STRATEGIC MANAGEMENT CASE ANALYSIS STARBUCKS COFFEE COMPANY: THE INDIAN DILEMMA SUBMITTED BY: AMAN AHMED ANSARI BS 393410 I. Welcome to the world of case studies that can bring you high grades! The customer base also grew in that a larger number of Hispanic and Cuban- Americans became a customer of Starbucks. Starbucks worked directly with growers to purchase green coffee beans, it oversaw the custom-roasting process, and it controlled distribution to retail stores around the world. However, in today’s time creating customer intimacy is harder than ever, especially in Starbucks.I believe a mega brand can create it, but it would have to be in the right atmosphere. Company operated stores, not franchises which usually lack on quality standards 8. By the time Starbucks ventured into the Australian market in 2000, the country already had in place a thriving urban café culture. The goal of this potential investment is to increase customer satisfaction while attempting to generate more profit. Starbuck’s has done an excellent job saturating the market.Customers love having a Starbuck’s location on their normal traffic route, therefore not having to drive out of their way for a cup of coffee. More customers were beginning to agree with the fact the Starbucks cared primarily about making money and building more stores. The purpose of this paper is to research the Starbucks Company’s Sustainability Report, examine and analyze the facts and figures of the report for enhancing a good business strategy. 42, as opposed to a satisfied customer who only spends on average $4. The ideal Starbuck’s customer would be the customer that visits a Starbuck’s at least eight times a month. PESTEL analysis page 1. Product mixes vary depending on the stores size and location; however, most stores offer a variety of pastries, sodas, juices, coffee-related accessories and equipment, CDs, games, and seasonal novelty items. Starbucks offered the highest-quality coffee in the world and controlled much of the supply chain as possible to help insure that. Starbucks’ revenue has already dropped. For creating a comprehensive Starbucks supply chain case study, you must understand the critical aspects and dimensions associated with it. They have a more consistent customer base, they have the ability to have personal interaction or relationships, and just by percentages in one city or town there is only going to be so many from the elite circle that can shop in that category. 3. These customers make up 62% of all Starbuck’s transactions.If the number of customers who visited this often increased, sales would increase tremendously. Also, Starbucks is measuring much on how people view the company, as trying to expand and make more money, rather than how people view the coffee. Starbucks Corporation is an American coffee company and coffeehouse chain. CONTENTS. The first Starbucks location outside North America opened in Tokyo in 1996; overseas properties now constitute almost one-third of its stores. Starbucks Case Study Analysis. The company is considered to be the greatest monopolist on the market of coffeehouses and has a great number of cafes nearly in every country. No clear communication of value and values to customers. The second brand component was service, or what was also referred to as “customer intimacy. While customer service has declined some, the main issue that should be addressed is the view itself of the Starbucks organization.Describe the ideal Starbucks customer from a profitability standpoint. Starbucks Corporation is an American Coffee business. ” This phrase reflected the importance of keeping the national coffee culture alive. A Starbucks case study analysis is, no doubt a cumbersome task without the right guidance. Let me give you a quick outline of the kinds of analysis that I frequently get from my students. From a Starbuck’s survey in 2002, a clean store was the number one factor leading to customer satisfaction, with 83%. Akarsh Dave 3. Is it possible for a mega brand to deliver customer intimacy? 2. It is still difficult to create it, but those upper crust stores would have more of a shot than a store like Belk’s where there are all sorts of customers.Have a membership card to accumulate points and become a golden, silver, diamond starbucks member. Christine Day, SSP of Administration, Is proposing that a significant investment In labor hours will Improve the customer experience at Cataracts’ retail stores which will […]. Product Analysis. Here, at ACaseStudy.com, we deliver professionally written papers, and the best grades for you from your professors are guaranteed! The history of Starbucks id quite […], ————————————————- ————————————————- ————————————————- ————————————————- ————————————————- ————————————————- ————————————————- Starbucks COFFEE COMPANY Case Study History of Starbucks in the Philippines December 4, 1997, the Philippines had its first taste of the Starbucks Experience with its very first branch at the 6750 Ayala Building in Makati City. Starbucks SWOT analysis is an analytical study of the company’s strengths, weaknesses, opportunities and threats, in the internal and external business environment. Starbucks-Part 1 Case Study 852 Words | 4 Pages Case 1 (Starbucks - Part 1) a) The nature of Starbucks’ business is to generate income based on operating activities. The nature of the Starbuck’s sustainability report will focus on the constructive and progressive strategies in order to promote works like recycling, waste reduction and the […], Starbucks Case Study: Starbucks is the name of the American company, which owns a range of coffeehouses which sell coffee all over the world. Starbucks was founded in Seattle, Washington in 1971. The customer is changing away from the established high-income business- woman, who