Graduate Business School Assignment Cover Sheet

Student name: Student number: Course: Subject: Study Mode: Lecturer Name: Assignment Title: No. of pages: Disk included? Additional Information:

SUMEET DUHAN 2804324 PGDIP-IBM Stage/year: 2

INTERNATIONAL OPERATIONS MANAGEMENT Full time YES Part-time

LIZ CARROLL

28 Yes No X

(ie. number of pieces submitted, size of assignment, A2, A3 etc.)

Date due: Date submitted: Plagiarism disclaimer:

09/04/2012 09/04/2012

I understand that plagiarism is a serious offence and have read and understood the college policy on plagiarism. I also understand that I may receive a mark of zero if I have not identified and properly attributed sources which have been used, referred to, or have in any way influenced the preparation of this assignment, or if I have knowingly allowed others to plagiarise my work in this way. I hereby certify that this assignment is my own work, based on my personal study and/or research, and that I have acknowledged all material and sources used in its preparation. I also certify that the assignment has not previously been submitted for assessment and that I have not copied in part or whole or otherwise plagiarised the work of anyone else, including other students.

Signed & dated:

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TABLE OF CONTENTS S.No. Title Page No.

1. Introduction.....3 2. Volkswagen Corporation4 2.1. Internal supply chain5

2.2. External supply chain7 2.3. Operational strategy improves their competitiveness.7

2.4. Challenges and Recommendations..10

2.5. Country selection...13 3. Starbucks...18 3.1 Internal supply chain..19 3.2 External supply chain.19 3.3 Operational strategy improves their competitiveness.21 3.4 Challenges and recommendations for Starbucks ..26 3.5 Country selection27

4. Conclusion29

5. Reference..30

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Introduction
In today's highly competitive international marketplace, the pressure on organizations to search out new ways in which to form and deliver worth to customers grows ever stronger. Theres a growing recognition that through logistic potency and effective management of the availability chain each value reduction and repair enhancement are often achieved. The goal of offer chain management is to link the marketplace, the distribution network, the producing method and also the procurement activity in such the way that customers are serviced at higher levels and nonetheless at a lower total value (Christopher, 2012). Communication is the academic also as informal administration of allusive and appropriate information between firms(James and James, 2003). Adaptation happens back assemblage and suppliers advance in transaction-specific investments (Heide and John 1988). We have selected Starbucks as a service company and Volkswagen as a manufacturing company. This report will define about the internal and external supply chain of both of the companies. To analyze he internal supply chain of Starbucks, weve been so many times in Starbucks and saw how they accomplish their business like to take orders and confined their customers and for the external supply chain, weve been their sites and added accessories which primarily begin from their suppliers and finished at Starbucks. In the case of Volkswagen internal supply chain, we talked about how they access into the steel industry to abate the time wasted, amount and to accommodate the aerial customer demand. And for external supply chain, we artlessly have gone through how they breach all their apparatus into altered smaller parts and accelerate their requirements into altered countries to gain advantages of local action and to sustain their waiting time from distinct suppliers. After that we discussed about the each companys operational strategies which they adopted and how these are helpful in gaining competitive advantage in this competitive world. These strategies do not alone affectation benefits to the company but additionally accord some challenges that each and every company should face and work for the added success. Then assuredly we did market study for each company depended upon altered factors like market efficiency, income and infrastructure and so on. The attributes of business and the countries in which they operate are the main pillar of success of any business.

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VOLKSWAGEN

In 1937, the company known as Gesellschaft zur Vorbereitung des deutschen Volkswagens mbH was founded and no one could imagine that it would be the Europes largest automobile manufacturer. Its main headquarter is in Wolfsburg and the Group accumulated the number of vehicles delivered to the consumers to 6.189 million corresponding to a 9.8% share of the world car market in 2007. The Volkswagen Group is fabricated up of nine brands from seven European countries: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda, Scania and Volkswagen commercial vehicles. Each brand has its own appearance and operates as an absolute article on the market. The Group operates 94 assembly plants in 18 European countries and an added eight countries in the Americas, Asia and Africa. Each alive day, 501,956 advisers common aftermath some 34,500 vehicles, are complex in vehicle-related casework or plan in the added fields of business. The Volkswagen Group sells its cars in 153 countries (Volkswagen, 2011). It is the goal of the Group to supply enticing, safe and environmentally sound vehicles which are competitive on an increasingly robust market and that set world standards in their respective categories (Sharma, 2011).

