3 figure 12 flexibility as order qualifiers and order

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Figure 1.2 Flexibility as Order Qualifiers and Order Winners (Source: Jones & Robinson 2012) Dependability Dependability as an order winner is the ability of an organization to consistently meet its promises to the customer (Jones & Robinson 2012, p.39). Unfortunately, Starbucks’ original business model does not translate across markets. A key to reach Starbucks profitability success, Starbucks had to offer high prices to its coffee growers to cover the production cost. Therefore, Starbuck has less control on the price performance and delivery performance order winners. 4
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Figure 1.3 Dependability as Order Qualifiers and Order Winners (Source: Jones & Robinson 2012) Speed Speed as an order winner is the ability to provide products or service as a short a time delay as possible between customer order and delivery is essential in many industries (Jones & Robinson, p. 40). As for the daily operation, when a customer orders beverage from front counter, Starbucks never fails to deliver to customer’s hand in a timely manner. Moreover, Starbucks also did not wait for market to adapt and acted aggressively when it comes to opening new stores across Australia. The company’s fame and success in other markets gave them confidence to open new stores aggressively across Australia. The disadvantages will be discuss further in this report. Market Structure of Starbucks An organizational structure defines the scope of acceptable behavior within an organization, its lines of authority and accountability, and to some extent the organization’s relationship with its external environment (Jones & Robinson 2012, p. 43). Starbucks succeeds because its organizational structure grows with the business, enabling the company to optimize processes and the quality of its goods and services. (Marques 2008). Competitor With Starbuck’s assertive strategy in Australia, according to analysis, Starbucks had become a symbol of Americanization and commercialization. When Starbucks points of difference clearly revolved around its brand image and supplementary service, such as excellent customer service, to justify a premium price. Competitor quickly imitated their service and ambiance by providing premium coffee ad intimate casual experience. This cased Starbucks value proposition began to fade. As more competitor emerge, both individual café and chain impose rigid sales target on their frontline staff to increase the store productivity. The advantages of Starbucks is their exceptional level of service provided, where they remembered names of regular comers and happy to make a beverage according to specific request. This culture has been slowly neglected when the company uses some key performance indicator to measure their staff performance, such as average order filling duration, weight of coffee beans processed per time, and equipment repair duration. These measurement force employees to be pressured and they would serve customers more quickly, barista and staff have less interactions and engagement with each customers.
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