Preview

Starbucks

Satisfactory Essays
Open Document
Open Document
340 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks
Starbucks: Delivering Customer Service
This case study is about how Christine Day, who is the Vice president of Starbucks trying to deliver her plan to improve Starbucks customer satisfaction score. Starbucks was performing at a rate of 5% or higher sales growth in 11 consecutive years. However, Day and her associates discovered in most recent market research that, Starbucks was not always meeting its customer’s expectations in customer satisfaction.
Day and her associates discussed and came to proposition to invest $40 million per year in all 4500 stores of the company, which will give each store at an extra 20 hours of labor per week. This initiative will improve speed of service and as a result of this customer satisfaction will be increased. Day was due to make a final recommendation in two days to both Schultz, founder and chairman and Orin Smith, CEO of the company about how company should move forward with this proposition.
Day had asked her associates to prepare implications of the plan and noticed this case study discuss about the company’s back ground, brand strategy, service, competition and market research. This case study talks, how Howard Schultz managed and transformed Starbucks into a cultural trend, how he expanded Starbucks all the America and then to Globe. Then the case study discuss about, Starbucks value proposition and its strategy to capture market. Starbucks followed “Live coffee” as its brand strategy and almost all of Starbucks’s locations in America were company operated stores located in high traffic are, high visibility settings such as retail centers, office buildings and university campuses. This case study also discusses about the services provided by Starbucks and it talks about trainings provided to the employees to maintain good service, cleanliness, product quality and speed of service. It also discusses about competition.
On the whole, this is a decision case study. Both Schultz and Orin Smith had to make a decision

You May Also Find These Documents Helpful

  • Best Essays

    Starbucks the known name in the world of coffee business had started off with little company which now has transformed in a successful corporation. This brand has gained remarkable success over period of time and has proved itself as a reputable coffee provider in term of taste and quality. The major contribution in this success was their aggressive expansions strategies. These strategies have enabled them to develop a dense chain of stores not only in America but all over the world. Their strategic approach towards the business has enabled them to gain value of $12 billion in 2008 from $2.9 billion in 1998 (Higbee, Liaw, Ting, Tjho, ton, 2008).…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    Howard Shultz

    • 1157 Words
    • 5 Pages

    As Cameron et al contend, Schultz took Starbucks and changed it from “a mature commodity business...into a lucrative, fast-growing business where the market share was stolen from the big three wholesale competitors” (154). Under the collaborative leadership of Schultz, the Starbucks organization empowers the people who work in the cafes. Employees are provided continuous encouragement, feedback, and recognition for their achievements.…

    • 1157 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Starbucks

    • 1215 Words
    • 5 Pages

    While discussing about the business ethics and corporate social responsibility (CSR) of any business organization, it is necessary to mention that although both the concepts might overlap each other as far as their operations are concerned, yet their goals remain the same for the organization. While ethics involve the individual actions within an organization, the CSR constitutes the organization’s performances and activities as a whole that have direct influence on its stakeholders, customers as well as on the environment. In the present times, organizations are found to have become more concerned about CSR and thus several measures can be found to be considered in this regard (Mullerat, 2010, p.48). The present study focuses on learning about the CSR activities of Starbucks Company and the different issues that the organization addresses.…

    • 1215 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Starbucks

    • 684 Words
    • 3 Pages

    AA, which makes their k d 5.28%. The corporate tax rate ( T ) for…

    • 684 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    The Starbucks Corporation is well known for its strong positive culture and a willingness to adapt and change. “Starbucks has rearranged their organizational structure to better accommodate customer satisfaction. The CEO of Starbucks announced expansion of their matrix organizational structure last month, They will operate under four U.S. divisions including Western/Pacific, Northwest/Mountain, Southeast/Plains and Northeast/Atlantic” (Starbucks Corporation, 2008). This decision was made when Howard Schultz, founder of Starbucks, returned to the helm as President, CEO, and Chairman. His enthusiasm to bring Starbucks back to its core – all things coffee – and a renewed focus on the customer experience was the driving force behind this reorganization. In one of many e-mails sent to all Starbucks partners, Schultz said, “I pledge to communicate with you about our efforts to improve the currents state of our U.S. Business, reignite the emotional attachment with our customers and make foundational changes to our business; and I have done so in six previous emails” (Schultz, 2008).…

    • 2461 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Starbucks

    • 615 Words
    • 3 Pages

    StarStarbucks mission is “…to establish Starbucks as the most recognized and respected brand in the world and become a national company with values and guiding principles that employees could be proud of…” However, this mission was threatened in 2008 when the company found itself in trouble with slow growth and profits. Determined to continue its mission, Starbucks reevaluated its resource-based model of returns and made some changes which resulted in increased revenue and above-average returns for the next three years.…

    • 615 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Starbucks

    • 565 Words
    • 3 Pages

    founder is Howard Schwartz. Starbucks is always a place where people can just go to relax and…

