Professional Documents
Culture Documents
ISMM Final
ISMM Final
ID No.
CHEONG JOE YE
13WBD03961
13WBD03611
13WBD02402
13WBD01911
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Name
ID No.
Signature
Date
CHEONG JOE YE
13WBD03961
16.06.2014
13WBD03611
16.06.2014
13WBD02402
16.06.2014
13WBD01911
16.06.2014
TABLE OF CONTENT
NO.
CONTENT
PAGE
1.
1.0 Introduction
1.0.1 Introduction to STARBUCKS
1.0.2 Introduction to the system
2.
3.
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4.
Competitive Strategies
17
5.
Reference
20
1.1
INTRODUCTION
It then expanded to Sabah and Sarawak surmounted 140 stores milestone in January
2012. Starbucks has generated its operation for 16th years since it started and has now become
one of the famous coffee places for most of the Malaysian and even across other countries.
Starbucks train their employees with professional training and development programs.
Most of their store partners are food service professionals and college students, and what they all
have in common is their passion for great coffee and quality customer service, which ultimately
helps them bond as a family and build satisfying careers at Starbucks (starbucks.com.my, 20132014).
Starbucks Malaysia recently introduced the new drive- thru concept stores which enables
customers to enjoy their desirable coffee flavor in the go. Some drive- thru concept stores that
are now available in Malaysia is located in Johor Bahru, Shah Alam, Cyberjaya, Petronas Kajang
as well as Penang.
The reason why most of the Malaysians are addicted to Starbucks is because Starbucks
offers good customer service and the best quality coffee recommendations to every single
customers. Their baristas are friendly are serve you in a polite manner which makes customers
comfortable with the service provided.
Besides, Starbucks cater attractive offers to their customers with their famous slogan one
day, one moment, and one cup at a time. During festive season such as Chinese New Year,
Deepavali and Hari Raya Aidilfitri, Starbucks will offer new promotions or certain discounts to
their customers in order to celebrate together with their customers which consist of different
races in Malaysia.
They would also decorate their stores with different concepts that suites the festival
celebrated during that season to welcome the arrival of the meaningful festival. Starbucks main
commitment is to offer their customers the worlds finest coffee which will enrich the lives of
their customers.
The system used by Starbucks is Food and Beverage System. Food and beverage control
system plays a big role to help generate the daily operations of a restaurant or any other caf.
This system enables managers to have better understanding about the flow of food or beverages
through the restaurant so that they can take suitable action for their inventory control in a more
effective and efficient way.
There are many benefits by using the food and beverage system to operate a business. It
enables us to make changes to the system by customizing our own menu and set a suitable price
level according to the food or beverages sold in your restaurant. The many benefits of this system
often attract people to use this system in generating food and beverage operations.
Besides, it helps to maintain a high level of access and high level of security and even
enable managers to track employees performance. System integrated security to improve the
speed, accuracy, and sales process food and beverage software and active online credit card
processing system.
Using this control system indirectly helps us to cut down the overall cost of sales to
establish the company while still maintaining its profit level. Starbucks made a smart decision by
choosing to select this system to generate its food and beverages store.
The food and beverages system chosen by Starbucks to generate their daily operations is
IBM Food and Beverages system. IBM food and beverages system is designed in a smaller size
that enables Starbucks to save some space when designing their counter. It is also easy to handle
as Baristas does not need to follow complicated steps in order to key in a barcode or even a
beverages name.
The Point of Sale (POS) system is one of the core systems for Food and Beverages
operations. It is capable of handling different menu and pricing every moment of the day. The
orders keyed into the system will be automatically linked to printers or credit card readers for
transaction purposes and to print out the resit of the order for customers own reference and the
transaction will be recorded in the system for future used to estimate the total sales made by the
business.
DESCRIPTION
The barista will first receive the customers order. Then, the barista at
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the counter will key in the code of the 12oz Logo Tumbler (Black) and
a packet of espresso roast coffee bean into the POS system.
The barista realized that the code is invalid and he keys in the correct
code for another time. After that, the barista confirms the payment and
select the payment method.
The customer pays with credit card therefore the credit card is swiped
at the credit card machine to check whether it is usable or not.
Processing
The purchase is being computed and sorted. The system first checks
for the product code entered by the barista which is the 12oz Logo
Tumbler (Black) and a packet of espresso roast coffee bean.
