COMM 3045
A Crack in the Mug - Can Starbucks mend it?
Case Study
Prepared for:
Professor Pat Gardner
Group Members:
Kim Denis
Tomas Lee
Xame Chan
Paul Stevens Table of Contents
1. Executive Summary 3
2. Problem Statement 4
3. Company Objectives 4
4. Company Background 4
5. Analysis 5-7
5.1. SWOT Analysis 5
5.2. Market Analysis 6
5.3. Competitive Analysis 7
6. Key Factors 7-8
6.1. Key Opportunities 7
6.2. Key successes 7
6.3. Key Uncertainties 8
7. Alternatives 9-11
7.1. Alternative 1 9
7.2. Alternative 2 10
7.3. Alternative 3 10
8. Recommendations 10-11
9. Action Plan 12
10. Contingency Plan 12
1. Executive Summary
In this examination of the problem, a SWOT analysis was prepared, followed by a market and competitive analysis, and a map with customer’s perceptions. In addition, the key factors were identified into opportunities, successes, and uncertainties. Finally, contingencies on this plan have been addressed.
Based on the analysis, three alternatives were identified:
• Alternative 1:
• Alternative 2:
• Alternative 3:
We recommend offering a combined approach described in alternative three. This approach advises using
2. Problem Statement
Company founder, Howard Shultz has been reinstated as the CEO of Starbucks in January 2008 as a measure to get the company back on track. Schultz must decide how to turn the tide of shareholder reluctance and customer resistance.
3. Company Objectives
Starbucks wishes to provide a good quality coffee product to its customers and provide them with a club like atmosphere where they can relax.
They have an ethical environmental and social commitment. Policies include: farmer equity , fair trade coffee, charitable contributions , volunteerism, conservation of resources, promotion of diversity and inclusion in respect of workforce location , purchasing and employment