STARBUCKS COFFEE COMPANY PRODUCT AVAILABILITY

EFFICIENCY IMROVEMENTS

Prepared for
Starbucks Coffee Company

Prepared by
Abbie Sivinski
University of Nebraska at Omaha
Business Student

December 3, 2015
December 3, 2015

Starbucks Corporate Offices

Starbucks Corporation
Seattle, WA 98124-1067

Dear Corporate Officials:

The attached report, authorized by Professor Anjelika Walker of University of Nebraska at
Omaha, describes the current problem of the product availability and the effects on Starbucks
Coffee Company and its customers. I believe this report will be useful in identifying the causes
of inefficient product availability therefore leading to some possible solutions for improvement.
This report looked at four different areas for discussion:

Current supply chain and distribution techniques

Specifically the Mid-America region and how it is affected
The effects on both customers and partners
What the possible solutions are and how to implement them

Primary research consisted of an interview with my District Manager Tim Lueck, as well as
some of my own observations from the Starbucks store I currently work at. Secondary research
sources included The Supplier and Global Reference Report from the Starbucks website, the
2014 Annual Fiscal Report from the Starbucks website, a SWOT Analysis of Starbucks, books,
periodicals, and online customer forums. Results of this research, discussed more fully in the
report, concludes that product availability has tremendous effects on customer satisfaction and a
loss on revenue. However, there are possible solutions to be implemented as will be explained in
the conclusion of the report.
I would be pleased to discuss my findings as well as the implementations of the possible
solutions with you at your request. Thank you for your consideration in reading my report and I
hope you find value in it.
Sincerely,

Abbie Sivinski
Business Student at University of Nebraska at Omaha

TABLE OF CONTENTS

EXECUTIVE SUMMARY...........................................................................................................iii
INTRODUCTION.................................................................................................1
BACKGROUND..................................................................................................1
DISCUSSION......................................................................................................2
Current Techniques.
.2
Causes.
..4
Customers and Partners.
6
RECOMMENDATIONS & CONCLUSIONS...............................................................8
REFERENCES...................................................................................................10
LIST OF FIGURES
Figure
Properties of Starbucks and Their Use
1. ...............................................................................................................3
2. Current Manufacturing and Distribution Centers..................................................7

EXECUTIVE SUMMARY
Starbucks Coffee Company can benefit from improved product availability by a rise in customer
satisfaction and smaller losses of revenue. Specifically, the Mid-America region will benefit the
most if some distribution centers and warehouses were to be built in the Midwest. The benefits
are shown through the in-depth research and report of the causes and solutions for product
availability. This report was authorized by Professor Anjelika Walker of University of Nebraska
at Omaha and conducted by Abbie Sivinski, a current employee of Starbucks.
My conclusion that product availability is an important problem that needed to be addressed is
based on an interview conducted of my District Manager, Tim Lueck, personal observations from
Starbucks store, as well as reports from the Starbucks website, and online periodicals and
forums.
Analysis of the research revealed three major areas of discussion:

Current Techniques. The current supply chain of Starbucks including current properties
of Starbucks and their uses, a detailed example of my store and how we receive our
orders of inventory, and the contrast of Fresh Market versus regular store and how both
are affected by inefficient product availability.
Causes. Limited time offerings, recalls, regions, and unavoidable causes contribute to the
problem and result in dissatisfied customers and a loss of revenue.
Customers and Partners. The effects on the customers and partners: in particular,
customer complaints resulting in fewer visits and a decline in demand, and partners
getting stressed out and feeling like they couldnt provide the full experience of a
successful Starbucks visit.

On the basis of these areas of discussion and research, I recommend that Starbucks build
warehouses and distributions centers in the Mid-America region. This will make for less time
and distance for deliveries to travel which will result in fewer out of stock items. I also
recommend a real time availability computer system to be made in order to make borrowing
product and inventory comparison to be easier. This will result in less wasted resources and
fewer out of stock inventory.