As the barista had keyed in an unidentified code, the system prompts
and shows the barista that the code keyed in for 12oz Logo Tumbler
(Black) does not exist.
After the barista keyed in the correct order of the customer, the POS
system will calculate the total price of the items purchased and the list
of order will be presented on the screen.
The tumbler and coffee bean will be pack into a large paper bag during
the process of the purchase.
Output
The invalid code that is typed in by the Barista is shown on the POS
workstation. After making changes to the code, the details of the
tumbler and coffee bean will appear on the screen of the POS
workstation.
The receipt is being printed out as an output and the list with total
price of the items will be printed on the receipt. Besides, two pieces of
receipts will be printed out from the credit card machine.
One of the receipts printed out from the credit card machine will be
handed to the customer to get his/her signature. The receipt of items
purchased will be reprinted again and kept with the receipt with
signature.
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The data of the credit card presented to conclude the order such as the
customers name and the credit card identity code will be recorded and
stored in the database of the POS system.
In addition, the transaction for the 12oz Logo Tumbler and a packet of
espresso roast coffee beans will be recorded and saved into the POS
system.
Control Activities
The system will notify the Barista handling the order that some error
occurred for the Barista keyed in a code that does not exist. The
barista will be required to key in the code another time to make sure
the transaction is correct.
After changing it, the system will process the order and the
transaction will be shown on the screen. The transaction of the
customers order is completed.
DESCRIPTION
A new Starbucks card is swiped at the POS workstation and a
minimum amount of RM20 will be added into the Starbucks card.
Then the Barista will select a Venti size Green Tea Cream Frappuccino
and a Croissant Pudding at the POS workstation screen. The name of
the customers and the code of the drinks will be written down on the
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cup
After that, the Barista will reload the existing Starbucks card of the
customer (old Starbucks card) by swiping it on the POS workstation.
The Barista will then select the amount of RM50 to be reloaded into
Processing
Output
The POS workstation screen will then show the amount of money
available to use inside the old and new Starbucks membership card.
Besides, the total amount of the Green Tea Cream Frappuccino and the
Croissant Pudding will be presented on the screen.
A receipt of the transaction for the new Starbucks card will be printed
out and another receipt for the reloaded amount of the old Starbucks
card will also be printed out.
The sentence: The transaction is successful and the card is
successfully reloaded will be shown on the screen of the POS
workstation.
Storage
The data of the old and new Starbucks membership card such as the
customers name, ID code and amount left in the card will be saved
into the database of the POS system.
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Other than that, the purchase of Green Tea Cream Frappuccino and
Croissant Pudding will be recorded and save into the POS system.
Control Activities
DESRIPTION
The customer verbally ordered a grande size Mocha Extra Cream
Frappuccino Blended Coffee and an Apple Multigrain Muffin at the
ordering machine at the drive thru area. The order will then be receive
by the barista serving the drive thru customers.
The barista will then select the items ordered on the POS workstation
screen to process the order.
Then, the barista will write down the name of the customers and the
code of the espresso coffee ordered. The customer will then drive to
the front counter after ordering at the ordering machine to pay for the
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order.
Processing
After keying in the order of the customer, the system will process the
order by calculating how much a Mocha Extra Cream Frappuccino
Blended Coffee and an Apple Multigrain will cost.
The total amount of the order will then be send to the order machine to
be presented to the customers to notify them how much to pay for
their order.
The system will then prompt the barista to confirm the order to
proceed.
Output
The total amount of the order is shown in the ordering machine at the
drive thru area to notify customers to prepare the amount needed to
pay at the front counter. A receipt will be printed after the customer
concludes her order by paying the amount required. The customer will
then drive forward to the last counter to collect her order.
The Mocha Frappuccino and the apple multigrain muffin will be
prepared when the order is keyed into the system.
The notification the transaction is completed will be shown on the
screen of the POS workstation.
Storage
after the barista calculate and confirm that the amount received is
Control Activities
DESCRIPTION
The order of a tall size caramel macchiato with extra topping will be
received by the barista. The barista will then ask for the name of the
customer to be written on the cup.
Then, the barista will select the caramel macchiato in the POS
workstation screen to process with the order. The barista will then key
in the voucher code of the Buy One Free One Starbucks Voucher into
the system.
The barista will receive the cash payment and keep the cash received
in the cashier box.
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Processing
The system will first process the voucher code to identify the validness
of the voucher used. After verifying the voucher code, the system will
then process the order of two caramel macchiato (buy one free one)
and sort out the total order.
