Operation management is considered as area of administration of organization is concerned about designing and controlling internal process of organization to maintain the delivery of products & services to the customer in global market. For a multinational organization it is highly difficult and challenging to keep their actions effective in all operating location. For this process some strategies and processes are used by the company to avoid the challenges and issues of operation management of firm on international level(Keahey, Riteau and Timkovich, 2017). This study is based on the activities that are performed by Starbucks Coffee Company on global level. Starbucks is one of the most famous coffee company, it was established in year 1971 at Pike Place Market, Elliott Bay, Seattle, Washington, United States. Founders of company are- Jerry Baldwin, Zev Siegi and Gordon Bowker. Headquarter of Starbucks is in Seattle, Washington, U. S. Company is currently operating over 28218 locations around the globe. The efficiency of strategies and approaches will be evaluated in report regarding operation management process. Various operation management issues for company also will be analysed in report. Role of innovation also will be analysed in study. Process of developing creative and innovative environment in work place also will be evaluated in report.
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There are different activities are performed by organization in maintaining better operation practices on international level. Starbucks is known for high quality and better services on global level. This is one of the most famous coffee chain in international platform. To maintain their operation effective this is highly important for the organization to keep control and management on higher level. There are different activities are performed by Starbucks to manage their operation with high quality standards. Most of the operation management activities are focused on maintaining quality and brand value of company on international level(Andervazh, Javadi and Aliabadi, 2020). As one of the most famous organization it is important for them to manage their services with high quality to retain their competitive position in global market. First thing that is highly considerable for organization is regarding the product development and designing process. Main focus of Starbucks is to maintain production premium quality goods & services that are valuable to company. Main objective related to providing best quality products to customer to deliver product with perceived quality. Maintaining high quality is required to maintain brand image on international level. This is how product development and designing process if completely based on quality and premium services. This practices is most effective for company to manage production of goods and services at high quality standard to maintain high control over operations.
Other perspective which is considered by the organization in operation management process is regarding to the practices that are implemented by the company to maintain quality with in organization. There are some practices implemented by Starbucks in maintaining quality in their products are- the coffee beans that are imported by company are strictly considered over quality measures in order to keep raw material of optimum quality(Chen and Jia, 2020). For the quality management process organization is also running a program that is known as Starbucks Coffee and Farmer Equity which is used by the company for the certification of farmers that are producing bet quality coffee in their farms. Only certified buyers are considered by the company to import beans of coffee. This is how organization uses these practices to manage their quality in operation management process on international business environment.
This is also important for the organization to maintain supply as per the fluctuations in the market demand. It is important for the company to develop capability to meet the production as per demand in market place. To develop capability to meet market demand organization is focusing on developing capability of individual store. This is how company develop technology and procedures in order to make them capable to handle quick fluctuation in demand marketplace. Starbucks also use various processes to make their operation cost effective. Technology is most important to maintain their operations cost effective. Along capability development organization also focuses on its customer base to develop more strategies to make certain changes in procedures to address more customers. In this process company targets the locations in which they are able to target more customer with minimum investments(Ahmed and Jiang, 2018).This is how organization is effectively able to keep their operations cost effective to maintain high marginal profit through operations management. For the operation management it is important for the company to maintain supply chain in international market place. All the raw material company required is only purchased from the certified suppliers or farmers who are farming best quality coffee in their farms. This is how supply of raw material is maintained by the Starbucks in international market.
These is how all the processes and strategies that are implemented by organization are highly effective to maintain proper operation management on international platform to generate maximum productivity and generate high profit. Through the operation management process Starbucks also provide high satisfactory services to the customers.
In international operation management there are some issues are faced by company that can affect the performance of company in international business scenario. Some crucial challenges that are faced by Starbucks in global business operation management are related to mobile orders, food and customer satisfaction. These are main challenges to organization in international operation management.
Online orders – Company has started online ordering platform where they are delivering products to customer on base of online orders. This process is highly effective for the sales of company but somehow it is also affecting the customer with in the stores. Company gets bulk of orders in online platforms and number of offline orders are comparatively low. Due to bulk of demand through online or mobile ordering process local stores are not able to provide products to the offline customers with in time(Kindaichi and Nishina, 2018). They are not able to provide higher satisfaction to the customers within the store. The customers who are waiting in long lines and discourages customers. And sometimes these customers leave the store without ordering and using services of company. This is major issue for organization and it is affecting customer satisfaction. This is major issue for the reputation of company in market place. This is highly difficult for the company maintain production of products and services that are order by the customers. This is major issue for company to maintain balance between online and offline orders. This is how it is major problem for company to keep their customers motivated and satisfied with the service that are provided to them in local store. It can affect the operations of the organization in international business scenario.