INTRODUCTION: STARBUCKS AND PRODUCT AVAILIBILITY

Starbucks Coffee Company is one of the most well-known business empires in the world. Even
with being one of the trailblazers in the business world through technology and consumer
satisfaction, there are always areas for improvement in any company. For Starbucks, one major
area to improve upon is product availability. Product availability is having the products the
customers want when the customers request them. Not having the requested inventory in stock
reflects badly on Starbucks and causes problems such as customer dissatisfaction and loss of
revenue.
This report was designed to look at the problems with product availability along with the causes
of those problems in order to find some solutions. Some areas of discussion will be:

Current supply chain and distribution techniques

Specifically the Mid-America region and how it is affected
The effects on both customers and partners
What the possible solutions are and how to implement them
BACKGROUND: GROWTH, DEMAND, AND PRODUCT AVAILABILITY

Starbucks was founded in March 30, 1971 by Gordon Bowker, Jerry Baldwin, and Zev Siegl.
Howard Schultz, the current CEO of Starbucks, joined the company in 1982 and created the
global empire Starbucks is today. The first latte was sold in 1984 and everything has taken off
since then. Starbucks currently has an entire menu of different drinks as well as food, beans, and
numerous other products ranging from home brewery to custom drinkware.
As the company grew, Howard Schultz wanted to make sure that the company stayed true to its
founding values. He created a specific mission statement that is still the driving core of every
Starbucks store: Our mission: to inspire and nurture the human spirit one person, one cup and
one neighborhood at a time (Schultz & Gordon, 2011). The mission is achieved through
supreme customer service and a living passion in every Starbucks store that is demonstrated in
every realm of the business.
Since its inception in 1971, Starbucks has grown to have over 21,000 stores spanning across 65
countries. In order to maintain interest and growth, Starbucks has had to continue to provide an
array of new items every season and every year. Now with every season comes new drinks,
pastries, and drinkware along with returning customer favorites to keep everyone happy and
caffeinated. The difficult part of new items, however, is forecasting how those items will be
received and how popular some might get than others. This proves hard to predict and results in
what this report is about: product availability
As my District Manager Tim Lueck states, Product availability is defined as having products
ready for the customers when we need it. This means not being out of syrups, sandwiches, or
any other inventories for that matter when a customer asks for it. However, because of numerous
factors and situations, product availability is never 100% achieved. This causes many problems
1

for Starbucks partners, dissatisfaction among customers, and results in a loss of revenue that
should have been avoided.
I have been working for Starbucks for over a year and a half, and I have been able to see the
repercussions of poor product availability and dealt with the consequences of it. I will therefore
be able to provide insight into my own stores dealings with product availability as well as
observations I have made that may be helpful in coming up with some solutions. Other sources
of information for this report will come from the Starbucks website, a Starbucks customer online
forum, and other academic journals having to do with supply chain and distribution.
DISCUSSION: CURRENT TECHNIQUES, CAUSES, AND CUSTOMERS & PARTNERS
The finding of this report results in a number of hopeful solutions for the improvement of
product availability. Because every region of Starbucks has different preferences and tastes, I
decided to focus on one particular region known as the Mid-America region. The Midwest is a
part of this region and since I work here in the Midwest, I can only speak specifically for my
area. Other regions will have different problems relating to their sales and operations but I
believe that product availability is a company-wide issue that could be improved across the
board.
To make things easier to understand, I have divided the information presented in this report into
three discussion categories: (a) current techniques, (b) the causes of product availability
problems, and (c) the customers and partners of Starbucks.
CURRENT TECHNIQUES
To understand the problems of product availability, we have to first look at the supply chain and
the current distribution techniques. In general, every store receives an order of supplies either
every day or every other day depending on the store size and type. Starbucks ships roughly
70,000+ deliveries per week. These deliveries contain a variety of different products ranging
from coffee beans to cups, or merchandise that is in every Starbucks store. But in order to get
these products to the stores, they go through a few different channels to get to their final
destination.
Figure 1 represents the significant properties used by Starbucks in its roasting, manufacturing,
warehousing, distribution and corporate administrative operations. Starbucks refers these
warehouses as Regional Distribution Centers (RDC) - One of a network of warehouses (scattered
regionally) operated for a single company where merchandise is consolidated prior to delivery to
its stores within a region (Starbucks Coffee Company, 2014). Along with these there are also
what Starbucks refers to as third-party warehouses that hold inventory. These can be described
as half-way points for the inventory before it reaches its final destination.

