creation of a project management plan

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this it for three paper, one for every milestone.

attached are all 3 milestones and the original business plan


  •  Assess the evolution of operations management philosophies and structures for their impact on modern business operations
  •  Assess key trends in production, quality, resource, and information management for their impact on current business operations
  •  Develop a project management plan using elements of both traditional and iterative methods to meet scope, time, and cost objectives of projects in operations management
  •  Determine appropriate risk mitigation strategies for managing projects by assessing and quantifying risks and impediments
  •  Determine key measures of performance that reflect profitability and sustainability for managing product or service life cycles

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Executive summary. Starbucks mission statement reads “to inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time” (Starbucks, 2017). Unlike most other companies, and more so amongst the multinational corporations, Starbucks Coffee has a mission statement that least defines its operations or relevance to the coffee industry. Although Starbucks mission statement fails to elaborately mention the customers, the market, and the products, it has an indication that the company bases its philosophy around the unity of its customers. Unfortunately, it also fails to spell out the market, which is one of the key components of a mission statement as a brief definition of a company and its operations. In its mission statement, Starbucks indicates that the nurturing of the human spirit through its products is one of the key focus areas for the company. Despite the failure to address a few business areas, the mission statement stresses the importance of the customers and the need to supply the customers with quality products. This is indicated in the “one person, one cup” principle as per the company’s statement. The above mission statement is a remodeling of the previous vision statement by the company and that read “to establish Starbucks as the most recognized and respected brand in the world and become a national company with values and guiding principles that employees could be proud of” (Starbucks, 2008). Notably, the vision statement stressed on the growth expectations of the company by becoming “the most recognized and respected” coffee brand in the market. This statement integrated the importance of both the customers and the employees in one by insisting on the pride that would accompany the employees upon the growth of the business and satisfaction among that the people that they serve. In order to further advance these statements, Starbucks should incorporate healthier diets in its foods and drinks. Notably, healthy diets in the United States, as well as the global level, is one of the primary concerns among the public. For instance, Coulston, Boushey & Ferruzzi, (2013) note unhealthy foods and those that have a poor balance between the different nutrients are responsible for major health issues such as diabetes, heart diseases, and obesity, among others. In addition to creating raising the living costs among the people, these health challenges may also be a put off especially when there is widespread news on adherence failure amongst the customers of a particular business. This mainly occurs in foods and beverages companies where only a few people understand the content proportions of a particular product especially since they are not well defined while being served unlike in industrial products. These statements are significant in the use of healthy foods in revenue generation. Notably, healthy foods are a subset of the quality in foods and beverages companies. In this case, Starbucks should consider introducing protein shakes in all of its location across the world. Notably, the best way to get proteins required in our diets is by consuming solid foods rich in proteins. However, it is not always easy to acquire all the required proteins by consuming solids especially among individuals having full time jobs and lack time to prepare their own meals (Bodybuilding.com, 2017). By adopting protein shakes in its menu, the company would be further advancing its mission of nurturing the human spirit by ensuring their health well-being is observed in addition to their needs. The “one cup, one neighborhood” indicates cohesion and togetherness among the people. In this case, togetherness among the people would not be possible in poor health. Context Starbucks brews and sells a wide assortment of coffee brands (Cooke, 2016). By so doing, the company is able to differentiate its products, increase the product portfolio, and enhance the available choices. The company also sells other products like milk products and snacks. This differentiation is necessary to cover a wide range of customer needs and thus create an all-inclusive environment and customer satisfaction, which are necessary for increasing the number of customers and the covered customer niches. However, one area that is little covered is the healthy products section within the company’s operations. Notably, there is an increase in the number of customers seeking healthy products and those that address their different health needs as well as enabling them to maintain their health. In this case, the number of people suffering from diet-related health issues like blood sugar and blood pressure is on the increase (Coulston, Boushey & Ferruzzi, 2013). On the same note, campaigns to sensitize the community on the need to adopt healthy living standards are on the increase and this is raising the demand for these products. In order to increase the satisfaction of the customers and address these new needs, Starbucks needs to incorporate protein shakes in its menu. Proteins have been scientifically proven to enhance muscle production. In addition, they are used to manufacture cellular messengers, hormones, enzymes, nucleic acids and boost immunity among individuals. Availability of adequate proteins in our bodies ensures that our bodies can are able to put together structures that create every organ, tissue, and cells. In addition, proteins enable our bodies to produce biochemical substances required for muscle contraction, cardiovascular function, healing, and growth (Bodybuilding.com, 2017). Most of the Starbucks rivals in the United States mainly offer fast foods and high calorie drinks. Inclusion of healthy drinks such as protein shakes in its menu would give Starbucks a competitive advantage over its closest rivals by attracting new customers who are diet conscious. • Marketing In order to increase the popularity of protein shakes in the United States as well as other outlets across the world and also ensure that they are marketable, Starbucks will need to advertise this product. One of the most significant areas that it can use to advertise protein shakes is through the internal environments that majorly constitute the in-store adverts. According to Percy (2016), this is one of the most successful approaches towards advertising consumer goods such as foods and drinks. Further, this is one of the cheapest methods of advertising. This is because the advert addresses the specific target market and thus can be crafted to match the needs of the target group. In this case, advertising through posters and inclusion of the products in the menus would be highly efficient. Starbucks has other alternatives for internal environment other than posters within its outlets. One notable platform is the company’s app. In fact, this app is highly popular among the company’s customers and has been used previously in delivering particular content to the customers (Behar, 2011). In this case, the Starbucks would use the app to advertise the inclusion of protein shakes in its menu as well as its availability. The company may also include a small description of health benefits associated with the consumption of protein shakes. The product can further be popularized by the inclusion of discounts for a duration of time, say a year, after their introduction. Although the company has an assortment of foods and drink products already available in its outlets, this phase would be a thorough introduction of a large number of available options to solve the available concerns such as the calories, caffeine, and fat content of the current products. Consequently, this would create a sense of loyalty and care among its customers and result in increased sales. The company would also benefit heavily from the use of social media. Many people access social media platforms every day. This would make it easier for the company to reach many people in various geographic locations within a short time. Notably, it makes extensive use of Twitter and, in a number of past occasions; the platform has been used during the launching of products so as to cover a wider number of customers and potential customers (Reinhard, 2016). An approach such as that previously used on free gifts and discount cards for friends upon one’s referral of the product would work well for these products in not only reaching a wider number of people but also increasing sales of the particular products as these people seek to redeem their discount offers and gifts. This would be highly boosted by the use of mainstream media such as banners and adverts on television and other mainstream advertising agencies. • Differentiation Even with the introduction of the protein shakes in its menu, the company will need to differentiate them from the competitors in order to achieve uniqueness and popularity while locking out competition. One