Starbucks Essay

848 words - 4 pages

Group 10 MARK247 Case: Starbucks
Questions for Discussion

1. What factors accounted or the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? (team 9, 10 & 11)
• Factors: It is own value, creating an uplifting experience every time customers walk through the door; located in high traffic, high visibility, retail centre. Innovation e.g. set up an espresso bar in their downtown Seattle shop. Specialty coffee, premium, 50% sales of beans. Relax consumer – intimacy – baristas, knowing customer’s name and drink  hard skills & soft skill; atmosphere  furnishing, ...view middle of the document...

• Measuring satisfaction the wrong way: didn’t differentiate frequent buyer and non- frequent buyer
• Metrics for judging stores: speed – 3 mins goal; clean; friendly/ service oriented (great service); product quality/ complexity.  speed and great service/ speed and product quality/ complexity:: not consistent.
• Inexperience managers + new customers + product complexity = long lines grumpy employees  grumpy customers  lower satisfaction.
• New customers: younger, less well educated, lower income, 1st experience with Starbucks not in Starbucks coffee shop. Consumption pattern: less frequent, don’t linger, coffee on the run, established customers might also be new customers. Brand perceptions/ image: less positive image of company.
3. How does the Starbucks of 2002 differ from the Starbucks of 1992? (team 4, 5 & 6)
• 1992: 140 stores in North West and Chicago; selling whole bean and premium prices beverage; target customer group  affluent, well-educated, white collar female between the age of 24 to 44; before 1992, company not yet public.
• 2002: customer base, younger, less well educated and in a lower income bracket; 5000 stores around the globe, average 3 new stores a day; these stores sold rich brewed coffees, Italian-style espresso drinks, cold blended beverages, and premium teas; provided different product mix such as pastries and coffee related accessories and equipment, depending on the store size.
4. Describe the ideal Starbucks customer from a profitability standpoint. What would it take to ensure that this customer is highly satisfied customer to Starbucks? (team 7 & 8)
• Ideal Starbucks customer: affluent, well-educated, white collar female between the age of 24 to 44.
• Actions to be taken: Meet the customer...

Other Essays Like Starbucks

Starbucks Essay

1484 words - 6 pages I.Branches in the world and Vietnam: Starbucks is the largest coffeehouse company in the world ahead, with 21,160 stores in 63 countries and territories, including 12,067 in the United States, 1,570 in China, 1,451 in Canada, 1,070 inJapan and 793 in the United Kingdom. From Starbucks' founding in 1971 as a Seattle coffee bean roaster and retailer, the company has expanded rapidly. Since 1987, Starbucks has opened on average two new

Starbucks Essay

670 words - 3 pages Starbucks is one of the most famous companies among coffee industry in the world. There are 20,366 stores in more than 50 countries and 1,299 in the UK. The firm was built by Jerry Baldwin, Zev Siegl and Gordon Bowker selling coffee beans and brewing and roasting equipment, they did not sell brewing coffee. It was started at Seattle which is in Washington, U.S.A in 1871. Pequod is the first name of the firm but some of co-founder rejected it


2817 words - 12 pages Final Project: Company Analysis Company: Starbucks Corporation Critical Thinking Question: Can Starbucks meet its projected ultimate growth? Bruce Harris BMGT 327-01 Organizational Theory and Behavior Dr. Susan Eisner Winter 2005 Semester Tuesday January 25, 2005 To: Professor S. Eisner From: Bruce Harris Date: Tuesday, January 25, 2005 Re: Final Project (Option 2) – Company Analysis – Starbucks Corp. Introduction: Starbucks Corp. has

Starbucks - 1104 words

1104 words - 5 pages Introduction Starbucks has evolved over the years into a retail giant, branching out into new areas and partnering with other giants to get their brand to the masses. There are several reasons why Starbucks is on top of their market, one being the meticulous attention they pay to details. Starbucks prides itself in providing the highest quality product with excellent customer service. Coffee beans were imported from all over the world and

