Operational Strategy: Product Development of Starbucks -

Operational Strategy: The product Development of Starbucks is the process of managing the stores and the employees. A company can only grow if it has good employees who can bring the company to higher levels. Starbucks has always been looking for ways to improve its employees’ skills. In order to be able to provide a better service for their customers.

Starbucks has many different concepts in its operational strategy. They have developed several operational strategies such as “Operational Excellence”, “Uniform Operations”, “Standardized Approach” etc. And, they are improving these operational strategies over time.

Operational Excellence

In 1991, Starbucks was unhappy about its growth rate and customer service. So Howard Schultz and other top-level executives began searching for solutions. The first solution was to make sure everyone at every level of the organization understood and embraced customer service. Further, as a strategic priority of the entire company.

Another solution was to launch a new training program. Which would certify all baristas in making drinks correctly and consistently while providing customers with outstanding service.

Another solution was called “Performance Manager.” It is a system that will allow the company to track the performance of each store. Especially, in several areas such as sales, costs and profits, consistency of product quality, and customer satisfaction.

Starbucks also created a third-party vendor named “Byrne Consulting Group”. Which is one of the most successful consulting companies in the world that help Starbucks. Further, in developing a new goal-setting system for every employee at every level of management above barista.

Uniform Operations

One of the biggest changes that occurred within Starbucks, was when Schultz decided it needed an overhauling of its operations. He wanted it to be more standardized. So that customers no matter where they were would get the same experience every time they walked into a Starbucks.

He wanted to make sure all employees were trained properly in order to provide consistent customer service and products across all locations. This led to the creation of “Starbucks University” which is now known as “Leadership and Management Center”.

At this center, employees are trained on how to properly brew coffee, how to steam milk properly so it does not get burned or over scalded, how to use product ingredients properly, and how to take care of their store both inside and out with regular cleaning schedules. They also learn about all products from beverages, food menus, cleanliness, sanitation, customer service, and how to work as a team.

Standardized Approach

Starbucks is one of the most successful companies in the world and it has thousands of employees who are working their best to give the company a competitive advantage. However, still, there are some issues that need to be fixed. One of them is the fact that Starbucks ‘ product and service quality is not consistent across all its stores in the world. This means that sometimes customers get better service than others, even if they are in the same location.