• Critically evaluate methods of planning and organising efficient operations and networking?
• Analyse the problems of controlling component activities and of controlling quality.?
Starbucks Corporation is globally recognised as a coffee company, which is operating its operations in the coffee house industry. The company was established in the year of 1971 in the local market of US. Over the years, the company has operated its business operations as a largest coffeehouse company amid the globe. In order to highlight market share and current business position within the globe, it can be stated that Starbucks has provided its coffee house services towards 65 countries around the globe. In this context, more specifically it can be argued that Starbucks has more than 12,000 coffee shops in US, whereas the company has also expanded its business in China, Canada, Japan and UK market amid the globe. Similarly, in order to highlight the services of Starbucks, it can be argued that the company usually offer hot and cold beverages to its customers such as coffee and tea. At the same time, Starbucks also serve few more food product services such as pastries, snacks, frappuccino beverages and smoothies among others. According to the annual report of Starbucks Corporation (2013), it is identified that the company is a public limited company, which is enlisted in the New York stock exchange market under the index ‘NASDAQ: SBUX’. Simultaneously, in order to identify the current employment of the organisation, it is identified that more than 191,000 people are working with Starbucks for executing the operations and ensuring the services to its customers.
This particular assignment intended to identify the potential factors that may influence the decision of an organisation in terms of outsourcing as well as kept in-house services. Moreover, the study has intended to identify and analyse the five performance objectives of the Starbucks, which may influence the decision making strategy of the organisation. Additionally, this particular study will aim to identify the involvement of risk during the decision making process, which may hamper the performance/ operations of the organisation. At the same time, the study will also try to identify the potential aspects through which it will be possible to mitigate the risk involvement during the strategic decision making.
Importance and Scope of Operations Management
In order to highlight the role of an operations manager, it can be claim that an operations manager should concentrate towards certain aspects, which may assist the organisation to ensure its position in the operating market through enhancing the business capability and business efficiency of the organisation. In this context, more specifically it can be mentioned that through emphasising towards products, services and process an organisation may enhance the efficiency of its operations functions. At the same time, it can be also argued that through emphasising towards understanding strategic objectives and by developing strategy through concentrating towards planning and controlling related aspects an organisation may improve the performance of operations (Tomar and Reeves, 2009).
According to the viewpoint of Troaca and Bodislav (2012), the term outsourcing signifies a specific process through which global organisations may transfer their goods and/ or services to the external country/ party for executing the operations for that specific goods and/ services in a significant manner. On the other hand, kept in-house process signifies a specific procedure, which is usually used by the organisations to execute its own operations within the own guidance.
During the mid 20th century, the trend of strategy involvement has been introduced in the business for the first time. In order to identify the involvement of strategy for implementing the operations of an organisation, it is identified that enhancing the business outcome as well as efficiency was the prime intention. At the same time, strategy involvement also assisted an organisation to ensure its long-term sustainability within the operating marketplace. Moreover, through incorporating strategy during the execution of operations, an organisation may fulfil the needs and expectations of the stakeholders. Additionally, it can be also claimed that through emphasising towards the strategic involvement, an organisation may formulate better decisions for its business operations. According to the viewpoint of Tomar and Reeves (2009), an organisation may adopt different kind of strategies for enhancing its operational efficiency in terms of decision making those are illustrated below:
The corporate level strategy is usually incorporated by the organisations with an intention of ensuring the long-term direction in the business. Through concentrating towards corporate level strategy an organisation may certify the utmost utilisation of its resources. At the same time, corporate level strategy is also adopted by the organisations to comprise more than one business operations at a time. Starbucks has only one business unit, but the organisation has its coffee house in different locations of the globe. Thus it can be stated that through incorporating corporate level strategy, Starbucks may establish a positive business relation with its stakeholders in the different geographical location of the globe. Moreover, adoption of corporate level strategy also may help an organisation to certify its mission and vision (Pearlstein, 2010).
Simultaneously, through incorporating business level strategy an organisation may reduce its internal as well as external challenges. At the same time, business level strategy also helps an organisation to enhance its business efficiency and competencies during the execution of operations. The Starbucks has varied range of products and/ or services within the globe. Thus, it can be claimed that through incorporating business level strategy Starbucks may reduce its internal as well as external challenges during executing the business operations (Borowik, 2010).
Consequently, functional level strategy is recognised as one of the most crucial aspects, which may assist an organisation to execute its marketing, finance and production related functions in more significant manner. At the same time, through the adoption of functional strategy, Starbucks may attain the predetermined objectives of the organisation. Moreover, through incorporating functional strategy Starbucks may enhance its operational efficiency during providing its extended services (Chevalier, 2010).
