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Starbuck Corporation Case Anaylsis
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<span class="Apple-tab-span"> </span>1.<span class="Apple-tab-span"> </span>How did Starbucks create its uniqueness in the first place? Why was it so successful (until the mid-2000s)?</span></p> <p><span class="s1"></span> </p> <p><span class="s1">Starbucks created its uniqueness by delivering on two promises: customer service, and quality coffee. For example, when CEO Howard Schultz visited Milan, he was inspired by the high quality espresso and dynamic social experiences at Milanese espresso cafes, and sought to bring such a concept back to America. As a result, when he took over Starbucks, Schultz labored to ensure that baristas brewed great coffee from the best blends of ingredients, and made sure that they provided excellent customer service and a welcoming space for their customers. Starbucks baristas were told to write the names of their customers on their cups, to get to know the people they were serving, and to ensure that the teak-panelled, Scandinavian-designed cafes were always a comfortable, relaxing and welcoming space for its patrons to get quality, customized drinks, wherever in the world they were. Starbucks, under Schultz, also invested heavily in making each store the hub of a local neighborhood, and engaging with its customers, suppliers and partners, to ensure that the twin promises of great customer service and quality coffee were present in every store.<span class="Apple-converted-space"></span></span></p> <p><span class="s1"></span> </p> <p><span class="s1"><span class="Apple-tab-span"> </span>2.<span class="Apple-tab-span"> </span>Why and how did Starbucks lose its uniqueness and struggle in the mid-2000s?</span></p> <p><span class="s1"></span> </p> <p><span class="s1">Starbucks lost its uniqueness and struggled in the mid-2000s because it focused too heavily on improving efficiency, economies of scale and company growth at the cost of its two key value propositions of customer experience and quality coffee. Foremost, Starbucks tried to grow rapidly in the mid-2000s, and failed to ensure that adequate quality control measures were in place at each of its franchisee and licensee stores. This resulted in a lower customer experience quality across its stores, XXX significant XXXXX XXXXXXXXXX XXXXXX to XXX XXXXXXXXX brand. Secondly, Starbucks focused heavily XX XXXXXXXXX efficiency in its XXXXX XXXXXXXXXXXX, and XXXXXXXXX XX XXXXX in its production and supply XXXXXX, in a way that alienated XXX XXXXXXXXX XXX its suppliers. This XXXXXXXX in a lower quality of customer service, XXXXXX beans and produced XXXXXXX, XXXXX XXXX XXXXXXX the XXXX XXXXX propositions that had driven Starbucks to XXX XXXXXXX success. For example, XXXXXXXXX outlets became overcrowded, XXX baristas started focusing XX XXX XXXXX XX order delivery rather XXXX coffee quality. XXXX XXX its XXXXXXXXXX loyal clients XX XXXXXX XX XXXX XXXXXXXXX brands such as Peets XXX XXXXXXX XXXXXXX. XXX XXXXX XX which Starbucks introduced XXX products at this XXXX also XXXXXXX XXXXXXXXXXX XXXXXX, XXX XXX to overcomplicated XXXXX which XXXXXXXXX new and old struggled to understand. Baristas also XXXXXXXXX XX XXXX up XXXX XXX XXXXXXXXXXXX large XXXXXXX of products and customisation. XX a result, Starbucks’ customer service XXXXXXXXXXXX XXXXXXXX.<span XXXXX="XXXXX-XXXXXXXXX-XXXXX"></span></span></p> <p><span class="s1"></span> </p> <p><span class="XX"><span class="XXXXX-tab-span"> </span>3.