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Analyse the global supply chain of the company Essay Example

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Analyse the global supply chain of the company

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They are global standardization strategy, transnational strategy, international strategy and localization strategy. In case of Starbucks the best strategy which can be incorporated is internationalization strategy. This would enable the firm to expand over larger geographical area and acquire high profit margins. International strategy is all about implementing best possible strategy to establish a strong market position in foreign country. The four possible international strategies for Starbucks are joint ventures, franchising, exporting and acquisitions (Wintzer, 2007). Figure below represents the shift of Starbucks from one strategy to another.The above figure clearly states that Starbucks has shifted from its international strategy in order to acquire higher percentage of market share. The shift in its strategy is majorly because of market complexity and demand towards new products or services (Lasserre, 2012). For instance, Lithuania is an emerging market for coffee house companies and offers immense opportunities to Starbucks. Franchising strategy shall benefit the company in terms of reducing operational risks and overall costs.Starbucks encompasses complex tasks from product manufacturing to delivery at retail stores. The company is inclined towards global resource span where it acquires coco beans from one country and milk from another distant location. This supply chain strategy enables the firm to spread its operations across many locations. Starbucks Coffee has set its brand image in context of supplying superior quality coffee to all its customers. The raw materials that are gathered by the company are later transported to manufacturing, packaging and roasting plants (Chopra and Meindl, 2007). Global distribution of Starbucks can be well explained with the help of a map given in figure3.Processing plant and coffee plantations of the company are located across the globe. These are the sources for acquiring raw materials and then producing final products. Lithuania is a completely unknown market for the company and hence franchising strategy would prove to be most appropriate for long-term growth and success (Radhakrishnan, 2001). Global supply chain strategy for the company would be to focus on coffee plantations in Palestine and Brazil, and supply coffee beans to nearby locations of Lithuania. These beans will be roasted in processing plants set up at Lithuania

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Burks, M., 2009. Starbucks. USA: ABC-CLIO.

Chan, C. K., and Lee, H.W.J., 2005. Successful strategies in supply chain management. Pennsylvania: Hershey.

Chopra, S., and Meindl, P., 2007. Supply chain management: strategy, planning, &operation. New Jersey: Upper Saddle River.

Kumar, S., 2007. Connective technologies in supply chain. New Delhi: CRC Press.

Lasserre, P., 2012. Global strategic management. Singapore: Palgrave Macmillan.

Leeman, J. J. A., 2010. Supply chain management: Fast, flexible supply chains in manufacturing and retailing. Germany: Book on demand.

Michelli, J., 2006. Starbucks experience. New Delhi: Tata McGraw-Hill Education.

Patton, J. D., 2006. Logistics: Technology and management the new approach. New York: Jamaica.

Radhakrishnan, P., 2001. Logistics and supply chain management. New Delhi: Allied Publishers.

Sadler, P., 2003. Strategic management. London: Kogan Page Publishers.

Schultz, H., 2012. Pour your heart into it: How starbucks built a company one cup at a time. New York: Hachette.

Ulwick, A. W., 2005. Business strategy formulation: Theory, process and the intellectual revolution. Westport, CT: Quorum Books.

Wintzer, E., 2007. Global competition and strategic management. Germany: GRIN Verlag.

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preview essay on Analyse the global supply chain of the company
  • Pages: 4 (1000 words)
  • Document Type: Essay
  • Subject: Management
  • Level: Undergraduate
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