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QUESTION 7
Title:
W5A2 mba6012
Paper Details
Assignment 2: Final Project
This week, focus your analysis on the procurement or acquisition practices of the company you selected for the final project and the types of materials that the company uses. Also, analyze where those materials are sourced, how they are delivered, and what the overall supply chain operations of the company are.
Submit a report detailing the following:
Coordination of acquisition practices with actual product demand
Procurement practices
Inventory management (including whether the use of MRP would be appropriate)
Scheduling of production or service provision
Supply chain operations
Using the APA format, cite the sources you use on a separate page.
Save your document as SU_MBA6012_W5_A2_LastName_FirstInitial.doc.
Assignment 3 Grading Criteria
Maximum Points
Analyzed the degree to which acquisition is coordinated with actual product demand.
50
Evaluated the procurement practices of the organization.
40
Assessed the inventory management policies of the organization (including whether MRP is used or could be used).
40
Analyzed the company’s scheduling of production or service provision.
40
Evaluated the supply chain operations of the company.
40
Wrote in a clear, concise, and organized manner. Utilized the appropriate type and number of scholarly sources for graduate-level work. Demonstrated ethical scholarship in accurate representation and attribution of sources (i.e., APA format). Displayed accurate spelling, grammar, and punctuation.
40
Total:
250
Subject | Report Writing | Pages | 8 | Style | APA |
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Answer
Coordination of Acquisition with actual Product Demand
The actual demand for a product by a customer has a positive relationship with the absolute and potential offerings, together with acquisition rate. The substitutes considered by a buyer are usually indicators that create a perspective to the company on the exact product demanded (Grant, 2016). Most competitive edges have a direct correlation with offering of best prices alongside marketing plans which are the central instruments for directing and coordinating them.
Products in the market industry are differentiated basing on variation in degree of quality, customer convenience, customer related services and retail shops ambience. (Cornelissen et al., 2017). The merging costs incurred to competitors within the industry were very high since most capital needs in all retail industries of coffee specialties were marked with fixed prices, among them property leasing, constructions of all roasting plants and specialized equipment (Schlegelmilch, 2016).
Procurement Practices
These procurement practices contribute to Starbucks’ success through provision of business production procedures for realization of a strategic and world class production company. These entail effective planning, execution of strategic purchasing powers and maintenance of supply chain capabilities (Marshall et al., 2016).
- Leadership
Setting of goals for all team work, development of organizational related capabilities, and model creation on workflow on a cooperative basis ensures work is effectively executed. There is identification of key practices and responsibilities for ensuring successful implementation of the firm’s programs.
- Planning and Execution
Planning entails execution and measuring results which are important for strategy development and outlining of the group’s operational plan. Execution of key strategies results into creation of the firm’s synergies for advancement in all enterprises within the company (Lee et al., 2016). It also develops annual budgets and operational plans for forecasting quarterly updates.
- Business Requirements
It provides all functional expertise for executing functional responsibilities such as department standards and direction of activities.
Inventory Management Policies
- Quality Management
Premium character in quality management is used in this case. Friendly servant leadership and a warm culture ensure presence of premium character. Through this decision-making section in operational management, Starbucks implements high quality products and services to align with the firm’s premium brand image (Guo et al., 2016).
- Process and Capacity Design
This is a major contributor to the firm’s success due to highly efficient and quality observable operations within the cafes. There is optimization of capacity utilization through convenient processes that enhance reduction of demand fluctuations.
- Location Strategy
Its location gives a major focus on urban centers inhabited by all class distinctions within a state’s population. It maximizes on premeditated grouping of cafes within same geographical position for purposes of gaining a higher market share and curbing high competition rates.
- Layout Design and Strategy
Maximization of efficiency in operation in Starbucks is enhanced through its layout in creating a friendly organizational structure (Grant, 2016). It mainly puts focus on enhancement of premium customer experience.
- Job Design and Human Resources
There is integration of human resource and organizational structure management cutting across the entire business (Garthwaite et al., 2017). It focuses on ensuring culture weaving procedures within the firm in order to gain satisfaction on handling technical tasks for meeting customer needs.
- Supply Chain Management
The supply chain strategy includes supply diversification in ensuring stability in product supply. It applies criterion like ethical procedures and direct emphasis on need for sustainability on resources for meeting all customer needs (Du et al., 2015). Starbucks, therefore, integrates all relevant ethics while incorporating supply chain efficiency and social responsibility.
- Inventory Management.
Starbucks’ inventory management pattern has a close linkage with the firm’s supply chain and useful facilities. Inventory management within all cafes entails integration of office automation and manual monitoring. Moreover, automation is highly applicable in Starbucks’s supply hubs.
