W Edwards Deming’s 14 Points Essay examples
This is the case study analysis about Starbucks. It introduced the company background and struggling issues faced by Starbucks. This analysis is mainly focus on how Starbucks using the W Edward Deming’s 14 points to apply on their international business. The sources such as news were applied in this analysis in order to prove that the matters were happened during Starbucks struggling season.
On the other hand, the total quality management that Quality Management (TQM) practices is primarily found in larger and multinational organizations but little has been written on how TQM has been applied in Starbucks. It had using some example that existing in the company in order to show how the company manage their product …show more content…
Starbucks struggling with market structure which is Monopolistic Competition. Secondly, it also faced with competitive activity such as many companies are in the market and competition is strong developing (Joseph C. Jr and Lane, S. 2007). Their competitors also use location, product mix, and store atmosphere differentiation to establish market niche.
Besides, industry costs and capital structure in Starbucks is also troubling it. They are low to moderate costs for each location and their major start-up expenditures are property and equipment. Starbucks also having the problem of major operating costs that are labor and cost of sales.
Industry PEST Analysis
Political Influences of Starbucks which is the relationships between coffee producing nations and United States. In addition, it also strict with the State & Local government controls in US and therefore, it is very hard for them to grow fast when compare to other country.
In the other hand, Economic Influences of Starbucks like constant demand for food and beverages also causes trouble to them. The changes in disposable income in US also influence the purchase levels of consumers.
The Social Influences in Starbucks also occurred when consumer preferences could shift from coffee to other