total quality management case study starbucks

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STARBUCKS (THE DISTRICT IMUS) TOTAL QUALITY MANAGEMENT ANALYSIS

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Trí Tròn Trịa

Pascal Gambardella

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The purpose of this research is to examine the effects of external environment pertaining to the marketing strategy of Starbucks, a coffee chain in Malaysia. An external environmental analysis has been conducted to examine the environment in which the company operates. These paper overviews several theoretical approaches to explore the strategic marketing planning process of the Starbucks Malaysia.

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4 Things We’ve Learned From Starbucks, The Queen of Quality Control

By david dell.

As in any other line of business, supply chain optimization is critical in almost every aspect of the food supply industry. The bigger your company gets, the more you need to ensure that your manufacturing and distribution processes are streamlined. Take Starbucks Corporation...

Starbucks sources coffee and other merchandise from all over the world and delivers it to over   24,000 retail stores , which serve 60 million customers in 74 different countries every week. Without supply chain optimization , there is absolutely no way they could have maintained the same quality as they have grown over time.

Here are 4 quality control tips we’ve learned Starbucks:

1. Thinking Local

If you think all it takes to curate that grande mocha latte at your local Starbucks is a bag of imported coffee beans, think again. Milk, sugar, cream, and other additives are integral ingredients in the typical coffee cup served by your neighborhood barista, and sometimes comprise more of what’s in your cup than the actual coffee does. However, getting these resources from suppliers across the nation and in some cases, the globe can be problematic. Ingredients spoil, commercial trucks break down, and natural disasters like droughts can negatively impact the supply chain. So how does Starbucks avoid these issues? By purchasing locally sourced ingredients and supplies Starbucks is able to maintain a high standard of product no matter the country or city.

For your firm, buying resources locally has a twofold benefit: maintaining a strong relationship with suppliers in the community while stimulating the growth of other businesses. Not only will suppliers work harder to provide you with the best materials, but also you'll engender the goodwill from local surrounding venues just like Starbucks does. Meeting sustainability initiatives could also be an added perk!

2. Centralized Manufacturing 

Even with thousands of coffee shops operating in six different continents all over the world, Starbucks uses one centralized system to manage its supply chain and logistics network. To be exact, Starbucks oversees 9 global distribution centers located across the United States, Europe, and Asia. This might seem like a ridiculously low number for such a large operation, but in doing so it ensures consistency with every single bean that gets prepared, manufactured, and packaged among the hundreds of thousands of pounds of coffee being processed on a daily basis.

For your business, managing a small number of distribution centers means fewer concerns over quality control. The less regional divisions to review and monitor, the less likely it is that those local sites will fail to comply with company-wide quality standards.

3. Last Line of Defense 

In the event that something slipped passed Starbucks’ initial evaluations at the distribution center, there still exists a contingency plan to ensure final product quality. Starbucks has seven employees, known as “ cuppers ” whose only job is to test about 75% of the 500 million pounds of beans the company buys every year and ensure the beans examined meet internal compliance and quality standards.

Quality control means everything when maintaining a supply chain. The key learning point here is to design, test, and implement safeguards that will ensure your business' well being in the event something goes awry. Consider those measures something akin to an insurance policy for your supply chain.

4. The Experience 

The look and feel of each store is critical to Starbucks. From the furniture that they use to the merchandise that they sell, lighting fixtures to colors and textures, they have spent years cultivating a brand that comes across as hip, casual, and classy all at the same time. More importantly, this look is ubiquitous among Starbucks chains, whether you're in Hong Kong or Kalamazoo, Michigan. This represents a shared romantic ideal of what a coffee shop should be like. So much so that Starbucks has advanced past simply promoting their coffee but rather "the coffee lifestyle."

Customers who know what to expect from your firm are more likely to continue using your services, even when visiting branches halfway across the world. The power of a strong brand is that it can cultivate an experience that your clientele can come to love and expect both at home and abroad.

Regardless of whether you’re a manufacturer or a retailer, all of these strategies can be applied to your business to a certain degree. Supply chain optimization and standardizing best practices learned from Starbucks are the key to quality, efficiency, and consistency.