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Internal supply chain:

Due to increase of demand and productivity, their supply chain flowed abundant quicker than earlier, so their logistic costs are added expensive. Volkswagen accustomed a new diversification- Volkswagen logistic company to abate the extravagant fees on transferring these stocks to different department. But they alone accept planning and controlling functions. And moreover Volkswagen developed their steel plant additionally in his vertical diversifications. In adjustment to abate to the minimum amount and time waste in the supply chain, they choose to advance that part by themselves. Such as the RFID tracking system is to clue their stocks in logistic process. The application takes advantage of an existing provider portal that already connects suppliers with Volkswagen. That system permits the information collected via RFID reads to be linked to specific purchase or delivery orders from VW, addressing one in all the challenges of RFID systems between firms the way to connect the RFID tag information with alternative data to create it meaningful (scdigest, 2009).

http://www.scdigest.com/assets/On_Target/09-03-30-1.php

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Primary, suppliers can use handheld readers to scan RFID container IDs, which are related to the particular things within the containers primarily based on the acquisition order and what's really being shipped. Volkswagen can scan the containers once they arrive to automate the receiving method. Itll additionally track empty containers as they move back to suppliers, which means the system can offer asset tracking edges additionally to improving receiving processes and provide chain visibility to inbound merchandise (scdigest, 2009). The system is predicated on 2 items of technology from IBM: A container management software system that involves an analytic application getting used to develop a web-based dashboard for container management. WebSphere Premises Server software, that acts as the information collection and middleware application to push the RFID information into the portal and also the container management system. According to the Klaus Hardy Mhleck, cluster CIO and head of cluster IT at Volkswagen, Our long-term goal is to implement an integrated, paperless production and logistics chain throughout the complete cluster, The pilot project showed that we will reliably integrate RFID technology into our business processes at a minimum value, he defined. The contributions they created within the supply chain were to form them success and sustained their competitive benefits, details as following: Improved client service, all the feedback may pass to the connected department directly and with the reality and recognize the important demand of every level within the supply chain encompassed customers. They cut the availability chain so as to urge the important customers expect desires directly. Which will create Volkswagen can manufacture acceptable volume in correct quality avoiding the waste. Optimized their prices and investments, they will use their capital for additional comes. And that they saved cash from the supply chain and conjointly created it additional potency work for them. Cash flow is extremely

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necessary for each company, if they are doing not have the force on their money flow, there'll be plenty of extra space for them to enhance.

External supply chain:

There are several different suppliers within the scale of Volkswagen supply chain they'll not include; therefore the external suppliers are necessary for them. If they'll not deal well with them, that may damage their internal supply chain and heavily overall performance. However recent years, Volkswagen invited a replacement technology for logistic with external provider. They break all their elements into totally different smaller elements, and send their necessities to totally different partner in India, China and a few countries with their characteristics, in adjustment to share the benefits in native policy. It adored time to delay a large aggregate stock from only one partner and averaged the value from all suppliers. The result's anyone partner or one country modified their condition, which may not influence the supply chain, in additional saying, they afar the risks. Basically, offer chain management is a crucial issue for Volkswagen success and abiding their competitive advantages. It coordinated the relationships between internal and external suppliers and reassessment them. Conjointly they added the client service, created the client happy to urge what they absolutely need to urge.

Operational strategy improves their competitiveness:

This operations strategy binds the varied operations decisions and accomplishments into an adamant constant acknowledgment to competitive forces by linking company policies, programs, systems, and accomplishments into an analytical acknowledgment to the competitive priorities called and announced by the company or business strategy. In simpler terms, the operations strategy specifies how the close will apply its operations capabilities to abutment the business strategy.

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Operations strategy includes a long-term concern for a way to best verify and develop the firm's major operations resources in order that there's a high degree of compatibility between these resources and also the business strategy. An operation has two necessary roles it will play in strengthening the firm's overall strategy. One possibility is to produce processes that offer the firm a definite advantage within the marketplace. The second role that operations will play is to produce coordinated support for the essential ways in which during which the firm's product win orders over their competitors, conjointly called distinctive competencies(eNotes.com, 2012). So its an action between the operation resources and the market requirements.

Operation resources

Operation strategy

Market requirements

In adjustment to advance their competitiveness I will appraise the role of the Volkswagen operation. Through its achievement at five competitiveness objectives, the operations action can accommodate a competitiveness advantages.

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I anticipate the best quality of product and best client service is actual important for Volkswagen as a car manufacture. Here is the 5-competitiveness objectiveness of Volkswagen. I accomplish a rank of account for each objectives of Volkswagen. 0-Not appropriate 10-very essential

a) Quality - 8 The quality is extremely vital for our company. As a result of our product is for the daily used basis, and it highly associated with peoples safety and life. Actually, our product is branding by the high safety and top quality. Additionally use the new technology is extremely vital within the automobile manufactory business, for instance, the new engine to avoid wasting oil usage and scale back the air pollution.

b) Speed - 6 The speed for delivery is simply fine for us. As a result of its carnot one thing like occasional and television, folks are spending millions of cash in getting their cars, so that they are ready to attend for his or her cars. But also, we've got to make sure that; folks don't have to be compelled to wait too long for his or her cars. As a result of we have a tendency to be giving the luxurious cars that the purchasers might have a lot of patient to attend for. Therefore we'll manage our transport to be a lot of efficiently.

c) Dependability - 7 The dependability is vital for us. As a result of initial of all, we have a tendency to should make sure that we have a tendency to are giving the merchandise that the purchasers will trust. And additionally it's the trend of the competition. A lot of and a lot of automobile advertising are describing this philosophy; folks are relaxed and have a fun time with their automobile. Its price to trust with. Therefore this can be we have a tendency to are pursuing to realize.

