Starbucks Corporation
By: Mike • Case Study • 930 Words • March 23, 2010 • 816 Views
Starbucks Corporation
The plan for Starbucks Corporation to decrease their wait in the drive up lines would consist of, cashiers walking up to the cars as they drive up and taking their orders. This would consist of a PDA that may cost each store about $2000 each, with each store purchasing 2 items. The software would actually be their own, or a slightly changed version. The stores would also have another register added for use with the PDA’s only. Training Starbucks employees would consist of the main headquarters to be trained first, which would be the IT department and some members of management. The training would then involve the stores being divided into 5 regions within the US, then spreading overseas. The regions would get trained with the regional managers first then the partners of the stores. Some web-based training may also be involved to get employees familiar with the system. The training would be fast and the end users would be supported by the DynerTech training staff as well as the companies IT department.
Starbucks current software would be incorporated in the new PDA’s along with some small alterations. This would save the company revenue that the can spend in training. The employee stockholders would benefit from stronger sales generated from the peak times, which could easily double. The employees would benefit from the profits as well, by profit share into their 401k.
There are also risks involved with the wireless PDA system. A potential hacker may be able to tap into the network and see customer’s transactions and steal credit card numbers and banking information. It could also give information about the stores and the employee’s information if payroll information were included in their current software. They would need extra security measures or to keep up with any viruses that may disrupt the system. Starbuck’s IT department, along with DynerTech’s support group would maintain then system. The danger of viruses is always an issue; however the IT department must consistently keep the system updated. The main risk is of someone hacking into the wireless PDA and getting the customers information. The IT team would initiate security to keep their network clear of these risks to keep customers information safe. Without having to leave their cars, their partners make this customer service possible.
In order to incorporate the new PDA’s and train their employees a budget for the US, could safely be covered $1 million dollars. Starting with each store, the supplies and sales trends could be easily accessed and for about a three thousand dollars per store. The stores would only need 2 handsets each along with the supporting software, monitors and use of the current servers. The one easy solution would increase productivity and sales immediately. In giving general estimates, one would observe that they serve about 1000 cars in the drive thru from 6:00 AM until 9:00 AM, that number would almost double. The average car spends about $7.00 with a coffee and a snack or breakfast item, so it is easy to assume that the sales in that time slot during the week days could net $10,000.00 in just the drive thru for those hours. That’s an estimate of $400, 000.00 per week average with a DynerTech PDA. When you consider that only Starbucks some newer stores have the Drive thru window, and