Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”. Customer satisfaction is at the core of their actions in every step of their supply chain. The company offers different products in their stores, letting the customers decide whether to consume them …show more content…
The first one is the coffee, as the company strives to get the best quality coffee to provide the best experience for their customers and deliver their value proposition. Indeed, to assure this high-quality Starbuck controls as much of the supply chain as possible. The company implemented a strategy that insures the same process in each of its facilities. They have a strict supplier policy and very few facilities to roast the coffee beans to be able to supervise the whole process and make sure that each bean and packaging is done the same way. This reinforces the intent on competitiveness as they have a control over their supply chain and create value throughout every step of the process. To decrease the complexity of the process, Starbucks has a set of suppliers that have specific locations to deliver their coffee beans to, allowing them to control the production. This is due to their highly-centralised processes that enables Starbucks to control their global networks. Another component of their value proposition is the service. The process of their customer service follows a pattern that is common to every Starbucks Coffee Shop in the world. This process helps them deliver their value proposition through four different and simple aspects which are to create the perfect product, to deliver this product in a short period of time, the caring product delivery and finally the adoption of effective problem-resolution procedure. As the competitive advantage of the company is to differentiate by delivering a unique customer experience by focusing on those four aspects Starbucks ensures that their process deliver their value proposition. The key aspect of their operations in store relates to personalisation and customisation of products as well
Having a good customer satisfaction will help increase their customer base, which will increase revenue and allow more profit and this will give the business a good name and reputation. Customer satisfaction means the level of how pleased your customers are. Tesco ensures they have great customer satisfaction by training their employees to the best
The company segments its market on base of demographics, geographic and behavioral. • Exclusive high quality and green products sold by the company • Exceptional customer service offered by the employees at all the
Starbucks and Tim Hortons Nowadays, the number of coffee drinkers are increasing. As the demand for coffee grows, the number of coffee chains is also increasing. Of that, the representative coffee chains in North America are Starbucks and Tim Hortons. Starbucks has the highest brand awareness amongst the world coffee chains. It started in Seattle, the United State in 1971.
Highest Quality of Products Starbucks gives the highest importance to the quality of their products and avoid standardization of their quality even for higher production
They do achieve customer satisfaction by the experience of their customers when finding a good quality
Meanwhile, many consumers dislike ‘super size’ high sugar/fat mentality of America (Julie Anne Allan, 2015). Therefore, it should promote smaller drinks. Australian coffee drinkers are discerning and think highly quality of coffee. It should change the previous model of vacuum-packaged and push bottom coffee but employs professional barista to provide full-barista service, and give consumers augmented sensory benefits of watching grinding and ritualistic preparation of coffee, and hedonic aroma (Benedict Brook, 2016). Starbucks’ previous value proposition is unique customer experience and servicescape.
Political • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation. Economic • High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver.
At the regional level, Howard Schultz tracks that each shop which he opens will be developed respectively, depending on the location. It is caused by the fact that he believes that employees in different regions have own and distinctive preferences and methods of operation. These factors influence design, the main project of shop and internal processes of operation. It is brightly shown in operation of Starbucks teams with suppliers. They are open for suppliers who belong to various communities which include the Asian-Indian Americans, the Afro-Americans, physically disabled people, and
(Jacoby, 1971; Jarvis & Wilcox, 1976). Dick and Basu (1994) propose that customer will be loyalty to the brand is the result of psychological processes and has behavioral manifestations. Therefore it should incorporate both attitudinal and behavioral. Satisfaction is recognized as an important element for loyalty in both the consumers and business marketing. Satisfaction with previous purchase experiences plays an important role in determining the future purchase behaviors particularly call as an effort-minimization strategy (Jones and Suh, 2000: Pritchard et al, 1999).
Starbucks sells high quality food and brands for affordable prices. Recently, the company launched a wine collection in addition to the coffee. Now, customers can enjoy a coffee in the morning and a wine after work. This strategy will bring more revenue to the company and will put the Starbucks on the map with other great small shops. The brand has also positioned itself best coffee brand in the market by providing attractive store design, unique environment, elegant taste and high quality coffee beans (Kotler & Keller, 2009).
Therefore, it is essential for Starbucks to establish different platforms to share their company information to different stakeholders in order to let them realize the current business situation of Starbucks. In the following paragraphs, we would introduce the
The brand name of the Starbuck is popular are no longer depending on the quality of the coffee only, but also the customer service. A study shown that the turnover rate of employee at Starbuck was 65% which compare to the other national chain retailer with the average range of 150% to 400%. This indicates that Starbuck have a good work environment that allows them to retain employees and emphasized in term of the employee motivation. One of the motivation theory that Starbuck had been applied is the Maslow’s need hierarchy theory.
Literature review Introduction Within this chapter I will discuss customer service and its benefits. What Customer Loyalty is and factors that influence customer loyalty and rewards. What is Customer Service The concept of Customer service can be multifactorial, but I feel that ultimately it involves customer’s satisfaction and how companies strive to retain their customer base by implementing certain customer service procedures to keep the customer happy, in the hope that they can retain their custom and that the customer will then spread the news about the excellent service that was provided by the company.
Summarize the overall strategy of Starbucks Management in its effort to create and develop a new concept and a rapidly expanding company. The overall goal of Starbucks Management was to create an American version of the Italian coffee bars that Howard Schultz had experienced first-hand in Milan. He believed that Starbucks should function as an important part of the community, as a meeting place for its customers. He wanted Starbucks to become an experience that would differentiate itself from its competitors.
In order to avoid Starbucks in the process of mistakes, so rely on the procedure responsible for ensuring that there is no conflict between the strategy and policy, so that every action Starbucks can proceed smoothly Human Resource Cycle Recruitment & Selection Starbucks will be based on the existing staff of the generous conditions to develop employment requirements and selection criteria. Starbucks will require that candidates be polite, have the potential to provide customers with quality service, to ensure that the basic performance of the service. The Starbucks selection criteria will hope candidates have a strong learning ability and can continue to learn in the workplace as their current employees