Location
Rancho Cucamonga, CA

Purpose
Manufacturing
2

San Francisco, CA
Augusta, GA
Minden, NV (Carson Valley)
York, PA
Gaston, SC (Sandy Run)
Lebanon, TN
Auburn, WA
Kent, WA
Seattle, WA
Amsterdam, Netherlands
Samutprakarn, Thailand

Warehouse and distribution

Manufacturing
Roasting and distribution
Roasting, distribution and warehouse
Roasting and distribution
Distribution center
Warehouse and distribution
Roasting and distribution
Corporate administrative
Roasting and distribution
Warehouse and distribution

Figure 1 PROPERTIES OF STARBUCKS AND THEIR USES

Source: Starbucks Investor Relations. By Starbucks Coffee Company, 2014, Starbucks Fiscal
2014 Annual Report. p. 16.
My Store
In order to gain a better understanding of how the distribution process works, we will look at the
distribution process of one specific store. For the matter of convenience we will use the store in
which I work which is located at Suite 100, 15821 W Dodge Rd, Omaha, NE 68118.
According to my district manager Tim Lueck, my store is a part the Midwest region containing
Kansas, Nebraska, North Dakota, South Dakota, and parts of Missouri. The distribution center in
which my stores inventory comes from is Lebanon, TN. However, our orders have to go through
one of the third-party warehouses mentioned earlier to then be delivered to us. Our third-party
warehouse is in Kansas City and is delivered to us through Mile Hi Specialty Foods. Already it is
apparent the great distance our inventory has to travel in order to get to Nebraska.
Fresh Market vs. Regular Stores
One thing to also consider is that there are different types of Starbucks stores that all require
different deliveries. One type of store is called a fresh-market store. These stores contain
products like fresh fruit parfaits, bistro boxes, and salads. Since all of the food is fresh produce
and sandwiches, fresh inventory has to be delivered every day to keep the food up to Starbucks
standard. Therefore, fresh-market stores get daily deliveries of freshly prepared food that other
stores dont necessarily get.
Fresh-market stores are based on many different factors determined by the company. One of
those factors is store density. States like California and New York have an exorbitant amount of
Starbucks stores and therefore would excel in profitability from more product. Proximity also
plays a big role when it comes to fresh-market stores as well. Having a high store density in one
city will make the delivery costs worth it because one delivery truck can supply multiple stores
with inventory in just one trip. Proximity to the actual warehouses helps as well when it comes to
how far the trucks have to travel for one delivery.
3

