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Core Issues Of Starbucks

Decent Essays
CORE ISSUE:

Starbucks a coffee company not only the best coffee maker in the world but also a best place to work around the global but still Starbucks is facing an issue in maintaining customers satisfaction and due to this problem Christine Day, senior vice president of administration had planned to invest $40 million annually to speed up the work load in 4,500 stores by providing 20 hours of labor a week. However Day and her associates still are not sure about the impact of this investment on sales and profitability.

Background:

Starbucks a coffee company which transformed from a small coffee shop into worlds leading coffee chain and respected brand by Howard Schultz chairman of Starbucks. Howard Schultz joined Starbucks as a member of marketing team
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Starbucks started selling more than coffee such as sodas, juices, sandwiches and all the coffee related equipment in certain stores depends on size and their location. However 70% of the revenue comes from cold and hot beverages.

Starbucks had a joint venture with Pepsi-Cola to distribute the bottle of Frappuccino beverage in North America and also premium brand of ice cream maker Dreyer’s grand ice cream to distribute ice cream. 55% of the sale started coming from international licensed store such as grocery stores and warehouse club along with domestic retailers licenses stores and restaurants to boosts their sales extra of 15% revenue and 27% from North America food service.

Employment:

Every Starbucks Employees are called partner due to company’s policies. To lead the customer satisfaction Starbucks had decided to lead to partner first. It has been ranked best place to work and it has the lowest turnover of employees. To make their partners feel like owner of the company, whenever a new product comes in the market it was tasted and chosen by
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