of the available ways of differentiation is personalization and customization of the products as per the customers’ needs. In this case, the company will need to create a wide variety of protein shakes for the customers to choose from and that will be prepared to match their tastes. Notably, Starbucks should include egg protein shakes, whey protein shakes, and casein protein shakes for individuals who like animal proteins. However, there are individuals who either dislike or allergic to animal proteins such as vegetarians. Consequently, the company should introduce soy protein shakes that are exclusively prepared from soy beans (Women Trib, 2017). Nonetheless, this will first need the provision of samples for some time so as to ensure that the customers are acquainted with the new products, their tastes, and their composition. The company would also need to adopt a different pricing policy so as to create a difference between its products and that of its competitors. In any way, Reinhard (2016) notes that having two different pricing policies while maintaining similar quality and quantity of a product between two competitors will likely win for the company with the lower pricing policy. • Alignment to pricing with market position and corporate mission In the company’s mission statement, one of the basic targets is the maintenance and advancement of quality with regard to the customer needs. In this case, the company’s mission statement obliges it to maintain high quality healthy products. Coupled with the suggested customization, this approach will likely be accompanied by a demand for the high production cost of the healthy products and thus a higher selling price. However, the slightly higher price of these products in relation to the other products will still be tenable considering their addressing of the customer needs. In line with the market position of Starbucks, and in addition to the suggested differentiation of products, the company will have different tastes and product types that will have different pricing. As such, it is expected that these will help in achieving a wider market. These approaches towards the healthy products would be highly effective. The satisfaction of customers’ needs is one of the virtues that govern Starbucks operations, and that can be achieved through the expansion of available products. Additionally, the pricing policy would ensure that more customers’ financial aspects are addressed by the company. Need The demographics and behavior of the target consumers need to be understood before a strategy can be formulated. In this case, healthy products will seek to address the various health concerns among the consumers and the unhealthy population whose needs are not addressed in the existing products. Diabetes prevalence in the world population has risen from 4.7% to 8.5% percent with at least 422 million living with diabetes as of 2012 (DeFronzo, 2015). This health issue resulted in more than 1.5 million deaths in that particular year. On the same note, 39% of the world population was categorized as overweight, and with 14% of the total population being obese as of 2014 (Morris & In Lancey, 2015). This is after a significant increase in the prevalence and particularly during the last two decades. As such, many people are slowly drifting towards consumer goods that address their health conditions and that do not threaten to increase their chances of getting further complications. In this case, this is an opportunity for the company to explore the new market. The inclusion of protein shakes in Starbucks menu will seek to address both those affected by these conditions as well as the healthy people who seek to maintain their health by presenting them with an alternative to the available products. Moreover, everyone has different requirements, and that should guide the products that they consume. Consumers of healthy products tend to seek the information of the products that suit them by looking at the product’s label so as to obtain information on the available contents such as nutrients, fat, and energy content. This means that the company will extensively define these compositions on the product packaging for the products to be carried away and on the menu for in-store consumption. Protein shakes will be purchased at the outlets through the traditional purchasing or the in-app purchasing methods. In this case, the customers will have two purchasing options: buying the predefined and readily available products or specifying what they need. Notably, some customers may prefer to consume protein shakes mixed with vegetables, fruits, and other natural minerals. Starbucks needs to offer both purchasing options to its customers. This will ensure convenience on addressing the needs of the customers as well as their preferences. This is an ideal target market. In fact, statistics show that the demand for healthy products in both the US and the world are on the increase. This is due to the increased awareness of the importance of maintaining healthy lifestyles by consuming foods with high nutritional value and low calories. Less healthy foods such as fast foods and sweet beverages have been associated with adverse health effects such as hypertension and diabetes. Strengths and weaknesses ❖ strengths 1. Brand value Starbucks is recognized worldwide. In fact, its operations are available in more than 70 countries spread throughout the world and covering all the continents. The popularity of the company has ensured its success in every market that it engages its operations (Behar, 2009). The company has never closed any of its operations in whichever company as a result of poor performance. The only instance that the company ever abandoned its operations is its former Israel outlets that were closed down as a result of the political instability and constant destruction and vandalism by rioters during the Israel-Palestine conflicts (Bussing-Burks, 2009). However, all the other operations have been functioning impeccably. 2. Ability to provide free benefits and incentives. Not only does the company develop and create high-quality and premium coffee products and services but it also provides the wide number of customers with products that match its years of experience. The services are excellent, the stores and neat and clean, and the company strives to maintain a comfortable setting. Starbucks collaborates with a large number of companies to improve its customer experience and comfort. In this case, the company was among the first to introduce free wireless internet connections for their customer. Additionally, it frequently provides offers and gifts to the customers (Bussing-Burks, 2009). Loyal customers also benefit from the company’s loyalty program that enables them to accumulate redeemable loyalty points. On another note, the company was also the first in the industry to provide comprehensive health insurance for all the employees, a model that the majority owner, Schultz, based heavily on his life experience. The company also has a dedicated application for its employees that simplify the order placement and payment program, a factor that eliminates the need for queuing and waiting for a long time before one is served. 3. High financial might and large company size Starbucks currently possesses more than 46,400, a figure that is subject to rising drastically in the recent future owing to the current trend and business strategy. Additionally, the company’s equity stands at more than US$ 5 billion and with an annual net income amounting to US$ 2.75 billion as of 2016. Unlike most other companies, Starbucks adopts a global perspective through its establishment in more than 70 countries in all the continents of the world and more than 238,000 employees as at the end of 2016 (Starbucks Coffee Company, 2017). Currently, most of Starbuck’s operations and achievements in the coffee industry are unmatched. 4. Extensive global supply chain Starbucks is a multinational corporation. Its operations are not centralized. Rather, they are spread across the world. Its supply chain is one of the most complex and effective in ensuring service delivery and cost management. For example, the company purchases most of its European coffee in the Netherlands where prices are significantly lower. However, these purchases are distributed to the other markets such as the UK where operations, on the other hand, are excellent. In the UK, the taxes on coffee make the product expensive, and the extensive supply chain enables the company to outsource the raw materials from markets that would save its costs. After making purchases in various farming economies, Starbucks distributes these products to all its respective regional markets and individual outlets without relying on subcontracting services. ❖ weaknesses 1. Imitable product Coffee, tea, and related products are among the basic consumer products and that are universal. In this case, Starbucks faces the challenge of product duplication since they are unified. As a result, the company fails to have a wide variety of unique products in its operations. According to Fellner (2009), this necessitates competition from both large and small companies that venture in the same field. 2. Poor market target Starbucks targets the high and middle-income groups by its premium coffee brands. As a result, this creates a challenge through the omission of small and working groups that focus on economy products due to their low economic spending. In this case, the low spenders end up seeking services and products from the sellers. This is dangerous to the company especially by the selective nature of the available products. 