M7 Assignment 2 Executive Summary Presentation

M7 Assignment 2 Executive Summary Presentation

In LASA 2 (M6: Assignment 2), you were asked to prepare a company analysis report, choosing one company relevant to you. In that assignment, you provided information about the company’s strategic overview, an analysis of its supply chain, a plan to improve its operating processes, and an explanation of the outcomes obtained from this plan and its impact on human resources.

In this assignment, you will create an executive summary of your findings from LASA 2. Your summary should include the following sections:

·
A statement of the problem or topic

· A concise analysis of the findings and a recapitulation of any main conclusions or recommendations found in M6:Assignment 2

· Specific details to highlight or support the summary

Develop a 10-slide presentation in PowerPoint format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M7_A2.ppt.

Be sure to include the following in your presentation:

· A title slide

· An agenda slide

· A reference slide

· Headings for each section

· Speaker notes to support the content on each slide

12

Assignment 2 Grading Criteria	Maximum Points
Summarized the problem or topic, findings, conclusions, and recommendations from LASA 2 and included specific examples and details to highlight or support the summary.	2 8
Organized the presentation to include a cohesive introduction, solid transitions, and conclusions.		12
Styled the presentation in a clear, appropriate, and balanced way between text and other visuals, being sure that visuals did not overpower text and text/graphics were easy to read.
Wrote (both on slides and in slide notes) in a way that demonstrated ethical scholarship in accurate representation and attribution of sources; and generally displayed accurate spelling, grammar, and punctuation. Errors were few, isolated, and did not interfere with reader’s comprehension.	8
Total:	60

For assistance with any problems you may have when completing this assignment—OR—to offer your assistance to classmates, please use theProblems and Solutions Discussion area located through the left side navigation link.

Running Head: module 6 Assignment 2 LASA 2- Company Analysis Report
1

Module 6 Assignment 2 LASA 2- Company Analysis Report

Kenawa E. Jigba

B6029: Operations Management

Argosy University, Atlanta

Dr. Joni Kurylo

Due Date (June 15, 2013)

Module 6 Assignment 2 LASA 2- Company Analysis Report

Strategic Overview of Starbucks Company; short description regarding:

a) Starbucks’ services and goods.

Starbucks Company is a global firm that has come to woo customers of every kind from each corner of the globe. In the year 1971, this company was officially launched in Washington, DC to start operations as a drinks-producing firm. It should be further noted that Starbucks’ name came into existence as a result of retail chains of coffee, tea, and spices. Majorly, this firm put more emphasis on the quality of coffee that the consumers were served. In recent times, the company has greatly expanded since it has stalls in not less than forty countries worldwide. Consequently, Starbucks deals with beverages and pastries as it continues to make it big in the global industry amidst the stiff competition in play. Examples of pastry that Starbucks deals in include: fudge, cakes, cupcakes, cookies, and bread among others.

b) Starbucks’ market strategy: value proposition, target market segments, market segments, and source of competitive differentiation.

Starbucks has got three market targets: teens and young kids, adults, and young adults. With respect to adults, Starbucks’ main audience includes women and men that are older and whose age frame range between 26-41. In addition, 49% of the company’s total supply goes to adult consumers. The company on the other hand tries its best to appeal to this class of customers through adverts and a kind of contemporary design that best works at attracting the older customers.

The second class of audience is the young kids and teens. This group ranges 12-17 years of age and the same accounts two almost 2% of the total supply made. In addition, the company supplies kids with milk that is caffeinated and sugary not forgetting coffee drinks. On the other hand, there are the young adults whose maximum age goes up to 24 years. Furthermore, this class of audience constitutes close to 5% of the total sales made by Starbucks Company. Moreover, this firm has a strategic way of locating the youths because normally it is positioned in colleges where students meet to socialize with each other or write term papers.