Whether it is a fresh market store or a regular company owned store, both are affected by
inefficient product availability. Both will not receive certain inventory if it is not available from
corporate, therefore both stores will have customer dissatisfaction and a loss of revenue.
CAUSES
In order to find solutions to the problems with poor product availability, we must first figure out
the causes of it.
Limited Time Offerings
In order to maintain interest and keep customers coming back, Starbucks has to be constantly
coming out with new drinks and products. A classic example of that is seasonal offerings. As the
seasons change, people become more susceptible to certain drinks and tastes. In the summer one
might want something cold to battle the heat and in the winter crave something warm to combat
the dropping temperatures. Starbucks understands this and has come up with seasonal offerings
that are only available for a limited time.
Some of these offerings are reoccurring every year based on their popularity. One classic
example is the Pumpkin Spice Latte. As soon as the fall season starts to show its face, thats
when the Pumpkin Spice mania starts. However, depending on the year, Starbucks might over or
underestimate how popular the drink will become and that may lead to shortages. Last year, for
example, there was a Pumpkin Spice syrup shortage in which my store didnt have the syrup for
a few days. I cannot describe the mass chaos that ensued because of this. Its human nature to get
disappointed or angry when you dont get what you want, however, I was not prepared for the
backlash the shortage would have on just my store alone. Every day we would have a multitude
of customers asking if our store had received the syrup, and time after time my coworkers and I
had to give the customers bad news.
Besides recurring seasonal products, Starbucks also has a tendency to introduce brand new
products at random points in the year as well. Releasing new products is always a risky business
because there is no way to predict if the product will be received well at all. If it is not received
well then the amount of leftover product not sold or used is a loss of revenue to the company as
well as the costs of producing the product. On the other hand, if the product is received well and
becomes more popular than Starbucks anticipated, that is when shortages happen.
For instance, earlier this year Starbucks released a new sandwich called the Double Smoked
Bacon and Egg. The sandwich soon became a huge success and was the most requested
sandwich at many locations. However, the demand for the sandwich swiftly overcame the supply
resulting in a shortage. Stores would order the sandwich and not receive any because there
simply werent enough produced to send out. This shortage reflected badly on almost every
Starbucks store because they couldnt provide the customers with what they wanted. This
resulted in poor customer satisfaction and a loss of revenue. It is hard to forecast just how well a
product is going to sell but it is one area that Starbucks could definitely improve upon.
Recalls
4

Another cause of poor product availability is product recalls. Recalls happen when a product
doesnt pass Starbucks quality standards, incorrect labeling, or even problems with production.
One example of a product recall that caused Starbucks a lot of grief is what I like to call The
Pumpkin Scone Debacle of 2014. Pumpkin scones are one of the most popular fall season
offerings Starbucks has every year. Last year, every Starbucks received their order of pumpkin
scones on the fall launch date as usual. However, a week or two later all pumpkin scones were
recalled and no longer available for order. The reason was because the scones were not up to
Starbucks quality and were therefore being recalled and remade. This brought forth many angry
customers that had has a taste of the scones then for them to be ripped away and not brought
back for a few weeks. One customer in particular came through my stores drive thru every day
and asked if we had gotten the scones back. Every day for three weeks we had to tell him no and
consequentially he would always threaten to never come back to our store. He always came
back, but the threat of losing customers was enough to make every employee at my store feel
bad.
As marketline.com states in their SWOT Analysis on Starbucks, Product recalls could affect the
value of the Starbucks brand and result in a decline in demand for its products. (Starbucks
Corporation SWOT Analysis, 2015) A decline in demand would slow down the companys
growth and result in a loss of revenue. Even though Starbucks is one of the most successful
companies in the world, it has to be constantly evolving and improving in order to keep its slot
on top.
Regions
Different regions prefer different products and tastes in any industry. For Starbucks in particular
one region, known as the Mid-America region, is extremely receptive to seasonal drinks and also
account for the most coffee bean sales in the company.
For instance, every year Starbucks releases different seasonal blends of coffee, one being the
Starbucks Anniversary Blend. Because the Mid-America region sells the most whole bean
coffee, Starbucks sent double the amount of Anniversary Blend to the Mid-America region than
it did the others. However, even with double the amount every other region got, the MidAmerica region sold out faster than any other region.
The exact same thing happened when Starbucks released the Smores Frappuccino in this past
summer. Since the Mid-America region is the most responsive to seasonal drinks, they were sent
double the ingredients the other regions were. Once again they sold out faster than any other
region.
It is plain to see that different regions react to certain tastes and products. So predicting those
reactions can sometimes prove to be a difficult task. A task, however, that needs to be mastered
in order to accommodate every region and improve product availability.
Unavoidable Causes

