Critique: Starbuck’s: Delivering Customer Service
Starbucks: Delivering Customer Service is a Harvard Business School Case Study focusing on Christine Day’s final recommendation to CEO’s Howard Schultz and Orin Smith in which the Starbucks Company would make a forty million dollar investment into the large coffee chain in order to improve customer satisfaction. As senior vice president of administration in North America, Day understood that the relationship between speed-of-service and customer satisfaction was suffering and leading to inefficiencies causing the customer to become dissatisfied. The case study is the journey of Starbucks from its inception to the time the case study was published in 2006 with details covering various aspects of the business. It was compiled by Youngme Moon and John Quelch, both professors at the Harvard Business School, and experts in their respective fields of study and was developed solely for the purpose of class discussion. Christine Day had concluded that there was an important mutual relationship between improved speed-of service and customer satisfaction. With the forty million dollar investment equating to an additional 20 hours of labor per store, she believed that this would allow for this objective to be met. As Day reflected on the recent performance data of the company, she was not as optimistic as the chairman, Howard Schlutz. The chairman had stated, “I think we’ve demonstrated that we are close to a recession-proof product” but according to recent market research Starbucks was not up to par when it came to customer satisfaction. Looking into the company background, it is evident that Starbucks’ success began with their main focus on the customer, and the company needed to realize that they had started to lose focus on the customer. Starbucks had always focused on the experience surrounding the consumption of coffee and this is best described through their brand strategy “live coffee.” They had three main...
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