review , 2 (11), pp.12-22. Alwaleed, N., Al Huwail, N.H., Singh, S. and AlMejhem, A., 2019. A case study on Starbucks. Journal of the Community Development in Asia , 2 (2). Aminuddin, M.A., Abdullah, N.F., Mazlan, N.A., Mohd Idris, A.A. and Mustafa, A.N., 2021. Starbucks Coffee Company: coffee cafe company. Permana, A., Purba, H.H. and Rizkiyah, N.D., 2021. A systematic literature review of Total Quality Management (TQM) implementation in the organization. International Journal of Production Management and Engineering , 9 (1), pp.25-36. Antunes, M.G., Mucharreira, P.R., Justino, M.R.T. and Texeira-Quirós, J., 2021. Effects of Total Quality Management (TQM) dimensions on innovation—evidence from SMEs. Sustainability , 13 (18), p.10095. Kee, D.M.H., Hidayah, N., Syamilah, H., Nasuhah, N.N., Syasya, N.H. and Norathirah, W., 2021. How Starbucks maintain its competitive edge?–the secret of its success. Journal of the Community Development in Asia , 4 (2), pp.34-43. Lombardi, C.V., Chidiac, N.T. and Record, B.C., 2021. Starbucks coffee corporation’s marketing response to the COVID-19 pandemic. Innovative Marketing , 17 (2), p.177.

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Tsai, P.H., Lin, G.Y., Zheng, Y.L., Chen, Y.C., Chen, P.Z. and Su, Z.C., 2020. Exploring the effect of Starbucks' green marketing on consumers' purchase decisions from consumers’ perspective. Journal of Retailing and Consumer Services , 56 , p.102162. Nair, R.K., Sinha, R., Crasto, S.G., Kian, K.W., Kee, D.M.H., Abdullah, S.A.B., Zaidi, S.N.N., En, T.S., Jain, A.K., Valecha, P.M. and Ganatra, V., 2021. The effect of Starbucks marketing campaigns on consumer buying behaviour. Asia Pacific Journal of Management and Education (APJME) , 4 (1), pp.72-81. Kim, A.S., 2019, October. Behind the starbucks counter: design solutions for utilizing virtual reality for collaborative training. In Proceedings of the 37th ACM International Conference on the Design of Communication (pp. 1-5).

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