Free Outsourcing Integrated Supply Chain System Management Essay Example
Based on your overall opinion of the venture, what can Starbucks do from an Information Systems Strategic planning perspective to best ensures success?
Globalization is an undertaking strategy endorsed by many companies that aspire to develop an international market penetration and expand their sales revenue. The business strategy poses a challenge to firms especially in coordinating the expansive selling points and balancing the varying consumer tastes and preference. Starbucks- a global icon in coffee products needs to uphold an integrated management system that will coordinate distribution production and operation activities of its parent company in US and the new venture. The key objective of the integrated system is to reduce lead time and idling cost of human resources in order to minimize overall operation expenses thus creating an affordable price. Brazil is a coffee hub that is sold at low prices and for this reason Starbucks must strive to sell its coffee at an acceptable price.
The Starbucks management should outsource the management of the integrated supply chain system due to its maintenance complexity as well as allocating maximum time to identify any defects. Toyota used the system in their Just-in-Time technique that targeted eliminating operation waste to enhance efficiency and quality production. Outsourcing management of the information system will shield the company from unforeseen maintenance cost and biased interpretation of data collected. Additionally, aggressive online marketing is essential in targeting the potential market population that lies between 15 -65 years. Providing Starbucks products on the websites and other social platforms will help in quelling the threat of Guarana products dominating Brazilian market. Constant following of consumers ordering flow and prompt response is a critical factor towards capturing broad customer base.
Selecting quality and well-equipped software developers
Unix-Based system is a renowned information system provider that Starbucks should adopt to host and track its production, distribution and sales network. The system should be harnessed with the High jump software internet supply chain in order to enhance prompt analysis of the variations in market demand and production flow (Starbucks Case study: 10). In Brazil, there is only one supplier of raw materials thus creating risky operation in case of market upsurge? The internet system will facilitate sourcing other providers at affordable cost to shield the company from demand deficit cost.
Training of employees
Besides outsourcing supply chain management system, it is appropriate to blend the external experts with the company’s staff and train them in management skills. The strategy will enhance future transfer of the system to the enterprise without inconvenience. Adoption of an internet based operation framework is a crucial strategy for driving Starbucks market penetration and sustaining customer loyalty and customer-favoring coffee products.
As a new entrant, Starbucks faces several market challenges that may hinder their capacity to deliver affordable products to the Brazilian consumers
b. Identify the greatest threats to the success of the Brazil venture, and how best to mitigate
Them using technology.
Brazil is the greatest producer of coffee across the globe where local companies have established companies to process and sell coffee products at low prices. Starbuck’s product price is at the Brazil market price, and hence the management needs to adopt technological initiatives to ease production cost and facilitate selling products at consumer-friendly prices. Using an integrated supply chain system will minimize idling and slack time cost and aid in product differentiation strategy for the products. Internet research by employees will help realize alternative manufacturing strategy that will counter the Guarana products widely accepted in the Brazil market.
The Dollar-Rupee exchange rates have been noted at a low rate of 2.43 rupees for every dollar (Starbucks Case study: 5).This is a challenge to the Starbucks especially in their endeavor to buy coffee beans from farmers (Starbucks Case study: 9). Before establishing a local production plant, the management should capitalize on online trading system where Brazilians would order their trading and pay the amount in dollars upon product delivery. Further, use of integrated supply chain system will minimize operation cost thus increasing revenue.
Marketing the products
c. State your position on whether Starbucks should proceed with the Brazil expansion, and why or why not?
Based on the Brazil market feasibility analysis, Starbucks should proceed to venture in Brazil market as part of its globalization agenda. Use of integrated information and operation monitoring system is critical for the company to withstand competitive force and satisfy the Brazilians coffee utility. The reason for Brazil market venture is the enormous resource of Arabica coffee beans that could be processed in differentiated categories to suit the consumers. The political, economic, social and technological environment is favorable for business performance. Conclusively, Starbucks should not hesitate to capture the market potential for its products in Brazil before other competitors seize the opportunity gap.
"Starbucks Case study." Enterprise Architecture (2012): 1-11. Web. Feb. 2015.
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