When it comes to delivery with any company, there are always going to be some causes that are
unavoidable and out of the companys control. For instance, sometimes some sort of severe
weather can prevent a delivery truck from getting to its final destination. Natural disasters and
weather are situations that cannot be controlled or predicted; therefore, a company has to account
for these to happen at one time or another.
Starbucks is also a company that depends on many different suppliers and vendors. In these
cases, some sort of disruption can happen in the production process, health code violations, or a
number of other situations. These are also conditions in which Starbucks has no control and is
unfortunately at the mercy of their many vendors and suppliers.
CUSTOMERS & PARTNERS
The customers of Starbucks are the main drive behind everything that the company does. The
company wouldnt have any business without its customers so Starbucks tries to keep in touch as
much as possible in order to deliver exactly what the customers want. Some ways Starbucks
keeps in touch is through customer surveys, online forums, and social media platforms.
Besides the customers, the other most important asset Starbucks has is its employees, which
Starbucks refers to as partners. The reason Starbucks calls their employees partners is because
they believe that every person working for Starbucks is involved in a shared success. No matter
what level you are employed at, your opinion is valued and you are imperative to the companys
success.
When product availability is not as efficient as it could be, it not only affects the customers but
also the partners as well. In this section we will discuss those effects and how they disturbs the
companys values and business.
Customers
About 90% of the time when a customer walks into Starbucks, they already know what they are
going to get. And even if they do not, after glancing at the jam-packed menu board, they will
quickly figure out what drink or food is calling them. So, when those hopes and dreams of the
perfect latte paired with a complementary food item are crushed because the item is out of stock,
customers get angry and frustrated which results in a diminished chance of them coming back.
Unfortunately, this horror of out of stock items is a frequent occurrence at Starbucks. And with
the growth of the company and the introduction of new products, the chance of ones sandwich
being out of stock is becoming more and more likely.
To try and combat customer dissatisfaction, Starbucks has set up an online forum where anyone
can share their ideas of how Starbucks could improve their overall business. It also helps
Starbucks give the customers exactly what they want. After being on this forum for about five
minutes, I had already found a post about poor product availability made by a customer
regarding tea. In the post, the author regards Starbucks recent change in tea manufacturers. The
author states that it was hard enough to get used to the new teas and after they did find one that
they liked, the store was out of it for many days. They go on to say that the shortage went on for
6

an extremely long time with no end in sight and that Starbucks should have properly managed its
supply. This post is a perfect example of a response to poor product availability and shows that
customers care enough to ask Starbucks to do something about it.
Another factor to consider is drinks versus food when it comes to shortages. When a store is out
of a particular ingredient to a drink, instead of completely losing the sale a partner might suggest
a similar drink for a customer to try. This can broaden the customers horizons to an array of
drinks they may never have tried and could really be a new and positive experience.
However, when it comes to sandwiches and bakery items, most of the time the luck is not on the
partners side. Food is much harder to push than drinks because a person might have an
extremely selective preference on what he or she likes. When someone wants a Double Smoked
Bacon and Egg sandwich and are informed that sandwich is out of stock, the partner involved
might offer the customer a Sausage and Cheddar sandwich instead. The customer might,
however, dislike sausage and simply opt for the drink instead. This in turn loses the company the
revenue of the potential sandwich and was also a disappointing experience for the customer. My
District Manager, Tim Lueck, even stated that sandwiches in particular have a big impact on
revenue compared to drinks because it is so much harder to change a persons food preference
than their drink.
Partners
Partners of Starbucks work hard every day to bring the best experience to customers while
keeping the core values of Starbucks in mind. So when there is a problem with inventory that
results in an out of stock item, there is always a feeling of letting the customers down and not
bringing forth the best service.
I know from personal experience the feeling when you come into work and are told there is an
item the store is out of. There is a feeling of dread when you think about a customer ordering that
item and you having to inform them that it is out of stock. The disappointment in their voice is
always apparent and you cant help but feel bad when thinking that they came to Starbucks to
help their day get better and being out of stock of the product they want might make their day
even worse.
Most of the time when a store is out of items like espresso beans, syrups, or other basic
ingredients, the store might call around to other stores in the area in the hope another store might
have extra product to spare. When this happens, it wastes time and resources the store could have
been using for other important matters. If a store is lucky enough to get loaned product, a partner
has to be sent to that store to go pick up the product. This takes the partner away from their shift
at the store and also wastes resources since they also have to be reimbursed for gas. Altogether,
poor product availability has a big effect on partners and their ability to provide the best
experience they can through customer dissatisfaction and wasting of resources.
CONCLUSIONS AND RECOMMENDATIONS