About David Dell

Dave has spent 8 years developing and leading AFFLINK’s Hospitality Division, Sales Team, and Global Account businesses. In his free time, he enjoys spending time with his 3 daughters and is an avid automotive restoration enthusiast.

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Successful Reinvention Focused on Customers and Quality

Published: November 30, 2022 by iSixSigma Staff

In 2008, Starbucks was taking a major hit from the financial crisis , losing customers to competitors , and having to close hundreds of stores . Despite having its back against the wall, some decisions made around key Six Sigma principles helped Starbucks bounce back better than ever.

How Giving Quality and a Better Experience To Employees and Customers Brought Starbucks Back From Near-Bankruptcy

Eventually, though, there was something lost. Most blamed the financial crisis, but by 2008, Starbucks was becoming less of a go-to priority for coffee drinkers. People had less money to spend on coffee, so they were beginning to opt for the cheaper options now offered by McDonald’s. Moreover, the never-ceasing rapid expansion caused a lack of consistency among Starbucks locations, and there was less focus on the actual experience of going to a Starbucks. For many customers, the price of their product no longer felt justified. Starbucks wound up closing hundreds of locations, and most financial experts did not see them lasting beyond another seven months.

Back to the Customer Experience

Howard Schulz came back on as CEO of Starbucks after having stepped down eight years prior. During his time not being the CEO, it looked like Starbucks had become more concerned with expansion while putting less emphasis on the customer experience. The company was devaluing their own brand by no longer offering the across-the-board quality experience that Howard Schulz had originally built. There was a lot of advice thrown Schulz’s way as far as how to save the company. He was told things like, if he, for example, just dropped the quality of the beans by 5% , the company would save hundreds of millions of dollars. The advice he was given was just a further way to devalue the brand and was far outside of the original vision of the company that he built up from that first store in Seattle.

Instead, Howard Schulz did something considered radical. He decided to focus on what was best for his employees and customers by employing the Six Sigma strategy of taking the time to really understand the customer process as well as that of his employees. He opted to put the experience of people first and focus on quality and community.

Schulz began by flying 11,000 Starbucks location managers out to New Orleans for a meeting. He allowed them to see behind the curtain, to be vulnerable, and to let them see what was at stake. The CEO let it be known that he was embracing adversity and would be investing in his people as they worked towards returning to the core values of Starbucks, ultimately striving to embrace those core values even better than at the company’s height. Returning to the core principles meant not only going beyond customer expectations but also the expectations of the Starbucks team. Trust required rebuilding at every level.

The rededication of Starbucks to being part of the community began immediately during the week of that historic meeting. Starbucks staff contributed more than 54,000 volunteer hours across four days to help the people of New Orleans after the devastation of Hurricane Katrina. It was the largest amount of community support from a company in the history of the city. Not only did this effort show the dedication of Starbucks to the community at large, but it also helped bring its team of workers together, creating a united front for the road ahead.

Starbucks then strived to create greater value for its employees as well as its customers. One effort to make sure that their level of quality was uniform across all locations involved investing in better equipment, a good example of poka-yoke. The company introduced the high-yield espresso machine known as the Manerva at its locations. This machine was able to offer the same level of quality espresso quickly and consistently. This way, a customer would know they could count on their drinks being at a certain quality level, whether they were at a location in California or Nebraska. The machine also required very little guesswork on the part of its employees, as it was nearly fully automated and had a computerized menu. These advances required less manual labor on the part of employees. This, coupled with the fact that the machine was designed to operate at a lower vantage point than other machines, allows employees to be able to keep eye contact with customers and offer greater sustained engagement. While this was a sizable monetary investment, other activities cost Starbucks next to nothing, like having employees write customers’ names by hand on their drinks or by offering a free pastry with a coffee.

An effort was put in to make the Starbucks environment a home away from home for both the employees and the customers. Employees had the same information as the up-tops and were made to understand their own individual responsibility, worth, and value to the entire enterprise in working towards this collective mission of turning the organization around. Employees were encouraged to contribute to Starbucks by offering up ideas and strategies. Employees were also shown how valued they were by the organization by being offered healthcare benefits, even if they worked as little as 20 hours a week. This principle of involvement was extended to customers with the innovative “My Starbucks Idea” program. Customers were given a link to Starbucks headquarters and offered up 93,000 ideas that covered issues like store layout, social responsibility, in-store music, and products. Through this, Starbucks became an early leader in social media, utilizing 100 of the proposed customer ideas. This was also to help customers feel engaged and connected with the company in a meaningful way, even when they were not in a Starbucks.

