Starbucks Company's Information Technology Approaches | Free Essay Example

Starbucks Company’s Information Technology Approaches

Words: 843
Topic: Business & Economics
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Introduction

Starbucks Corporation uses a powerful business model to produce and market its products to many customers across the globe. With over 182,000 employees, the company remains a leading roaster and retailer of quality coffee. It also has numerous brands that support its business image such as Starbucks VIA, Seattle’s Best Coffee, Tazo, Evolution Fresh, Verismo, and Teavana. This paper identifies specific recommendations and information technology (IT) approaches that can be used to support or implement them.

Strategic Recommendations

Recommendation One

The first recommendation presented in the article “Strategic Analysis of Starbucks Corporation” is that Starbucks can consider a number of emerging markets in order to maximize its potential. The most appropriate approach is to design powerful models that resonate with the needs of local customers. The use of information technology can support this objective. To begin with, the company can create new websites that deliver the intended message to local citizens (Barbosa, Rodello, & de Padua, 2014). This means that every market such as India, South Africa, Mexico, and Brazil should be served using a different website. The information should be communicated using local languages. The move will ensure the company’s model supports the unique needs of each market.

The second approach is to use social networks such as Twitter.com and Facebook.com to advertise its products in the targeted regions (Taecharungroj, 2017). Consequently, more people will be informed about the company’s products and offerings. The strategy will eventually make it easier for Starbucks to achieve its potential in such markets. Information technology can also be used to revolutionize the manner in which the targeted customers are served. Companies such as Amazon have embraced the concept of e-marketing to achieve its goals. Since many regions across the globe are embracing the power of the Internet and information technology, the company can customize its model to meet every customer’s needs.

Recommendation Three

The third recommendation explains how Starbucks Corporation can develop its fresh juice and tea products in such a way that its supports its business objectives. This strategy is relevant since the company has only been focusing on “its line of core coffee products” (Geereddy, n.d., p. 7). This recommendation can be implemented successfully through the use of information technology. The corporation can begin by automating most of its tea and juice preparation processes. The use of programmed machines can increase efficiency and ensure more customers are served efficiently. Data analysis can also be done using modern technologies to understand the changing needs of different individuals. The acquired information will be used to make informed product development and marketing decisions.

Efficient communication technologies will improve the manner in which employees, stakeholders, and customers share information. Such practices will support a new model that seeks to produce and market these additional offerings (Chi & Sun, 2015). Consequently, the company’s competitive advantage will increase significantly and maximize profits. With effective technologies in place, Starbucks can be able to improve the way juice products are packaged, streamline service delivery, and support decision-making processes. The use of information technology to improve the manner in which raw materials are sourced and delivered to the company’s stores will support the current business model (Hutt, 2016). A good example of a company that embraces the power of IT in supply chain management is Wal-Mart Incorporation. Starbucks can embrace such concepts to support these product mixes and eventually become even more successful.

Recommendation Four

Starbucks has been focusing on its coffee products because they are the major sources of revenues. According to the presented case study, Starbucks Corporation should acknowledge the fact that consumer lifestyles and tastes have changed within the past few years (Geereddy, n.d.). The company should, therefore, expand its menu to ensure healthy products such as beverages and snacks are available to its customers. Information technology is a resource that can be used by this company to support or implement this recommendation. Social sites such as Facebook.com can make it easier for the corporation to monitor the emerging needs and lifestyles of its customers (Nikoloski, 2014). This understanding will ensure that the right beverages and healthy products are included in its menu. Modern technologies can also be used to gather customers’ opinions and ideas.

Starbucks should emulate the practices embraced by Southwest Airlines. Modern technologies have made it possible for the company to address the needs of its customers. For example, emails, websites, and online chats can make it easier for the company to improve its offerings (Berisha-Shaqiri, 2015). The organization’s research and development (R&D) team can use modern technologies to get adequate nutritional information. This knowledge will be used to produce healthy products.

Conclusion

This discussion shows clearly that information technology can be used by companies to support their business strategies, streamline their operations, and collect timely information for effective decision-making. Starbucks Corporation can, therefore, use IT solutions to meet the changing needs of different customers, improve its products, and coordinate most of its organizational processes. The approach will ensure Starbucks improves its services, produces superior beverages, and tackles the increasing level of competition.

References

Barbosa, S. C., Rodello, I. A., & de Padua, S. I. (2014). Performance measurement of information technology governance in Brazilian financial institutions. Journal of Information Systems and Technology Management, 11(2), 397-414. Web.

Berisha-Shaqiri, A. (2015). Impact of information technology and Internet in businesses. Academic Journal of Business, Administration, Law and Social Sciences, 1(1), 73-79.

Chi, J., & Sun, L. (2015). IT and competitive advantage: A study from micro perspective. Modern Economy, 6(3), 404-410. Web.

Geereddy, N. (n.d.). Strategic analysis of Starbucks Corporation. Web.

Hutt, R. W. (2016). Reputation on the line: The Starbucks cases. Journal of Business Strategy, 37 (1), 19-26. Web.

Nikoloski, K. (2014). The role of information technology in the business sector. International Journal of Science and Research, 3(12), 303-309.

Taecharungroj, V. (2017). Starbucks’ marketing communications strategy on Twitter. Journal of Marketing Communications, 23(6), 552-571. Web.