OTAGO POLYTECHNIC AUCKLAND INTERNATIONAL CAMPUS
ASSESSMENT- 2
INTERNATIONAL MARKETING (BX770007)
GROUP ASSIGNMENT (COHORT-1)
STARBUCKS A FAILURE IN AUSTRALIA
GROUP MEMBER-
KanishkaGoel - 1000029559 RubicaKapoor- 1000028596 TirathKaur - 1000025360 TABLE OF CONTENT
• Introduction.................................................................................................... 3
• Body of Report...............................................................................................
Question-1....................................................................................................... 3
Question-2....................................................................................................... 5
Question-3....................................................................................................... 7
Question-4....................................................................................................... 9
• Conclusion...................................................................................................... 10
• References....................................................................................................... 11
INTRODUCTION
At the point when the declaration was made in mid 2008 that Starbucks would be shutting about seventy five percent of its 84 Australian stores there was mixed response. A few individuals were stunned, others were successful. Columnists utilized each
Building a successful brand with multiple stores opening. Selling whole beans and premium priced coffee. They also new and understood their target market. Unlike many other coffee shops they sold the lifestyle around the coffee and made it an experience for their customers as apposed to it being just an addition to a donut in the morning. They made it a lifestyle choice and something to be desired as well as focusing very heavily on the customer service aspect of the industry. What was so compelling about Starbucks value proposition? What brand image did Starbucks develop during this period?
2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.
Several key success factors exist for Starbucks, a leader in the coffee industry. They include
The elusive goal of customer satisfaction has long provided companies with endless headaches and difficult decisions. In the end, associating specific customer satisfaction metrics to company profit and loss would provide the undeniable proof needed to make changes, and then invest the required capital to address any concerns. Starbucks, not unlike the rest of the business world, has found itself in the same situation. At a basic level, the argument that more investment in customer service creates higher customer satisfaction has already been fundamentally agreed upon. However, more specifically, Starbucks must decide if a reinvestment of $40M annually in
The notions of data, information as well as their flows are interconnected; however, many people use them as synonyms. Nevertheless, there are significant differences that need to be addressed. Thus, data is a raw piece of information, so to speak; it reflects a certain aspect of reality. A good example of data is the table that shows, which smart-phones are equipped with NFC and which are equipped with Bluetooth LE. The importance of it lies in the fact that Apple iPhone 5 is not equipped with NFC and that is mere a piece of data. Information is data that has been processed and given a certain meaning. In other words, it engaged the data, but allows a person to make more sense of it. If one takes a look at the example which was mentioned more, it is an important piece of information that Apple iPhone 5 does no support NFC: this means that a certain part of the Starbucks visitors will not be able to able to use the mobile payment option that is based on this kind of technology. With this in mind, it become obvious that Bluetooth LE is much more preferable. Speaking of flows, one should note that they represent data and information in progress. For example, a flow of data should reflect the number of customer served daily in Starbucks Canada. However, if this data is properly processed, it will result in information flow, which might take a form of
In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.
Starbucks – one of the fastest growing companies in the US and in the world - had built its position on the market by connect with its customers, and create “third place” beside home and work, where people could relax and enjoy others or themselves. It was the motto of Starbucks’ owner Howard Schultz and mostly thanks to his philosophy; company has became the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there is shown some concerns, that company has lost the connection with customers and it must been taken some steps to help Starbucks to go back on the right path regarding customer satisfaction.
a) The nature of Starbucks’ business is to generate income based on operating activities. When referencing the Statement of Cash Flows and looking at their operating activities, you can see that Starbucks generates $2,908.3M in net cash provided by operating activities. Investment is a significant item in this statement as well. The company spent $785.9M in investments in the year ending September 29th, 2013. Strong investment activities show that Starbucks is investing through buying and selling (Sales, maturities, and calls of investments $1,040.2M) and using their spare cash to invigorate future growth and fund future obligations.
For this assignment we were required to review the case study titled “Starbucks’ Structure” found in Chapter 3 of our The five functions of effective management text. We are required to write a paper that answers the four case questions of 1. Complete a job description and job specification for a Starbucks employee. 2. What form of departmentalization should Starbucks use? Should the form be changed in stores offering food products and lunch? Why or why not? 3. When the company began to experience financial problems, should the leadership try to centralize power and decision-making
Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it
Today, Coffee may be a large international business employing over 20 million individuals. This commodity ranks second solely to crude oil in terms of greenbacks listed worldwide. With over 400 billion cups consumed per annum, coffee is world’s preferred drink. within the U.S. sales of premium specialty coffees have reached the multibillion-dollar level and increasing considerably on an annual basis.
Starbuck’s strategy focused on three components; high-quality coffee, intimate service, and ambient atmosphere. Starbucks worked closely with growers in Africa, South and Central America, and Asia-Pacific regions to insure the quality of its product. Starbucks called all employees' "partners" and worked hard to train them with the skills necessary to best serve the customer. The atmosphere at Starbucks was crafted after the European-style espresso bar. The company goal was to create ambience through the Starbucks "experience" and by making the area comfortable, yet upscale.
A company that I frequently visit on a semi-regular basis is Starbucks. Starbucks is a popular company that is recognized internationally and specializes in premium roast coffee, as well as other beverages. Starbucks, according to The Richest, is currently the power house of the coffee world. They are not only known for selling high quality coffee, but also providing an inviting atmosphere with good music and comfortable seats. Starbucks’ mission is, “to inspire and nurture the human spirit one person, one cup and one neighborhood at a time”. The company’s success can be credited to this distinctive mission.
Successful companies are companies that have a plan for where they are going, and where they want to be in the future. To successfully create this plan, companies need to examine themselves, along with their competitors, to see what areas need to be strengthened and what can be utilized to do so. Some of the main components of this analyzation are identifying what the major issues in the companies that are threats or are causing that weakness. They then need to create long term objectives, and quantify how to accomplish them-- whether they be financial or strategic. Starbucks as a company has three key issues: increased competition from new and/or expanding restaurants and coffee shops, they are less popular overseas, and there are many consumers who boycott Starbucks because it is such a mainstream prevalent brand.
Executive Summary..................................................................................................................................3 Market Segmentation ...............................................................................................................................4 Methods of Segmentation................................................................................................................4 Lifestyle Segmentation in the Specialty Coffee Market ..............................................................5 Segments