The organization also doubled down on its efforts to be seen as a company that was beneficial for the world. They expanded their relationship with Conservation International , committing to source their coffees in an ethical way, in order to reestablish Starbucks’ position as a leader in climate preservation and sustainable practices.

The Financial Results Were Not Instantaneous

It would be great to be able to say that the company’s turnaround was immediate. Unfortunately, that is not what happened, and there were definite setbacks. A clear example would be another round of layoffs that occurred in 2009 . It took some real time for the organization to right the ship and stick to its guns in its quest to reestablish trust in the Starbucks experience. Thankfully, the belief and dedication were there among the team, fostered by that initial meeting in New Orleans, and continued onward quarter after quarter.

The Outcome Was Staggering as Starbucks Eventually Recorded Record Profits

By re-establishing its core principles and focusing on the Starbucks experience for both its customers and team, Starbucks saw a turnaround by the first quarter of 2010 . In some regards, that first quarter represented the best results financially in the history of the company. By Q2 of 2010, it was the first time there had been incremental traffic in Starbucks locations at thirteen quarters. As of this writing, Starbucks is reporting record revenues of $8.2 billion .

A lot of these record revenues continue despite current inflation. It is an absolute reversal of the situation in 2008 when the economic downturn had people limiting their visits to Starbucks. Due to Starbucks spending years reestablishing the value and quality of its experience in the eyes of customers, it is now able to weather financial storms.

4 Best Practices When Giving Quality to Your Customers and Employees

There are some key lessons to be learned from the hardships that Starbucks faced and how the company was able to turn around and become even more successful than before:

1. Do not sacrifice the quality and value of your product or service

There was a great deal of pressure from internal and external sources directed toward the Starbucks CEO to take short-term measures to fix the financial bottom line. This included everything from dropping the quality of the coffee or lowering the price to not offering benefits to the employees.

Instead, Howard Schultz focused efforts on building up the quality of the Starbucks experience so that it came to be seen as an integral part of the daily lives of both its staff and customers. He also made sure that the level of product quality at all Starbucks locations was exceptional, reliable, and consistent.

2. Value your people and gain their trust

Schultz let his people know they were valued by letting them be involved and invested in the future of the organization. He had everyone looking towards the same goal and rewarded them by making sure they knew they were important. It made for better workers who trusted in the organization they were a part of and, in turn, made for better workers that were more engaged with the Starbucks customers.

3. Investing in Quality May Not Yield Record Results Immediately

Hunkering down on Starbucks’ processes and returning to its core values did not yield incredible financial results immediately. It took time for the value of the changes to be embraced and for trust to build with the staff and visitors. Customers had to see over time that Starbucks was an organization that was valued and that their product deserved to be a part of their daily lives. This did happen over the span of a couple of years, and the benefits of this focus on quality and the overall experience are still being seen today, with Starbucks reporting record profits.

4. Innovation simply for the sake of innovation

Any innovations that Starbucks embarked upon were not for the sake of innovation itself. Their innovations were also never made directly in the pursuit of profit. Instead, any of the innovations the organization underwent were in service of providing further quality and value to the overall experience of its customers and staff. This, in turn, created more profit by making customers and employees want to continue to be part of the Starbucks experience.

Starbucks Today

Starbucks went on to grow even bigger than before, having locations all over the world, and expanding into beverages available in convenience stores as well as instant coffee that could be made at home. This kind of expansion would have likely been a mistake or even impossible if Starbucks had not first made the effort to reestablish its brand to be seen as a beacon of quality and a pleasurable experience. Even during times of economic hardships in the world, customers still flock to Starbucks, as they see it as a valuable part of their daily lives.

Starbucks teaches us that if you give people a service they see as enriching and the experience offered adds value to their lives and community, they will be loyal and keep returning, even during times of economic downturn and when there is a cheaper, lower-quality option available.

