Product quality, service reliability and management of operations at Starbucks

Abstract

High product quality, service reliability, and management of operations are key factors in business growth and sustainability. Analyzing “The Starbucks Experience” is a pedagogical approach to reinforcing the concepts of control and management of quality, service reliability, and efficient operations in action. The objective of this paper is to show how providing high-quality, reliable products and service at Starbucks have influenced its market share, productivity, and profitability. In turn, Starbucks has improved on these business measures by excelling in operations management. The approach taken was to research the early days at Starbucks to gain insight on what made Starbucks so successful and then to use observational research to assess the customer experience at a particular Starbucks store in a city in the state of Michigan, USA. Sitting in this Starbucks store in the city’s little downtown and observing its operations and customers contact offered the opportunity to observe customers waiting in line, the baristas serving the customers, examining the store’s layout, and listening to conversations that revealed what customers like and dislike about “The Starbucks Experience.” Recommendations are made to improve operations. These areas fall under operations management for a company that sells a product and provides a service. There are three reasons customers choose Starbucks: the coffee, the people serving the coffee, and the experience in the stores. By excelling in these three areas and improving operations management, Starbucks can regain its market share, and improve productivity and profitability.

What drives experiential loyalty? A case study of Starbucks coffee chain in Taiwan

“…In addition, this result agrees with the proposition of Waxman (2006) that even though designing for sociability is important, designers should note that not all customers in a coffee chain choose to interact, yet many receive the benefits that one may expect from a social experience. Finally, this finding is consistent with the contention of Paryani (2011) that a major customer complaint is the long lines waiting for coffee drinks in a coffee chain. Coffee chains should open new locations close to busy locations in order to relieve the wait in lines and increase service rates.…”

“…Moreover, this study identifies tangibles and cleanliness and comfort as significant sub-dimensions of physical environment quality, supporting the proposition of Waxman (2006) that tangibles and cleanliness and comfort have been identified as important determinants of quality as perceived by coffee chain customers. In addition, the study’s result agrees with the proposition of Paryani (2011) that the location in a coffee chain is furnished with comfortable seating, providing outlets for electronic equipment, and a blanket no-smoking policy ensures that all customers are comfortable in the physical environment. Finally, this finding concurs with the contention of Paryani (2011) that equipment has been considered to be an important part of constituting the physical environment in a coffee chain.…”

“…In addition, the study’s result agrees with the proposition of Paryani (2011) that the location in a coffee chain is furnished with comfortable seating, providing outlets for electronic equipment, and a blanket no-smoking policy ensures that all customers are comfortable in the physical environment. Finally, this finding concurs with the contention of Paryani (2011) that equipment has been considered to be an important part of constituting the physical environment in a coffee chain.…”

An Examination On Human Resource Management In Aligning To The Organizational Strategy

“…In order to satisfy social needs, Starbucks treat their employees with love, care and respect. [40] stated Starbucks provide a great working environment and the organization treats every employee with respect and dignity. [52] agreed with [40] by saying one of the principle in Starbucks is "treat each other with respect and dignity".…”

“…[40] stated Starbucks provide a great working environment and the organization treats every employee with respect and dignity. [52] agreed with [40] by saying one of the principle in Starbucks is "treat each other with respect and dignity". Starbucks treats their employees as partners because they are one of the main resources of business success.…”