Reference no: EM131882258

OPERATIONS MANAGMENT Assignment

1. Discuss five operations management strategic decisions that led Starbucks to generate great success in the market according to the given case.

Starbucks Operations Management

Starbucks Coffee Company was founded in 1971 as a delicate coffee and tea vendor. In 1985, chairman and CEO Howard Schultz altered the business into what is now - an international coffee brand manufactured on the wisdom of coffee, high-quality goods, and a desire of teaching customers about the values of coffee and tea. Today, Starbucks has expanded from its Seattle roots and markets imported coffee, fine tea, Italian style espresso, cold beverages, food products and coffee fixtures.

It has created lifetime relationship with several coffee bean manufacturers and farmers and has linked a solid brand image to all of its employees. Starbucks has become a successful global coffee brand business due to their application of specific operations management principles. They have taken the set of operations management decisions and utilized them to prosper into a globally known coffee business. The company is offering fine whole bean coffee along with other verities of premium tea and espresso beverages. They also offer sodas and juices, pastries and coffee-associated equipment such as coffee mugs. Starbucks vends its products through its company managed retail stores, warehouse club chains, office coffee distributors, institutional foodservices such as hotels and airlines, mail-order catalogs and though it's electronic store. The products and services are manifestly offered through the original brand design.

The arrangement of each Starbucks store gives their customers a great quality product and service. The company's delicious coffee and other enjoyable food items are two of significant ways this is given. Additional ways include the display racks, tables, chairs, fixtures and store background music. The administration of Starbucks is merely accountable for quality service. Furthermore, Quality service is linked with profitability; therefore the administration is continuously flourishing to accomplish this. To guarantee quality, Starbucks offers surveys in their stores that allow their customers to rate their performance against the company‘s high standards. In addition to that, The Company chooses sites for the stores where accessibility is available.

2. A manufacturing firm is producing boxes for gifts according to data in the table for monthly basis. What is multifactor productivity for each monthif workers average $32 per hour, raw material costs $3 per pound? (Note: Write the formula and units) (8.75 marks)

Month	Labor(hour)	Row material (pound)	Energy (dollars)	# of boxes
1	130	1,110	100	900
2	140	700	130	700
3	120	520	200	600
4	100	600	140	700

3. Bella factory is producing 4000 small bags per day with the following resources. (Note: Write the formula and units)

Labor	80 hours per day @ $15 per hour
Raw Material	200 pounds per day @ $1 per pound
Energy	$ 300 per day

• What is the multifactor productivity?

• What is the percentage and unit change in multifactor productivity if the factory decreased the labor-hour to 20 hours per day? Did the productivity increase? Justify.