Starbucks Value Chain Analysis

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Value Chain Analysis Support Functions Firm Infrastructure The infrastructure of Starbucks is made up of several organizational activities. According to Starbucks.com, Starbucks operates more than 20,000 stores in 65 countries. The company sells beverages and fresh food items through company-operated stores. Starbucks also sells their products through other channels such as licensed stores, grocery, and notional foodservice accounts. The company’s portfolio of brands includes Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo. For each of these support functions describe the resources the firm utilizes to carry them out and how this positions the firm relative to its competition within the industry. Human Resource Management According to Starbucks’ Form 10-K, the company’s “relations with [their] employees are good.” The workforce of 182,000 people worldwide is made up of 137,000 US employees, who are mostly found in company-operated stores. Starbucks considers their workforce to be a very valuable resource. The company offers training and development programs for their employees. Technology Development Technology plays an important role for Starbucks. The company utilizes technology for administrative functions. This increases efficiency and saves costs. The Starbucks website and phone application enable customers to find a nearby store, receive a newsletter, and purchase Starbucks products. Procurement Starbucks’ commitment to quality is evident in their bean procurement process. For this reason, Starbucks often pays more than market price in order to obtain premium coffee beans. As a company that is building hundreds of new stores each year, Starbucks purchases the necessary fixed assets such as equipment and buildings. Summary of Support A solid infrastructure along with an effective human

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