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102006 05 POM A2

Principles of Operations Management (Đại học Kinh tế Quốc dân)

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Table of Contents
INTRODUCTION 2

PART 1: THE CONCEPT OF CONTINUOUS IMPROVEMENT IN THE STARBUCKS

CONTEXT 3

1. Evaluate A Range Of Approaches To Continuous Quality Improvement3

1.1 The definition of approaches to continuous quality improvement.................................................3
1.2 Quality tools for process improvement.........................................................................................5

2. Review And Assess The Implementation Of Operations Management About Continuous

Improvement At Starbucks 8
2.1 Total quality management (TQM) tool in Starbucks.....................................................................8
2.2 The implementation of operations management in relation to the TQM tool at Starbucks............9
2.3 Assessment Of Process And Product Quality At Starbucks When Apply TQM Tool.................11

3. Continuous Improvement Plan Based On Operational Activities In Starbucks 12

4. Evaluate Comprehensive Quality Management Approaches And Techniques In Starbucks'

Continuous Improvement Plan.14

PART 2: A STRATEGIC RISK ANALYSIS OF THE OPERATIONS FUNCTIONS OF

STARBUCKS 15

5. The Role And Important Of Strategic Risk Analysis (SRA) For An Organisation 15
5.1 Definition Of SRA......................................................................................................................15
5.2 The role and importance of SRA in business..............................................................................16

6. Starbucks Risk Management Process 17

6.1 Risk Identification.......................................................................................................................17
6.2 Risk Assessment.........................................................................................................................18

7. Evaluate The Organization's Contingency Plans And Methods For Managing Organizational
And Stakeholder Risk. 22

CONCLUSION 24

REFERENCES 25

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INTRODUCTION

This assignment aims to use the idea of continuous improvement in a practical setting and
to carry out a strategic risk assessment of Starbucks.

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PART 1: THE CONCEPT OF CONTINUOUS

IMPROVEMENT IN THE STARBUCKS CONTEXT

1. Evaluate A Range Of Approaches To Continuous Quality Improvement

1.1 The definition of approaches to continuous quality improvement
a) Continuous quality improvement (CQI)
CQI is defined that indicates a strategy for improving a company over time. CQI is
founded on a set of guiding principles that motivate consistent, little-by-little
improvement. The 1990s saw a rise in interest in CQI, with the Japanese automobile
company Toyota being one of the most prominent businesses to implement CQI into their
daily operations. CQI has gained a lot of traction in the healthcare industry, particularly
in institutions like hospitals, where it has been credited with lowering both wait times and
expenses (Cartana, 2020).

b) Continuous Improvement (CI)

CI is the process of updating or enhancing a business's goods, processes, systems, and
services. CI should be a core value of the organization's culture. Kaizen is a strategy for
achieving continuous improvement based on the assumption that little, consistent
improvements may provide big benefits. In contrast to strategies that rely on drastic or
top-down changes to bring about transformation, it is often built on teamwork and
dedication. Kaizen is essential for lean manufacturing and the Toyota Way. It was formed
in the manufacturing sector to eliminate faults, lessen waste, enhance output, instill
worker purpose and accountability, and encourage innovation. Kaizen is built on the
notion that everything can be improved, and nothing is the status quo. It also hinges on
the notion of “Respect for People” (Cole, 2011).

c) 10 philosophies for quality and continuous improvement

Six Sigma, Lean, TQM, and JIT have different names and procedures but they all rely on
the same fundamentals: systems perspective, visionary leadership, customer-focused,
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value people, use of analytics, flexible operations, innovation, ethics, and transparency
(NIST, 2022). 10 specific philosophies of Kaizen are outlined below:
 Let go of assumptions
 Take the initiative to solve problems
 Don't accept the status quo
 Let go of the need to be perfect and try to change in a way that is iterative and
flexible
 As businesses make mistakes, look for ways to fix them
 Set up a place where everyone feels like they can contribute.
 Don't just accept the obvious problem; instead, ask "why" five times to find out
what's going on
 Get information and ideas from many different people
 Use your imagination to find small, low-cost ways to improve things
 Never stop improving
(NIST, 2022).

1.2 Quality tools for process improvement

a) The definition of quality tools
Some tools help the company improve process improvement including TQM, JIT, Six
Sigma, and Lean (Cole, 2011). Below I will identify those 4 quality tools:

Total Quality Management (TQM) is a continuous process of recognizing, removing,

or minimizing faults. It expedites supply chain management, enhances client service, and
guarantees workforce training. The goal is to improve the quality of a company's outputs,
including its products and services, by the continuing development of internal
procedures. In addition, TQM aims to make all stakeholders accountable for the final
product or service's quality. There are guiding concepts of TQM that range from focusing
on consumers, continually improving, and conforming to protocols (Cartana, 2020).

