behavioural economics

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York University *

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2700

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Business

Date

Apr 3, 2024

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docx

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6

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Radhika Goyal Section 1 220550521 Introduction One of the biggest, most renowned, and most successful chains of coffee shops is Starbucks. The company maintains its honor thanks to its devoted clientele, premium consumption goods, and admirable brand loyalty even in the face of severe competition from rival multinational coffee companies. Nevertheless, the company produced 4 billion single-serve cups of waste annually, which was disposed of as litter or in landfills. Because each Starbucks cup has a plastic covering, recycling became extremely difficult because the current ecosystem was not "built to handle the individual Starbucks cups." The company took several steps to reduce waste, such as offering a 10 cent discount to customers who brought in reusable cups for a long time and then charging $1 for reusable cups in-store. In order to survive and expand, it also needs to keep up with customer demands, maintain a high standard of service quality, and have a significant profitability component. As part of its ethical business responsibility to reduce its contribution to environmental theft, Starbucks has a difficult task ahead of it. It must also remain in line with customer demands, maintain a strong profitability factor, and provide high-quality services in order to survive and grow. Problem Statement How can Starbucks empower its patrons to accept accountability for their actions? What other approaches to environmental issues can strengthen the company's long-term sustainability? Balance Score Card Perspective Objectives Measures Target Initiatives Customer Obse rve the chan ges Utilize surveys to conduct customer reviews. Observe recurring purchases. Lower production costs to 3% Boost the proportion of recurring customers by ten percent or more. Giving clients who bring reusable cups extra benefits and incentives Give consumers more reward points and buy alternatives to discounts. In 2013, Starbucks introduced a $1 reusable plastic cup at its cafés.
Radhika Goyal Section 1 220550521 in the custo mer beha viour Obse rve the chan ges in the
Radhika Goyal Section 1 220550521 custo mer beha viour Keep an eye out for variations in customer behavior. Raise awareness encouraging people to bring reusable cups. Financial Boost the profit margin and its market share. Lower unit costs and increase asset utilization. Monitor the price of new customers' shares. Boost revenue without raising expenses. Utilize the resources at hand as efficiently as possible. Twenty percent of the total market share introduce two new goods and open seven new locations in various markets. Introduce the use of applications to deliver services online. Use social media to advertise its products and apps in order to increase brand awareness and draw in more users. nternal Put into practice efficient environmental policies and initiatives. Decrease in the waste of paper cups decrease in the waste of fiber. Sleeves made of 60% post-consumer fiber Incorporating 10% post-consumer fiber into corrugated Increase the number of reusable cups available. Put recycling bins in front of doors for stores.
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