Starbucks Coffee: Analysis Of Management Information System

MANAGEMENT INFORMATION SYSTEMS

ANALYSIS OF MANAGEMENT INFORMATION SYSTEMS AT STARBUCKS COFFEE

Submitted by:

A V Dwijesh Chowdary - 140201001

Aakash Sojitra - 140201002

Aamir Husain - 140201003

Aayush Agarwal - 140201004

Abhishek Sethi - 140201013

Table of Contents

1. Introduction…………………………………………………………………….

2. Organizational Structure of Starbucks Coffee……………………………….

2.1 Structure of Parent Company…………………………………………….

2.2 Hierarchical Structure of Starbucks Coffee……………………………..

3. As-Is Information System Used at Starbucks…………………………………

3.1 Software used at various levels…………………………………………...

3.1.1 Transaction Processing System……………………………..

3.1.2 Supply Chain Management…………………………………

3.1.3 Decision Support System……………………………………

4. Information

The most famous products introduced by Starbucks which can be found across all stores in all countries, include more than 30 blends single origin premium Arabica coffees. Handcrafted beverages include Vivanno smoothies, hot and iced expresso beverage, Frappuccino bottled coffee, premium ice-creams, brewed coffee and also tea product, Tazo tea. Starbucks merchandise include coffee mugs and accessories, gift items and brewing equipment. Fresh food includes baked pastries, salad, fruit-cups, sandwiches and oatmeal.

Starbucks Coffee expanded rapidly in the 2000’s. The substantial increase in the number of outlets made it harder to maintain the efficiency of the then prevalent Management Information Systems. Ineffective management with the information flow led to a rise in costs up to $75 million during 2007-08.

Learning from their mistakes, Starbucks introduced several software like Zeal and HighJump to manage their information flow and thereby increasing its ability to effectively manage its business and coordinate the production, distribution and sale of its

As mentioned in the areas of concern, this type of information flow might lead to unreliable data and wastage of time. Starbucks should focus more on improving their Management Information Systems rather than their products at this point of time. It means that improving the quality of products should be made a second preference as a lot of money can be saved by investing in improving their Management Information Systems.

7.2 Integration of SCM

Integrating the supply chain management systems at parent and country level will reduce cost, time and redundancy of data thereby improving overall efficiency of Starbucks.

7.3 IRIS (Intelligent Restaurant Information System)

IRIS is being used in select stores of Starbuck Coffee in London. Use IRIS globally instead of using it in select stores. The IRIS system is made up of two components:

1. There is a Point of sale system (POS) or front of house till system.

2. The Manager Work Station (MWS) or back of house computer