Electronic Commerce Starbuck's Corporation the Thesis

Open, View, and/or
Download this Document

Total Length: 944 words ( 3 double-spaced pages)

Total Sources: 1+

Page 1 of 3

Starbucks has been able to monetize these strategies not from deliberate attempts but from the benefits of strengthening its suppliers so they could also experience profitability and reinvest in their businesses.

Integrating to the Starbucks Supply Chain Management System

Starbucks moved beyond using their ethics and CSR initiatives to just support their supply chains and integrated them into their main supply chain systems as well (Witkowski, 2005). Starbucks has successfully defined the corporate value of their CSR programs as a result.

The CAFE program, when tracked as part of the broader Starbucks supply chains, showed that despite the higher costs associated with coffee and ancillary products, the company's quality costs were consistent and predictable due to a stable supplier base (Deutsche Bank 2006). The pricing models of Starbucks are specifically created to take into account high levels of commodity fluctuations including diary, sugar and paper. The company has traditionally managed this risk through the use of hedging and futures-based purchases to alleviate wide swings in pricing (Deutsche Bank 2006). The company has learned over time that the greater the level of stability in their supply chains, the more consistent the level of pricing behavior over time. The supply chain for Starbucks is shown in Figure 1, highlighting the tight integration with estates, small farms and cooperatives.

Stuck Writing Your "Electronic Commerce Starbuck's Corporation The" Thesis?

View All Our Example Electronic Commerce Starbuck's Corporation the Thesis

Have A Custom Example Essay Written

These were the pilot areas of the CAFE program which has since expanded throughout the entire Starbucks value chain (Deutsche Bank 2006). Starbucks relies on a global product development process that seeks to introduce new drinks in varying hemispheres for test marketing by season. The stability of their supply chains through the reliance on the CAFE program has significantly reduced sourcing, supply chain and quality management costs as a result (Deutsche Bank 2006).

Figure 4: Starbucks Supply Chain

(Deutsche Bank 2006).

Conclusion: Reciprocal Relationships through the Supply Chain Pay

Starbucks has a series of ethicacy guidelines on which the CAFE program is base, with the most critical one being transparency of financial reporting and variance cost analysis reporting (Argenti, 2004). An essential element of this compliance Starbucks requires is audited validation of payments downstream and upstream and downstream and has indexed payment schedules to these values (Deutsche Bank 2006). An analysis of results achieved show that the stabilized supply chain has significantly reduced operating expenses, and also aided in more efficient new product development cycles while also fulfilling the CSR vision, mission and values of the company......

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Electronic Commerce Starbuck's Corporation The" (2009, October 26) Retrieved May 19, 2024, from
https://www.aceyourpaper.com/essays/electronic-commerce-starbuck-corporation-18221

Latest MLA Format (8th edition)

Copy Reference
"Electronic Commerce Starbuck's Corporation The" 26 October 2009. Web.19 May. 2024. <
https://www.aceyourpaper.com/essays/electronic-commerce-starbuck-corporation-18221>

Latest Chicago Format (16th edition)

Copy Reference
"Electronic Commerce Starbuck's Corporation The", 26 October 2009, Accessed.19 May. 2024,
https://www.aceyourpaper.com/essays/electronic-commerce-starbuck-corporation-18221
   

Open, View, and/or
Download this Document
order custom essay example