1.1 Background of the assignment
Coffee is one of the world's most popular beverages. Some claim it is the most widely consumed liquid in the world aside from water. Coffee is more than a beverage, however. It is a memory, anticipation, a lifetime of consoling moments of modest pleasure woven into our lives. Coffee's success as a beverage undoubtedly owes both to the caffeine it harbors and to its sensory pleasure. Coffee lovers come to associate the energizing lift of the caffeine with the richness and aroma of the beverage that delivers it.Coffee is produced from the seeds of a small red (sometimes yellow) fruit that grows on plants halfway in size between shrub and tree. The process that turns these seeds into beverage is a long and complex process, perhaps the most complex process associated with any major beverage. It is also a very labor intensive process involving a vast intercontinental collaboration that starts with the coffee grower, moves from there to the picker, then to the mill workers who meticulously remove the fruit and dry the beans, then to those who clean and grade the beans, to those who roast them, to those consumers and baristas who finally grind the beans and prepare the beverage. Every act along the way can be performed either with passion and precision or with careless shoddiness. It is the cumulative quality of all of these creative contributions that together make the difference between a lackluster cup and a fine and distinctive one Starbucks, a corporation that has grown since its retail inception in 1982 to reach global stardom with over 6,000 shops worldwide, it is truly one of the most successful business ventures to-date.Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment - primarily through its company-operated retail stores. In addition to sales through our company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino® coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company. The Company's objective is to establish Starbucks as the most recognized and respected brand in the world. To achieve this goal, the Company plans to continue to rapidly expand its retail operations, grow its specialty sales and other operations, and selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels. The competitor is Gloria Jean’s Coffee was franchising in 1998, and opened 185 stores within 6 years where all are locally owned and operated by more than 100 franchisees. By 2003, Gloria Jean’s Coffee has established stores in every state of Australia. The company has opened 906 stores and signed 34 Master Franchise agreements across 33 countries worldwide, its strength is built upon a strong recognized brand synonymous with coffee quality and industry leading franchise systems. Gloria Jean’s Coffees has played a major role in the development and growth of the retail coffee market in Australia. Our team of Franchise Partners is passionate about the brand and its products, and has the dedication and determination to succeed. To meet the rapid global expansion, the corporation unwillingly had compromised on some of its key success factors. This paper will examine these factors from the customer’s point, and how essential are they for Starbucks and Gloria Jean’s Coffee to retain its current customers.
1.2 Objectives of the assignment
The objective of this assignment is to achieve:
1) Analyze company A background STARBUCK COFFEE