Starbucks’ Management and Operations: Starbucks Delivery

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Management Team

The management team will focus its attention on the organization of delivery areas, routes, and the types of products that will be available for delivery. It would be rather important that the management selects professionals who can advise in the way to keep products fresh and hot for the customers. They would also have to consider the surrounding businesses and the kind of service they offer (Rossouw, 2008).

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Recruitment and Selection of Employees

The primary objective in the selection of the employees has to be the skills that are necessary to carry out tasks directly related to the job. The preliminary interview will be based on the minimum requirements and root out anyone who is below that standard. There might be written tests to evaluate the knowledge of the person, as well as assess the type of position they are best suited for.

Compensation and Ownership

The salaries for the job have to be oriented towards a competitive market and not be any lower than the minimum wage. In reality the minimum wage is not enough to attract potential employees, as there are a number of places that offer high salaries. Another factor that could play a role is a performance-based salary. A series of bonuses and extra payments could be beneficial for both the company and the employees (Cole, 2004).

Advertising and Promotion

Advertising is an important part of getting the business and services known to the public. There are some ways that a service can be advertised. Billboards, ads on buses and buildings, flyers, TV commercials, the internet, and other types of media can all be used in familiarizing the public with the company. Promotion of the Starbucks delivery service, also known as marketing, could focus on presenting the information to customers in a form of advertisements and then increasing the demand with high-quality products and low delivery time. Also special promotions such as sales with a high number of orders or high price products could be offered to increase the demand. Another factor in promotion is the differentiation of the product from others on the market. That is why the presentation of the product or service and wide selection is crucial in the business.

Employee Reward and Incentive Plan

Employee rewards can focus not only on salary but also health benefits. Vacation time is much valued in any company and that is why long vacations and fluctuation in selecting the period of time when vacation can be taken are important. Incentive programs can be used to reinforce the employees’ want to put in more time and effort into the job. The skills and motivation of the employees should be rewarded, considering their quality of work and also the dedication in working extra hours when such need arises. The interests of employees should be considered in order to relate to their wants and needs, thus increasing their own participation in the company.

Communication

Communication is a very important part of any job. A good idea would be to provide either radios or company-covered cell phones, as with delivery there is much communication going on between the delivery person, the client and the management. With further development of the delivery service, in-car computers could be set up for easy access to the orders that are being placed in real-time and a direct link to the company, in case any issues become troubling.

Infrastructure

A strong infrastructure is required to run a Starbucks delivery service. The number and placement of locations are critical in covering a large area of the delivery. Central locations with easy access to main streets and highways are preferable. It would also help to consider traffic congestion in the rush hours and the construction that might be common and frequent in certain areas. Closeness to other large businesses, public places and community centers could increase the demand and lower the delivery time, which will greatly benefit both the consumer and the business. As there might be times with an increase in the number of orders, the building of Starbucks would have to be easily accessible by a number of delivery employees. A drive-through window for employees could avoid the need for delivery workers to exit the car, enter the shop to take the product and then enter the car, which would greatly increase the number of orders (Sabherwal, 2010).

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Operations Management

Controlling inventory

Inventory control relates to the monitoring of the products but also to the expenses created by the delivery itself. In controlling the inventory at the cafe, there has to be a flow of products oriented towards the demand. The delivery times should be early in the morning or late in the evening, as to not impede the flow of customers or work of the delivery personnel. The monitoring of the delivery employees could be accomplished by setting up tracking for gas and the number of kilometers traveled. An in-car mini-computer would aid in the selection of the fastest or shortest routes and make sure that the driver did not purposefully divert from the schedule or location.

Providing service

In providing the service of delivery it is important to keep the delivery time to the minimum. An option of receiving the order free if the delivery time is unexpectedly high could be put in place. As it is a fast-paced environment, the product has to be of high quality and fresh, so that the customer does not feel as if receiving leftovers or old products.

Future Expenditure

For the future expenses there are a lot of things that must be considered: the lease on the property and the building, if the cars are company-owned, then the cost of repairs and maintenance, the rise in minimum wage, the increasing cost of products and delivery services, maintenance of the building itself and any necessary repairs. The usage of water, heat and air conditioning is also important to consider and any other expenses related to electricity (Brott, 2009).

Security Systems

As with any other company security systems are an important part of a business. The location of Starbucks itself must be secured with an alarm and anti-theft system but also the cars should be protected. The safety of employees and customers is another matter to consider.

Hours of Operation

Hours of operation must best suit the customers. Since Starbucks specializes in coffee, a 24-hour delivery service would be best for the consumers. This will make the product easily accessible to those customers who have nighttime shifts.

Number of employees

The number of employees should be enough to cover the 24-hour shift. It could either be divided into two 12 hour shifts or people could work standard 8-hour rotating shifts. The number of employees will depend on the number of locations and the demand for the product. In areas of high delivery rates, the number will be higher.

Vacation Program

Vacations are an important part of a person’s life. A plan that best suits all employees must be chosen. There should be an option that offers flexible vacation time selection. Also, employees should have an option of short-notice vacations, which would allow them to request one 2 weeks in advance and then be allowed the requested time.

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Training and Development

Training of personnel is a part of every job. The first several months should be given to the person to acclimate. The payment for training should either be covered by the company and if it requires a great number of hours, then the employee should be compensated for it.

Risk Analysis

Risk analysis should focus on the deliveries and the safety of the employees. The night-time deliveries would be considered of higher risk. Also, the seasons should be given special consideration. Rainy conditions or wintertime is especially dangerous that is why the cars must be equipped according to the road conditions. The risk factors about the sales should be considered as well. The fluctuations in the market will decide the amount and type of product purchased (Wright, 1999).

Overall Starbucks delivery service is an excellent idea. As there are not many coffee shops that deliver, it will be in high demand and the sales will be significant. The delivery personnel are the key element in the functioning of the service and so great care should be taken in providing acceptable working conditions and equipment. Starbucks offers a product that satisfies the needs of a great population of adults of almost all ages. The wide selection of drinks and outstanding delivery service will promote more sales and demand for the product.

References

Brott, R. (2009). Advancing a successful business: Managing your organization well! Oregon, United States: ABC Book Publishing.

Cole, G. (2004). Management: Theory and practice. London, Canada: Cengage Learning.

Rossouw, D. (2008). Business management: A contemporary approach. Cape Town, Africa: Juta and Company Ltd.

Sabherwal, R. (2010). Business intelligence. Danvers, United States: John Wiley & Sons.

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Wright, R. (1999). Marketing: Origins, concepts, environment. Padstow, United Kingdom: Thomson Learning.

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