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Six Sigma is a set of strategies for improving the quality of production and business by
using error statistics, causes, and handling to increase the precision of the process.
Compared to ISO 9001, the Six Sigma technique introduces an entirely new mindset to
quality management. Rather than focusing on product error management, organizations
should invest in process improvement to reduce the issue. defects occur. All of these
measures are intended to create near-absolute consistency and perfection in the
production and commercial processes. When a process has fewer than 3.4 faults (or
flaws) per one million opportunities (products), it meets the Six Sigma criteria (Cartana,
2020).

The Lean management method focuses on maximizing customer value and eliminating
waste. Simply said, Lean implies giving more customer value with fewer resources. A
lean firm recognizes that "value" is defined from the customer's perspective and focuses
on its key business activities to continuously grow these values. Lean implies not only
lower costs, shorter cycle times, and fewer suppliers, but also more: knowledgeable,
empowered personnel, and a more agile, agile business (Cole, 2011).

Just In Time (JIT) means "the right product, in the right amount, at the right time." JIT
reduces non-value-added production or service delivery. The system meets customer
needs. JIT is a production management method that plans the flows of raw materials,
goods, and products so the next process may begin soon after the current one concludes.
No production item is waiting to be processed, and no workers or equipment must wait
for input. JIT is also used in sales. The flow of sold and despatched goods will precisely
match production, minimizing capital backlog and wasteful inventory (Martin, 1989).

b) Pros and cons of quality tools

The tools below all have the same advantage of helping the company reduce costs
(including reducing inventory levels and labor productivity), increasing profits, and
increasing customer satisfaction levels (Fryer, 2007).

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Tools Pros Cons

 Delivers superior products to clients  May be costly
 Minimizes waste across the whole  Converting to TQM takes time.
TQM manufacturing and sales process
(Fryer, 2007).
 Makes the business more adaptable
 Preserve customer fidelity  Only prioritize quality
 Improve corporate culture  Request more resources
Six Sigma  Business expansion  Time barrier
(Cartana, 2020).
 Facilitates standardisation  Manufacturing costs are higher
 Streamlines procedures  Supply chain management is difficult
 Accelerates production  High costs if not done properly
 Reduces stock on hand  Easy to lose customer satisfaction
Lean  Product quality, reduce damaged/repaired  Machine and worker restrictions
(Martin, 1989).
products (before and after shipment)
 Reduce machine damage and process
failure
 Absence of inventory  Businesses rely heavily on suppliers
 Zero faults  Large orders exceeding the company's
 Non-financial performance metrics are forecasted capacity can delay the time
JIT useful in filling up gaps and to deliver products to customers
(Martin, 1989).
communicating desired objectives  Training employees, installing
 Flexibility in altering manufacturing machines, and altering production
methods and product designs procedures take a lot of time
 Productivity enhancement by decreasing  Inventory considered a burden as
wait times opposed to an asset.

c) Comparison between 4 approaches to continuous quality

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TQM Six Sixma Lean JIT

Focus Process Problem Workflow Control
Measure Customer satisfaction Defects per million Cycle time, inventory The Pull system
opportunities turnover
Everyone Project teams Analytical tools and teams Top-down approach
Application (bottom-up with top- (top-down) working with employees
down approach) (bottom-up)
Pursuing quality Decreasing Streamlined movement Support and deliver
depending on the variation and throughout the whole raw resources,
consumer, utilizing enhancing process value process to maximize products, and items
Goal standardized capabilities customer value, of the right sort,
procedures uniformity, and waste amount, and timing.
reduction
Manufacturing, Manufacturing, Manufacturing, service, Manufacturing
Industry medicine, banking and software, and product handling
finance healthcare, energy
and sales.
Contribution Commitment to excellence across the Value stream mapping, Lead time reduction
entirety of the organization flow, and pull
Applicability Organizations Business process Primarily high-volume Business
processes (supply chain)

2. Review And Assess The Implementation Of Operations Management In

Relation To Continuous Improvement At Starbucks
2.1 Total quality management (TQM) tool in Starbucks
According to Cortez (2017), Starbucks also applies a continuous improvement concept in
place to serve customers well. The company has district managers do random checks on
the baristas, talk to customers to get feedback, and make sure the drinks to quality. TQM
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in Starbucks is a process that focuses on the customer and aims to improve business
operations all the time. It tries to make sure that everyone works toward the same goals,
which are intended to increase the quality of the products or services of the labours and to
improve the ways that production is done. Starbucks's TQM is well-known and very
effective. It keeps customers happy with its well-known services and high-quality goods
(Starbucks, 2022).