3. Undiversified services Starbucks operations focus on the specialization of coffee and coffee products. It relies primarily on the availability of coffee beans and the popularity of coffee for its operations. Although the company has on a number of occasions considered expanding its operations and diversifying its products, these plans ended up being abandoned prematurely. In addition, it has acquired a large number of companies, and all in the coffee industry and whose operations it remodeled to suit its business operations and principles. Although specialization is important in perfecting one’s operations, it also creates a challenge especially when that particular product is hit by challenges such as diseases and adverse weather that would limit their production. Inflation of prices on the product would also hit the company hard since loss made from the coffee industry would not have an alternative for recovery. 4. Higher pricing and price margins As had been indicated earlier, the company offers premium brands and at equally premium prices, which is responsible for locking out of the low earners and spenders. As such, the high prices that the company applies are a turn off to a large number of potential customers. In addition to the premium products, the company has on multiple occasions been accused of setting up exaggerated prices through an abnormally high selling price vs. production cost ratio (Melby, Jackson, Dixon, Coast Learning Systems … Insight Media, 2004). Starbucks has an opportunity to not only expand the market target but also increase revenues and product portfolio by designing products that address the new needs. One of the new products that Starbucks should consider including in its menu is protein shakes. This is due to the fact that the company mainly majors in drinks and therefore it would not require making several adjustments to its current business structure. Secondly, there has been increased awareness of embracing healthy lifestyles all over the world. This has been facilitated by drastic increase of lifestyle diseases such as hypertension and diabetes. Conducted research has indicated that protein shakes may significantly help individuals to lose fats, and preserve muscles. Baylor University researchers also found that consumption of protein shakes coupled with increased physical activity may significantly increase size and strength among individuals. Cancer has been a global menace that has contributed to the death of many people. Although scientists have not yet found its cure, research has proven that consumption of whey protein shake may prevent some types of cancer such as prostate cancer and colon cancer. Such benefits would significantly increase demand for protein shakes in Starbucks outlets (DeMedeiros, 2016). Integrating protein shakes will ensure the company increases its customer base since there are several diet conscious patients out there. It will also give the company competitive advantage over its rivals such as McDonalds and Java. There exists a large number of unexplored markets, and where Starbucks is yet to establish its operations. Notably, two-thirds of the company’s operations are based in America (Michelli, 2007). However, the country may increase its operations in other developed countries in Europe and Australia. In addition, numerous studies have indicated that several Asian and African countries are recording unprecedented economic growth. Unlike in the recent past, these regions are becoming industrialized and civilized at the same time. The company may increase its market base and revenues by targeting such international markets. Core competencies 1. Brand value That Starbucks is a well-recognized coffee brand in the world is inarguable. The company has a well-designed, easily identifiable logo that it unique and attractive, and that uniquely identifies the brand to its customers. Due to the strong brand value, the company has been dragged into a number of litigations involving copyrights over its logo with which other companies, as well as individuals, attempted to use the company’s image to make their sales (Starbucks Coffee Company & Jef Hanlon Promotions, 2003). These range from clothes lines, comedians, entrepreneurs, and companies that either duplicated Starbuck’s logo in their operations or modified theirs to mimic that of Starbucks. In this case, the companies sought to capitalize on Starbucks popularity and marketability to gain considerable market share in their respective operations. In one instance, for example, a company was established with the names “Dumb Starbucks” and whose products involved a replica of Starbucks’. The only differentiating factor between Dumb Starbucks products and those of Starbuck is the addition of the word “Dumb” in every product name. Although the company was closed for reasons other than litigations, it had gained significant popularity in its operations. By introducing healthy products such as protein shakes, the company would heavily benefit from the strong brand value. 2. Starbucks experience Starbucks began as a coffee roasting company in the early 1970s. However, the company continued these operations until it was able to purchase Peet’s, a company whose owner had taught the founders of Starbucks how to roast coffee (Bussing-Burks, 2009). This formed a strong foundation for Starbucks as it was able to not only establish quality products but also absorb customers that were previously served by Peet’s. The close to forty years of experience in the field has enabled the company to perfect in its products and adopt advanced technologies and methods that have proven ideal for the needs of the customers. In this case, the company relies heavily on consumer needs through its online forums where the customers discuss their needs and make suggestions to the company. Additionally, the company has a number of unbranded stores that are dumbed “Starbucks Labs” and whose purpose is to study and evaluate the market needs, research new products, and develop the menus that are then adopted by the outlets (Simon, 2011; Fellner, 2008). Its operations in a wide number of regions and cultures also enable it to develop products that address these people’s needs and, in return, continue to grow its available products and an understanding of the global consumers’ needs. In this case, no other company possesses the experience that Starbucks has in its operations. The company would use this experience and its labs to develop healthy coffee and snacks recipes suitable for its customers. 3. High financial power As had been stated earlier, the company is the leading in terms of revenue, equity, and company value in the coffee industry. Notably, its equity exceeds $5 billion at present, and with a revenue of $2.75 billion as of 2016 (Starbucks Coffee Company, 2017). No company in the coffee industry has ever managed to gain such financial figures. Being one of the most valuable brands in the world, Starbucks has the ability to finance expansions at a fast pace, unlike its competitors. This is visible from its recent growth rates that averaged creation of two outlets per day for the past three decades, making it emerge as the largest coffee company in coverage. Its 238,000 employees make it one of the most effective in customer service by establishing a significantly lower customer per employee ratio. In fact, the size of the company and its huge financial ability can easily enable the company to influence market prices with no significant effect on performance even under a slight decrease in the prices. Starbucks would heavily benefit from its large financial capabilities. As noted by Cañas & Sondak (2011), the greatest challenge towards establishing a new product or operations is the limitation of funds and technical understanding of the new venture. Moreover, these new funds might require new operations and additional workforce. Through the use of the available funds, the company can fund the research, development, and perfection of the proposed introduction of healthy protein shakes in its menus. These finances would also be necessary for advertising and sponsoring incentives to boost popularity at the time of introduction. Starbucks would need to redesign its strategies from a high to middle-income market targeting to include the health-seeking and low spenders. In addition, its needs to diversify its advertising by stating the company’s commitment in offering healthy drink to its esteemed customers. Additionally, it would need to incorporate customized menus in its operations so as to make incorporation of healthy products a success. Pricing In the first implementation phase, Starbucks will need to introduce healthy protein shakes in select retail outlets. Notably, it will not be possible to avail protein shakes in all the thousands of outlets at once due to the high cost of implementation. The company also requires a pilot phase to test the viability. In this case, the company will have to commit fixed costs that include research facility, production cost, dedicated outlets, and service items. New facilities will be created serving exclusively the new products. These will also need service items such as mugs and sauces, and which will also be required in the integration of the products in existing outlets. The existing research facilities will also be expanded at a cost so as to integrate the new product. In addition, integration of the research and service delivery to existing operations will lead save considerable amounts for the company. Starbucks will also undergo variable costs that are expected a shift in the course of operations. In this case, these will include the costs of obtaining raw materials and hiring employees. Notably, employees are subject to change depending on the performance of the business. Additionally, raw