has more disposable income for high-quality coffee.The typical Starbuck’s customer that has grown into existence, in the late 1990’s and early 2000’s, tends to be “younger, less well-educated, and in a lower income bracket”. Starbucks was established in Seattle, Washington in 1971. However, wait time is steadily increasing. They have been doing things differently ever since, including customer loyalty. STEP 4: SWOT Analysis of the Starbucks Singapore HBR Case Solution: SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. This SWOT analysis examines Starbucks, a global roaster of coffee beans and retail coffee house chain with locations in countries all over the world. There were also three components to the branding strategy.The first component was simply the coffee. New products were launched on a regular basis, such as one new hot beverage every holiday season. STARBUCKS CRITICAL ANALYSIS 4 Introduction The report's main aim is to assess Starbucks Corporation as an independent consulting firm. Therefore, having a satisfied customer is very valuable to Starbuck’s and its sales. The coffee culture in Australia is both mature and sophisticated. 11. Going the whole way with the labor is very risky. Creating customer loyalty has proved to be the reason behind the bulk of Starbuck’s transactions because the highly satisfied customer is the loyal customer. STARBUCKS HISTORY 03 The name was inspired by Herman Melville’s classic novel Moby Dick’s first mate. Resource Audit page 6. The report will explore the SWOT, PESTLE and another approach analysis’s to enable the consulting firm to produce an in depth analysis of Starbucks Corporation. SWOT analysis page 8. What factors accounted for the extra-ordinary success of Starbucks in the early 1990s? To ensure that the customer is ighly satisfied with every element of their Starbucks experience, there are a few key factors, aside from the coffee itself that the Starbuck’s stores and its employees must exhibit. Rishikesh Huddar 5. Why have Starbucks’ customer satisfaction scores declined?Customer satisfaction declined because there was very little image or product differentiation between starbucks and the smaller coffee chains. Value system analysis page 7. Starbucks owns nearly one-third of America’s coffee bars, which is more than its next five biggest competitors combined. Focused on service and the partners 6. Core competences page 8. It is crucial that Starbuck’s maintain customer satisfaction to keep these loyal customers coming back. From sourcing beans to roasting and making coffee. Due to the economic downturn and increased competition from large quick-service restaurant chains and specialty retailers, the company saw its profits being eroded. However, there was a significant differentiation between Starbucks and the independent specialty coffeehouses. Pike Place Market, Elliott Bay, Seattle, Washington, U.S. 2401 Utah Avenue South, 1 Strategic Marketing Planning of Starbucks Coffee® A Case Study Angelito Estrada Christian Angeles Presented by 2. 11 Internal Analysis When analyzing Starbucks’ case, the internal analysis part required that we distinguish between Starbucks’ tangible and … With Starbuck’s concentrating mainly on value, customer satisfaction, and atmosphere, there was little room for low prices. In the United States, specialty coffee sector accounts for approximately 15% of the total retail coffee market which is equivalent to $21billion. 7/25/15 Starbucks Case Study I chose to do a case analysis on Starbucks because I am a huge fan, as a college student I am addicted to caffeine and Starbucks is how I get my caffeine fix! Therefore it was important to provide a comfortable atmosphere that allowed a sense of community. Chetan Agarwal 4. This option would propose implementing more labor, but testing out the effects in certain urban stores worldwide. Starbucks wants their employees to remember the loyal or frequent customers’ names and orders, have conversations with customers, etc. Overall, customers are pleased with the cleanliness, atmosphere, and product quality. Branched and started serving other products ( sodas, pastries, juices etc…) 10.Distributed through other channels – food service, domestic retail, partnerships, online and mail. Starbucks found customers would leave the store if they had to wait for the coffee, and if they can cut service time then more customers would be served. Starbucks Corporation is an American coffee company and coffeehouse chain. According to the financial analysis in this case study Starbucks has two problems: inventory management and financial leverage. Starbucks SWOT analysis reveals how the largest coffee chain in the world uses its competitive advantages to continue growing so successfully all over the world. Convenience is the next factor leading to customer satisfaction, with 77%. Taking care of the partners ( health insurance and stock options, promoting from within) Many factors accounted for the extra-ordinary success of Starbucks in the early 1990’s. Would you like to get a custom case study? 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. Starbucks has about 182,000 employees across 19,767 company operated & licensed stores in 62 countries. By continuing we’ll assume you board with our, Starbucks and their Efforts in Sustainability. On December 1, 2016, Howard Schultz announced he would resign as CEO effective April 2017 and would be replaced by Kevin Johnson. How Starbucks Conquered The Coffee Industry [Starbucks Case Study] Devashish Shrivastava July 14, 2020. CURRENT SITUATION • Current Performance Profitable financials The best specialty coffee retailer in the world Starbucks serves more than 40million customers per week with 85% derived from retail itself There is a constant and continued increase in … These higher prices were not an issue during the 1990’s, but the customer base is rapidly evolving. 