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iSixSigma Staff

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• July 11, 2024

The Influence of Total Quality Management Practices on Customer Satisfaction and Loyalty in Fast Food Companies: A Case Study of Starbucks

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• 1. The Influence of Total Quality Management Practices on Customer Satisfaction and Loyalty in Fast Food Companies: A Case Study of Starbucks

Title: The Influence of Total Quality Management Practices on Customer Satisfaction and Loyalty in Fast Food Companies: A Case Study of Starbucks

Author: Wang Danning

Advisor: Dr. Zhang Li

Degree: Master of Business Administration

Major: International Business Management

Faculty: บัณฑิตวิทยาลัย (Graduate School)

Academic year: 2566 (2023)

Published: 2nd National and International Academic Conference on Innovation and Management for Sustainable 15-16 December 2020 (pp.128-136)  Click       PDF 

In recent years, the fast-food industry has witnessed significant growth and competition, especially in Chinese market, where consumer preferences are rapidly evolving. Companies like Starbucks have been at the forefront of implementing Total Quality Management (TQM) practices, which have significantly influenced their customer retention strategies. Limited research in this domain of focus has led to customer loss and low loyalty in the sector. The objectives of this study were: 1) To analyze the existing Total Quality Management practices at Starbucks and their impact on customer retention, 2) To develop and propose comprehensive Total Quality Management strategies tailored for fast-food companies, drawing lessons from the Starbucks case study. In line with these objectives, this research exclusively utilized the quantitative approach, with the primary data collection method of a questionnaire survey. The sample size was 500 respondents, which is considered sufficient for generalizing the findings to the broader population with a confidence level of 95% and a margin of error of 5%. The analysis involved statistical techniques, including correlation and regression analyses, to investigate the relationship between the TQM practices and customer retention. The findings are as follows: 1) the analysis of Starbucks’ TQM practices demonstrated a significant positive impact on customer retention, validating the Alternative Hypothesis (HA) and negating the Null Hypothesis (H0), and 2) the correlation and regression analyses confirmed that higher quality products, efficient service, and responsive and engaged employees are key factors contributing to customer loyalty in the fast-food industry. In conclusion, the research problem was effectively addressed through achieving the set objectives. The study’s outcomes not only contribute to the academic understanding of the TQM’s role in customer retention but also provide practical guidelines for fast-food companies seeking to improve their customer retention rates. The study reveals that the Total Quality Management (TQM) practices at Starbucks significantly enhance customer retention, highlighting the importance of product quality, service efficiency, and employee engagement in the fast-food industry. It provides actionable TQM strategies for fast-food companies, emphasizing the integration of quality products, responsive service, and continuous innovation, thereby offering a blueprint for bolstering customer loyalty and competitive advantage.

Keywords: total quality management, customer retention, fast-food industry

6217195417 Wang Danning 2566 (2023) The Influence of Total Quality Management Practices on Customer Satisfaction and Loyalty in Fast Food Companies: A Case Study of Starbucks สารนิพนธ์ (Independent Study), Advisor: Dr. Zhang Li, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration, International Business Management, Bangkok: Siam University

Academic Year 2023, Graduate School 2023, IMBA, IMBA 2023, Independent Study, Independent Study 2023, Master of Business Administration, Master of Business Administration (International Program) 2023, Master of Business Administration 2023, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration,International Business Management

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Starbucks Operations Management, 10 Decision Areas & Productivity

Starbucks Corporation’s operations management (OM) represents business decisions encompassing coffeehouse operations and corporate office activities. These decisions also influence the productivity and operational efficiency of franchisees and licensees. Strategic decisions in operations management direct business development toward the realization of Starbucks’ mission statement and vision statement . However, the diversity of coffee markets worldwide requires the company to apply different approaches to ensure the suitability of operations management to different business environments. Licensed and franchised Starbucks locations flexibly adjust to their local market conditions.

The 10 strategic decisions of operations management facilitate the alignment of all business areas in Starbucks’ organization. The business objectives in these decision areas implement strategies for industry leadership, such as the Coffee and Farmer Equity (C.A.F.E.) program in supply chain management. Effective operations management fortifies the strong brand image and other business strengths discussed in the SWOT analysis of Starbucks .