materials will also be subject to availability and demand of the products. Fig 1: Starbucks cost of introducing protein shake drinks in its outlets Fixed costs Item Research facility Production units Dedicated outlets Service items Variable costs cost (US$) Item 500, 000 Raw materials 7, 000, 000 Employees Cost (US$) 9, 000, 000 3, 000, 000 10, 000, 000 10, 000 This consignment would be sufficient to enable Starbucks to penetrate the market at low prices. In the existing products, Starbucks sells its 12-ounce cup at US$ 4-5. This is contrary to McDonald that sells some variants at less than $ 2 for the same big cup (Fast Food Menu Prices, 2017). For the healthy products, Starbucks should introduce the big cup of healthy protein shake drink at an average of US$ 3-6 for different healthy protein varieties such as soy protein shake, egg protein shake, casein protein shake and whey protein shake. The pricing of the protein shakes will be justified since Starbucks does not face competition from any of its rivals in the United States. Additionally, the company has a strong brand that should attract customers even at such prices. According to the demand and market that Starbucks commands, the customers would be willing to pay the suggested prices with a $3 for the cheapest option and $6 for premium brands. Additionally, the similarity between the prices of healthy products and the other products is due to maintaining the corporate social responsibility. In fact, Starbucks has previously been criticized for huge price vs. cost ratio in its products. The company will adapt a penetration pricing mechanism. This involves introducing a lower price that will be increased gradually over time to stabilize at the suggested pricing. This will enable the company to attract a large number of customers at the introduction phase due to competitive pricing. However, the pricing should also vary from economy to premium depending on the pricing. This is so that the company can incorporate all the market needs in its customer base. Refinement Implementing of changes within business operations and the product portfolio is one of the most significant stages of analyzing the potential of the product to expand the business operations. In this case, the scenario involves the introduction of protein shakes at Starbucks Coffee Company. As evaluated in earlier sections, Starbucks has a number of competitive advantages that would enable it to conduct an easy implementation of the product. However, what matters more is how the product is received and the changes in business performance that accompany the implementation rather than the success of implementation. This means that, in order to identify the effect of introducing protein shakes in Starbucks product portfolio, the company will need to make a good follow up of its operations, customer behavior changes, and changes in the company performance. In return, this is significant as it determines the viability of the product and its implementation. According to Vincent, & Kumar (2014), a company should make these evaluations and carry out the necessary changes in future, and that involve expansion, shrinking, or abandoning of newly-established operations depending on their impact. Moreover, the major purpose of establishing new healthy products such as protein shakes is to increase the competitiveness of a company as well as its financial performance (Guerra-López, 2008). Else, it would be more justifiable if the company rolls back to its initial operations. The following section will create a method of analyzing the effect that introduction of protein shakes at Starbucks will generate. Evaluating the success of introducing protein shakes Starbucks Company will need to track changes in its self after the introduction of the healthy protein shakes. In this case, the company should measure the its performance and the value of its operations at the time of its introduction. In this case, Starbucks should maintain a clear record of its financial data and record the operations of distinct products independently so as to track the movement and the changes resulting from the introduction of this healthy protein shake product. Goal formulation Goals for the introduction of healthy protein shakes should be well defined and incorporated in the business mission statement. Carrying out this step is necessary for ensuring that the long-term operations are remodeled so as to incorporate the new operations. Notably, the mission statement of a business shapes the direction that both the management and the employees take in their operations. Equally importance to the mission statement is the goals and strategies. According to Syrett (2012), they will help in defining the short-term and the long-term goals of the company. Moreover, a company’s long-term success is measured on its adherence to the mission and vision statements, goals, and strategies that are often set at the beginning of a business operation. They help in the development of milestones, both short-term and long-term and that the company will need to accomplish on either periodical or life-long phases. The goals and strategies for the introduction of protein shakes should define how the process will be implemented and how it will be conducted in future running of the business. The strategies should state what the company seeks to achieve with the new product and how it plans to introduce it into the market. These should be developed at the beginning of the process and constantly utilized periodically on a yearly basis so as to track the yearly performance of a company against the set goals. These determine the short-term success of the company and its adherence to the set path. Cost of implementation Being a large multinational corporation and with the largest financial capabilities in the industry, it is expected that the company will start on a high note. Additionally, protein shakes are in liquid form and therefore the company does not have to carry several changes in its customer service system. The company also is already in operation over related products, and thus the high level of experience should facilitate an easy implementation of the process. However, this is expected to involve large values of startup funds since it has to contract new suppliers and purchase additional equipments required to ensure efficient service to its customers. These should be recorded to act as reference purposes in the future while tracking the financial implications. The implementation cost should cover the extensive funds that the company incurs in availing the product and also advertising it. A clear record of the expenditures on additional equipment, raw materials, employees, technological advancements, and changes in the service platforms such as costs involving any changes on the company’s app and community blogs should be created by the company’s management. This cost should also include licensing costs and any additional premises that might be utilized in the process of implementation. This list is for purposes of future analysis against future operations of the company and financial records so as to determine a rise or a fall in the business performance. Reception The initial reception of the product by the customers, both existing and new, should be observed keenly. This is important for creating a future path of business operations and establishing a possible trend. Moreover, a poor reception is an indication that the product has little popularity and that new measures should be put in place so as to correct the situation. As had been indicated in earlier sections, the product will be advertised through the mainstream media, the social media, in-store, and also in-app through the company’s mobile application. As a result, the company should be in a position to observe the hype or discussion regarding the company through its online consumer blogs that the company manages to track customer needs, suggestions, and their feedback regarding the company, its products, and the services, as well as the changes that should be made on the products and services. The company should also observe the trend in how customers order the protein shakes within their launch and how well the customers are satisfied with their delivery. The above measures are short-term and involve run through the period of implementation. However, the most important evaluations cover the period of operation. In this case, Starbucks will make the following evaluations: Financial performance The company will constantly observe its financial performance and more so the financial revenues from protein shake so as to evaluate if it is making an analysis of the suitability and viability of the product financially. However, this would be simplified since the company relies on digital data entry, recording, and management operations. Additionally, a significant amount number of purchases are conducted through the application. According to Alexander, Sinnett & Financial Executives Research Foundation (2005), generating reports is necessary for evaluating the profit or loss-making tendencies of the new products. Analysis of the financial performance for the protein shake sales should be carried out periodically. Notably, the Starbucks generates its financial reports on a quarterly basis (Starbucks Coffee Company, 2017). This three-month interval is necessary for evaluating operations and identifying the influence of seasons on the financial performance of the operations. For new products, however, their monitoring levels should be more frequent than for other products. In this case, it would be ideal to carry out financial analysis for protein shakes on a monthly basis. This will be necessary for tracking the rate of