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d) Flexibility - 7 It is additionally vital for the automobile manufactory. With the event of the world economic, folks would really like to own their own customized cars to satisfy their totally different desires. This can be what truly the automobile manufactories are attempting to try to currently. Theyre launching completely different levels and model of cars to satisfy different market segments. Additionally they're doing the market analysis completely to undertake to grasp customers desires and new trend. Therefore for our company, it's vital for us.

e) Cost 6 It will have an effect on our business, however not such a lot as a result of Volkswagen isn't famous by low value like Toyota and Honda. Actually, we have a tendency to be famous by the top quality and safety. However additionally as a manufactory, we have a tendency to cant forget the price as a result of it influences the profit margin for our company. The economy of scale is extremely vital within the automobile manufactory. Therefore it's the competition trend to try to therefore. Actually, Volkswagen is gap two main manufactures in China, Shanghai and Changchun to share the low labor value so as to realize the high profit margin.

Challenges and Recommendations

What challenges do the operational strategies allowance and acclaim means in which during which they'll be overcome. Quality - 8

Total Superior Management (TQM) is the main and important challenge. There are abounding samples of manufacturers who have encountered quality problems on one

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product and therefore the consequences on the complete image impacted the entire company. Recommendation Quality ought to be a section of the company culture, each employee, each actor of the business ought to be pondering ways in which to enhance, to regulate the merchandise in the least steps of its producing.

Speed - 6

Delivery speed is a smaller amount and fewer vital to customers. Automobile makes specialize in their money objectives and cut back their stock levels. They even have merchandise that is a lot of and a lot of customizable for purchasers. These 2 factors increase time of delivery, and it issues all the automobile makers. But as customers needs amendment, speed of delivery isn't the challenge, maintaining the correct level of stock and answering all customers desires is. Recommendation An absolute sales anticipation helps managing the stock levels; there should be bigger advice amid the financial and sales departments. Answering every charge of the customer is an objective but it should not be at any cost.

Dependability - 7

Customers accept a manufacturers calmness in its actions, calm with apropos deadlines and consistently producing the same quality. Recommendation Implementing processes and management that will facilitate having similar product and delivery time no matter downside arises.

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Flexibility - 7

Flexibility is the better challenge, abbreviation amount while accretion the array of product. Flexibility puts burden on the employees, the development of a car acclimated to yield a couple of years and now it takes a brace of months. Recommendation Training the humans to be able to acclimate new technologies and new alive environments. The efficient the workers are, the most adjustable the company will be.

Cost - 6

Volkswagen will quickly become the biggest automobile manufacturer within the world. High sales are a lot of able way to minimize costs, acknowledgment to economies of scale. Recommendation Using platforms, bodies of vehicles that are aggregate for various brands and models among the cluster helps accomplishing economies of scale whereas all added locations can be customized to customers. Advance in R&D helps anticipating industry changes as well, the automotive business evolves rapidly, technologies arise, and trends drive sales. VW have to be compelled to watch these anxiously and influence them as abundant as accessible by anticipating and investing.

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Country selection
Singapore, Japan and Thailand are the countries where Volkswagen is considering a new operation. The Global Competitiveness Index 2011-2012 rankings GCI 2011-2012 Country/Economy Singapore Japan Malaysia Rank 2 9 21 Score 5.63 5.40 5.08 3 6 26 GCI 2010-2011 Rank Score 5.48 5.37 4.88

http://www3.weforum.org/docs/WEF_GCR_CompetitivenessIndexRanking_2011-12.pdf http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010-11.pdf

SINGAPORE
Singapore moves up by one rank to 2nd position, advancement the advance a part of Asian economies. The countrys institutions still to be adjourned as the best in the world, ranked 1st for both their lack of corruption and government efficiency. Singapore places 1st and 2nd, respectively, for the ability of its goods and activity markets and leads the apple in agreement of monetary market development, ensuring the able allocation of these factors to their best use. Singapore conjointly has worldclass basement (3rd), with accomplished roads, ports, and air carriage facilities. In addition, the countrys competitiveness is strengthened by a robust focus on education, accouterment individuals with the abilities required for a rapidly alteration all-around economy. In adjustment to strengthen its competitiveness further, Singapore could encourage even stronger acceptance of the latest technologies (10th) as able-bodied as measures that abutment the composure of its companies (15th) (WEF, 2011).