2.2 The implementation of operations management in relation to the TQM tool at

Starbucks
Starbucks has used TQM in different operations management to enhance its commitment
to product and service quality for its customers:
a) Job design and human resources
Starbucks emphasizes work teams and functional professions like HR and inventory
management. In this decision area of operations management, the goal is to ensure that
Starbuck's culture is incorporated into every work and that technical criteria are met. In
addition, Starbucks views the empowerment of its workforce as a component of its
quality management system. To this end, the company encourages its workers to become
advocates for the Starbucks brand and offers them a competitive compensation package
(Cortez, 2017). As can be seen, Starbucks is always making efforts to continuously
improve its application in human resource quality to ensure employee commitment to
work.

b) Supply chain (high-quality whole coffee beans)

The company has always prioritized coffee quality in comparison to other coffee shops.
The business has a variety of sources to maintain supply consistency. Starbucks
meticulously chooses each coffee bean to provide the coffee industry with high-quality,
flavorful goods. Since they believe quality, flavor, and complexity cannot arise from
simple roasting, they pick exceptional coffee beans (Starbucks, 2022). They cultivate
coffee beans at high elevations, which produces density and, consequently, taste.

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However, altitude is not the sole consideration. It applies to all of their products since,
unlike competitors, they have always adhered to higher sorting and grating requirements.
The company must be aware that Arabica coffee alone is insufficient. They manufacture
extraordinary coffees that transcend their rivals (NIST, 2021).
Starbucks must use the finest raw materials to produce the ideal coffee. Starbucks
implements the "Coffee and Farmer Equity (C.A.F.E.) Practices" ethical sourcing
guidelines with the assistance of Conservation International, an American non-profit
environmental organization dedicated to protecting the environment. These principles
assist farmers in cultivating coffee in a manner that benefits both humans and the
environment. Having said that, Starbucks has farmers who cultivate Arabica coffee
beans, which are then inspected by quality inspectors (NIST, 2021).
Thereby, it can be seen that Starbucks always cares and closely checks the quality of each
coffee bean. The quality circle of coffee beans is formed through the stages to ensure
that there are no mistakes at any stage in the process of creating quality beverage
products.

c) Design of goods and services

Starbucks utilizes the TQM tool to deliver appropriate customer service. The corporation
employs random checks by district managers to assure the quality of the baristas,
consumers, and beverages. Every six months, the business employs EcoSure to do
assessments of the needed requirements for all stores to guarantee that quality standards
are met (Cartana, 2020).
Measuring Customer Satisfaction: According to Starbucks (2022), Since Starbucks has
verified profiles on social media (including Facebook, Twitter, and Instagram), the
company should make use of these platforms to address concerns raised by customers,
promote new products and services to attract additional publicity, and make
announcements about discounts to keep customers up to date. Because the majority of
people who use social media are members of the millennial age, the person who will be
in charge of these sites has to be friendly and conversational. In addition, Starbucks

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employees always try to solve and respond to customer problems quickly (Chris, 2019).
This helps to increase customer satisfaction and maintain customer loyalty to the brand

2.3 Assessment Of Process And Product Quality At Starbucks When Apply TQM
Tool
a) The advantages
The mission values of Starbucks stress respect and decency for one another, as well as the
importance of employees working together. Starbucks is responsible for teaching its
suppliers and verifiers about product quality tests and criteria as part of its commitment to
ensuring the quality of its products, each level of the organizational structure is
responsible for communicating quality management instructions to the level below it. The
goal of TQM, which is implicit in the very definition of the phrase itself, is to check that
there are no mistakes made at any point in the process (Cartana, 2020). Starbucks is a
great example of how TQM can be successfully implemented by focusing on the
satisfaction of both internal and external consumers and suppliers. Starbucks delivers
TQM through the construction of a strategic business environment, constant innovation,
and continuous improvement, which are all driven by the organizational culture of the
company.