Based on the report of ACCA (2015), operations and strategy are considered as one of the key factors, which may ensure the survival of an organisation in a competitive business environment. At the same time, adequate operations and strategy may assist an organisation to ensure its growth in the operating marketplace. In this context, more specifically it can be claimed that through concentrating towards the operations and strategy related aspects Starbucks can improve its efficiency in terms of strategic decision making related aspects. At the same time, through emphasising towards operations and strategy, Starbucks may enhance the utilisation of its resources, which will also assist to improve outcome of the organisation (Hauglie, 2010). Thus, five operations performance objectives are analysed and discussed below for better understanding the operations of Starbucks.
With an aim of highlight the operations performance objectives, it can be stated that large numbers of global organisations emphasise towards cost with an intention of reducing the waste of the organisation. In this regard, through concentrating cost, Starbucks also tried to enhance the efficiency of the organisation by ensuring the utmost utilization of its resources and by enhancing the overall outcome of the organisation (Kim and Hahn, 2010).
Similarly, quality is also considered as essential factor for an organisation, which helps to attract the attention of the consumers. In this regard, more specifically it can be argued that Starbucks has emphasised towards quality related aspects with an aim of enhancing the quality products and services, which may lead an organisation to gain better competitive advantage in the operating marketplace (Langdon, 2010).
Consequently, for ensuring the growth of an organisation, it is required to concentrate towards the speed of execution of operation related aspects. In this context, it can be argued that speed of execution usually assist an organisation to meet the needs and expectations of the stakeholders. Thus, Starbucks has paid its utmost attention towards speed of execution for making better strategic decisions, which may lead an organisation long-term success for the future (Liu and Mance, 2009).
Similarly, through enhancing the potential of dependability an organisation may fulfil the needs and expectations of the stakeholders. Moreover, grater dependability may lead an organisation better efficiency of delivering products and services to its customers. In this context, it can be argued that Starbucks has enhanced its level of dependability by enhancing the range of product and services (Marques, 2008).
Additionally, greater flexibility can lead an organisation to make better strategic decisions. Through emphasising towards the flexibility an organisation also may enhance the quality as well as efficiency of its operations. In this context, more accurately, it can be argued that Starbucks has emphasised towards flexibility related aspects with an intention of changing its production, procedure, services related decisions of the business, which may enhance competitive advantages for the organisation and it may also influence business performance in a positive manner (Pearlstein, 2010).
Based on the evidences of the above discussion, it is identified that Starbucks has enhance its competitive advantages within the operating marketplace through emphasising towards five operations performance objectives. In this context, more specifically it can be argued that through concentrating on five operations performance objectives, it is also possible to identify the appropriate strategic decisions for the organisation in terms of its outsourced as well as kept in-house products (Phillips and Phillips, 2010). At the same time, for ensuring the business excellence, an organisation may incorporate outsource and kept in-house related strategic decisions, which may maximize the overall business performance in terms of outcome. On the other hand, through incorporation of outsource and kept in-house related strategic decisions an organisation may enhance its business competencies (Langdon, 2010).
Thus, based on the above discussion it can be recommended that Starbucks should incorporate outsourcing procedure for its coffee house related products and services, which may mitigating risk involvement for the organisation. At the same time, adoption of outsourcing procedure may assist the organisation to enhance the quality of the products through utilizing knowledgeable and experience workforce. Apart from this, adoption of outsourcing procedure may ensure the supply procurement of its products and services to the entire globe (Villachica and Stepich, 2010).
Based on the evidence, it is recognised that an organisation may witness several challenges during its operations due to its poor strategic decision-making process. At the same time, lack of strategic involvement may influence may hamper the operational efficiency of an organisation. Similarly, poor practice of operations performance objectives may lead challenges for an organisation it terms of its outsourced as well as kept in-house service related aspects, which may hamper sustainability and profitability of an organisation within the competitive marketplace (Villachica and Stepich, 2010).
With an aim of mitigating risk involvement during the outsourcing as well as kept in-house process, Starbucks will need to emphasise towards certain aspects, which may ensure the efficient as well as appropriate procurement of its outsourcing and kept in-house process. Moreover, Starbucks should incorporate five operations performance based objectives, which may ensure the operations of the organisation in terms of its outsourced as well as kept in-house services (Troaca and Bodislav, 2012).
Based on the evidences of this particular study, it is revealed that Starbucks has maintained its market leadership through emphasising towards the five operations performance based objectives. At the same time, the organisation has enhanced its business competencies by emphasising towards making better strategic decisions. Thus, in order to conclude the topic, it can be argued that through concentrating on outsource and kept in-house process related decisions, the organisation may enhance its profitability and growth for the future.
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