<span class="Apple-tab-span"> </span>XXXX strategic initiatives XXX Howard Schultz put in XXXXX to re-create XXXXXXXXX’ XXXXXXXXXX XXXXX XXX XXXXXX in XXXX? XXXXXX each XXXXXXXXX XXXXXXXXXX. XXXXXXX why a XXXXXXXX XXXXXXXXX XXXXXXXXXX XXX XXXXXXXXXX.</span></p> <p><span XXXXX="s1"></span> </p> <p><span class="XX"></span> </p> <p><span class="s1" <XXX="" key="" XXXXXXXXX="" XXXXXXXXXXX="" XXXX="" XXXXXX="" XXXXXXX="" implemented="" XXXX="" in="" XXX="" XXXXX="" of="" customer="" service,="" XXXXXXXXX="" transformation,="" and="" XXXXXX="" responsibility.="">span XXXXX="Apple-converted-XXXXX"></span></p> <p><span class="s1"></span> </p> <p><span class="XX">Foremost, Schultz, XXXX his return, XXXXXX XX recenter XXX corporation’s XXXXX XX customer XXXXXXX. He XXXXXXXX XXXXXXX over X,XXX XXXXXXXXX XXXXXXXXXX to close for 24 hours, in order XXX XXXXXXXX to XXXXX how XX prepare quality espressos and recreate the XXXXXX XXXXXXXXX XXXXXXXXXX XXXX XXXX XXX XXXXX XXXXXXXXXX. He also introduced XXXXXXXXX XXX effective XXXXXXXX service guidelines such XX XXX ‘no XXXXXXXXXXXX’ rule, which ensured XXXX baristas XXXXXXX on the XXXXXXX XX XXX XXXXXX XXXX were making XX limiting them to making a XXXXXXX XX 2 drinks at a time.<span class="XXXXX-XXXXXXXXX-XXXXX"></span></span></p> <p><span class="XX"></span> </p> <p><span XXXXX="XX">XXXXXXXX, Schultz XXXXXX XXXXXXXXX transformation XX emphasizing XXX XXXXXXXXX attachment, XXXXXXXXXXXX XXX experience XXX XXXXXXX XXXXXXXXXX XXXX each XXXXXXXXX XXXXX had XX deliver in order XX be successful. XXXX XXXXXXX Starbucks XXXXXX XX once again XXXXXXX XXXX their XXXXXXXXX XXXXXXXXXXXX, XXXX XX their XXXXXXXXX, XXXXXXXXX and XXXXXXXXX, in order to XXXXXXX XX XXXXX promise XX XXXXXXX XXXXXX XXX great customer XXXXXXXXXX.<span class="Apple-converted-XXXXX"></span></span></p> <p><span class="s1"></span> </p> <p><span XXXXX="XX" <thirdly,="" schultz="" XXXXXXXXXX="" the="" XXXXXXX’s="" XXXXXXXXX="" XXXXXX="" XXXXX="" a="" XXXXXXXX="" responsible="" enterprise.="" XXXXX="" XXXXXXX,="" starbucks="" began="" to="" XXXXXXX="" same="" sex="" marriage,="" social="" equality,="" ethical="" XXXXXXXX="" of="" XXXXXX="" beans,="" affordable="" access="" XXXXXXXXXX="" and="" education,="" XXX="" organization="" (by="" XXXXXXXXXXXX="" $XX="" XXXXXXX="" fight="" hiv="" aids="" in="" africa),="" commitment="" hire="" military="" XXXXXXXX="" XXX-XXXXXX="" racial="" minority="" XXXXXXXXXXX.="" XXXX="" XXXXXX="" with="" community="" development="" XXXXXXXXXXXXX="" XXXXXX="" create="" XXXX="" for="" usa="" XXXXXXX,="" XXXXXXX="" fund="" XXXXXXXXX="" XXX="" XXXXXXXXX="" XXX="" an="" arizone="" XXXXX="" XXXXXXXXXX="" online="" course="" XXXXXX.="" XXXXX="" XXXXXXXXXXX="" XXXXXXXX="" hearts="" XXXXX="" starbucks’="" XXXXXXXXXXXX,="" XXXXXXX="" public="" reputation="" way="" XXXX="" XXXX="" demand="" XXXXXXXX="" rise.="">span class="XXXXX-XXXXXXXXX-space"></span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="XX"><span XXXXX="Apple-tab-span"> </span>4.<span XXXXX="XXXXX-tab-span"> </span>XX Howard XXXXXXX an effective strategic leader? Why or XXX XXX? Buttress your XXXXXXXXX.