Starbucks' coffee experience is sufficient to demonstrate the company's success outside

the confines of its outlets. In contrast to its rivals, the firm is devoted to accomplishing its
objective, which is to motivate people's spirit, as opposed to simply providing good
service. Invention and quality will constantly be utilized by the organization. Starbucks
has always been the best coffee shop in the world in general and in Vietnam in particular
because it has always been consistent in establishing quality methods to deliver genuine
service, a warm and welcoming atmosphere, and a fantastic cup of perfectly roasted and
richly brewed coffee to the customers (Starbucks, 2022).

b) The disadvantages
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Despite successfully applying TQM to continuous improvement, there are still some
disadvantages at Starbucks. First, the production of its beans poses the greatest difficulty
for Starbucks. Careful selection of coffee beans poses a threat to Starbucks because
compared to other competitors in the same industry, Starbucks has a relatively high
price. In other words, the corporation is doing everything it can to keep the coffee
growers and recompense them for meeting market demand (Starbucks, 2022). Second,
Starbucks must also pay close attention to what its rivals are doing in terms of pricing and
product offerings; these are crucial areas that the firm must prioritize to advance because
the company's products can be easily imitated in the market. Finally, Starbucks
employees are still not interested in teamwork, they often prefer to work independently,
leading to ineffective internal information exchange and this is also one of the
limitations when applying TQM (Nguyen, 2016). In contrast, the use of the TQM system
should engage everyone in quality improvement activities via the quality assurance team.
It can be said that Starbucks needs to improve the above three outstanding issues to be
able to grow and develop further in the future.

3. Continuous Improvement Plan Based On Operational Activities In Starbucks

Based on the above critique, I will evaluate the strengths and weaknesses of Starbucks:

Strengths Weaknesses
 Solid brand identity  The product price is high
 Quality, flavor, and standardization  Products that are easy to imitate
 Robust financial performance  Human resources are still minimal, and
 Staff and consumer loyalty employees do not communicate effectively.

Starbucks wants to blend production and efficiency with the human resources consumers
demand. However, it will be very difficult to balance this. Based on the strengths and

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weaknesses of the product chain and the way Starbucks manufactures the products
analyzed above, I recommend a continuous improvement plan that can help Starbucks
change for the better. That's how employees can effectively communicate with each other
and best service when customers order coffee and experience in-store. Lean Six Sigma
will allow Starbucks employees to increase teamwork, helping the business increase
sales and production efficiency while preserving its intrinsic value. In addition to product
quality, Starbucks needs to concentrate on process quality to overcome the above
weaknesses (Chris, 2019).

Lean Six Sigma process (Zhang, 2011).

Handling employee wait or idle time

Starbucks must first implement new training programs for staff to help employees
understand the process thoroughly, particularly baristas' orders. Although the cash
register is typically responsible for ringing up orders, baristas and servers can now
receive orders before clients pay. This decreases the time required to receive and pay for
coffee. The Starbucks mobile app expedites the ordering procedure as well. Consumers
may reserve and pay for their desired beverage on their smartphone, then pick it up at the

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store upon arrival. Pre-purchased beverages are accessible at the bar and are named,
similar to the process Starbucks brand. This can help employees work faster.

Keeping in mind the human element

Despite the fact that these improvements have accelerated the entire operations of
Starbucks, the company's management must maintain a high level of human connection
at each store. When consumers order beverages in the shop, Starbucks' management must
encourage baristas to engage in conversation with them. Effective techniques for
customizing each transaction include inquiring about the customer's day and whether or
not their coffee is a regular order. Moreover, Starbucks' app will include a loyalty
program. The smartphone app lets consumers collect "stars" for free coffee instead of
stamps. Therefore, using the Starbucks application also helps employees easily connect,
exchange and capture customer information quickly and accurately.

It can be seen that Lean Six Sigma has helped Starbucks improve job design and
human resources in operations management. However, this tool still cannot fix the two
Starbucks weaknesses that I mentioned above.

4. Evaluate Comprehensive Quality Management Approaches And Techniques

In Starbucks' Continuous Improvement Plan.
According to Starbucks (2022),
Vission: "Establish Starbucks as the leading supplier of premium coffee in the world
while upholding the principles of zero tolerance".
Mission: “Inspire and nourish the human spirit - one person, one cup of coffee, and one
love of neighbor at a time”.

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Using Lean Six Sigma has enabled Starbucks to enhance process quality in terms of
customer happiness and human resources. However, with its mission to inspire and
nurture the human spirit, Lean Six Sigma can be difficult to achieve in the short term as
Starbucks' primary challenge would be to maintain a constant quality of customer
involvement and to do it at the appropriate moments, the foundation of any excellent
process is consistency and customer value. The difficulty lies in the fact that Starbucks
deals with individuals, each of whom thinks they are unique. In actuality, no systems or
automation are involved in this scenario to assure 100% consistency. This is, however,
what makes this Lean Six Sigma approach so wonderful in my opinion, since we must
analyze what is most essential to the consumer.