With regards to the value proposition of this company, the latter came up with 3 strategic components. The first component was the coffee itself whereby the company provided coffee drink that was of high quality compared to any other competing firm. This attracted most consumers owing to the fact that Starbucks hade many retail outlets in operation. Secondly, the company used another component that involved extraordinary and good services that kept customers glued to this company. Some of these services involved remembering the names of customers not forgetting the orders they had made. This in a great way influenced the customer’s perception for the better. Thirdly, a very ideal component was the atmosphere whereby, the company provided a wonderful and attractive atmosphere that kept consumers around even after they had finished their drinks. The market position of this company was originally started in Washington but later spread to many countries in the globe. On the other hand, the source of competitive differentiation in Starbucks was from interactive segments such as the social platforms like twitter and Facebook.

The organizational structure of Starbuck is such that there are various departments delegated with various tasks. Examples of such departments include: marketing department, research and innovation, human resource, and finance among others.

· Analysis of the Supply Chain: (4 pages)

Analyze the supply chain for your identified company by explaining the following key elements of the supply chain:

· Identify key inputs, including fewer tangible assets, such as human resources and

information. How are these key inputs sourced, reconfigured into a product or service, and delivered to your customers?

Starbucks Company has got fundamental and important inputs and these include: information, human resource, and plant machinery. To start with, information is a very important input for this company because it acts as a pivotal point in which the firm operates. Therefore, this company gets the relevant information necessary by engaging most of the customers through social media like Facebook and twitter. Through such interactive segments, the company is able to communicate with potential consumers in order to know what needs to be changed or improved so as to enhance products and services with regards to both qualitative and quantitative aspects.

The human resource is another important and vital input for Starbucks and this is because without manpower the firm can easily become crippled. Therefore, in order to have employees such as managers, supervisors, and support staff among others, the company needs to determine how to best source for the same. Basically, the company puts advert in both print and electronic media and sometimes in the social media because Starbucks has got a fun page too. Later, the applicants are passed through a thorough interview and those that qualify are given a short orientation before they become officially absorbed into the company.

In their various capacities, the new staff is recognized as part of Starbucks’ human resource that is expected to be ready in serving the customers. Equipment machinery is part of the input that the company requires in order to operate effectively. Products such as coffee drinks, bakeries, and other items that Starbucks specialize in need equipment to be produced as the company produces all the products and this is why customers have preferred it for a considerable amount of time. Normally, the company engages companies that produce the kind of equipment that meet the wants and specifications of the company. Once the procurement office is contented with the same, they go ahead to acquire the machinery. In addition, all these inputs work hand-in-hand to ensure that they deliver best of products and services to the consumers for the purpose of having them come again. The correlation works in way that all the three link up to operate effectively. For instance, the ones in charge of catering services must use the equipment efficiently in order to produce drinks and beverages that are according to consumers’ tastes and preferences.

· Identify the key processes that add value, and evaluate the supply chain performance relative to the competition.  

The keystone processes that are believed to add value to Starbucks Company include: leadership, marketing strategy, and consumer services. These three are highly regarded by the entire Starbucks’ fraternity because they play a crucial role in the company’s operation. For instance, good leadership is paramount and this is the reason why the company has stood strong for ages amidst stiff competition. The top management is comprised personalities that have the required skills and expertise in areas of delegation. In short, the leaders are performers who know the kind of measures to deploy in various instances. Consultation takes place in order to ensure that any decision arrived at regarding any matter is worthwhile.

Consumer service is also a crucial process that fortunately the company appreciates and embraces. The staff is required and expected to practice consumer service, which include: respecting the customers, being courteous to them, and always being at their services. This is aimed at making the consumers feel loved and welcome. Therefore, all the workers are taught and encouraged such consumer services and work to their fulfillment.

Thirdly, marketing strategy is another process that Starbucks hold in high regards. Marketing process is quite involving because it involves activities such placing new products to the test and being keen to determine the consumers’ reaction and attitudes towards the same, wooing more potential customers and ensuring that they remain part and parcel of Starbucks, advertising the company’s products in various media and taking into consideration the responses from customers (Schultz 2011).

