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Case Analysis Of Starbucks

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STARBUCKS CASE ANALYSIS

To: Prof. Hurley
From: Saboor Ahmad (MIB Student)
Date: October, 15th 2017.
Subjet: Starbucks case analysis assignment.

Table of Contents
Summary ---------------------------------------------------------------------------------------------------1
Core Issues-------------------------------------------------------------------------------------------------2
Background------------------------------------------------------------------------------------------------2
Implication/Analysis-------------------------------------------------------------------------------------3
Recommendation-----------------------------------------------------------------------------------------5
Appendix--------------------------------------------------------------------------------------------------5
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Hurley
From: Saboor Ahmad (MIB Student)
Date: October, 15th 2017.
Subjet: Starbucks case analysis assignment.

Starbucks Case

Summary:
Starbucks was founded in 1971. Gerald Baldwin, Gordon Bowker and Ziev siegl start star bucks journey with a small coffee shop in Seattle. Starbucks has become a cultural phenomenon through expand thousands of coffee houses across the North America and around the world. According to the market research Star Bucks start losing grip on customer satisfaction. Also speed of service is specific problem. For this reason, Starbucks management is planning to invest 40 million companywide it will help to increase the number of employees in each store. But, Starbucks management is unclear about impact on revenues.
Core Issues:
How Starbucks sucks change from early 1992-2002?
What are the reasons Start Bucks customer service satisfaction decline? How measuring satisfaction can be a major fact?
Delivering on customer service.
Market research gap between decision making and customer satisfaction.
Should Start Bucks spend 40 million to increase labour in each store to maximise customer satisfaction?
Analysis
How start bucks change from early 1992 to
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How measuring satisfaction can be a major fact?
Howard believed that employees satisfaction leads to customer satisfaction.
Store Growth: Since 1998 to 2002 start bucks more focus on store growth expansion. That directly effect on delivery and service.
Delivery on Service:
Star Buck provide two types of training to their employees.
Hard Skill: How to use the cash register and Soft Skill: Conversation. Due to large number of customer and handmade beverages put more pressure on employees to have conversation with customers to say more than yes. One store has literally hundreds of combinations of drinks. It creates a tension between product quality and customer satisfaction. Day said. Start bucks focus on 3 mints service. But handmade beverages demand slows down service. That one of the reason hard skills and soft skill to do help employees to satisfy customer.

Strategic Marketing:
Star bucks has a lack in strategic marketing. Company do not have chief marketing officer (CMO), all marketing groups has been separated in three group. The problem is after gather the information have lack of decision power. That’s why no one is focus on big picture of consumer behaviour change. Buying power of customer is convert to low income, younger and less educated and less visit. Typically visit 5 times in a month. People are not willing to pay high price. Exhibit 1 Whole sale bean is seen 6 % sale due to high
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