To achieve its goal of becoming a premium coffee supplier, Starbucks needs to do a few
more things. The first is to change the supplier selection criteria based on market demand,
search and expand the supply chain network to help reduce production costs. Second,
Starbucks needs to ensure that the process and product quality are thoroughly checked at
each stage, including during production and after market launch, to help improve product
quality when it reaches consumers, without a business can imitate.

PART 2: A STRATEGIC RISK ANALYSIS OF THE

OPERATIONS FUNCTIONS OF STARBUCKS

5. The Role And Important Of Strategic Risk Analysis (SRA) For An

Organisation
5.1 Definition Of SRA
According to Cambridge (2022), Risks are hypothetical occurrences with the potential to
either favorably or unfavorably affect the goals of an organization. Risk management is
identifying, analyzing, preparing responses to, and reacting to events or situations that

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may occur throughout a project, whether they are positive or bad. Project risk
management aims to maximize and optimize the project's potential for success by
increasing the likelihood and effect of a positive risk (opportunity) and minimizing the
likelihood and impact of a negative risk (threat). A business's capability to execute its
strategy and fulfill its goals is vulnerable to several strategic risks, which may have a
substantial influence on shareholder profitability and the firm's corporate sustainability
(Millard, 2022).

SRA is a process that identifies and manages the specific risks that have an impact on an
organization's capacity to accomplish critical goals. This is done to minimize the
likelihood of adverse outcomes. The aims and objectives of the business might be
jeopardized or weakened by strategic risks, which could have an impact on the value of
shareholders' investments and the overall sustainability of the organization (Millard,
2022).

5.2 The role and importance of SRA in business

SRA plays a significant role in business. The greater the size of the organization, the
more potential dangers it faces. Therefore, their tactics for risk management need to be
more advanced than ever before. Risk management is an essential component of any
company since, in the absence of it, it is impossible for a company to effectively define
its long-term objectives in the face of shifting market conditions. Because if the
organization sets its goals without taking into consideration the dangers, it is highly
possible that the company would become disoriented and panic when the risks develop
into genuine problems that need to be addressed. The SRA is responsible for three
primary responsibilities. The first is helping businesses organize stable operations. The
second is helping businesses realize their goals, mission, and business strategies. And
the third is assisting managers in making wise judgments (Millard, 2022).

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6. Starbucks Risk Management Process

6.1 Risk Identification

Number Risk Description Stakeholder

01 The price Starbucks must rely on suppliers that face resource limits, regulatory Coffee farmers
of raw restrictions, and capacity restraints to satisfy growing demand.
Environment
coffee Starbucks pays 23% more than the usual rate for their high-quality
beans is Arabica coffee. Due to fears of shortage, stockpiling, and supply Governments
increasing chain interruptions, the price of raw green Arabica coffee has
skyrocketed throughout the epidemic (China, 2022). Particularly Customers
with the restricted availability of coffee beans that match the firm's
requirements and the price volatility outlined in the section on
commodity pricing below, Starbucks faces the possibility of
shortages and rising costs of its core product if its standards are not
reached during a given crop.
02 Products Although Starbucks is really well for coffee, merchandise, and food, Supply firms
that can be the recipes for these items are simple. Starbucks's goods are not the
Customers
imitated most distinctive or original, making them simple to imitate (Chris,
2019). If customers know more about coffee than the typical drinker
and they can try something new that's high-quality, they will spend
more. But customers use pricing to pick between comparable
similar items in order to maximize value. It seems to be between
value and premium craft coffee brands. Quality-wise, they may
struggle to compete with third-wave coffee brands. In Vietnam, there
are numerous chain-based coffee shop business models that pose
competition to Starbucks replicate (Chris, 2019).
03 Customers As with any other retail business in the world, the Covid-19 Supply firms
tend to epidemic, the health condition, and the global recession have
reduce impacted Starbucks, which poses a concern owing to the

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spending unpredictability of the scenario. As a result of the economic crisis

Customers
due to the caused by the Covid epidemic, consumers prefer to make more
pandemic prudent purchases than in the past. Experts also anticipate that the
and global ongoing global recession will deepen, impacting firms worldwide,
recession including Starbucks, which has witnessed a considerable decrease in
sales income (Starbuck, 2019)

6.2 Risk Assessment

6.2.1 Risk impact scale

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Starbucks Risk Impact Scale

6.2.2 Risk assessment form

I will rate the probability and impact of the risk on a scale of 1 to 5 (low, relatively low,
moderate, relatively high, high).

