Starbucks - Special Blend of Coffee (Quality Management Case Study)

Question: Discuss about theBusiness Management forStarbucks Coffee. Answer: Introduction There has been taken two renowned organizations for having a comparative analysis of the total quality management systems of both the organization. The first organization chosen is Starbucks. In 1971, the company was established with the name Starbucks Coffee, Tea, and Spice. The organization keeps on snowball its revenues since its year of establishment. In the year 1992, there was a public appearance of Starbucks Corporation. Presently the company is well recognized and identified for its efficient customer services, huge operations and extensive number of stores globally. There were 8,870 owned supplies and 8,139 licensed outlets of Starbucks by the year 2011. The company has effective quality management processes and systems which are recognized globally (Starbucks, 2016). The second company chosen is McDonalds; it was established in the year 1940. The first establishment was in the United States by the efforts of two brothers Maurice and Richard. It is recognized the largest fas t food supply chain from the global perspectives. McDonalds possess a very efficient total quality management system which is very much significant by the successful operation of its extensive number of outlets worldwide. There will be a comparison of TQM of both these organizations as well the impact of their TQM on their customer service, leadership and strategic planning (McDonalds, 2016). Literature Review TQM of McDonalds The total quality management system of McDonalds is found to be very efficient as it focus on majorly all the aspects of business which it can earn brand recognition and revenues. The main focus of the TQM is over the involvement of the employees, the organization ahs wide engagement with employees in context with change, decision making and other aspects. McDonalds also have a greater focus over the customers and their preferences and develop its product portfolio accordingly. There has been develop a benchmarking by the company and as per which it works so that there can performance measure and any inefficiency can be measures and corrected (Johnston and Jones, 2004). There is great emphasis over the continuous improvement approach and thus there are regular improvements in the processes and approaches. McDonalds have created a quality circle which helps in identification of work problems and resolving them as early as possible. The company used six sigma strategies by which there is an effective improvement in the overall working of the organization. There are also reduced cycle time and critical working approaches which makes the TQM system much robust (Vignali, 2001). Impact of TQM Over the Customer Service, Leadership and Strategic Planning There is a strong relationship between the TQM and strategic planning, leadership and customer services. The TQM system of McDonalds also impacts these segments as the company has effective strategic planning as by evaluating the needs and requirements of the customers the company tries to incorporate and implement the considerable changes in its strategic planning so that the targeted quality management goals can be accomplished (Johnston and Jones, 2004). There are strategic tools such as priority matrix etc. which helps the company in targeting right set of customers. The customers are highly satisfied with the processes and working McDonalds but there are few health related concerns which are evolving with time like obesity, risk of diabetes, increased cholesterol level etc. which the company needs to consider and provide nutritious food for the health conscious customers (Lashley, 1998). TQM of Starbucks The total quality management system of Starbucks is found to highly efficient and robust as the company takes use of the best management practices and approaches in its working. By analyzing the logistics and distribution of the company it is found that Starbucks have extensive number of distribution channels which helps in eradicating redundancy and maximizing the efficiency of the business operations (Rodrigo,2012). There is a fine quality control process which checks the overall quality of the manufacturing process as well as the other methods involves in delivering the finest services. The products which are offered are completely customer driven and are in accordance with the preferences of the customers (Moon and Quelch, 2003). There is always a kind of innovation in the products, services and operations of the company which attract the customers. For attaining supreme quality in the products, the company incorporates various initiatives such as visiting the countries where cof fee beans are grown and check the quality by themselves (Paryani, 2011). Impact of TQM over the Customer Service, Leadership and Strategic Planning The TQM of Starbucks is highly recognized and well-efficient. It provides high customer satisfaction through its renowned services and quality products. There is an excellence in the systems of TQM of the company which provides a better approach to the strategic planning as the mangers are the sound leaders which takes care of the quality of the products offered and are also identified as an ethical organization which takes use of all possible approaches to provide the distributors, manufacturers and the farmers with high grants and cooperation for serving the finest quality of services. The strategic planning of the company is also very robust as they take use of best strategic tools for its business processes (Geereddy, 2012). Research Methodology The research is a comparative research where there has been done a comparative analysis of both the companies in context of their total quality management systems and its direct impact over the strategic planning. The comparative research is based on the secondary data sources. Data Collection Most of the data ids collected from the secondary sources such as the information related to the companies are taken from their websites and various articles. The data related to their quality systems, strategic planning are also been taken from the various sites and articles and business reports. The literature review is based on the journal articles and the scholarly articles of various authors. Data Analysis The analysis has been performed by considering the value chain, tools and strategies and processes of both the companies. The supply chain analysis has also been taken use for evaluating the efficiency of operations management of the organizations. In the analysis it is found that he total quality management system of Starbucks is comparatively stronger than that of McDonalds as the company focuses more on the quality of its services as well as on the health and satisfaction of the customers. Conclusions and Recommendations From this report based on comparative analysis of two organizations i.e. Starbucks and McDonalds it is analyzed that both the companies possess a great total quality management system which helps these companies in attaining higher profits and an expensive customer basis. There are few more innovative approaches used by Starbucks which makes the organization a bit stronger in comparison with McDonalds. To have more effective TQM, McDonalds must implement few innovative processes so that it can deliver much healthy products as well as can improve the quality of its products such as expanding its portfolio by increasing the healthy and nutritious beverages and drinks. Starbucks can also improve its strategic planning by developing a more sustainable as well as responsible supplier base so that there can be rapid growth and development. References Geereddy, N. 2012. Strategic Analysis Of Starbucks Corporation. Group, O, 2016. Get end-to-end excellence throughout your retail supply chain. Accessed on: 11th October, 2016. Accessed from: https://www.groupo.com/supply-chain-solutions/integrated-retail-solutions Johnston, R. and Jones, P., 2004. Service productivity: Towards understanding the relationship between operational and customer productivity. International Journal of Productivity and Performance Management, 53(3), pp.201-213. Lashley, C., 1998. Matching the management of human resources to service operations.International Journal of Contemporary Hospitality Management,10(1), pp.24-33. McDonalds, 2016. McDonald's History. Accessed on: 11th October, 2016. Accessed from: https://corporate.mcdonalds.com/mcd/our_company/mcdonalds-history.html Moon, Y., Quelch, J. 2003. Starbucks: delivering customer service. Harvard Business School. Paryani, K. 2011. Product quality, service reliability and management of operations at Starbucks. International Journal of Engineering, Science and Technology, 3(7), 1-14. Retailmantra, 2013. How Does McDonalds Manage its Supply Chain in India ? Accessed on: 11th October, 2016. Accessed from: https://www.retailmantra.com/how-does-mcdonalds-manage-its-supply-chain-in-india/ Rodrigo, 2012. Supply Chain Management in Starbucks and its impact on Company Performance. The writepass journal. Accessed on: 11th October, 2016. Accessed from: https://writepass.com/journal/2012/11/supply-chain-management-in-starbucks-and-its-impact-on-company-performance-2/ Starbucks, 2016. Company Information. Accessed on: 11th October, 2016. Accessed from: https://www.starbucks.com/about-us/company-information Vignali, C., 2001. McDonald's:think global, act local-the marketing mix. British Food Journal, 103(2), pp.97-111.