Food – This is major challenge for organization to maintain food products with in the stores. From the establishment of company many times menu has been changes and many times. This major issue for organization to design menu board with is suitable for effective performance of organization in market place. Main product of Starbucks is Coffee and other products that are sold by company are considered as additional services which are provided to the customers. The larger part of profit that is generated by selling coffee to the customers. On other hand profit generated from the food products is too low. There are many competitors are there in market place that are earning larger profit from food products. So it is challenging for company to develop menu board that can improve the profit of company(Kojima, 2017). This is highly challenging for organization to make profit from food sector. Company is also trying different combination in food products to improve the productivity in market place. This is also critical to maintain the supply of raw material for food products. This is development of menu board is most critical issue for company to earn higher profit in market place.
Customer Priority–Customer satisfaction is highly important for organization it is mainly challenging for organization to maintain higher customer satisfaction at company stores. This is high challenging for organization to implement various decisions and processes in order to provide higher satisfactory services to company. There are various challenges are currently faced by organization in operation related to the customer satisfactions. Company is dealing issue in providing services to offline people who waiting outside for their turn. If they are not provided with better services of good quality services that it can affect the loyalty of customer towards the organization. It also can reduce the reputation and brand value of company in market place. This is major challenge for the company to provide timely service to the customer in order to avoid issues related to the employee satisfaction.
Innovation can be explained as process that is used by the business organization to address the challenges and operational issues of company with unique and creative idea or technology. Mainly business organization use innovative process to improve the productivity of company in market place and minimise the problems that are faced by firm in production, management, marketing and supply chain management processes(Ongkasuwan and Sookcharoen, 2018). Role of innovation is highly important for organization like Starbucks. In different ways process of innovation can help the organization to improve their performance in market place. Concept of innovation can improve the operation on international level. Innovation can play vital role in operation management process on international level. Some innovative ideas that can help company in international operation management are- Innovation can help the organization to grow in international culture, innovation also can help the company to keep their actions relevant to themarket conditions and trends, It can provide opportunity to differentiate their products and services from competitors, improve Problem Solving for organization, increase productivity of company and gain competitive advantage. These are main roles innovation can play in organization like Starbucks.
Implementation of innovation in organization can help the management to develop culture in work place. In can motivate employees to perform better and it also can encourage employees to work creatively. This process can improve the effectiveness of internal operation of company. Innovative culture also can develop better work place environment in company store. By this innovative and effective work environment can improve customer satisfaction.
Keep Actions of Organization Relevant to Market Conditions and Trends
This is important for the organization to consider all the market conditions and trends in order to maintain business operation in international level. Innovation can help the organization leadership and organization management to work on current trends and market condition to keep operations of the company profitable.
Differentiate Products and Services from Competitors
This is most challenging for company to differentiate their product within range of products that are available in market place. Innovation helps the organization to add different features to the company products and services. With this improved product and service organization will be able to meet the requirements and needs of customers and make them loyal to organization.
Improve Problem Solving
Main purpose of innovation is to reduce the issues that are faced by the company in operation and market place. By implementing innovation in business process, company can improve operational efficiency it will also increase the capability to solve the challenges that are faced by organization in market place(Haghshenas and Falaghi, 2016). Through innovation company can solve various operational challenges that are affecting the performance of Starbucks in target market.
Increase Productivity of Company
Innovation process can improve the operational efficiency of organization and it can improve the productivity of company in market place. Innovation can improve the internal process of organization and it will improve their productivity. This can support the company to meet market demand in operational area. Innovation for organization could be related to anything or any process and it can help the organization to meet the demand of the market place.
Achieve Competitive Advantage
Innovation in business process and manufacturing process of company. It can improve the quality and value of the product that is provided to the customer in company store. It can improve the capability of company store to handle more customer at a time. By this process stores of company will be able to handle both online and offline efficiently.
This is how innovation can play critical role in the organization and it can provide different benefits to the organization. There are different advantage of innovation for organization. This is how innovation can critical role for Starbucks in international business management activity.
Range of approaches and process can be used by organization to develop innovative and creative culture in organization’s work place. Most common activities that can be used by Starbucks to develop innovative culture and creative workplace culture in stores are-
Communication is considered as one of the best process to transfer information, data and awareness through the organization and society(Sun and Wu, 2017). Company can use effective communication with in work place to develop better bonding between employee and it will provide the capability to the organization to implement a culture that allows the employees to thing creative and innovative with in organization. Better communication is required must to develop innovative culture in organization.
This is most important for the employees to implement innovative and creative culture in work place as company allows more employees to be the part of a team that is designed to implement innovation in organization. Large number of will provide range of ideas and processes to improve performance of company in market place with help of new and creative ideas. This is how more employees can be involved in the innovation process to get more effective and creative ideas.
Training and Development Sessions
To implement innovation in organization it is most important for company to make their employees aware of latest technology and processes to think of new ideas that can improve the performance of organization in market place(Tidd and Bessant, 2018). By providing training and development process can help the organization to develop high innovative and creative culture in work place.
