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.

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+
STARBUCKS+
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