</span></p> <p><span class="XX"></span> </p> <p><span class="XX">XX effective strategic XXXXXX is a leader who XX able XX XXXXXXXX future XXXXXXXXXXX XXXXXX opportunities, XXX drive XXX or her company in XXX direction of those XXXXXXXXXXXXX XXXXXXX XXX XXXXXXXXX application of XXXXXXXXX XXXXXXXX. By this definition, Howard Schultz XX an XXXXXXXXX strategic leader XX he invested in social responsibility XXXXXXX as XXX XXXX XX Starbucks, XXX ensured XXXX XXXXXXXXX XXXXXXXX in the public XXX XX an XXXXXXX XXX sustainable XXXXXXXXXXX. Schultz did so XX XXXXXXXX strategic initiatives XXXX XX XXX XXXXXX and XXXXXX Equity (CAFE) practices, Fair XXXXX certified XXXXXX, Farmer Support Centers in Africa XXX XXX XXXXXXXXX, XXX Leadership in Energy and XXXXXXXXXXXXX XXXXXX (LEED) XXXXXXXXXXXXXX. This XXX effective in XXXXXXXX that XXXXXXXXX XXXXXXXXXXX on the opportunity of sustainable business, XX shown XX XXX rapid expansion of XXXXXX and XXXXXXXX in Exhibit X XXXX XXXX under Schultz’s XXXXXXXXXX, from under XX,XXX XXXXXX to XXXXXX XX,000 XXXXXX in XXX period XXXX XX 2016.<span class="Apple-XXXXXXXXX-XXXXX"></span></span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="XX"><span XXXXX="XXXXX-tab-span"> </span>X.<span XXXXX="XXXXX-tab-span"> </span>How XX Starbucks trying XX XXXX in XXX XXXXXX? What are its biggest challenges?</span></p> <p><span class="XX"></span> </p> <p><span XXXXX="XX">XXXXXXXXX XX XXXXXX XX XXXX through XXXXXXXXX into XXX high-XXX XXXX XXX XXXXXXXXX market, XXX the use XX XXXXXXXXXX XX deliver a seamless XXXXXXX experience. Foremost, Starbucks is trying XX XXXXX the high-XXX food market, and is XXXXXX toward XXXXX an evening XXXX-and-wine XXXXXXXXXXX, as XXXX as a super-high-end coffee XXXXX. Given that XXXXXXXXX has already XXXXX XX XXXXXXXXX XXXX XXX-traditional XXXXX such XX XXXXXXXXX XXXXXX, cheese XXXXXXXX, XXXXXXXX and XXXXXXXXX beverages XXXX some XXXXXXX, XXX XXX XXXXXXXX XXXXXX-end coffee XXXXXXXXXXX such XX XXX Reserve Roastery shops, this strategy represents a XXXXXXXXXXX source of growth potential for XXXXXXXXX.<span XXXXX="XXXXX-XXXXXXXXX-XXXXX"></span></span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="XX">Secondly, Starbucks is XXXXXX XX expand XXXXXXX the XXX XX technology XX XXXXXXX a seamless digital experience. The XXX XX XXXXXX media XXXXXXXXX, a digital loyalty XXXXXXX XXX an XXX to order and XXX directly for XXXX XXX XXXXXXXXX have been XXXXX XXXXXXXXX of Starbuck’s push to XXXXXXX a XXXXXXXX digital XXXXXXXX XXXXXXXXXX.<span class="Apple-XXXXXXXXX-space"></span></span></p> <p><span class="XX"></span> </p> <p><span XXXXX="s1" <these="" strategies="" are="" collectively="" XXXXXXXX="" at="" XXXXXXXXXX="" starbucks’s="" XXXXX="" XXX="" challenge:="" (X)="" its="" dependence="" on="" an="" XXXXXXXXXXXX="" XXXXXXXXX="" north="" XXXXXXXX="" market,="" (2)="" XXXXXXXXX="" XXXX="" XXXXXXXXXXX="" XXXXXXXXXXXXX="" XXXXXXX,="" XXX="" (3)="" XXXXXXXX="" XX="" implement="" XXXXXXX="" engagement="" while="" maintaining="" the="" same="" XXXXX="" XX="" XXXXXXXX="" XXXXXXXXXX.="">span class="Apple-converted-XXXXX"></span></p> <p><span XXXXX="XX"></span> </p> <p><span XXXXX="XX"><span class="Apple-tab-span"> </span>6.<span XXXXX="XXXXX-tab-span"> </span>XXXX recommendations would you give the XXX XXXXXXXXX CEO, XXXXX Johnson, to address XXX challenges identified in XXXXXXXX 5? XX XXXXXXXX.</span></p> <p><span XXXXX="XX"></span> </p> <p><span class="s1">XXXXXXXXXXXXXXX for the XXX XXXXXXXXX XXX, XXXXX Johnson, XXXX into three XXXXXXXXXX: addressing a XXXXXXXXX market, expanding into an XXXXXXXX XXXXXX, and digitizing the XXXXXXXX XXXXXXXXXX.<span class="Apple-converted-space"></span></span></p> <p><span class="s1"></span> </p> <p><span class="s1">XXXXXXXX, Johnson XXXX XXXXXXXX XX create XXXXXX XXXXXXXXX XXX a XXXXXXXXX North XXXXXXXX market.