Starbucks’ Operations Management – 10 Critical Decisions

1. Goods and Services require decisions on the characteristics of business processes to meet the target features and quality of Starbucks products. This decision area of operations management affects other areas of the coffeehouse business. For example, the specifications of Starbucks’ roasted coffee beans establish the cost and quality limits and requirements in corresponding production operations. The coffee company’s emphasis on premium value and premium design means that production operations and productivity measures involve small margins of error to support high quality and value.

This decision area of operations management demonstrates the influence of the coffee industry environment on the company and its target consumers. Food product specifications are made to match social and economic trends, as well as the other external trends discussed in the PESTLE/PESTEL analysis of Starbucks . In addition, distribution channels affect food, beverage, and service design decisions in this area of operations management. For example, the packaging features of Starbucks instant coffees consider the logistics and inventory processes of distribution channels and retailers.

2. Quality Management ensures that business outputs satisfy Starbucks’ quality standards and the quality expectations of customers. Decisions in this area of the coffee company’s operations management aim for policies and processes that meet these standards and expectations. For example, Starbucks sources its coffee beans from farmers who comply with the company’s quality standards. The firm also prefers to buy from farmers certified under the Coffee and Farmer Equity program. Starbucks’ generic competitive strategy and intensive growth strategies are applied to use quality specifications as a selling point.

This critical decision area of operations management also accounts for customer experience in the company’s cafés and online operations. Starbucks’ strategic objective is to maintain consistent quality of service for consistent customer experience in brick-and-mortar and e-commerce environments. Premium service quality is ensured through a warm and friendly organizational culture at Starbucks coffeehouses. This service quality contributes to competitiveness against other coffeehouse firms, like Costa Coffee and Tim Hortons, as well as food-service companies that serve coffee, such as Dunkin’, McDonald’s , Wendy’s , Burger King , and Subway . Thus, Starbucks’ competitive advantage partly depends on this decision area of operations management.

3. Process and Capacity Design contributes to Starbucks’ success. The company’s operations management standardizes processes for efficiency, as observable in its cafés. Also, Starbucks optimizes capacity utilization to meet fluctuations in demand for coffee and food products. For example, processes at the company’s stores are flexible to adjust personnel to spikes in demand during peak hours. In this decision area of operations management, strategic planning at Starbucks aims to maximize productivity and cost-effectiveness through efficiency of workflows and processes.

4. Location Strategy in Starbucks’ operations management for its coffeehouses focuses on urban centers. Most of the company’s locations are in densely populated areas where demand for coffee products is typically high. In some markets, Starbucks uses strategic clustering of cafés in the same area to gain market share and drive competitors away. Strategic effectiveness in this decision area of operations management comes with a suitable marketing strategy to ensure the profitability of these cafés. Starbucks’ marketing mix or 4P helps bring customers to the company’s restaurant locations. Also, the organization of operations in these locations is supported through a suitable corporate structure. Thus, Starbucks’ organizational structure (corporate structure) reflects this location strategy.

5. Layout Design and Strategy for Starbucks cafés address workflow efficiency. The strategic decision in this area of operations management focuses on high productivity and efficiency in the movement of information and resources, including human resources, such as baristas. This layout strategy maximizes Starbucks coffeehouse space utilization with emphasis on premium customer experience, which involves higher prices for a more spacious dining (or drinking) environment. In this decision area of operations management, the company uses customer experience and premium branding to guide layout design and strategy.

6. Human Resources and Job Design have the objective of maintaining stable human resources to support Starbucks’ operational needs. At coffeehouses, the company has teams of baristas. In other parts of the organization, Starbucks has functional positions, like inventory management positions and marketing positions. This decision area of operations management considers human resource management challenges in international business, such as workforce development despite competition with other large food-service firms in the labor market. This area of operations management also integrates Starbucks’ organizational culture (corporate culture) to enhance job satisfaction, combat employee burnout, and support high productivity and operational efficiency.