growth, reception, income generation, and cost of production of the new product. Additionally, it will help in evaluating the best performing products in the healthy products line so as to ensure the ones to increase production and those whose production should be reduced. In this case, the company should be able to adjust operational cost and the income of protein shake sales at an early stage so as to reduce lossmaking. In the long run, this should be significant in governing the decisions of the company in either advancing its operations or abandoning them and reverting to its initial operations. Feedback loops at Starbucks Feedback loops are necessary for tracking the performance of the company, the customer satisfaction, and suitability of the products. Through this process, the company is able to identify the perception of the company and its reception. This process is necessary since it helps the company in identifying weaknesses in its operations, services, and products and the things that it needs to do in order to improve them. In addition, a feedback loop is necessary for a company as it shows the company’s commitment to customer satisfaction and their views. In return, the customers are able to voice their needs and their feelings towards the company. There are many available methods that the company should use in creating feedback loops with its customers. However, the competency of each process relies on how well this process engages the clients and the amount of data that it creates. The feedback loops may be either closed or open. Open feedback loops do not restrict what the customer shares with the company. Rather, they are free to make any suggestions or criticism. On the other hand, closed feedback loops restrict what is shared and are guided by prompts. They are mainly necessary when the company seeks to make a specific evaluation. Surveys Surveys are important to understanding the performance of a particular product and how well they conform to the customer needs (Hoerl & Snee, 2013). In this case, Starbucks should design, review, and issue surveys to the consumers so as to understand if introduction of protein shakes in its menu fit what they need or what the company should do to cover their needs. These surveys should frequently be conducted, for example on a half-yearly basis, so as to ensure that there is sufficient time to make previous changes and so as the customers may also get sufficient time to re-evaluate the new changes. In this case, the survey questions should be designed so as to fit what the company is interested in. One of the factors that the company should frequently seek to evaluate is the quality of the product. Being a closed feedback loop, the survey should have questions that are highly relevant and have a wide coverage in terms of options. The survey should also include details such as the conformity of the pricing to the product quality, the quantity of product served, the value of services, the efficiency of operations and services, product’s ability to address the customer needs, and its suitability. Community forums As had been indicated earlier, Starbucks has a community forum for its customers. In this case, the customers are able to address their needs as well as making suggestions to the company. This is an open feedback loop, and thus the company can obtain a large amount of sufficient information due to the waiver of restrictions. The company could also use social networks such as Twitter and Facebook to engage its customers and potential customers. Due to a large amount of information obtained through this approach, the company should ensure that it seeks professional analytics help in order to ensure that the data is elaborately analyzed. It is one of the most important methods of obtaining feedback from both the consumers and the employees. Self-service feedback loops Self-service feedback loops involve unguided but voluntary feedbacks that customers leave to the company. These may include optional product and service reviews on the company’s app and feedback forms at designated sections within the outlets. Similar to community forums, these will not have a specific implementation time. Rather, Peppers & Rogers (2008) note that they rely on customers’ availability and interest in giving feedback. The analysis should be carried out similar to the community forums. Other factors There are many other factors that should govern the implementation phase and the suitability of the product to the company and the customers. In this case, Starbucks should ensure that a thorough analysis is carried out so as to ensure the success of the program and conformity to the business needs. Health trends The company should follow the trends in the health sector closely so as to understand the needs of the customers. In this case, these should include the statistics of various health conditions that heavily affect the foods industry through its reliance on a diet. These health conditions include diabetes and obesity. On the same note, the company should work closely with the available and up-to-date medical research so as to develop a product that addresses the health concerns appropriately. Moreover, the new product is meant to address the health of the public and serve the needs of those with health concerns (Goldstein & Goldstein, 2010). Demand for the products from competitors Competition is an important factor in business operations. In this case, there are companies that have already implemented healthy products in their operations both inside and outside the beverages and fast foods industry. In this case, Starbucks should conduct a study and establish if the demand is sustainable. In this process, the company will also get an opportunity to identify if there are available concerns in the services and products of other companies and thus be in a position to implement a perfect product that will serve the best interest of the customers. Availability of raw materials Every business venture should be guided by the availability of raw materials. In this case, the raw materials govern the level of investment and the cost of production. In return, this determines the selling price. The selling price has a huge influence on demand of the products and consequently the business operations (Maisel & Cokins, 2014). In this case, Starbucks decision should be governed by the availability of the raw materials such as soya beans and milk. In addition, the company should set a plant that manufactures protein shake ingredients such as whey and casein. Notably, whey is the liquid residue of cheese, yoghurt and casein production. It is readily available with the world producing over 180 million tons (Dairy processing Handbook, n.d). Moreover, the business would be untenable in cases where the raw materials are unavailable, or their prices are unmanageable. References Behar, H. (2009). It's not about the coffee: Leadership principles from a life at Starbucks. London: Penguin. Bodybuilding.com. (2017). The Benefits of Protein Shakes! Retrieved from https://www.bodybuilding.com/content/the-benefits-of-protein-shakes.html Cooke, C. W. (2016). Orbit: Howard Schultz: The Man Behind STARBUCKS. Stormfront Publishing. Coulston, A. M., Boushey, C., & Ferruzzi, M. G. (2013). Nutrition in the prevention and treatment of disease. DeFronzo, R. A. (2015). International textbook of diabetes mellitus. Chichester, England : Wiley Blackwell Fast Foods Menu Prices (2017). McDonalds Prices. Fast Foods Menu Prices. Available from http://www.fastfoodmenuprices.com/mcdonalds-prices/ Morris, C. T., & Lancey, A. G. (2015). The applied anthropology of obesity: Prevention, intervention, and identity. Lanham : Lexington Books Percy, L., & Elliott, R. H. (2016). Strategic advertising management. Oxford, United Kingdom : Oxford University Press Reinhard, K. (2016). Differentiation as the key to success. A marketing plan for Starbucks. Munich GRIN Verlag Women Trib. (2017). 4 Different Types of Protein Shakes. Retrieved from http://www.womentribe.com/health/4-different-types-of-protein-shakes.html Behar, H. (2009). It's not about the coffee: Leadership principles from a life at Starbucks. London: Penguin. Bussing-Burks, M. (2009). Starbucks. Santa Barbara, Calif: Greenwood Press. Cañas, K. A., & Sondak, H. (2011). Opportunities and challenges of workplace diversity: Theory, cases, and exercises. Upper Saddle River, N.J: Prentice Hall. Coulston, A. M., Boushey, C., & Ferruzzi, M. G. (2013). Nutrition in the prevention and treatment of disease. DeMedeiros, J. (2016). 