On the other hand, Starbucks Company has an elaborate supply chain performance that works to outsmart its competitors. This is because the company has opened may retail outlets in various strategic point regarding the target audience. For instance, in order to get to youths, the company ensures that it has outlets in schools and colleges because that is an area where students meet to do term papers or just to meet and socialize with each other. Since over the years people have loved the drinks and beverages produced by Starbucks, the company has taken advantage of the same by opening more restaurants so as to provide for the customers in whichever point they may be. In addition, the company has three target audiences which are: the teens and kids, the adults, and young adults. All these are catered for with regards to demands and preferences in the drinks produced. This is one major are that the company capitalizes to outsmart competitors the more.

· What is the value added at each step?

At each step of Starbucks ’operations there is added value. Part of the added value maybe insignificant but every realized value that is identified is appreciated and commended for the purpose of better performance in future. For instance in marketing process, the value added include acquisition of new potential customers as well as retaining the already customers through strategic measures. Further, in good leadership and consumer services the same is reflected in better performances that end up boosting production and expansion of the company.

· What is the role of information technology and e-commerce in serving your customers?

In Starbucks, information technology and e-commerce plays a significant role in the business. This is because information technology ensures faster, efficient and convenient customer service. On the other hand, e-commerce works to ensure that the company reaches and appeals to customers that are far and wide by way of an elaborate marketing strategy. Thanks to e-commerce, new products can be accessed via the company websites and customers can get more information regarding the products and services offered.

· What are the key performance measures for evaluating your supply chain?

With regards to performance measures, the company mainly delegates marketers with the duty of branding and selling the various drinks and beverages in the firm. Each marketer has got a target limit that they need to fulfill and this acts as source performance measurement in order to determine whether supply measures are extensively fulfilled.

Plan to Improve Operating Processes:

Create a plan for improving the performance of three specific operating processes in your company. Your plan should address the following:

· Identify three elements of the supply chain that you recommend as targets for improvement.

The three elements of the supply chain that require improvement for better results and operations are: marketing strategy, consumer service, and leadership.

· State the performance improvement opportunity for each element, and indicate how it will improve process speed, quality, efficiency, and productivity.

To start with, improvement of the marketing strategy will ensure that more customers will be attracted to the company and in the long run this will end up raising levels of sales. Marketing strategy can be improved by hiring individuals with new and innovative ideas, which can help come up with unique products in relation to those of competitors. Having in place marketers that know how to deal and understand customer’s wants and needs will help a lot in acquiring more customers. Therefore, field marketers with high customer relations should be put in place in order to realize this kind of opportunity improvements.

On the other hand, having an improvement on the leadership qualities will in one way or another work to boost overall sales and productivity as well. Having managers and supervisors that understand the junior staff better rather than imposing authority to intimidate them is a way of increasing productivity. This is because the junior staff will not work in a formal environment that only entails doing according to rules and orders from superiors but will also feel free to comment and advice on areas that need rectification since they are the people on the ground hence know what is best for Starbucks with regards to operation and productivity. This measure will see improvement of operation’s efficiency hence overall production (Kotler 2013).

Thirdly, consumer service is also a performance improvement opportunity that needs to be reviewed so as the firm can reach desirable heights. Consumers are the backbone of this company and without them Starbucks is nothing. Therefore, consumers especially potential customers should be well treated to keep them glued to Starbucks at all time. With this regard, the staff that is constantly in contact with customers should be sensitized to treat and attend to customers with more kindness, courtesy, and customer heart. This can be done by remembering names of potential customers and also giving special consideration to long-term customers through occasional incentives. This will ensure that they even bring more customers more to advantage of the company.

In terms of action, I would advice that those underperforming top managers and those that do not have good relations with junior staff are relocated to areas that they do not deal with staff members of the lower rank or suspending them. This will ensure a smooth coordination of the less ranking staff and because the company benefits a lot from this group of employees, productivity will end up rising. On the other hand strategic marketing measures should be employed to better the same and the whole company in general. Therefore, better ways of appealing to customers using products should be sourced so as to increase sales turnover. On the other hand, consumer service should also be put to check so that there is an assurance that customers are always attended to in the right manner without any form exploitation. To this effect, supervisors should be put in place to determine whether consumer needs and services are well executed. Further, management should have some visible writings on the company’s premises to assure consumers’ confidence. For instance, writings like, “customers are always right” should serve as reassuring any consumer’s confidence and encourage them to shop at Starbucks.