Starbucks - 688 words

688 words - 3 pages [pic] Starbucks Corporation Introduction The Starbucks Corporation is the leading retailer, roaster and brand of specially coffee in the world. The first outlet was opened in Seattle in 1971 and international expansion started with the opening of a coffee shop in Japan in 1996. Entry into the UK occurred in 1998, with the opening of 65 coffee shops . By early 2007, the company had opened

Starbucks - 1492 words

1492 words - 6 pages In forecasting the financial statements for Starbucks, we started by understanding its core business strategy and the industry in which it is active. Starbucks is not only a premier coffee establishment, but also one that prides itself on the total “Starbucks Experience”. It offers its customer’s products that are priced well above average, yet conversely provides other value through its superior customer service and location décor. A Porter’s

Starbucks - 956 words

956 words - 4 pages Sales growth of 5% for the 11th consecutive year seemed to support Schultz’s belief that Starbucks was close to a recession proof product, however market research findings appeared to portray a different picture. According to research findings, Starbucks was not always meeting customers’ expectations in terms of customer satisfaction. Planning to take corrective action in order to improve speed-of-service and thereby increasing customer

Starbucks - 2072 words


Starbucks - 742 words

742 words - 3 pages * CEO: Orin Smith (A Harvard MBA who joined 1990) Chairman * Chief Global Strategist: Schultz CRM SECTION A 2 3. Problem Statement Starbucks failed to meet customer expectations and deliver satisfaction thereby losing customer loyalty whether to invest the $40 million dollars to enhance the labour in each store? If invested, how it will impact the sales and profitability? CRM SECTION A 3 4. Factors responsible for the early success of

Starbucks - 1233 words

1233 words - 5 pages Starbucks Case Assignment Questions 1. What was Howard Schultz’s original strategic vision for Starbucks? Is his 2010 strategic vision for Starbucks different from the one he had in the 1980s? How many times has his strategic vision changed? Is his present strategic vision likely to undergo further evolution? Howard original strategic vision was to allow Starbuck to become a national company with values and guiding principles that

Starbucks Destep

665 words - 3 pages Management Principles Assignment for week 4: Environment of organizations Keywords: environmental influences, DESTEP factors, environmental scanning Analyse the external factors for one of the following companies: -Hilton -ISS -Starbucks -British Airways Each group is supposed to prepare a short ppt (on usb-stick) and present the outcomes in next week’s class. Starbucks Environmental influences: Starbucks

Related Papers

Starbucks Essay 974 Words

974 words - 4 pages Abstract This paper will give a brief description of the Starbucks Coffee Corporation. This paper will also discuss the six components of Starbucks organization’s supply chain. This paper will also discuss the potential problems with the supply chains and what could be used to prevent the problems. This paper will show control chart with the global operational processes. Lastly, this paper will address the importance of quality management and

Starbucks Essay 598 Words

598 words - 3 pages Primary problem: The primary problem that Starbucks is facing in this case is successful and sustainable international expansion. The coffee chain is already dealing is overcrowded US market. In order to continue its trend of high revenue and profit growth Starbucks will have to depend on its international stores. Starbucks has to not only successfully enter more foreign markets, but it has to be able to achieve sustainable growth and loyal

Starbucks Essay 899 Words

899 words - 4 pages The Spotlight on Starbucks Many years ago a young businesswoman traveled by plane on a business trip. The plan was bumpy, rocky, and nerve racking. She was exhausted and thirty after the plane land. There shined a cozy shop in a corner of the Airport walking area. It was called Starbucks she had never heard of this place but she loved coffee and optimistic about the new crowded place. She tried a tall black coffee with 6 raw sugars and a

Starbucks Essay 1518 Words

1518 words - 7 pages Starbucks Corporation: Case Study in Motivation and Teamwork Because of rapid globalization over recent years, competition around the world becomes more intense, especially for the service industry with similar products. The most critical point for business to achieve success is not only the quality of products they supply, but the atmosphere of cooperating and the amount yielded from teamwork in retail sales. Therefore, it turns out to be