1. by 1992 Starbucks had 140 stores and was competing against small scale coffee 2. Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons. It shows the cash cows as the regular Starbucks line of Coffee’s, Latte’s and Frappacinos found at nearly every location. If a store appears clean and has a high sanitation grade, customers will be assured that what they are consuming has been made from and kept in a clean environment. While some people go to Starbucks for the experience, many people get their coffee and are out the door. 9. From a retail perspective, this meant creating an “experience” that people would want to incorporate into their everyday lives. What brand image did Starbucks develop during this period? Without the 21% of customers, averaging eighteen visits a month, Starbuck’s would lose 62% of all its transactions. As of 2018, the company operates 28,218 locations worldwide. However, if the cost is the exceeding the profit, then it would easier to cut back.What is the goal of this investment? Starbucks Case Analysis. The behaviour also, as most customers visit the store only 5 times a month. Customer behavior and shift in customer base are major factors for this decline in servive satisfaction. We use cookies to give you the best experience possible. Starbucks Case Solution,Starbucks Case Analysis, Starbucks Case Study Solution, Starbucks faced with the question of how it should use its core competencies against various opportunities for growth, including introducing its coffee in 3.1 Background of the study Starbucks is the world’s largest coffee service. Donations can be made in increments of 1,000, 5,000, 10,000, 50,000 and 100,000 points. Almost no spending in marketing 4. ” This included simple things such as remembering someone’s name or drink order. Profitability can be improved by growing revenues, decreasing expenses, or, In a best case scenario, doing both. Despite an initial economic downturn with its expansion into the Midwest and British Columbia in the late 1980s, the company experienced revitalized prosperity with its entry into California in the early 1990s. From the above analysis, a number of strengths, weaknesses, opportunities, and threats in relation to Starbucks are evident as shown below: Strengths Brand recognition- The firm’s main focus is to deliver high quality products to itscustomers Starbucks ensures that it sources quality coffee beans. Has the company’s service declined or is it simply measuring satisfaction the wrong way? This allowed the Starbucks’ brand to be recognized not only in freestanding Starbucks stores, but also throughout other channels as well increasing their brand awareness. I am a gold card member with Starbucks meaning, I drink so much of their coffee they rewarded me as a … Starbucks is considered the main representative of “second wave coffee”, initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience while popularizing darkly roasted coffee. Starbucks was founded in Seattle, Washington in 1971. The satisfaction level of customers also varies with the type of customer. Conducted research shows though that customers in this bracket visit much more than eight times a month, with the number of visits per month averaging eighteen. Therefore, wait time is exceedingly important. Created ambiences with universal appeal 7. Research shows that customers who visit only one to two times per month only generate a measly11% of all Starbucks transactions. Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select “Starbucks Evenings” locations offer beer, wine, and appetizers. Starbucks has been depicted as the fundamental delegate of "second wave … With different perks to each card whenever swiped the cashier would know the preferred coffee product and how many points they have, also basic info such as name and birthday!. Starbucks found customers would leave the store if they had to wait for the coffee, and if they can cut service time then more customers would be served. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery stores. This case study analysis focuses on the identification and examination of the forces in the competitive environment surrounding Starbucks and the company's ability in relation to the coffee industry. This paper involves the analysis of the Case and identifying the various concepts that are related to service marketing in Starbucks. Case study on Starbucks Coffee. In 2009 they made strives socially as they opened the Farmer Support Center in Ki-gali, Rwanda and became the world’s largest buyer of Fair Trade CertifiedTM coffee. CASE STUDY: STARBUCKS KATHLEEN LEE 2 Updated history and Current Status Today, according to the Starbucks website, they have 16,706 stores (as of Dec. 27, 2009) in 50 countries. Starbucks product line has grown to include fresh brewed coffee, hot and iced espresso beverages, coffee and non coffee blended beverages, Tazo tea, baked pastries, sandwiches, and salads. Starbucks brand image was becoming more about the growth plans of Starbucks rather than the value they wanted to provide to their customers. It is no surprise that lower prices are not one of Starbuck’s values that lead to its success. Introduction page 1. 3 years ago by Alex McEachern • 7 min read Starbucks has been credited with revolutionizing the coffee industry. Should Starbucks make the $40 million investment in labor in the stores? Starbucks also sold products through non-company-operated retail stores such as hotels, airlines, and restaurants.Additionally Starbucks formed joint ventures to distribute a bottled frappuccino thru Pepsi-Cola and an ice cream thru Dreyer’s Grand Ice Cream. 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