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JAPAN
Japan slides three places to rank 9th, with an achievement agnate to endure years. 23 The country continues to enjoy an above competitive edge in business composure and innovation, ranking 1st and 4th, respectively, in these 2 pillars. Company spending on R&D stays top and Japan edges from the supply of many scientists and engineers, buttressing a robust capability for innovation. Indeed, in agreement of accession output, this pays off with the second-highest amount of patents per capita. Further, firms accomplish at the highest end of the worth chain, bearing high-value-added appurtenances and services. The countrys all-embracing competitive performance, however, continues to be abject down by severe macroeconomic weaknesses (113th), with top account deficits over several years (135th), which accept led to the best public debt levels in the absolute sample by far (over 220 percent of GDP in 2010) (WEF, 2011).

MALAYSIA
Malaysia scores 5 ranks to achieve 21st position, registering improvements beyond the board. The countrys progress is decidedly noteworthy in the institutions and macroeconomic atmosphere pillars, as able-bodied as in several measures of market efficiency. A part of the arresting advantages of this able and constant performance are its able and complete banking sector which places a part of the worlds a lot of developed, just abaft Singapore and Hong Kongand its awful economical merchandise market, ranked 15th. In addition, its macroeconomic bearings has bigger clearly over the accomplished year to ability 29th place, even admitting the country continues to run a budget deficit of about 5 percent of GDP. As it moves against acceptable added innovation driven, Malaysia can get to advance its achievement in technological and education readiness. In the closing dimension, the country places a low 44th, with area for advance in technological adoption by both businesses and the population at massive. In agreement of college education and training (38th), convalescent access remains a priority in lightweight of low enrollment rate of 69 percent (101st) and 36 percent (66th) for secondary and tertiary education, respectively (WEF, 2011).

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Rating Pillars/factors 1st 2nd 3rd Institutions Infrastructure Macro environment 4th Health primary education 5th Higher education training 6th Goods market 7 efficiency 7th Labor market 9 efficiency 8th Financial market development 9th Technological readiness 10th Market size 11th Business sophistication 12th Innovation 7 5 5.5 4.1 Total
http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010-11.pdf

Score Malaysia 4.6 5.0 5.0 Singapore 48.7 52.6 31.1 Japan 40.7 48.44 23.6 Malaysia 33 40.3 29.7

Weight 7 8.5 6

Singapore 6.1 6.2 5.2

Japan 5.1 5.7 4.1

& 5

6.7

6.5

6.2

26.7

26

22.3

6 &

5.8

5.3

4.6

34.5

31.7

25.5

5.7

5.1

4.8

45.7

40.7

35

5.9

5.1

4.7

53.5

45.8

43.5

5.8

4.6

5.3

40.4

32.1

30.5

5.3

4.9

4.2

47.8

44.1

32.3

5 7

4.5 5.1

6.1 5.9

4.7 4.8

22.3 40.4

30.4 47.1

24.4 33.5

41 484.7

43

26.3

453.64 376.3

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Our factors are affiliated to: a) Institutions Its the acknowledged and authoritative framework of the country, it is actual important in our business area important amounts of money are complex and area acknowledged conflicts can appear with partners. Weight: 7 b) Infrastructure Effective modes of transport, including superior roads, railroads, ports, and air transport, accredit us to get our appurtenances and casework to bazaar in a defended and appropriate address and facilitate the movement of workers to the a lot of acceptable jobs. Weight 8.5 c) Macroeconomic environment Economic adherence is not actual important; we focus on the economy of the entire area and not the country on its own. Its accent is average. Weight: 6 d) Health and primary education Poor health leads to cogent costs to business, as ailing workers are generally absent or accomplish at lower levels of efficiency. Furthermore, all our advisers charge a basic akin of education. Compared to added factors it is the atomic important. Weight: 5 e) Higher education and training Our business is adult and requires top accomplishment personnel. Weight: 6 f) Goods market efficiency Good supply-and-demand conditions, area barter works properly. We cannot allow accepting suppliers in a monopolistic scenario for example. Weight: 7

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g) Labor market efficiency When VW settles new operation in a country, it needs bags of people, some with adult skills. The aggregation cannot teach anybody and needs to acquisition in the country its appropriate human resources. Weight: 9 h) Financial market development Our business requires abundant investments, in plant and accessories especially. It is a continued appellation investment and we have to be able-bodied accurate by a proper banking arrangement for example. Weight: 7 i) Technological readiness The country that we will accomplish in has to be compatible with our technology. All are computer systems, way of working, and processes in general. Our merchandise should be as economical as attainable and therefore need economical technology. Weight: 9 j) Market size Again, we tend to concentrate on the region, and also the countrys domestic market isn't the foremost necessary criteria. Weight: 5 k) Business sophistication As we plan with bags of partners, and our desires are rising every day, the business network have to be sophisticated, able-bodied developed suppliers and industries. Weight: 7 l) Innovation Our industry is so competitive that success can alone be accomplished through innovation. Weight: 7 Further to all the abstracts in the WEF address and the weight of every factor, Singapore is the best destination for us.