7. Supply Chain Management focuses on maintaining adequate supply that matches Starbucks’ needs, while accounting for trends in the market. With this strategic objective, operations managers apply diversification in the supply chain for coffee and other ingredients and materials. Starbucks’ diverse set of suppliers ensures a stable supply of coffee beans from farmers in different countries. The company also uses its Coffee and Farmer Equity (C.A.F.E.) program to select and prioritize suppliers based on ethical practices, sustainability, and community impact. Thus, this decision area of operations management integrates ethics and Starbucks’ corporate social responsibility (CSR), ESG, and corporate citizenship into the supply chain. The Five Forces analysis of Starbucks indicates that suppliers have moderate bargaining power in the industry. Decisions in this area of operations management create a balance between the coffee company and its suppliers’ bargaining power, in order to benefit all parties involved.

8. Inventory Management is linked to Starbucks’ supply chain management. The critical decision in this area of operations management focuses on maintaining the adequate availability and movement of inventory to support the coffee company’s production requirements. At restaurants, inventory management involves manual monitoring combined with information technology to support managers and baristas. In supply and distribution hub operations, Starbucks uses automation comprehensively. Such an approach to this decision area of operations management minimizes stockout rates and guarantees adequate supply of food and beverage products and ingredients.

9. Scheduling has the objective of implementing and maintaining schedules that match market demand and Starbucks’ resources, processes, operating capacity, and productivity. In this decision area of operations management, the company applies a combination of fixed and flexible schedules for personnel at corporate offices, coffeehouses, and other facilities. Also, automation is widely used to make scheduling processes efficient and comprehensive, accounting for different market conditions affecting Starbucks locations.

10. Maintenance concerns the availability of resources and operating capacities to support the coffeehouse chain. The strategic objective in this decision area of operations management is to achieve and maintain the high reliability of Starbucks’ resources and capacities, such as for ingredient production processes. The company uses teams of employees and third-party service providers for maintaining facilities and equipment, like machines used for roasting coffee beans. Also, in this area of operations management, Starbucks maintains its human resource capacity through training programs and retention strategies. This approach satisfies the company’s workforce requirements for corporate offices and facilities and supports franchisees and licensees.

Productivity at Starbucks Coffee Company

Operations management at Starbucks uses various productivity criteria, depending on the area of operations under consideration. Some productivity metrics that are applicable to the company’s operations are as follows:

• Average order fulfillment duration (Starbucks coffeehouse productivity)
• Weight of coffee beans processed per time (roasting productivity)
• Average repair duration per equipment type (maintenance productivity)
• Bai, J. (2023). The Starbucks Crisis – External and endogenous pressures of coffee market giants. Frontiers in Business, Economics and Management, 8 (1), 272-275.
• Faeq, D. K. (2022). The importance of employee involvement in work activities to overall productivity. International Journal of Humanities and Education Development (IJHED), 4 (5), 15-26.
• Molnárová, Z., & Reiter, M. (2022). Technology, demand, and productivity: What an industry model tells us about business cycles. Journal of Economic Dynamics and Control, 134 , 104272.
• Reid, R. D., & Sanders, N. R. (2023). Operations Management: An Integrated Approach . John Wiley & Sons.
• Starbucks Corporation – Form 10-K .
• Starbucks Ethical Sourcing of Sustainable Products .
• Starbucks Ethical Sourcing – Coffee .
• Szwarc, E., Bocewicz, G., Golińska-Dawson, P., & Banaszak, Z. (2023). Proactive operations management: Staff allocation with competence maintenance constraints. Sustainability, 15 (3), 1949.
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Starbucks Quality Management and Performance Improvement Research Paper

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Starbucks Quality Control: Company Information

Starbucks quality culture and global competitiveness, starbucks quality management: recommendations on an improvement plan.

The firm under analysis is Starbucks Corporation. Its headquarters is in the United States but has branches in fifty-eight countries around the world. The company specializes in the sale of coffee. These may come in a variety of mixes and flavors such as cappuccinos and lattes. Starbucks also sells smoothies and other cold drinks.

Customers also visit Starbucks to enjoy baked items such as sandwiches and pastries. The organization also offers ice cream in some stores and has a book and film subsidiary. One can find Starbucks stores in the UAE, Kuwait, Lebanon, Malaysia, China, France, Britain, Australia, Puerto Rico, Mexico, and many other countries. Starbucks is categorized as a provider of services (in the form of coffee) and goods (as mentioned above).