Analysis of the current techniques of distribution, the causes of poor product availability, and the
effect on customers and partners leads to the following conclusions and recommendations
regarding the problem of product availability:

Localized Distribution
Real Time Availability
CONCLUSIONS

Localized Distribution
As Starbucks grows and expands, the need for more warehouses and distribution centers
becomes more of a reality.
Figure 2 puts into perspective where the warehouses and distribution centers are located in the
United States. The problem is that there are none in the Mid-America region. This demonstrates
the problem that deliveries cant reach this region because there are no distribution centers close
enough. By implementing localized distribution, deliveries would not have to travel as far
making it easier to get inventory in less time. Building new warehouses will also help to create
more jobs which could stimulate the local economy.

Figure 2 Current Manufacturing & Distribution Centers

Source: Google Maps. (2015). Represents the location of Starbucks manufacturing and
distribution centers.
Real Time Availability

To make it easier for stores to see what other stores in the area might have in their inventory, a
computer system of real time availability could be implemented. For instance, instead of a store
having to use up labor hours calling other store for borrowed products, there could be a computer
system of all the local Starbucks stores inventory. This information would be available to all
Starbucks in the area making it easier and faster to see who can supply the out of stock products.
That way a store can simply send a message to another saying they are coming to pick up
product they need without having to call first. The other store would then know to set out the
products for easy pick up.
RECOMMENDATIONS
On the basis of this analysis, I recommend that Starbucks Coffee Company should increase its
number of warehouses and distribution centers, especially in the Mid-America region, and to
create a real time availability computer program to make inventory and borrowing easier on all
stores. Both these suggestions should aid in the problem of product availability and improve
overall experience for both customers and partners.

REFERENCES

Baffled99. (2015, January 24) Stock your tea! [Online forum post] Retrieved from
http://mystarbucksidea.force.com/ideaview?id=08750000000KDf9AAG

Screen_Name. (2015, January 25) Re: Stock your tea! [Online forum comment] Retrieved from
http://mystarbucksidea.force.com/ideaview?id=08750000000KDf9AAG

Schultz, H., & Gordon, J. (2011). Onward: How Starbucks fought for its life without losing its
soul (p. 352). New York, NY: Rodale

Starbucks Coffee Company. (2014). Fiscal 2014 Annual Report. Retrieved from Starbucks
website. http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual

Starbucks Coffee Company. (2014). Supplier Guidance Global Reference. Retrieved from
Starbucks website. www.starbucks.com/supplier/reference

Starbucks Coffee Company & Google Maps. (2015). Manufacturing and Distribution. Retrieved
from Google Maps through the Starbucks website.
http://www.starbucks.com/careers/manufacturing-distribution

Starbucks Corporation SWOT Analysis. (2015). Starbucks Corporation SWOT Analysis, 1-11.

Thapa, P. D. P. (2013). How Does Profitability Get Affected By Working Capital Management In
Food and Beverages Industry? Journal of Advanced Research in Management, 4(2), 7988. Retrieved from
http://search.proquest.com.leo.lib.unomaha.edu/docview/1515706154?accountid=14692

APPENDIX A
Primary Research
10

Interview
Name: Tim Lueck
Position: District Manager of Company Operated Stores
Credentials: 30 years of experience in retail, 3.5 years with Starbucks, graduated from Kansas
State University
Questions:
1. What is product availability?
2. In your opinion, what is the problem with product availability?
3. How does the distribution process work?
4. How does the supply chain work?
5. How does product availability affect revenue?
6. What are some specific things that affect product distribution?
7. In your opinion, how does product availability affect customer satisfaction?
8. What are the possible solutions?