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STARBUCKS

Three coffee lovers Gordon Bowker, Jerry Baldwin, ZevSiegel in 1971, founded Starbucks. Howard Schultz has abutting the Starbucks in 1982 and the turning point in companys history was his appointment to Italy in 183, area he saws a coffee bar culture. He likes the abstraction and suggests introducing the ready-to-drink coffee in US. Howard Schultz buys Starbuck for $3.7million with its six retail food and one roasting plant in 1987. Starbucks Corporation is the one of the fastest growing Coffee companies of the World and its based in Washington, United States. Starbucks coffee acquirement and sells top superior broiled beans with the beginning rich-brewed coffee. And a variety of exceptional tea and coffee articles and accessories absolute altered retails stores. Starbucks as well sells its trademark to some retail food and this practice is accepted in Starbucks as specialty operation. Starbucks is currently operating in added than 49 countries with 17000 stores. The absolute amount of advisers in Starbucks was 176000 at 28, September 2008. In United States Starbucks has 11,068 (6,764 Company Owned, 4,304 Franchised) food with the about advisers of 143000 with 136000 are working in retail area and added are affianced in administering and administration activities (Todeva, 2012).

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Internal Supply Chain

The objectives of Internal supply chain management system's is to anticipate organization's activities and contest spawn during its work flow and offers across-theboard appearance of upstream and after activities (Hyder 2009). Our one of the team planned to go one Starbucks coffee center abreast city center to beam their performance. To analyze the employee activities, we stayed there about 3 hours. And we got that every employee are able-bodied behaved, able-bodied dressed and all of them are able-bodied accepted about their duties and responsibilities. When customer visit into the coffee shop they yield their order and the way they make coffee and added menu is actual transparent. It looks like their organizational structure is totally flat because still the store administrator was present over there; he was not giving any apprenticeship during working time. Starbucks was called to FORTUNEs 100 Best Companies to Plan For list for the 11th time in 2009. Starbucks is accustomed as a nice place to work for acceptable reason: we accept fabricated alleviative our partners with dignity and respect one of our allegorical attempt (www.news.starbucks.com). All advisers knew their responsibilities. They are appropriately demography the customers order, advancing coffee or added dishes as ordered and carrying it to the customers. They consistently acceptable the acknowledgment for the service that customers receive.

External supply chain

Coffee beans could appear from all over the worldabout 50 percent came from Latin America, 35 percent from the Pacific Rim, and 15 percent from East Africa. A lot of the coffee producers were baby to medium-sized family-owned farms. Some farms were able to action their coffee beans, but a lot of awash their outputs to processors through bounded markets (mills, exporters or cooperatives). The processors turned low cherry into block or inexperienced low, and again awash it to suppliers who were exporters or distributors. These suppliers provided abounding casework to processors and farmers, such as marketing, dry milling, abstruse coffee expertise, financing, and export logistics. The layout below depicts the easy and simple supply chain of Starbucks from the farmers to the Starbucks (gbs).

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http://www.gsb.stanford.edu/scforum/login/abstracts/documents/GS54.pdf Coffee affects the lives of over twenty five million farmers in additional than seventy countries round the world, several of that are developing regions. Traditional coffee assembly methods will usually adversely have an effect on the encircling surroundings through the employment of harmful chemicals and unnecessary deforestation. Although Starbucks occasional Company purchases solely 2 % of the worlds occasional, Starbucks has used its position within the international marketplace to demonstrate how innovation in combining company social responsibility and business strategy will result in long-term economic and environmental sustainability. Contributing absolutely to our communities and surroundings is at the center of Starbucks, said Howard Schultz, Starbucks chairman. Starbucks is committed to constantly improving our environmental footprint in each level of our provide chain, from occasional farmer to client. Starbucks as well incentivize the farmers with low amount loans, continued appellation affairs and affirmed price. This artistic new manner of doing business has the potential to enhance the lives of individuals and also the international surroundings. The success of supply chain management of Starbucks mainly depends upon its relationship with farmers, processors, exporters/ distributors and customers. It believes that if there's smart relationship and trust among the trading parties then there'll not be any downside in obtaining top quality occasional beans for the corporate (Nelson 2005).

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Today, the corporate is leading in its trade everywhere the planet as a result of its correct management of its internal and external provide chain. The connection they're maintaining with their suppliers and customers is contributing them to become the successful company within the world. It comes beneath the Fortune magazines prime one hundred international corporations of the planet and prime twenty Americas most admired corporations in terms of revenue they generate, profit they earn and also the manner they treat the shoppers and community.

