Ans2) The business strategy of star bucks is a differentiation strategy that would attract customers from its competitors. It focuses on inviting atmosphere for people and a superb cup of expertly roasted and richly brewed coffee every time. Its atmosphere invites customers to stay and their coffee while they read, work, and chat with friends. Their coffeehouses are designed, using environmentally friendly materials, to be comfortable, unique and modern. In addition to a successful differentiation strategy, Starbucks has also implemented a successful international growth strategy.
The supply chain focuses on maintaining a sustainable operations management. The company take holistic approach to ethically sourcing the highest quality coffe.they rum their supply chain in a way that does least harm to environment. The company is working to significantly reduce our environmental footprint through energy and water conservation, recycling and green construction. What makes Starbucks supply chain unique is its ability to be constantly innovating, and often in large way. With their new app which will allow customers to order and pay for their drinks before arriving to a store is a major step towards customers comfort ability level…thus starbuckc business strategy is aligned to its SCM strategy.
Ans3) increasing competitive pressure and rapidly changing technology are putting pressure on company to focus on partnership with suppliers in order to distribute risk and enhance business process through joint skills development. Value advantages include identifying value segments in the market, quality, variety, and improvements in service. Cost advantages include reduced costs through product, distribution, coordination costs, and increased sales volume. Thus if supply chain is properly managed then it will result in cost reduction and improved value at every stage of the flow of product in supply chain.
Ans4) the five primary SCM competitive priorities are cost, time, innovation, quality and service.
Service- in terms of service, the supply chain should be managed in such a way that it will be able to deliver the expectation of the customer. The products and services should be tailored in such a way that it meets individual customer needs in the way that they want. The end result would generate customer loyalty and sense of satisfaction for the company.