6 reasons you should be using whey protein. Retrieved from http://www.mensfitness.com/nutrition/what-to-eat/california-style-chicken-burger Fellner, K. (2008). Wrestling with Starbucks: Conscience, capital, cappuccino. New Brunswick, NJ: Rutgers University Press. Melby, L., Jackson, J., Dixon, C., Coast Learning Systems., Coastline Community College., & Insight Media (Firm). (2004). Ethics & social responsibility: Case study, Starbucks Coffee Company. New York: Distributed by Insight Media. Michelli, J. A. (2007). The Starbucks experience: 5 principles for turning ordinary into extraordinary. New York: McGraw-Hill. Raczkowski, K., & Schneider, F. (2013). The Economic Security of Business Transactions: Management in Business. Oxford: Chartridge Books Oxford. Simon, B. (2011). Everything but the coffee: Learning about America from Starbucks. Berkeley, Calif: University of California Press. Starbucks Coffee Company., & Jef Hanlon Promotions Ltd. (2003). Starbucks Coffee and Jef Hanlon Promotions present the Dave Brubeck Quartet. Starbucks Coffee. Starbucks Coffee Company. (2017). Annual report. Seattle, Wash: Starbucks Coffee Co. Alexander, G., Sinnett, W. M., & Financial Executives Research Foundation. (2005). Business performance management. Florham Park, N.J.: Financial Executives Research Foundation. Dairy processing Handbook. (n.d). Whey Processing. Retrieved from http://dairyprocessinghandbook.com/chapter/whey-processing Goldstein, M. C., & Goldstein, M. A. (2010). Healthy foods: Fact versus fiction. Santa Barbara, Calif: Greenwood. Guerra-López, I. (2008). Performance evaluation: Proven approaches for improving program and organizational performance. San Francisco: Jossey-Bass. Hoerl, R., & Snee, R. D. (2013). Statistical thinking: Improving business performance. Hoboken, N.J: Wiley. Maisel, L., & Cokins, G. (2014). Predictive business analytics: Forward-looking capabilities to improve business performance. Hoboken: J. Wiley. Peppers, D., & Rogers, M. (2011). Managing customer relationships: A strategic framework. Hoboken, N.J: Wiley. Starbucks Coffee Company. (2017). Annual report. Seattle, Wash: Starbucks Coffee Co. Syrett, M. (2012). Successful strategy execution: How to keep your business goals on target. London: Profile. Vincent, C., & Kumar, M. (2014). Business performance measurement and management. Newcastle upon Tyne : Cambridge Scholars Publishing MBA 690 Milestone One Guidelines and Rubric The final project for this course is the creation of a project management plan. In Milestone One, you will submit the operations management section (Section I) of your project management plan. Assess the history and trends of operations management, focusing on the business or company from your business plan in the Marketing and Strategy course. Provide rationale for the selection of your business development opportunity. Detail initial estimates of demand based on your forecasts and justify your selection of forecasting methods. Determine site location(s) and provide specific quantitative rationale for your selection. Consider the underlying business information needs of the new business and what information requirements will be needed. Outline the management information structure of the proposed business information system for your new business opportunity as part of the overall proposal based on the feedback received from Module Two. Consider specific IS concepts in Chapter 12 to outline your proposed system. For example, what elements do you plan to incorporate into your management information system? What linkages in the information structure are proposed? Prompt: Assess the history and trends of operations management, focusing on the business or company from your business plan in the Marketing and Strategy course. Specifically, you should assess the significant forces that have shaped operations management in recent history and answer the following:       How did these forces impact the business operations of your company? If your company does not yet exist, how do you envision these forces will impact the business operations of your company? Critique the key obstacles and issues that confronted company management during the evolution of operations management into the modern era. How did your company’s management handle these obstacles? If your company did not exist then, how do you think they would have responded to these issues? Assess changes to operations management philosophies and organizational structures in response to the evolving complexity of business operations. In other words, what has changed and why? Analyze the business operations of your selected company. Consider questions such as these in your response: o What organizational processes does the company use? o How do the business operations support the strategic plan, mission, and vision of the company? o What factors affect productivity and profitability? Determine the key trends in production, quality, resource, and information management with a focus on the business operations of your company. Assess the impact of these key trends on the business operations of your selected company and on the business product, service, or other idea in your business plan. Note: If, for some reason, you cannot use the company and product, service, or other idea from your business plan, you will need to work with your instructor to select another company and corresponding business product, service, or idea. Specifically, the following critical elements must be addressed: a) Assess the significant forces that have shaped operations management in recent history. How did these forces impact the business operations of your company? If your company does not yet exist, how do you envision these forces will impact the business operations of your company? b) Critique the key obstacles and issues that confronted company management during the evolution of operations management into the modern era. How did your company’s management handle these obstacles? If your company did not exist then, how do you think they would have responded to these issues? c) Assess changes to operations management philosophies and organizational structures in response to the evolving complexity of business operations. In other words, what has changed and why? d) Analyze the business operations of your selected company. Consider questions such as these in your response: What organizational processes does the company use? How do the business operations support the strategic plan, mission, and vision of the company? What factors affect productivity and profitability? e) Determine the key trends in production, quality, resource, and information management with a focus on the business operations of your company. f) Assess the impact of these key trends on the business operations of your selected company and on the business product, service, or other idea in your business plan. Rubric Guidelines for Submission: Your paper should adhere to the following formatting requirements: It is submitted as an APA-style Microsoft Word (or open source) document, 8-10 pages (not including title and reference pages), double-spaced, using 12-point Times New Roman font and one-inch margins. There should be a minimum of two references cited in APA format. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Significant Forces Key Obstacles Proficient (100%) Comprehensively assesses the significant forces that have shaped operations management in recent history or will shape it in the future, focusing on impact on business operations of selected company Accurately critiques the key obstacles or issues that confronted or will confront company management during evolution of operations management into modern era, focusing on management of selected company Needs Improvement (75%) Assesses the significant forces that have shaped operations management in recent history or will shape it in the future, but response lacks a focus on impact on selected company or is cursory or inaccurate Critiques the key obstacles or issues that confronted or will confront company management during evolution of operations management into modern era, but response lacks a focus on management of selected company, is cursory, or is inaccurate Not Evident (0%) Does not assess the significant forces that have shaped operations management in recent history or will shape it in the future Value 15 Does not critique the key obstacles or issues that confronted company management during evolution of operations management into modern era 15 Changes Business Operations Comprehensively assesses changes to operations management and organizational structures in response to evolving complexity of business operations Comprehensively analyzes business operations of selected company Key Trends Accurately determines key trends in production, quality, resource, and information management, focusing on business operations of company Impact Comprehensively assesses the impact of identified key trends on business operations of selected company and business idea Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Assesses changes to operations management and organizational structures in response to evolving complexity of business operations, but assessment is cursory or inaccurate Analyzes business operations of selected company, but response is cursory or inaccurate Determines key trends in production, quality, resource, and information management, but response is not focused on business operations of company or has gaps in accuracy or detail Assesses the impact of identified key trends on business operations of selected company and business idea, but assessment is cursory or inaccurate Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Does not assess changes to operations management and organizational structures in response to evolving complexity of business operations 15 Does not analyze business operations of selected company 15 Does not determine key trends in production, quality, resource, and information management 15 Does not assess the impact of identified key trends on business operations of selected company and business idea 15 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Total 100% MBA 690 Milestone Two Guidelines and Rubric In Milestone Two, you will submit a discussion of the operationalization of a business opportunity (Section II), specifically the business product, service, or other idea from your business plan in the Marketing and Strategy course. Prompt: The first part of this milestone will examine how you intend to manage the daily aspect of your new business opportunity, including the product/service design, the management information system, and information technology requirements. In the second part of this milestone, you will consider the means to manage product/service quality in a lean business environment using a quality control plan. Consider first the overall quality approach, such as TQM, ISO 9000, or Six Sigma, then state the