BUS421GS001 Strategic Management 2 Discuss the business engi

BUS-421-GS001 Strategic Management

2. Discuss the business engineering processes used by Starbucks to stay competitive. How does the company track performance and use its control systems?

Solution

Starbucks created its own team of architects and designers in order to convey the message through the designing of the store, which is in line with the goal and visions of the company.The Starbuck stores are custom designed and the company does not buy any real estate in particular, but leases space and redesigns it as per the company norms.

The company has special seating areas to make it a desirable place to sit and enjoy. The company has also come up with drive through windows in order to provide speed and convinience. Recently the company announced the policy that each of its new store would be designed as per the area and the ambience where it operated.

In order to control the costs, the company has centralized buying, laid emphasis on developing standard contracts and has fixed fees for certain items. It has also consolidated its work under those contractors who showed good cost-control practices. The operation department has fixed the minimum number of equipments required by a store and the inventory is provided just in time.

The design of the store is developed using the layout software with keeping in mind the cost of layout.