The company has approximately one hundred and forty-nine thousand employees working around the world. Its net come in 2011 amounted to $945.6 million while its total assets were $6.38 billion. Its total revenue was 10.71 billion while its operating income was $ 1.42 billion. The firm registered an increase in net income, operative income, and total assets from the previous year. Consequently, this company appears to be doing well.

The company has positioned itself as the preferred coffee destination in most countries owing to its ambient locations and a wide variety of coffee-related products. Many consumers visit Starbucks to experience exclusivity as offered by the firm. People are willing to pay slightly more for a cup of coffee in Starbucks than for other the same product in other stores/ restaurants.

It focuses on middle-income to high-end consumers. The organization has also grown dramatically owing to its employee-commitment, rapid international expansion as well as strong leadership. Nonetheless, the rate of growth in 2012 is not as high as it was in the late nineties and early 2000s.

The quality culture in this organization is deeply engrained in the DNA of some of its employees. These systems may be found at the general organizational level and also in exclusive quality management departments. At the general organizational level, the company has three stages that begin with barista checks. Before the company serves coffee to its clients, it makes sure that the product is up to standard. The barista who serves coffee directly to buyers will taste it for consistency.

Thereafter, the area manager will perform random checks of coffee to find out whether the product meets their quality standards. The third phase involves outsourcing coffee tasting to a third party that will check on the quality of the product twice a year. All quality expectations are communicated to the various stores in the form of reports. Such a three-pronged approach reveals that the company possesses a quality culture.

Sometimes, it may communicate this information across its international subsidiaries so as to transfer the same high-quality procedures in these branches. Therefore, the company can boost its global competitiveness. Nonetheless, since the area manager and third-party assessments occur infrequently, then there is still room for drops in quality. This is the reason why some food critics in the US claim that Starbucks coffee is bitter. One of the above quality experts is probably not doing enough.

On the organizational level, the firm has a cross-functional team that works on its product offerings. This team is made up of representatives from the marketing, engineering, supplies, and operations team. All members of the team make their contributions about what needs improvement in the corporation, after getting feedback from clients. Furthermore, members of this team may even give their suggestions on the flavor combinations that they would like to try.

Additionally, the Starbucks quality team checks on its coffee machines to ensure that the devices are in perfect order. Employees are sensitized about how they can maintain them or repair. Despite these quality endeavors, several clients have complained about coffee leakage from their cups. Others claim that the firm does not listen to their suggestions because it does not work on improving the product-coffee. Additionally, customer service is inconsistent across similar branches in one country. Airport stores have received the greatest form of criticism (Warner, 2004).

On the quality control level, the firm also has a series of quality processes. First, it performs food sanitation reviews. Here changes in fixtures, designs and products in stores are examined. Additionally, the company instates test protocols in which operational processes as well as equipment developments are evaluated. Starbucks’ quality department looks into trends and patterns in the coffee industry through audits and consumer feedback to seize new opportunities.

Although the company has articulated its quality management portfolio well, it may have executed the latter strategy wrongly. When the organization noted that some competitors like McDonald’s are offering coffee at much lower prices, it decided to copy this approach to woo back clients; it introduced instant coffee. However, this has led to brand dilution as exclusivity is what Starbucks is all about. The quality control team got it wrong in this regard (Adamy, 2008).

At the quality management department, the organization also abides by safety standards in the food industry. However, in this era of global competitiveness, it is not enough to comply with external regulations; one must create one’s standards. Lastly, the quality management department also designs training programs for barristers and other employees who can maintain the same level of quality.

The major challenge for the company is to ensure the same level of consistency in it’s US-Based or Seattle –based chains is spread all over the world. Partnering with other businesses such as Barnes and Noble has minimized the quality of service provisions at Starbucks because employees from these external firms do not go through the same training programs. Additionally, a substantial number of employees in these companies have minimal knowledge about coffee and display poor customer service.

