Introduction to Starbucks Case Study

1722 WordsMar 21, 20107 Pages
PRINCIPLES OF MANAGEMENT ASSIGNMENT 1: STARBUCKS CASE STUDY Summary The history of Starbucks starts in Seattle in 1971. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet coffee beans and brewing and roasting accessories. In 1981 Howard Schultz first walked into Starbucks as a sales representative for a Swedish kitchen manufacturer. He immediately wanted to work for the company as he got so inspired by Starbucks but it took him a year to finally persuade the owners to hire him. The owners were reluctant initially to hire Schultz because they thought his style and high energy might not blend with the existing culture of…show more content…
Using the system approach it is important for Starbucks departments to work together as one unit. For example if the marketing and production department don’t work in collaboration with each other Starbucks as a whole organization would suffer. Also using the system approach Starbucks must be aware of the environment its working in. For example if the company opens an outlet in another country it must be aware of the government rules and regulations and also the taste and trends of society there. QUANTATIVE APPROACH: It involves applications of statistics, optimization models, information models and computer simulations to management activities. Quantative approach can be useful in the following ways: 1) Price: Starbucks can judge the amount of price to be charged on a product if the price is high then no one will buy the product and if it’s low then the business won’t be able to maximize its profits. 2) Customer Preferences: It can conduct and analyze surveys about customer’s likes and dislikes. This will help the business in improving their product, services and surrounding atmosphere. 3) Sales Analysis: Starbucks can conduct sales analysis which can help them in forecasting future sales

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