Discussion 2 - Management Data Drive Starbucks Location Decisions
Discussion 2 - Management Data Drive Starbucks Location Decisions
Discussion 2 - Management Data Drive Starbucks Location Decisions
More so, Starbucks uses GIS to analyze where its customers spend more money
than average on coffee purchases to support decisions on where to install
its high-end Clover Brewing System, which brews one cup of coffee at a time at a
precise temperature and length of time to create exceptionally flavorful coffee.
Geographic information systems (GIS) play an important role at Starbucks for
both site selection and product placement. For years, Starbucks has continued to
grow throughout the United States and internationally, opening franchises at an
extremely rapid rate—as many as 800 per year.
The value of a good decision about where to open a Starbucks store is about 1
million. Rob Sopkin, Vice President of Store development advises to open a
Starbucks franchise it would cost around 1 million dollars due to data driven
location decisions. This is due to the theory of one poor decision will negate five
good decisions. As Starbucks learned in the past to work on individual store
success rather than growing the Starbucks brand. The theory is based on
working towards a successful decision rather than a poor decision.