specific technologies you intend to use, such as acceptance sampling, statistical process control, and capabilities analysis. Develop a work breakdown structure for your business idea. Your work breakdown structure should include at least three tasks with at least three subtasks each. Provide a narrative justifying each task and subtask that is part of your work breakdown structure. Identify key milestones, deliverables, and resource requirements associated with operationalizing your business idea based on your work breakdown structure. The key milestones, deliverables, and resource requirements should be supported with an explanation of how they will help the project meet scope-time-cost objectives. Assess potential obstacles and impediments to meeting scope-time-cost objectives of the project, supporting your assessment with rationale. Determine appropriate risk mitigation strategies to address the obstacles, impediments, and risks you have identified. Specifically, the following critical elements must be addressed: II. Operationalization: In this section, you will discuss the operationalization of a business opportunity, specifically the business product, service, or other idea from your business plan in the Marketing and Strategy course. Specifically, you should: a) Project the potential costs, risks, and benefits of operationalizing your business idea. Your projections should be supported with rationale. b) Develop a work breakdown structure for your business idea. Your work breakdown structure should include at least three tasks with at least three subtasks each. c) Provide a narrative justifying each task and subtask that is part of your work breakdown structure. d) Identify key milestones, deliverables, and resource requirements associated with operationalizing your business idea based on your breakdown structure. The key milestones, deliverables, and resource requirements should be supported with an explanation of how they will help the project meet scope-time-cost objectives. e) Assess potential obstacles and impediments to meeting scope-time-cost objectives of the project, supporting your assessment with rationale. f) Determine appropriate risk mitigation strategies to address the obstacles, impediments, and risks you have identified. Rubric Guidelines for Submission: Your paper should adhere to the following formatting requirements: It is submitted as an APA-style Microsoft Word (or open source) document, 8 to 10 pages (not including title and reference pages), double-spaced, using 12-point Times New Roman font and one-inch margins. There should be a minimum of two references cited in APA format. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Potential Costs Work Breakdown Structure Narrative Key Milestones Potential Obstacles Proficient (100%) Logically projects potential costs, risks, and benefits of operationalizing business idea, supporting projections with rationale Develops logical, comprehensive work breakdown structure with at least three tasks and at least three associated subtasks Provides a logical, comprehensive narrative, justifying each task and subtask in the work breakdown structure Accurately identifies key milestones, deliverables, and resource requirements associated with operationalizing business idea based on work breakdown structure and supported with explanation of how project will meet scope-timecost objectives Comprehensively assesses potential obstacles and impediments to meeting scope-time-cost objectives of project, supporting response with rationale Needs Improvement (75%) Projects potential costs, risks, and benefits of operationalizing business idea, but with gaps in logic, detail, or support Not Evident (0%) Does not project potential costs, risks, and benefits of operationalizing business idea Value 15 Develops work breakdown structure with at least three tasks and at least three associated subtasks, but with gaps in logic, accuracy, or detail Provides a narrative justifying each task and subtask in the work breakdown structure, but with gaps in logic, accuracy, or detail Identifies key milestones, deliverables, and resource requirements associated with operationalizing business idea, but response is not based on work breakdown structure, is not supported with explanation of how project will meet scope-time-cost objectives, or has gaps in accuracy or detail Assesses potential obstacles and impediments to meeting scopetime-cost objectives of project, but with gaps in accuracy, detail, or support Does not develop work breakdown structure with at least three tasks and at least three associated subtasks Does not provide a narrative justifying each task and subtask in the work breakdown structure 15 Does not identify key milestones, deliverables, and resource requirements associated with operationalizing business idea 15 Does not assess potential obstacles and impediments to meeting scopetime-cost objectives of project 15 15 Risk Mitigation Articulation of Response Determines appropriate risk mitigation strategies to address identified obstacles, impediments, and risks Submission has no major errors related to citations, grammar, spelling, syntax, or organization Determines risk mitigation strategies, but not all strategies are appropriate for addressing identified obstacles, impediments, and risks Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Does not determine risk mitigation strategies 15 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Total 100% MBA 690 Milestone Three Guidelines and Rubric In Milestone Three, you will submit your discussion of the life cycle management (Section III) of your business product, service, or other idea from your business plan in the Marketing and Strategy course. Prompt: In this milestone, consider the sustainability of your idea in the marketplace from initial inventory to subsequent sustainment in the supply chain. Specifically, examine the company’s own inventory as a starting point—that inventory came from a supplier—which is where your supply chain starts. Additionally, your finished product will travel downstream along the supply chain by means of shippers, distribution centers and then finally, to a retailer. These components should be outlined in this paper. Identify and describe the technologies you intend to use along the company’s supply chain such as RFID tagging and bar coding, e-procurement, and 3PL. Identify and justify your clicks or bricks decision, that is, your rationale for brick-and-mortar locations or internet services or a combination of both. The paper should identify the key data needed to support the functions of inventory management and supply chain management. You should describe the life cycle of the business idea. Focus your response on the future of the business idea, specifically on its growth and eventual decline. Assess the profit generation and cost-saving opportunities associated with the business idea based on the life cycle you described. Your assessment should be supported with rationale. Determine a phase-out plan for your business idea that ensures a sustainable solution that makes way for future innovation and profit streams. Ensure that you justify the steps in your plan. Specifically, the following critical elements must be addressed: III. Life Cycle: In this section, you will discuss the life cycle of your business product, service, or other idea from your business plan in the Marketing and Strategy course. Specifically, you should: a) Describe the life cycle of the business idea. Focus your response on the future of the business idea, specifically on its growth and eventual decline. b) Assess the profit generation and cost-saving opportunities associated with the business idea based on the life cycle you described. Your assessment should be supported with rationale. c) Determine a phase-out plan for your business idea that ensures a sustainable solution that makes way for future innovation and profit streams. Ensure that you justify the steps in your plan. Rubric Guidelines for Submission: Your paper should adhere to the following formatting requirements: It is submitted as an APA-style Microsoft Word (or open source) document, 8-10 pages (not including title and reference pages), double-spaced, using 12-point Times New Roman font and one-inch margins. There should be a minimum of two references cited in APA format. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Life Cycle Proficient (100%) Clearly describes life cycle of business idea, focusing on future growth and decline Profit Generation Comprehensively assesses profit generation and cost-saving opportunities associated with business idea based on life cycle and supported with rationale Determines appropriate phase-out plan for business idea that ensures sustainable solution for future innovation and profit streams Phase-Out Plan Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Needs Improvement (75%) Describes life cycle of business idea, but without a focus on future growth and decline or with gaps in clarity or detail Assesses profit generation and costsaving opportunities associated with business idea, but response is not based on life cycle or has gaps in accuracy, detail, or support Determines phase-out plan for business idea, but plan is not appropriate for ensuring sustainable solution for future innovation and profit streams Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Not Evident (0%) Does not describe life cycle of business idea Value 30 Does not assess profit generation and cost-saving opportunities associated with business idea 30 Does not determine phase-out plan for business idea 30 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 10 100%
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Explanation & Answer