Communication of Innovation
Organization can use various communication sessions and presentations to make the employees aware of various innovative ideas that are implement in different organization to improve their productivity in market place. This process can help the organization to make their employee aware of new technologies. This can be used the organization to encourage their employees to think creative and innovative for operations of the company. This process can help the organization to develop innovative culture in work place. In this process employees can be provided with various creativity work force in order to improve their creativity and thinking process. It can improve their capability to implement innovation in work place.
This is one of the most effective way that can be used by the organization to develop innovative culture in the work place. Management of company can organize various competition to encourage the employees to work on different ideas and practices(Singh and Gaur, 2018). This process can create different new innovative processes which can be used by the organization to develop their products and services. This is how organization can encourage their employees to develop creative and innovative environment in market place.
This is one of the best process which is used by the company to motivate employees to work openly in work place. Open culture and open environment can help the employees to work on new ideas and processes. Organization also can encourage the employees by rewarding them on their effective creative working. This can inspire other employee to work on innovative processes. This is how organization can develop innovative and creative culture in work place.
There are different processes and approaches can be used by Starbucks to develop innovative and creative culture in its stores.
This report is concluding information about international operation management. The current scenario of Starbucks for international operation management has been explained in report. Various challenges that are faced by organization in process of international operation management has been analysed in report. The role of innovation has been analysed to improve the operation management process on international level. Different advantages of innovation for international operation management process also has been evaluated for Starbucks. Various processes and methods that can be used by the organization to develop innovative and creative culture has been analysed in report.
There are different processes can be used by Starbucks to improve their performance and operations on international level. Various processes and methods can be used by the organization to develop better practices in market place(Goffin and Mitchell, 2016). These innovative processes can be used by the company to address the challenges that are currently faced by company in international operation. There are different innovative ideas can be implemented in stores of Starbucks to reduce the current challenges that are faced by the company in operations. For example company can improve customer satisfaction by implementing automation technology in the production process to meet the demands of customer in market place. By Automation process can help the organization to improve their production speed and it will help them to develop balance between online and offline customers. There are some innovative customer engagement ideas can be implemented in the company stores to keep them happy while they are standing in lines waiting for their number to place order. This process can help the organization to retain their customers. Various online surveys can customer data can be used by the company to develop or design effective menu to increase the profit from food products(Korableva, Gorelov and Shulha, 2017). This process also can help them to make required changes in their current menu to get better value from business activities.Company also can use 360 degree feedback system to analyse the behaviour of employees with in work place to implement various changes in work place to develop better environment. This process can help the organization to generate high marginal profit and operations on international platform.
Books and Journals
Ahmed, A. and Jiang, T., 2018, October. Operation management of power grid system with renewable energy sources and energy storage system integrations. In 2018 2nd IEEE conference on energy internet and energy system integration (EI2) (pp. 1-6). IEEE.
Andervazh, M.R., Javadi, S. and Aliabadi, M.H., 2020. Active Distribution Network Operation Management with Large Penetration of Hybrid Electric Vehicles and Sustainable Distributed Energy Generation. Sustainable Cities and Society, p.102313.
Chen, H. and Jia, W., 2020. Progress in hepatectomy for hepatocellular carcinoma and peri-operation management. Genes & Diseases.
Goffin, K. and Mitchell, R., 2016. Innovation management: effective strategy and implementation. Macmillan International Higher Education.
Haghshenas, M. and Falaghi, H., 2016. Environmental/economic operation management of a renewable microgrid with wind/PV/FC/MT and battery energy storage based on MSFLA. Journal of Electrical Systems. 12(1). pp.85-101.
Keahey, K., Riteau, P. and Timkovich, N.P., 2017, December. Lambdalink: an operation management platform for multi-cloud environments. In Proceedings of the10th International Conference on Utility and Cloud Computing (pp. 39-46).
Kindaichi, S. and Nishina, D., 2018. Simple index for onsite operation management of ground source heat pump systems in cooling-dominant regions. Renewable Energy. 127. pp.182-194.
Kojima, F., 2017, December. Low-energy operation management scheme using superframe modification for wireless grid network structures. In 2017 20th International Symposium on Wireless Personal Multimedia Communications (WPMC) (pp. 618-624). IEEE.
Korableva, O.N., Gorelov, N.A. and Shulha, M.V., 2017, September. Risk component of innovation management strategy. In European Conference on Innovation and Entrepreneurship (pp. 837-843). Academic Conferences International Limited.
Ongkasuwan, M. and Sookcharoen, W., 2018, May. Data analytics for service and operation management improvement in medical equipment industry. In 2018 5th International Conference on Business and Industrial Research (ICBIR) (pp. 370-375). IEEE.
Singh, S.K. and Gaur, S.S., 2018. Entrepreneurship and innovation management in emerging economies. Management Decision.
Sun, X. and Wu, J., 2017. Combinatorial optimization of bus lane infrastructure layout and bus operation management. Advances in Mechanical Engineering. 9(9). p.1687814017703341.
Tidd, J. and Bessant, J., 2018. Innovation management challenges: From fads to fundamentals. International Journal of Innovation Management. 22(05). p.1840007.
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