Starbucks Is The Premier Coffee Emporium Company

1183 WordsMar 25, 20175 Pages
Starbucks Case Study Trevor Lauten RHIM 4322-001 Garvin O’Neil 3/30/17 Starbucks is the premier coffee emporium company in the United States and worldwide. It is arguably the most recognizable name in the specialty coffee industry. The company was founded by Gerald Baldwin, Gordon Bowker, and Ziev Siegl with the opening of its first upscale shop in Seattle, Washington in 1971. Howard Schultz, who joined the team in 1982, later bought out his partners and fashioned his new stores after the Milan, Italy coffee customs he observed during his travels there. His intent was to establish his coffee houses as a “third place” behind home and work. He wanted to make neighborhood coffee houses a regular social experience, where…show more content…
Also, very little paid advertising was needed. Word-of-mouth and visible locations were the best marketing ploys. Starbucks employees or “partners” were paid well, tended to stay, and got promoted from within the company. Howard Schultz’s philosophy was that satisfied employees lead to satisfied customers. Partners receive both “hard skills” (the specific operational talents) and the “soft skills” (customer satisfaction focus). To accomplish Starbucks’ objective of becoming the “most recognized and respected brand in the world” they relied on aggressive, diversified expansion to take advantage of the specialty coffee popularity, introduced new products, and added store value cards (SVC’s) and Wi-Fi hotspots for its customers. The 1992 prosperous, educated, white-collar, older demographic customer majority was evolving into a more diverse clientele in 2002 that was less affluent, less-educated, and younger. Baristas were called upon to serve more customized drink orders and at the same time adhere to the three-minute rule for the time it takes to get the order filled. At the same time, they were supposed to engage in friendly, pleasing banter. Starbucks was using a mystery shopper program called “Customer Snapshot” that evaluated “Basic Services” (service, cleanliness, product quality, and speed of service) and “Legendary Service” (partners going the extra mile to satisfy customers). In 1992, because whole bean coffee made up 50% of sales, baristas were more able

    More about Starbucks Is The Premier Coffee Emporium Company

      Open Document