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Starbucks uses geographical data and information from at least 30 countries to source its coffee beans. Coffee tastes and production vary by region due to climate and other natural attributes. Starbucks buys coffee beans from Latin America, Africa, and Asia-Pacific in particular. The company analyzes global coffee production trends and market prices to determine its sourcing strategy and understand changes in coffee prices by region.

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0% found this document useful (0 votes)
3 views

Examples

Starbucks uses geographical data and information from at least 30 countries to source its coffee beans. Coffee tastes and production vary by region due to climate and other natural attributes. Starbucks buys coffee beans from Latin America, Africa, and Asia-Pacific in particular. The company analyzes global coffee production trends and market prices to determine its sourcing strategy and understand changes in coffee prices by region.

Uploaded by

Muendo Justus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Examples: Coffee Bean Sourcing

Starbucks uses geographical data sources to source its coffee. Geographical data are

information as presented on maps. These are locational data that the corporation uses to describe

locational attributes. Starbucks buys 3% of the global coffee supplies, mainly from Latin

America. Approximately 70 countries globally produce coffee, and Starbucks buys coffee beans

from at least thirty countries (Jeszka, 2023). Coffee tastes different based on region and climate,

although each country adds its flavors to coffee beans, so Starbucks imports coffee beans from

these regions. However, Starbucks has three giant areas where they get their coffee: Latin

America, Africa, and Asia-Pacific. Also, Starbucks seeks information like the global coffee

production trends and market prices to decide on coffee bean sourcing. The international coffee

production trend aid in understanding regional production volume based on temperature and

natural attributes that favor coffee growing (Zhou et al., 2022). Therefore, analyzing this

information may help Starbucks know regions with high coffee production volume acceptable to

them and whether to purchase from the areas. In addition, the market price trend makes the

organization understand the increase or decrease in coffee prices in coffee production regions.
Example 2: Supply Chain Management

The current supply chain management system applies complex and massive amounts of data.

The power of big data analytics is based on an organization's ability to pull different data sources

and analyze them to develop an integrated whole. For instance, supply chain management is a

master of product data. The product data are information about individual products and how the

products complement other products (Scholz et al., 2018). Additionally, organizations can use

demand data which are historical sales information and data from investigative forecasting and

future sales projections. External information includes third-party data sources, weather

information, consumer packaged goods data, and more. Logistical data Logistical information

talks about products transportation history, deliveries, distribution from center to center, and

stock transfers from one location to another, and lastly, inventory data that include value, area,
and volume of the organization's current inventory across multiple distribution points (Scholz et

al., 2018). Data provided insightful crop data that organizations can use to decide the type of

coffee to grow based on atmospheric conditions, seasons, and soil type to attain profitable

harvests. Thus, based on data analysis, hybrid coffee breeds that may be suitable for coffee bean

production can be recommended. Also, supply chain management is not solely focused on

finished product distribution. With data analytics, organizations, and farmers get insights into

market predictions, coffee price fluctuations, consumer behaviors, and other variables that can

help plan the production process before seed sowing. This can be salient information to help

manage conditions that enable organizations to maximize their investment and predict and curb

unnecessary losses.

Example 3: New products Development projects.


Starbucks collects personal information to get their client's data on purchasing habits. Their

mobile app has more than seventeen million users, with thirteen million active users on the

reward programs. The users in the reward program create an overwhelming data pool about

where, what, and when they purchase coffee and complementary products from Starbucks. The

information on Starbucks systems can be overlaid with the weather, special promotion, and

holidays. Additionally, the reward programs authorize the company to collect data on buying

patterns of their client's preferred drinks. So when an individual visits a new Starbucks store that

they have never been to, the store point of sale system can identify individual clients through

their phones and give the barrister at the counter their order. Additionally, the app will suggest

new products that match the client's taste and preferences.

Academic Underpinnings

In the present world, business has access to the digital footprint of their clients. Thus

companies can learn valuable information about their client's preferences, needs, and buying
attributes. Analyzing this information can help companies swiftly identify patterns and trends to

customize the services and products they issue to their clients. Therefore, the more organization

knows about their clients, the more they can tailor their products and services to meet their

client's needs, thereby growing their client's loyalties and boosting sales. Additionally, it gives

companies fast decision-making power and deters them from spending resources on ineffective

strategies, misguided marketing, ineffective operations, and unproven concepts for services and

products. Hence, by using the concept of data-driven decision-making, leaders in their industries

set up their organizations for high productivity levels based on guided data rather than intuitions

or industrial experiences. Thus, it is essential for decision-makers to comprehend data patterns

and suggest possible outcomes based on data analysis. Further, data-driven decision-making aid

in increasing operational efficiencies. By gathering extensive data on customer feedback,

businesses can get meaningful insights to optimize their services and products. Data analytics

may also help identify new opportunities that can help streamline operational costs, maximize

business profits and reduce business costs.

Conclusion

This project critically analyses the decision-making process in Starbucks stores. Starbucks is

among the most significant global coffeehouse chain having seventy-two chains in the United

States and approximately thirty-two thousand stores globally. Decision-making is essential for

business success and failure. Therefore, it influences productivity and operational efficiency in

Starbucks franchisees and licensees. Starbuck management makes operational decisions in the

store's different departments, including products, logistics, and store locations. Additionally,

company sales can benefit significantly from a rational decision-making strategy that is easy to

use and comprehend. Contemporary business use business analytics and data analytics for data-
driven, informed decision-making. Data analytics and business analytics work to transform

information into valuable insights for business.

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