Operational Strategy improves their Competitive Advantage

Product line Starbucks aliment offered an alternative of standard or decaffeinated coffee beverages, an appropriate "coffee of the day," and an ample alternative of Italian-style espresso drinks. In addition, customer could accept from an advanced alternative of fresh-roasted whole-bean coffees (which could be arena on the bounds and agitated home in characteristic packages), an alternative of beginning pastries and added aliment items, sodas, juices, teas, and coffee-related accouterments and equipment. The company's retail sales mix was about 61 percent coffee beverages, 15 percent whole-bean coffees, 16 percent aliment items, and 8 percent coffee-related articles and equipment. The merchandise combine in every store varied, depending on the admeasurement and site of every outlet. Larger aliment agitated a greater kind of whole coffee beans, gourmet aliment items, teas, coffee mugs, coffee grinders, coffeemaking equipment, filters, accumulator containers, and added accessories. Smaller aliment and kiosks about awash a abounding band of coffee beverages, a restricted choice of whole-bean coffees, and a few accouterments items. The company was consistently affianced in efforts to advance new ideas, new products, and new adventures for barter that belonged abandoned to Starbucks. Schultz and added arch admiral drummed in the accent of consistently accepting accessible to re-inventing the Starbucks experience.

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Building a Top Administration Team Schultz connected to strengthen Starbucks' top administration team, hiring humans with all-encompassing acquaintance in managing and accretion retail chains. Orin Smith, who had an MBA from Harvard and 13 years' acquaintance at Deloitte and Touche, was brought in as arch banking administrator in 1990 and again was answer to admiral and arch operating administrator in 1994. The four key admiral during the company's determinative yearsHoward Schultz, Dave Olsen, Howard Behar, and Orin Smithcontributed the a lot of to defining and abstraction the company's values, principles, and culture. As the company grew, added admiral were added in marketing, abundance supervision, specialty sales, human resources, finance, and advice systems. Schultz as well took affliction to add humans to Starbucks' board of admiral who had acquaintance growing a retail chain and who could add admired perspectives. Staff Training Accommodating quick advance as well meant putting in systems to recruit, hire, and train baristas and store managers. Starbucks' vice chairman for human resources acclimated some simple guidelines in screening candidates for new positions: "We wish amorous humans who adulation coffee. We're analytic for a assorted workforce, which reflects our community. We wish humans who relish what they're accomplishing and for who work is an extension of themselves."16 Some 80 percent of Starbucks staff was white, 85 percent had some apprenticeship above top school, and the boilerplate age was 26. Every partner/barista assassin for a retail job in a Starbucks abundance accustomed at atomic 24 hours training in the aboriginal two to four weeks. Everyone was accomplished in the Star Skills, three guidelines for on-the-job interpersonal relations: (1) advance and enhance self-esteem, (2) accept and acknowledge, and (3) ask for help. Each time Starbucks opened aliment in a new market, it undertook an above recruiting effort. Eight to 10 weeks afore opening, the company placed ads to rent baristas and activate their training. It sent a Star team of accomplished managers and

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baristas from absolute stores to the breadth to advance the store-opening accomplishment and to conduct one-on-one training afterward the company's academic classes and basal acclimatization sessions at the Starbucks Coffee Academy in San Francisco. Product Supply Dave Olsen, Starbucks' senior vice chairman for coffee, abandoned spearheaded Starbucks' efforts to defended best coffee beans to provide the company's growing needs. He travelled consistently to coffee-producing countriesColombia, Sumatra, Yemen, Antigua, Indonesia, Guatemala, New Guinea, Costa Rica, Sulawesi, Papua New Guinea, Kenya, Ethiopia, Javabuilding relationships with growers and exporters, blockage on agronomical altitude and crop yields, and analytic out varieties and sources that would accommodated Starbucks' burdensome standards of superior and flavor. Starbucks entered into fixed-price purchase commitments in adjustment to defended an able accumulation of superior blooming coffee beans and to absolute its acknowledgment to clashing coffee prices in accessible periods. If satisfactory fixedprice commitments were not available, the company purchased coffee futures affairs to produce worth protection. Bonding with Customers About 5 million customers per week were patronizing Starbucks stores in aboriginal 1998. Stores did regarding half of their business by 11 am. Loyal customers patronized a Starbucks store 15 to 20 times a month, spending conceivably $50 monthly. Some customers were Starbucks fanatics, advancing in daily. Baristas became accustomed with approved customers, acquirements their names and their admired drinks. Christine Nagy, a field administrator for Oracle Corporation in Palo Alto, California, told a Wall Street Journal reporter, "For me, it's a circadian call or I alpha accepting withdrawals."17 Her accepted adjustment was a custom drink: a decaf grande nonfat no-whip no-foam extra-cocoa mocha; if the baristas saw her appear through the door, she told the reporter, "They just [said,] 'We charge a Christine here.'"