APPENDIX B
Annotated Bibliography

11

Baffled99. (2015, January 24) Stock your tea! [Online forum post] Retrieved from
http://mystarbucksidea.force.com/ideaview?id=08750000000KDf9AAG
Screen_Name. (2015, January 25) Re: Stock your tea! [Online forum comment] Retrieved from
http://mystarbucksidea.force.com/ideaview?id=08750000000KDf9AAG
This online forum is a place where anyone can post complaints or ideas for Starbucks that
others can vote on and support to be implemented by Starbucks. This specific post is
about when Starbucks switched from Tazo Tea to Teavana Tea and how there was a
shortage of tea bags that was frustrating customers.
The first post is a customer complaining that Starbucks is consistently out of the tea the
customer wants and that the shortage has no end in sight. This is an example about how
customers get extremely frustrated when stores are out of stock of their requested items.
The second comment is a reply to the first post and their idea of why the shortage is
happening. It also suggests a solution to the problem and claims that customers should
just be patient but also voice their concerns to their specific store if they feel so strongly.
Both these comment will be good examples to my proposed problem and will serve as
evidence as to why something needs to be done.
Schultz, H., & Gordon, J. (2011). Onward: How Starbucks fought for its life without losing its
soul. New York, NY: Rodale
This book was co-written by the CEO of Starbucks, Howard Schultz, and contains all you
would ever need to know about the history of Starbucks. It covers the inception of the
company all the way until 2011 when the book was published. It includes financial
information, suppliers, and expansion of the company.
This book will be useful to me because it will aid me in stating why product availability
needs to be more efficient. The customers are the main focus for the change and the book
includes the Starbucks mission statement which is directed towards the customers. The
financial information will help me show how much the company has grown as well as the
expansion and how that growth has happened. The information regarding the suppliers
will also give me facts and evidence to support my claim.
Starbucks Coffee Company. (2014). Supplier Guidance Global Reference. Retrieved from
Starbucks website. www.starbucks.com/supplier/reference
This report contains information provided by Starbucks to its current and potential
suppliers. It provides acronyms and definitions of the Starbucks lingo that suppliers
would need to understand all aspects of Starbucks Company. There is a summary of
Starbucks financial information as well as tax and audit information. It also provides all
of the corporate office locations as well as the addresses of all of the distribution centers
around the world.
This report is extremely useful to me because of its hard core facts and information I
know to be true because it is published by Starbucks. I will be using the information
about all of the distribution centers in my report in order to show that there needs to be
more distribution centers in order to increase product availability. The financial

12

information will be useful to me as well to see how much it will potentially cost to create
more distribution centers and how that will produce more revenue and sales in the future
Starbucks Corporation SWOT Analysis. (2015). Starbucks Corporation SWOT Analysis, 1-11.
This journal is a company profile of Starbucks that is associated with a SWOT Analysis
done by the writer. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
The writer goes into great depth about all of these categories and provides statistics and
facts to back up their analysis.
This journal will be useful to me because it talks about the weaknesses Starbucks has that
relate to my topic. It talks about product recall which directly relates to product
availability. Customers are not happy when products are recalled which in turn loses
revenue for the company. The journal also has information regarding the companys
revenue in 2014 which I could use as facts and evidence.
Thapa, P. D. P. (2013). How Does Profitability Get Affected By Working Capital Management In
Food and Beverages Industry? Journal of Advanced Research in Management, 4(2), 79-88.
Retrieved from http://search.proquest.com.leo.lib.unomaha.edu/docview/1515706154?
accountid=14692
This journal describes a study over how profitability of food and beverage industries is
related to working capital management. The study talks about how the industry has been
seeing rapid growth and that more growth is expected in the coming years. Costs of fuel
and other factors might affect this growth and may lead to less profitability than expected.
Therefore, this study looks at how to make working capital management more efficient in
order to keep up with the growth.
This journal will be helpful to me because it may offer different solutions that I might not
have considered. The study was a ten yearlong study that looked at 30 different food and
beverage companies and followed their growth and profitability. Starbucks is an ever
growing company so looking at how these other companies are managing their growth
would be helpful to me to find solutions. I could also use the information on fuel to
support my solution of localized distribution and how it could possibly reduce fuel costs.

13