· Explanation of the results of performance improvements regarding product or service:

How will your product or service be improved as a result of these changes to the supply chain activities?

Starbucks Company deals with a lot of products like: coffee drinks, other soft drinks, fudge, cakes, cupcakes, cookies, and bread. These need to be improved in order to attract and appeal more markets. With this respect, the products should be rebranded to posses a new catching look for the purpose of attracting customers. In addition, the company should have increased product promotion so as customers can feel they are also loved and considered. Furthermore, since the Starbucks has attained full potential, it should embark in increasing the quantity of the dinks and beverages and being keen not to alter their qualities ( Joseph 2010).

How are you altering the specific features or attributes of your product or service?

The specific features are altered in a way that will suit the new specifications of the customers. When this happens, a lot of keenness and consideration should be put to notice so as not to change the original taste and quality of the products. Customers have linked to Starbucks for many years because of the unique taste of products hence changing this will make potential consumers to withdraw and this should not be the case.

Why are these specific features important to your customers?

Just as said earlier, these features are very crucial because they are the ones that have kept potential customers adamant consumers and also attracting new ones each and every day. Therefore, such attributes should be regarded with special consideration so as not to lose the faith of customers.

How do these changes enhance the value proposition and competitive position of your company?

These changes are meant to appeal on eyes of the customers and further attract and compel them to buy company’s products. On the other hand, the same is expected to challenge more competitors in the industry.

What lasting capabilities and improvement are you introducing into the company through these changes?

The lasting improvements being introduced in the company regarding the products is improving on the existing product quality and making it more suitable and popular to the customers.

How will you measure the scope and impact of your improvements? What are your key performance indicators?

One way of measuring the performance indicators is by looking at the customer response and size of sale increase. If these two indicators appreciate then it indicates that the company is improving and expanding.

· Assessment of the impact on human resources:

· Are the roles and responsibilities in your organization properly defined and aligned to enable these changes?

Each role delegated to the company’s staff is effectively an efficiently implemented because employees must show competence and performance before delegated any task. Therefore, this shows that the organizational responsibilities are properly defined. Skillful and competent staff should be allowed to undertake the new tasks and processes and with that regard improvement of production should be expected (Gladwell 2000).

Is decision making authority assigned so that the process changes you propose can be implemented and properly managed under the current structure?

In order to facilitate effective implementation of the proposed changes, there has to be an authority in place that will work towards facilitating the same. On the other hand, the entire fraternity should be responsible for owning the process and results because all of them play a crucial role in it. Only the top managers will have the power to ensure implementation of the proposed structures and processes.

Are the individuals with the right skills in place to implement these changes?

Starbucks Company is known for hiring skillful and innovative individuals so as production and overall sales are not affected with incompetency. One way of retaining the existing competent staff is by paying well and being fair and considerate in matters like promotion and training. In addition, the company should ensure that the staff is also involved in decision making so that they can feel part of the firm.

Changes: explain changes to the compensation and incentives at your company that are necessary to reinforce your recommendations and increase efforts for continuous improvement throughout the organization. Explain how your plan motivates employees, customers, and suppliers for the better.

The necessary changes that need to be done in order to facilitate implementation of new propositions basically entail more increase of funds. The budget of procurement needs to be adjusted so as to accommodate the new propositions. This plan motivates employees, customers, and suppliers because the propositions are aimed to work on their best interest in one way or the other.

References

Gladwell M. (2000). The tipping point: how little things can make a big difference. New York,
NY: Oxford University Press.

Joseph A. (2010). The Starbucks Experience: 5 principles for turning Ordinary into
Extraordinary. New York, NY: McGraw-Hill.

Kotler P. (2013). Marketing Management. Boston, MA: Routledge

Schultz H. & Yang J. (2011). Put your heart into it: how starbucks built a company one
cup at a time. New Jersey: Prentice Hall.