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Starbucks Risk Assessment Form

Coffee bean prices rose to a 4-year high as Brazil experienced adverse weather conditions
and Vietnam faced restrictions due to the Covid-19 pandemic (China, 2022). Since the
COVID-19 epidemic, customers have demonstrated a larger need to brew coffee on their
own, which has contributed to an increase in the price of coffee beans, according to
reports from the industry (China, 2022). So in Vietnam, where tea and coffee are
available anywhere and everywhere at a lower price, Starbucks seems to be an expensive
option for consumers. Thereby, I rate the probability and impact of “The price of raw
coffee beans increasing” as relatively high.

As for competitors, Starbucks has the highest price compared to other coffee shops
because the business also positions itself as a premium coffee brand. Starbucks doesn't
have the most unique or distinctive product, making it easy to imitate by a large number
of coffee chains offering similar product categories (Nguyen, 1970). Other coffee shops
offer comparable items at lower rates than Starbucks, satisfy the vast majority of
consumers, and attract a younger clientele. Unless Starbucks increases its brand
awareness, this poses a huge threat to the company. Therefore, I rate the probability and
impact of risk of “Products that can be imitated” as high.

As with any other retail business in the globe, the Covid-19 outbreak, the health
condition, and the global recession have harmed Starbucks, and the unpredictability of

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the scenario poses a threat. In addition, experts believe that the continuing global
recession will worsen as consumers curtail spending. This affects firms worldwide,
including Starbucks, which will see a decline in income (CNN, 2021). So I assessed the
impact of this last risk as moderate. With the world's epidemic crisis now resolved, I just
keep the probability of this risk low because Covid-19 is quite hard to return.

6.2.3 Risk severity matrix

I will create Starbucks risk mapping based on the above risk assessment form analysis.

Starbucks Risk Matrix

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The table illustrations rank important risks. With "Product that can be imitated" is
ranked highest, in the red zone. Next is “The price of raw coffee beans is increasing”.
And the last risk is in the green zone (still quite safe).

7. Evaluate The Organization's Contingency Plans And Methods For Managing

Organizational And Stakeholder Risk.

Starbucks stakeholder mapping

It can be seen that Starbucks needs to have a business contingency plan to minimize the
risk. Given the risk of products being easily imitated, Starbucks needs to accept and
mitigate. The risk of the price of coffee beans increases, and businesses need to plan to
mitigate the scale of risk through internal control. Finally, the risk of customers tends to

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reduce spending, and Starbucks needs to accept this. Below, I will analyze Starbucks'
contingency plans for stakeholders to overcome the remaining risks.

Starbucks needs to consider consumers. This stakeholder group desires premium coffee
and beverages. The corporation must expand the Starbucks culture to its cafe consumers
to incorporate them as important customers. The firm and baristas encourage pleasant and
amicable ties, for example. Starbucks' activities will serve this stakeholder group.
Besides, the company needs to deploy advertising campaigns to attract more domestic
customers.
Then, employees at Starbucks need to realize how important they are to their businesses.
Starbucks needs to train employees 4 times per month so that they can improve their
work performance and meet the company's process quality. Starbucks' suppliers are
wholesalers and farmers. This stakeholder group is interested in compensation and
Starbucks' growth,
Moreover, Starbucks needs to make efforts to find domestic suppliers to reduce
production costs. To alleviate the effects of an unreliable supply, Starbucks has to
diversify the sources from which it obtains its raw coffee beans, aggressively seek out
and work with capable suppliers, and expand its supplier network in order to get the
price of raw coffee beans is decreasing more.
Starbucks needs to offer environmental CSR projects as Starbucks' supply comes from
90% of CAFE-certified farms is the advantage (Starbucks, 2022). This considerable
amount suggests that Starbucks is effective in addressing this stakeholder group, yet there
is growth potential. This will help businesses gain customers' trust in quality products as
well as create a strategy to differentiate from other competitors in the coffee market with
the slogan "green environment".

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CONCLUSION
Through this course, I have prepared a continuous improvement plan for Starbucks. In
addition, I have analyzed strategic risks together with stakeholders to find ways to
manage risk in the business

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REFERENCES

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