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... [continues]
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