The total amount of the order will be counted and summed up. The
order will be prepared while the POS system processes the order.
The system will then record the voucher code to ensure that the
voucher will not be used twice as it is only applicable for one time
usage.
Output
Storage
The voucher received from the customer will be kept aside. Besides,
the system will record the voucher code and the order of Caramel
Macchiato and save the details of the voucher.
The money received will be stored in the cashier counter
Control Activities
The barista will have to click on the POS workstation to confirm the
transaction and usage of the Buy One Free One voucher.
Then, the statement transaction successful will be shown on the
screen to inform the barista that the order can be prepared as the
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DESCRIPTION
The barista selected three hazelnut macchiato and two Oriental Danish
at the POS workstation screen. The barista then clicked the confirm
order button but the customer decided to reduce the number of the
Oriental Danish to one instead of two.
In order to reduce the number of the Oriental Danish, the barista needs
the managers access code to make changes.
The manager then keys in her access code into the system to enable
the barista to take the necessary action.
After canceling one Oriental Danish, the barista then completes the
order of the customer.
Processing
The system sort out the order selected by the barista. However after
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sorting out the total order, the system receives the managers access
code to make changes to the order.
The system will then verify the managers access code and read
through the managers details before allowing the barista to make any
changes to the order.
After verifying the access code, the changes to the order will be
recalculated and resorted.
The final order will be recomputed and recorded in the system.
Output
The first output is the original order of the customer which is three
Hazelnut Macchiato and two Oriental Danish presented at the screen.
When the manager keyed in her access code, the statement access
code verified will be shown on the POS workstation screen.
After that, the re-entered changed order will be shown on the screen
after the barista made changes. The receipt of the final order will be
printed out.
Storage
The original order is recorded in the system but canceled after that and
the data of the new order that is three hazelnut macchiato and one
Oriental Danish is recorded and stored in the system.
The managers access code will also be stored in the database of the
POS system for canceling the order.
The cash received from the customer will be stored in the cashier
counter.
Control Activities
The manager has to enter her access code in order to modify the order.
The barista has to then click on the cancel order button to prevent the
unsuccessful order to be recorded into the system.
After making changes to the order, the barista will click onto the
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15
Baristas could also identify Starbucks membership card easily for the food and beverage
system will automatically show the membership card balance when the card is swipe on the
system.
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card and customers do not need wait for the credit card to be processed which will take a longer
time if they own a Starbucks membership card.
Growth Strategy
Growth strategy means introducing new products or adding new features to existing
products in order to keep up with different competitors (small business, 2014).
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Starbucks recently introduced the all new Hazelnut Macchiato to the market to satisfy
customers obsession towards coffee. The high standard of their espresso coffee offered to
public has attracted more and more customers to remain loyal to the coffee served by Starbucks.
Besides, Starbucks also introduced some food for breakfast to add in some flavor rather
than just drinking their famous variety of espresso coffee. The few types of breakfast sold in
Starbucks are Banana Chocolate Chip Muffin, Busy day sandwich, apple multigrain muffin and
so on.
The introduction of Starbucks breakfast to the market has brought a lot of convenience to
the Starbucks customers for they do not have to make another trip to any other food and
beverage stores to purchase other food to complete their breakfast of the day. Customers will be
delighted as they could purchase their favorite beverage while enjoy some food before starting a
brand new day.
Alliance Strategy
Alliance Strategy is an arrangement of two companies that have decided to share
resources to undertake a specific, mutually beneficial project (Investopedia , 2014).
Starbucks, as one of the most important coffee bean buyers in the world, maintain a good
relationship with its suppliers and customer and including their joint ventures with other
companies. Starbucks has enormous influence over its suppliers and it can ensure competitive
prices, superior quality and the necessary quantities at the right time (fool.com, 2013)
In 2004, Starbucks Company decided to joint venture with its Malaysia partner, Berjaya
Group Berhad which makes them remain as a leading espresso coffee brand in the eyes of many
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Malaysians. Starbucks changed its name to Berjaya Starbucks Coffee Company which marks the
joint venture of these two companies. Starbucks remains successful as they made a good decision
to join venture with an establish company.
Innovation Strategy
Starbucks sells a huge variety of beverages to the market which is unique in the
customers eyes. The unique name given to the espresso coffee sold in Starbucks is also one of
the few reasons customers is attracted to try on different flavor of coffee the moment they walk
into Starbucks.