    • 565 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Starbucks

    • 433 Words
    • 2 Pages

    Schultz created a “third place”, among home and work, that people could come, relax and socialize. His prototype was the coffee shops he saw in Italy and he wanted create the same culture in United States. Also, at the time, coffee consumption was declining, so this was a quite radical idea. The goal was to create a coffee culture, offering people a variety of quailty coffees in a friendly and sociable environment. The service was also very important. They needed to combine this coffee culture with great service in oder to achieve high customer satisfaction. To do this, they gave a lot of importance to the employers, which were called partners. Starbucks knew they first needed to satisfy the employees, so that the employees could satisfy the customers, so they created a good working environment and offered good salaries with insurance. They trained the employees not only on things like how to fix the drinks, or how to use the register, but they also trained them on how to connect with the customer. This way, they achieved a low rate of employee tornover, as well as a high rate of customer satisfaction.…

    • 433 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Starbucks

    • 1707 Words
    • 7 Pages

    In 1971 an english teacher a history teacher and a writer were inspired from the their love of coffee to open a coffee house. They first started by selling just the beans but then they moved on to brew the coffee. Based out of Seattle Washington, this small coffee house name Starbucks grew from the ideas of a man named Howard Shultz. Howard bought into the company in the early 80’s after taking a trip to Italy and being inspired by their culture. His inspiration and ideas proved to be right, Seattle soon became crazy about about coffee and before you know it their was lattes and mochas in everyones hands. With the great demand and success in Washington Starbucks decides expand in North America. Immediately after that Starbucks decided to expand globally and become a publicly traded company. This made Starbucks on the first coffee houses to offer stock options and health benefits to all of its partners.…

    • 1707 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Starbucks

    • 669 Words
    • 3 Pages

    As Marthe has already said, there is a change in customer satisfaction of Starbucks between 1992 and 2002. In this part, I will explain the reason why Starbucks’ customer satisfaction scores declined. Has the company’s service declined, or is it simply measuring satisfaction the wrong way…

    • 669 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Starbucks

    • 690 Words
    • 3 Pages

    China contains large number of population. For Beijing’s Forbidden City, which is China’s top tourists attraction, as a destination of choice for both Chinese and foreign visitors, hosts millions of visitors each year. As evidence of the potential of the coffee market in China, domestic and international companies are selling high-priced reports on demand forecasts, trends, and development in the Chinese coffee market. Because the North America Market has been saturated, Starbucks continues to look farther afield for potential markets, highlighting an international focus in its mission. Chinese consumers want a Western experience. They have interest on and become excited about the environment, atmosphere and the fresh-brewed process brought by Starbucks.…

    • 690 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    [14] Pour your heart into it,How Starbucks Built a Company One Cup at a Time,Howard Schultz and Dori Jones Yang,Hyperion New York, 1997,p.305…

    • 2341 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Starbucks

    • 1093 Words
    • 5 Pages

    Starbucks is unique in the fact that every employee is called a “partner.” There are about 60,000 partners worldwide, and each one is given health insurance and stock options. This creates an extremely high employee satisfaction rate, and very low turnover rate. The special training that employees go through is also an important part of Starbucks’ image. They go through both hard skill and soft skill training. The hard skills focus on learning how to mix drinks, run the cash register, etc. The soft skills, on the other hand, teach partners how to connect more personally with customers. By learning skills such as starting conversations, remembering customer names, and keeping a smile all the time, Starbucks tries to promote a friendly and more personal environment.…

    • 1093 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Starbucks

    • 1394 Words
    • 5 Pages

    Starbucks is a coffee retailer that owns its own outlets and provides licenses to outsiders to open outlets. At these outlets, they provide premium coffee and food products while bringing, "the idea of the French and Italian cafe into the busy North American lifestyle." Ironically, while the idea was to bring the French and Italian cafe concept to North America, they have -- through international expansion -- brought this to idea to countries across the globe, including France and Italy. They operate three main segments worldwide: United States, International, & Global Consumer Products. The "Global Consumer Products" segment refers to prepared beverages, coffee beans, and other branded items sold at grocery outlets.…

    • 1394 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Starbucks Study Case

    • 494 Words
    • 2 Pages

    One thing that Schultz did immediately once he returned to be CEO again was to close nearly 1,000 stores that did not generate returns that were planned by the company. The reason for choosing to close down underperforming stores was part of a strategy where he wanted to reduce the costs such as operation costs which included labor costs, operations waste, while improving logistics in other profitable locations. Although many popular press came out with headlines such as "Starbucks Goes from Venti to Grande," Schultz focused on his cost saving strategy and as a result, Starbucks cut $580 million in operating costs by the year of 2009. Along with cutting cost, Schultz sought to improve the supply chain operations in the stores that were still opening, resulting in store orders being on time without errors experienced in the past.…

    • 494 Words
    • 2 Pages
    Good Essays