The quality improvement plan will encompass four major areas: personnel, work processes, quality improvement, assessment, and reaction. The personnel section is the biggest dilemma for the company. It can work on this aspect by clarifying job roles. All barristers, quality control managers, engineers and marketers need to be certain about their role in the organization (Anderson & Narus, 1998). In line with this, the company should stop partnering with non-coffee entities like Barnes and Noble for the sale of coffee.

It is simply not possible to merge these two aspects together, so the firm should focus on its core business. Customer service has deteriorated substantially in airports. In order to restore quality in its service provisions, the company needs to instate a rigorous training program for all its barristers around the world. They should learn about the quality of the product (coffee) and how to make it well. Specific emphasis needs to be given to the issues of friendly service as this is what made the firm special.

The second aspect of quality improvement will be work processes. First, the company must streamline work policies and procedures by documenting all processes. It can then eliminate some unnecessary procedures while boosting some (Goetsch & Davis, 2005). For instance, the company may need to invest in more espresso machines to avoid placement of coffee in flasks for long hours (this may have contributed to the bitter taste).

Assessment and reactions are a vital part of the quality improvement process. Although the company claims to have quality assessments in place, these are still not done frequently. Furthermore, few mechanisms of taking corrective actions exist in the company. When any challenges are found in the quality assessment process, corrective actions should be documented and implemented. Later, a review of the effectiveness of those actions should be done.

For example, when the company introduced recyclable coffee cups, it should have assessed the quality of the cups and found that they were deficient. After that, the firm should have taken corrective action by replacing the manufacturer and documenting this. It should then assess the effectiveness of that decision.

Starbucks must work on quality improvement, as well. Here, the company ought to focus on those conditions that are critical to the quality of products and services. The corporation needs to create a culture of correcting these flaws as soon as they occur, or shortly after if impracticable.

Three features should govern the quality improvement of coffee in the firm. It needs to fulfill specifications such that customers get the taste they are looking for. Additionally, the coffee needs to be consistent across all Starbucks sores regardless of where they are in the world. The same coffee in Starbucks Dubai should be found in Seattle, USA. Lastly, service provisions should uphold the company name.

Adamy, J. (2008). Starbucks to Shut 500 More Stores, Cut Jobs . The Wall Street Journal.

Anderson, J. & Narus, J. (1998). Business marketing: understand what customers value. Harvard Business Review 76(6), 53-65

Goetsch, D. & Davis, S. (2005). Quality Management for Organizational Excellence: introduction to total quality . NY: Pearson.

Warner, M. (2004). Cup of Coffee, Grain of Salt. New York Times , p. A14.

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IvyPanda. (2020, April 24). Starbucks Quality Management and Performance Improvement. https://ivypanda.com/essays/starbucks-quality-management-and-performance-improvement/

"Starbucks Quality Management and Performance Improvement." IvyPanda , 24 Apr. 2020, ivypanda.com/essays/starbucks-quality-management-and-performance-improvement/.

IvyPanda . (2020) 'Starbucks Quality Management and Performance Improvement'. 24 April.

IvyPanda . 2020. "Starbucks Quality Management and Performance Improvement." April 24, 2020. https://ivypanda.com/essays/starbucks-quality-management-and-performance-improvement/.

1. IvyPanda . "Starbucks Quality Management and Performance Improvement." April 24, 2020. https://ivypanda.com/essays/starbucks-quality-management-and-performance-improvement/.

Bibliography

IvyPanda . "Starbucks Quality Management and Performance Improvement." April 24, 2020. https://ivypanda.com/essays/starbucks-quality-management-and-performance-improvement/.

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HBR’s Most-Read Articles of 2024 (So Far)

by Kelsey Hansen

Summary .   

HBR’s top five most popular articles of 2024 (so far), present an opportunity to reflect on the work you’ve done in the preceding months, and chart any necessary course changes. The list includes a case study of how Starbucks lost its way (and how it could pivot); a guide to how to shift your leadership style based on situation; and a playbook for assessing the quality of the questions you ask at work.

The waning days of summer present a prime opportunity to step back and reflect on the paths you’ve taken so far this year, whether they’re personal or professional, and ask yourself: Am I growing in the right direction? What are my blind spots? Where could I be doing better?

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