Attached.

Running Head: MILESTONE TWO

1

Milestone Two
Student Name
Institution Affiliation
Instructor Name
Date

Milestone Two

2

Potential cost and pricing.
During the stage of implementation, Starbucks is going to introduce protein shake in
selected outlets. The company can’t be able to introduce give avail all its products to its entire
outlet in the world, this is due to high cost of implementation. The company also will need to
have piloting stage that is important to ensure that the project is viable, (Winit,et al, 2014). The
company will also will incur more cost in doing research, production cost and service items. The
Protein shake will be produced with new facilities servicing exclusively the new products.
Starbucks will also have to incur cost in service items such as mugs, and the sauces. The research
facilities will also be expanded at some cost in establishing the new product. Starbucks will
likewise experience variable costs that are normal a move over the span of operations. For this
situation, these will incorporate the expenses of getting crude materials and enlisting
representatives. Eminently, workers are liable to change contingent upon the execution of the
business. Furthermore, crude materials will likewise be liable to accessibility and request of the
items.
Fixed costs

Variable costs

Item

cost

Item

(US$)
Research facility

(US$)
500,

Raw materials

000
Production units

Cost

9,
000, 000

7,
000, 000

Employees

3,
000, 000

Milestone Two

3

Dedicated outlets

10,
000, 000

Service items

10,
000

This dispatch would be satisfactory to enable Starbucks to invade the market at low
expenses. In the present things, Starbucks offers its 12-ounce compartment at 4-5 dollars. This is
contrary to McDonald that offers a couple of varieties at not precisely two dollars for the same
immense glass. For the strong things, Starbucks should display the enormous measure of sound
protein shake drink at a typical of US$ 3-6 for different strong protein arrangements, for
instance, soy protein shake, egg protein shake, casein protein shake and whey protein shake. The
assessing of the protein shakes will be legitimized since Starbucks does not stand up to
contention from any of its enemies in the Brought together States. In addition, the association has
a strong brand that should pull in customers even at such expenses. As demonstrated by the
demand and market that Starbucks summons, the customers would pay the suggested costs with
a three dollars for the minimum costly option and six dollars for premium brands. Besides, the
similarity between the expenses of sound things and interchange things is a direct result of
keeping up the corporate social obligation, (Rosenblum, 2015). Honestly, Starbucks has just been
investigated for colossal esteem versus cost extent in its things.
The association will change a passage esteeming framework. This incorporates exhibiting
a lower cost that will be extended well ordered after some an opportunity to settle at the
proposed assessing. This will enable the association to attract innumerable at the colleague
organize due with forceful esteeming. Regardless, the assessing should similarly change from

Milestone Two

4

economy to premium dependent upon the esteeming. This is with the objective that the
association can unite all the market needs in its customer base.
Work breakdown structure
Additionally, the more evidently the degree of the wander is clarified before the honest to
goodness work begins, the more plausible the achievement of the assignment, the savvy structure
of work breakdowns is a herald to capable broadens organization. Specifically, the Planning
Process Group begins with three key steps – Scope Planning and Work Breakdown Structure
Development. The going with talk will examine the present examples and work on as for Work
Breakdown Structures. The Importance of the WBS Experienced wander managers know there
are various things that can turn out seriously in wanders paying little regard to how viably they
outline and execute their work. Section or full-wander dissatisfactions, when they do happen, can
routinely be taken after to an insufficiently made or nonexistent Work Breakdown Structure. A
deficiently created WBS can realize threatening endeavor comes about including advancing,
reiterated wander re-plans and developments, hazy work assignments, scope slither or
unmanageable, as frequently as conceivable advancing expansion, spending overpower, missed
due dates and unusable new things or passed on features.
THE WORK BREAKDOWN OF THE STARBUCK FOR PROTEIN SHAKES
A.

1. Project manager

2. Team members
3. Sections incorporating- The title page
-Introduction

Milestone Two

5

-protein shakes as the product
-conclusions
-Work cited
-PowerPoint Slide Show
B. Department manager 1
1. Team Members
-service characteristics
I. intangible
ii. perishability
-work Cited
C. Department Manager 2
1. Team members
-sections incorporate
-Promotion
-price
-distribution channel
-work Cited.

Project manager
The work breakdown for the Starbucks in introducing the protein shake in the market will
be as shown below. The entire project is to be prepared by the project manager. The core product

Milestone Two

6

of that is to be introduced is the protein shake. The project manager is to introduce the project by
defining what it includes. Secondly, he or she is going to give details about the new product in
the market. In this section, the project manager is going to state how important the product is, for
consumption. The details should also include all health issues that the project is trying to do
away with, especially comparing to the current trends and the arising diseases. The other section
is in conclusion, where the project manger is going to sum up all the highlighted details in the
entire project.
The depart...


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