Other than that, to provide the best quality of their service, Starbucks train their Baristas
professionally to handle huge customer crowd during certain hours in a day and also in making
the finest coffee. Customers would prefer drinking Starbucks coffee than the 3-in-1 coffee sold in
supermarkets for Starbucks provides freshly made coffees and they would not serve a cup of
coffee that had been left waiting for more than half an hour for the taste of the coffee might
change after some time. This makes customers confident in their products and services.
Starbucks also upgraded their espresso machine to Swiss-made Mastrena
(informationshelte, 2014) that will produce the finest quality of the espresso coffee made by
them. The machine used by Starbucks is easy to handle and this will help the Baristas to shorten
the preparation time of their coffee so that customers will not wait too long for a cup of coffee.
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Differentiation Strategy
Differentiation strategy is an approach under which a firm aims to develop and market
unique products for different customer segments (businessdictionary, 2014).
The reason why customers are willing to pay for a cup of espresso coffee at a higher price
than to just pay for any normal coffee can be bought at coffee shops is because Starbucks has
never failed to impress the market with its finest and smooth quality of coffee produced by them.
Starbucks knows their customers will as they cater to different target market. Starbucks
target the Adult group, young adult group and the kids and teenagers by serving different
beverages from blonde roast coffee beans, medium roast coffee beans to dark roast coffee beans
to suite the taste of different ages of customers.
Some young adults prefer to try our every single beverages sold in Starbucks from hot to
cold beverages as they are more adventurous and they would like to try something new every
time. However for the older adults, they would have a more specific taste and they know very
well how they would like their coffee to taste according to different preference.
Starbucks provides services such as adding some topping to the coffee or different
percentage level of sugar so that customers will get the right taste that they want their coffee to
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be. Besides, customers prefer to visit Starbucks than other coffee stores because they provide
warm and friendly customer service.
The baristas would serve customers with warm hellos and smiling faces and Starbucks
stores in Malaysia has comfortable environment which are suitable for all customers no matter
what age you are.
5.0 REFERENCE
1. Starbucks competitive advantage and differentiation from competitors. 2014.Starbucks
competitive advantage and differentiation from competitors. [ONLINE] Available
at: http://informationshelte.hubpages.com/hub/How-Starbucks-built-its-competitiveadvantage.
2. Seasonal Offerings | Starbucks Coffee Company. 2014. Seasonal Offerings | Starbucks
Coffee Company. [ONLINE] Available at:http://www.starbucks.com.my/menulist/beverage-list/seasonal-offerings.
3. Strategic Fit Analysis Starbucks In Malaysia Marketing Essay. 2014. Strategic Fit
Analysis Starbucks In Malaysia Marketing Essay. [ONLINE] Available
at:http://www.ukessays.com/essays/marketing/strategic-fit-analysis-starbucks-inmalaysia-marketing-essay.php.
4. What is competitive strategy? definition and meaning. 2014. What is competitive
strategy? Definition and meaning. [ONLINE] Available
5.
at:http://www.businessdictionary.com/definition/competitive-strategy.html
How Starbucks Built a Global Coffee Empire . 2014. How Starbucks Built a Global
Coffee Empire . [ONLINE] Available
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at:http://www.fool.com/investing/general/2013/10/26/how-starbucks-built-a-coffeeglobal-empire.aspx.
6. Different Types of Business Strategies | Chron.com. 2014. Different Types of Business
Strategies | Chron.com. [ONLINE] Available at:http://smallbusiness.chron.com/differenttypes-business-strategies-4634.html.
7. Sustained Competitive Advantage of Starbucks. 2014. Sustained Competitive Advantage
of Starbucks. [ONLINE] Available at:http://unrealist.hubpages.com/hub/SustainedCompetitive-Advantage-of-Starbucks.
8. Who Is Starbucks' Target Audience? | Chron.com. 2014. Who Is Starbucks' Target
Audience? | Chron.com. [ONLINE] Available
at:http://smallbusiness.chron.com/starbucks-target-audience-10553.html.
9. Starbucks Malaysia | Starbucks Coffee Company. 2014. Starbucks Malaysia | Starbucks
Coffee Company. [ONLINE] Available at:http://www.starbucks.com.my/aboutus/starbucks-malaysia.
10. Ken Laudon, 2013. Management Information Systems, Student Value Edition (13th
Edition). 13 Edition. Prentice Hall.
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