- Scheduling
Starbucks applies both automated and manual scheduling procedures when running most of its business operations (Snell et al., 2017). Most management personnel, however, use flexible schedules.
- Maintenance
Maintenance incorporates safeguarding all physical assets through dedication of all employee teams, essentially trained for reasons of maintaining all operational equipment including all third parties that provide maintenance services.
The Company’s Scheduling of Production or Service Provision
Process and capacity collaboration during operation is considered the key contributor to Starbucks’ current success. The company’s processes are highly effective as seen in its cafés. Fluctuations in demand are met through optimization of its capacity for designation of processes (Leduc, 2017). All processes undertaken at all the Café’s within the firm are flexible enough to enhance adjustment of operators to demand increase, especially in peak hours. Its main aim is maximization of cost-effectiveness especially in work flow efficiencies and related processes.
Automated and manual scheduling approaches are mostly used in Starbucks in a process known as scheduling, during his business operations. There is also application of supple plans for management of the entire production firm (Gualandris et al., 2015). A relationship is developed when it comes to decisions dealing with management operations in alignment with set objectives with regard to streamlining procedures. There is room for adjustment procedures in all management sections within the corporation.
According to Schultz, Starbucks makes it a point to listen to store managers around the world in lieu of a top-down approach. This has led to an “intoxicating” daily experience in many Starbucks stores where employees get to know customer profiles very well and can predict how new products and services might fly (Chiang et al., 2014). Starbucks is considered to be flexible in regulating all operational rules whenever need be.
Supply Chain Operations within Starbucks Corporation
The main operations of Starbucks include planning, identification of sources of raw materials, making and delivery of services which include all distribution channels (Chiang et al., 2014). This enhances products flow from all suppliers to consumers which has been simplified through acquisition of an operations supply chain.
Main supplies of coco beans for Starbucks Company are three main regions of development and growth including Latin America, Africa and Asian Pacific. The quality beans enhance expansion of the company through supplying of best ingredients to their customers at an affordable price.
The raw materials are first taken to a roasting plant, then manufacturing plant and lastly the packaging section. It comprises of six different roasting centers for beans preparation centralized in well-designed manufacturing procedures.
The beans are prepared and packaged in these roasting chambers after which they are distributed to consumers in adequate amounts. This totals to more than seventy thousand deliveries on a daily basis.
References
Chiang, A., Chan, P., & Nguyen, L. (2014). Do US Food Companies Achieve Competitive Advantages by Implementing Green Strategies throughout their Supply Chains? Advances in Management and Applied Economics, 4(5), 41. Cornelissen, J., & Cornelissen, J. P. (2017). Corporate communication: A guide to theory and practice. Sage. Du, Y., & Basch, M. (2015). The Next Frontier of Corporate Social Responsibility: Discovering Consumer Expectations. Garthwaite, C., Garthwaite, C., Busse, M., Busse, M., Brown, J., Brown, J., & Merkley, G. (2017). Starbucks: A Story of Growth. Kellogg School of Management Cases, 1-20. Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons. Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons. Gualandris, J., Klassen, R. D., Vachon, S., & Kalchschmidt, M. (2015). Sustainable evaluation and verification in supply chains: Aligning and leveraging accountability to stakeholders. Journal of Operations Management, 38, 1-13. Guo, R., Lee, H. L., & Swinney, R. (2015). Responsible sourcing in supply chains. Management Science, 62(9), 2722-2744. Leduc, C. (2017). “Onward How Starbucks Fought for Its Life without Losing Its Soul” Book Review. Lee, K. H., & Vachon, S. (2016). Supply Chain Sustainability Risk. In Business Value and Sustainability (pp. 245-280). Palgrave Macmillan UK. Makarius, E. E., & Srinivasan, M. (2017). Addressing skills mismatch: Utilizing talent supply chain management to enhance collaboration between companies and talent suppliers. Business Horizons. Marshall, D., McCarthy, L., Claudy, M., & McGrath, P. (2016). Piggy in the Middle: How Direct Customer Power Affects First-Tier Suppliers’ Adoption of Socially Responsible Procurement Practices and Performance. Journal of Business Ethics, 1-22. Schlegelmilch, B. B. (2016). Creating Global Product and Service Offerings. In Global Marketing Strategy (pp. 83-103). Springer International Publishing. Snell, S. A., Snell, S. A., Lemley, A., Lemley, A., Snell, S. A., Snell, S. A., & Yemen, G. (2017). Starbucks: Schultz Back in the Brew. Darden Business Publishing Cases, 1-18.
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