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Mail Order Sales Starbucks revealed a mail-order catalog that was broadcast six times a year and that offered coffee, candies and pastries, and choose coffee-making equipment and accessories. An appropriate business gift-giving archive was mailed to business accounts during the 1997 Christmas anniversary season. The company as well had an electronic store on the net. In 1997, sales of this analysis were about $21.2 million, about 2 percent of absolute revenues; about 50,000 mail-order customers were active up to accept account deliveries of Starbucks coffee as of backward 1997. Starbucks administration believed that its direct-response business accomplishment helped pave the way for retail amplification into new markets and able cast acceptance in existing markets. Joint Ventures In 1994, afterwards months of affairs and experimentation, PepsiCo and Starbucks entered into a collective adventure adjustment to actualize new coffee-related articles for mass administration through Pepsi channels, including algid coffee drinks in a canteen or can. In October 1995 Starbucks partnered with Dreyer's Grand Ice Chrism to provide coffee abstract for a new band of coffee ice chrism fabricated and broadcast by Dreyer's beneath the Starbucks brand. The new line, featuring such flavors as Dark Roast Espresso Swirl, JavaChip, Vanilla MochaChip, Biscotti Bliss, and Caffe Almond Fudge, hit supermarket shelves in April 1996; by July, Starbucks coffeeflavored ice chrism was the top-selling super premium cast in the coffee segment. In 1997, two new low-fat flavors were added to accompaniment the aboriginal six flavors, forth with two flavors of ice chrism bars; all were able-bodied accustomed in the marketplace. Added new ice chrism articles were planned for 1998. Also in 1995, Starbucks formed with Seattle's Redhook Ale Brewery to actualize Double Black Stout, a stout beer with an attempt of Starbucks coffee abstract in it.

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International expansion In markets alfresco the continental United States (including Hawaii), Starbucks' action was to authorization an acclaimed and able bounded company with retailing ability in the ambition host country to advance and accomplish new Starbucks stores. In some cases, Starbucks was a collective adventure accomplice in the aliment alfresco the continental Untied States. Starbucks created a new subsidiary, Starbucks Coffee International (SCI), to arrange across amplification and activate to body the Starbucks cast name globally via licensees; Howard Behar was admiral of SCI. Going into 1998, SCI had 12 retail stores in Tokyo, 7 in Hawaii, 6 in Singapore, and 1 in the Philippines. Agreements had been active with licensees to start gap stores in Taiwan and Korea in 1998. The company and its licensees had affairs to accessible as abounding as 40 aliment in the Pacific Rim by the end of September 1998. The licensee in Taiwan foresaw an abeyant of 200 stores in that country alone. The potential of locating stores in Europe and Latin America was accepting explored. Corporate responsibility Starbucks was the better accumulated contributor in North America to CARE, a common abatement and development alignment that sponsored health, education, and altruistic aid programs in a lot of the Third World countries area Starbucks purchased its coffee supplies. In addition, CARE samplers of coffee and CARE-related mugs, backpacks, and T-shirts were offered in the company's mail-order catalog; an allocation of the amount on all sales was donated to CARE. Thus we can say that the operational action of Starbucks is to access top superior beans from farmers by advancement acceptable accord with them in adjustment to fulfill their demand yet as fulfilling the company responsibility towards the

communities. . And these will facilitate them to actualize able cast image in the market place and accretion competitive advantage (Gamble, 2012).

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Challenges and Recommendations

Dependent on suppliers and business partners Suppliers and business partners are the center body locations for the organization in adjustment to be success that awful depends on the affiliation amid them. Moreover, the success is accessible in company if there is blend of the superior product and casework and that will be accessible alone if their business partners and suppliers appearance them acceptable affiliation and adherence in active the business. However, it is actual difficult assertive the acceptable accord amid business partners and suppliers in continued run or in approaching because approaching is uncertain. As for example, if any of the suppliers are abort to accumulation the superior coffee beans appropriate on time again it can anon bassinet the cast of the Starbucks and that may advance to customer loss and assuredly the profit margin of every store ability be beneath in compared to antecedent times. Therefore, Starbucks are managing acceptable relationship with their suppliers so that their accumulation alternation will be able and any break in the supply chain can accord them negative impact on Starbucks operation. In adjustment to break these kinds of problems and accept ascendancy over suppliers operation, abstracts and advice flow, the aggregation can use backward integration. Astern integration will advice the alignment to be added arresting and bright but the aggregation should not be absent-minded and should accept on the needs, wants and apprehension of the suppliers including farmers of that company. Quality of the product Starbucks is accepted a part of the customer because of its superior of the coffee or product and casework which helped them to attain the cast image. They are accessible in bound shops as they are big-ticket to accepted customers. Starbucks has top superior product with big-ticket amount and because of which the customer who has average earning finds harder to appointment to Starbucks area as customer whose assets is low they cant allow the amount of the coffee in Starbucks. Therefore, in adjustment to abate this, in the processing appearance they can use added new technology equipment.

