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Running head: STARBUCKS IT INFRASTRUCTURE
STARBUCKS IT INFRASTRUCTURE
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STARBUCKS IT INFRASTRUCTURE
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Table of Contents
3. Executive Summary ............................................................................................................................ 3
4. Organizational Profile ........................................................................................................................ 4
5. Strategies.............................................................................................................................................. 5
Market Penetration ............................................................................................................................. 5
Market Development .......................................................................................................................... 6
Product Development ......................................................................................................................... 6
6. Technology Involved ........................................................................................................................... 7
Artificial Intelligence (AI) .................................................................................................................. 7
Customer Relationship Management (CRM) System...................................................................... 7
References ................................................................................................................................................ 9
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3. Executive Summary
Information Technology (IT) infrastructure is a component in business that most businesses are
applying in the current time. At Starbucks, the use of Artificial Intelligence (AI) has been applied
and seen to offer good results. The company has developed an app and a drive-thru menu that
presents its clients with great and thoughtful choices personalized as per the client preference.
Apart from customer preference, the prevailing conditions such as festive season, weather
conditions, and events such as sports can be used in recommending customers for better choices.
The AI technology has enabled Starbucks to have a competitive advantage on the market where
its customers can make use of free Wi-Fi while receiving service. Also, the apps and drive-thru
menu can be accessed using the customer smartphones which makes its interaction with
customers easier. It is through technology that Starbucks was able to launch its Starbucks Digital
Network which offers even payment options using the Starbucks App. The technology has saved
the company from attending too many activities that have all been summarized and included in
the app so that a better service delivery experience can be achieved and customers’ satisfaction
met.
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4. Organizational Profile
The organizational structure of Starbucks is in the form of a matrix that comprise of a
hybrid mixture of various characteristics that range from the basic forms of structures to complex
structures. The structure of Starbucks is divided into various divisions in relation to the product
offered at the division (Jeon, She, & Wong, 2018). For example, there is a division for coffee and
its related products. Another division is for baked products that can be served with the coffee of
be ordered as take away. Lastly, there is a division for merchandise mugs at Starbucks.
Due to the segmentation of the divisions, it has helped Starbucks in focusing on product
development that can help in creating company growth and development. The division of the
departments can help to understand which division has more avenues for income and to the
divisions with little income streams, what can they include in the division to make an
improvement in its productivity?
The use of a matrix structure at Starbucks is a form of maintaining a good flow of
communication, encouraging product developments, having an efficient production process, and
to offer exemplary customer service. Communication is a way that staff and customers engage
and deal with matters that require attention (Richey & Ponte, 2020). For example, if a complaint
about payment made by a customer but has not reflected can be communicated fast to the finance
department to check on the possible reason and offer feedback to avoid delaying customers.
Product development encouragement is a way that enabled customer needs to be met and
include products customization services that can focus on single customers in making their
orders ready as required. The general recipes used at Starbucks do not apply top everyone due to
health issues and lack of some customers consuming certain ingredients. To help prevent
complicating customer preferences, customization of recipes can be done under special cases so
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that no one can lack a product to serve at Starbucks. Customization of products is supported by
the efficient production procedures and systems applied at the company. The latest technologies
have been applied in the preparation of its orders so that less time can be taken and the product
outcome perfected to a customer preference.
The exemplary customer service is a tool used in engaging and maintaining customers for
a long time. Customers like to visit places where they are understood and their needs taken care
without restrictions of company measures. Some of Starbucks’ competitors have a strict menu
and product list that hinders customers from enjoying what they like most without being
intimidated. But at Starbucks, almost all of its products can be customized to the preference of
customers and served at the recommended price without extra charges.
5. Strategies
Market Penetration
Market penetration is a strategy that allows a business to enter a new market. Starbucks
has applied the strategy in entering various markets and managed to cope with competition.
Businesses have the intention of capturing and dominating large market areas so that they can
maximize on their revenues. The strategy has been applied by Starbucks in opening as many
joints as possible to compete with its main competitors (Alkasim et al., 2018). Market
penetration applies in a similar way as diversification of risk within different markets so that a
failure...
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