Monday, October 18, 2010

Vertical Integration/Outsourcing

Based on information available on  the company's website, Starbucks does not exercise vertical integration; however, the company does outsource some of its' responsibilites. Outsourcing is defined in the text as "farming out certain value chain activities to outside vendors."  According to an article found online, Starbucks recently outsourced duties to Unisys, an IT services firm. "The outsourcing deal was part of the firm's plan to implement their "expansion goals" of opening an estimate of 3,600-20,000 outlets worldwide. Unisys would be responsible for the IT infrastructure services international Starbucks outlets, support centers and manufacturing facilities." Outsourcing is yet another method to help contribute to the continued success of Starbucks.
http://www.outsourcing-weblog.com/50226711/starbucks_entering_the_outsourcing_scene.php
http://www.starbucks.com/

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