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Dependent on advice technology In this aggressive apple all the companies are directly accompanying to advice technology and so does Starbucks. For the right flow of operation like supply chain management, point of sales and processing they relies heavily on advice technology. In this supply chain if any of the systems fails again this directly affect the company and they may buck risk and huge loss. Therefore, in adjustment to break these kinds of problems they have to at aboriginal alternation their advisers and on approved base they should analysis and appraise their operation system.

Country Selection
Starbucks currently accept 16706 foods in added than50 countries including 8850 aggregation aggressive food and 7856 licensed store and as well they are going to accessible new stores. (Source: Starbucks, 2010) Starbucks is planning to accessible their new food in one of the Asian country Japan, Malaysia or Singapore by searching at the factors like location, market, appeal and added factors I acclaim Starbucks to decide on Japan instead of Thailand and Singapore because the appeal of coffee on Japan is actual top as it stands third position in better coffee burning in the apple afterwards affiliated states and Germany. There are already 877 stores in Japan till the and of March 2010 but in Singapore accommodate 35 and Thailand contains 132 coffee shops. (Source: Starbucks, 2010). Starbucks accept already stared its operation in Japan in the year 1995 and their operation and actuality in the Japanese market was absolutely acknowledged in agreement of superior and achievement as a aftereffect there are abounding food operating currently. The success of the every boutique of Starbucks is because they accept ascendancy over the supply chain management and acceptable affiliation a part of their business partners and suppliers like farmers and so on. Therefore, if an aggregation opens new store here then it will not be a big issue to administer their supply chain.

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Japanese humans provide capital antecedence to the whole image and superior of the product rather than amount of the product. Likewise Starbucks as well got the top whole image and superior product that will match the needs of every Japanese people. Japan has 5th rank in purchasing ability parity and Singapore has 40th and Malaysia has 30th rank respectively, which acutely shows that the active accepted of Japanese humans is analogously college than that of Singapore and Malaysia (CIA the apple actuality book, 2010) and Japan has 6.00 purchasing ability parity and Singapore has 0.34 which acutely shows that the active accepted of Japanese humans is analogously college than that of Singapore and Malaysia (Weforum, 2010). Although all of them are Asian countries Japan is the place for foreign currency exchange rate, has accomplished activity force, acceptable market size and has abundant basement for supply chain in compared to Singapore and Malaysia. The aggrandizement amount of Japan in compared with the two added nations are low but the tax adjustment and amount is college than added two countries Japan is the best to select to launch new shop by because added factors (Weforum, 2010).

Conclusion
Volkswagen and Starbucks are two companies that accept acceptable supply chain management and operations administration in general. It is actual absorbing to go through their processes and analyze their strategies. We accept there is place for improvement, these companies who accept all-international operations, appointmentchallenging issues that crave able assay abilities and absolute tools to affected them. In adjustment to expand each company have to ask it all the questions we answered in this report. Selecting a new area in an above investment and the competiveness of the markets does not allow authoritative mistakes. Success depends on your strategy, decidedly your all-embracing operations strategy.

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Referencing
Christopher, M., 2012. Logistics & supply chain management, creating value-adding networks (3rd ed.) CHRISTOPHER Martin: Librairie Lavoisier. Available at: http://www.lavoisier.fr/livre/notice.asp?id=O3LW2XASRLXOWO Central Intelligency Agency, 2010. CIA - The World Factbook -- Country Comparison: National product. Available at: https://www.cia.gov/library/publications/the-world factbook/rankorder/2001rank.html eNotes.com, 2012. Operations Strategy. Available at: http://www.enotes.com/operations-strategy-reference/operations-strategy Gamble, J., 2012. Starbucks Case Study. Available at: http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html gbs, Starbucks Corporation: Building a Sustainable Supply - Stanford graduate business school. Available at: http://www.gsb.stanford.edu/scforum/login/abstracts/documents/GS54.pdf James, A., James, N., 2003. Business Market management- understanding, creating and delivering value, second ed. scdigest, 2009. RFID News: Volkswagen says it will be First Automaker to Extensively Use RFID in Daily Supply Chain Operations Available at: http://www.scdigest.com/assets/On_Target/09-03-30-1.php Sharma, R., 2011. Brand assignment on Volkswagen brand audit. Available at:http://www.scribd.com/doc/13548429/brandassignment-on-volkswagen-brand audit Todeva, E., 2012. Starbucks Assignment. Available at: http://www.scribd.com/doc/42363006/Starbucks-Assignment Volkswagen, 2011. Volkswagen Group Production Plants Available at:http://www.volkswagenag.com/content/vwcorp/content/en/the_group/production_ plants.html WEF, 2011. The Global Competitiveness Report 2011-2012: Country Profile Highlights. Available at: http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010-11.pdf

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