<span XXXXX="Apple-XXXXXXXXX-XXXXX"> </span>XXXXX can be achieved through the XXXXXXXXX XX XXXXXXXXX’s product XXXXX XXXX products XXXX as Tazo teas, Doubleshot XXXXXXXXX and Frappuccinos. XXXXXXX should eye XXXXXXX and XXXXXXXXXXXX, XXX XXXXXXXX XXXXXXXXXX into X&X XXXX, in order to XXXX a XXXXXX stream of innovative XXXXXXXXX XXXXX XXX XXXXXX. Johnson XXXXX XXXX lead XXXXXXXXX initiatives to roll out healthier food XXXXXXX XXXXX contain XXXX XXX XXX XXXXX, in order XX maintain XXXXXXXXXXX XXXX against companies such XX Dunkin XXXXXX. Like XXXXXX, Johnson XXXXX XXXX XXXXXX XX removing XXX XXXXXXXXXX flavors, sweeteners XXX preservatives. Finally, Johnson should move XXXX aggressively XXXX XXXX XXX coffee, XXX invest in ‘third XXXX’ or ‘craft’ coffee XXXX XXXXXXXX novel XXXXXXXXXXX and ‘XXXX XXXXX strategy’ opportunities XXX Starbucks to grow in a XXXXXXXXX XXXXX American market.<span XXXXX="XXXXX-XXXXXXXXX-space"></span></span></p> <p><span XXXXX="XX"></span> </p> <p><span class="XX"></span> </p> <p><span XXXXX="XX">Next, XXXXXXX must XXXXX XX emerging XXXXXXX with XXXX XXXXXX XXXXXXXXX. XXXXXXXXX’s XXXXXXXXX into XXXXX, XXXXXXX XXX use of XXXXX XXXXXXX marketing and a XXXXXXXXX boutique XXXXX, XXX not XXXX XXXXX how XXXXXXXXX XXX Italian XXXXXX market is. XXXXXX, XXXXXXX should focus XXXXXXX on emerging XXXXXXX in east XXXX and XXX-saharan XXXXXX. The XXXXXXXX XXXXXXX XXXXXXXX in XXXXXXXX, China is a XXXXX XXXXXXX XX XXXX, with XXXXXXX brewed using Chemexes and XXX XXXXXX XXXXX, XXXXXXXX to a XXXXXXX middle XXXXX in a XXXX 1 XXXXXXX city. XXXX allows Johnson to position XXX Starbucks XXXXX XXX XXXXXX in these markets, XX branding XXXXXX as a XXXXXX XXXXXXX XXX status symbol. XXXXXX, XXX Maldives and XXXXXXX XXX potential XXXXXXX XXXXXXX XXXX Johnson could XXXXXXXX next. Johnson XXXXX XXXX XXXX the coffee XXXXX in China, XXXXX and XXXXX XXXXX, XXXXX an emerging middle class XXXX XX digitally XXXXXXXX and has rising XXXXXXXXXX XXXXXXX XX eager to XXXXXXX foreign imported coffee.<span XXXXX="XXXXX-XXXXXXXXX-XXXXX"></span></span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="s1">XXXXXXX, XXXXXXX should XXXX Starbucks’s XXXXXXXXXXXX strategy more XXXXXXXXXX through XXX use of XXXXXX digital experiences XXXX as virtual reality XXXXXXXXX, XXXXXXX advertisement XXXXXXXXX, XXX XXXXXXX XXXXXXXXXXXX. Johnson XXXXX XXXX XXXXXXXXX a XXXX to integrate Starbucks with e-payment systems in emerging XXXXXXX XXXX XX M-XXXX, WeChat Pay XXX XXXXXXX.<span XXXXX="Apple-XXXXXXXXX-XXXXX"></span></span></p> <p><span XXXXX="XX"></span> </p> <p><span class="XX" <these="" XXXXXXXXXX,="" XXXXXXXXXXXX,="" would="" allow="" XXXXXXX="" to="" XXXXXXXX="" XXXXXXXXX’s="" XXXXXX="" XXXXX="" in="" a="" XXXXXXXXX="" north="" american="" market,="" while="" XXXXXXXXX="" XXXXXXXXXXX="" and="" effectively="" emerging="" markets="" such="" XX="" XXXX="" XXXX.="">span XXXXX="XXXXX-XXXXXXXXX-XXXXX"></span></p> <p><span XXXXX="XX"></span> </p> <p><span XXXXX="XX">References</span></p> <p><span class="XX"></span> </p> <p><span class="s1">Chua, XXXXX XX, and XXXXXXXXX XXXXXXXX. "Customer XXXXXXXXX management via social XXXXX: the XXXX of XXXXXXXXX."<i>XXXXXXX of Knowledge XXXXXXXXXX</i>17, XX. 2 (XXXX): XXX-249.</span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="s1">XXXXXXXX, Jeffrey S., XXX-XXXXX Chang, Carina Gauthier, XXXX XXXXXXXX, Jorge XXXXXXX, XXX Meng Wang. "Exporting a North XXXXXXXX XXXXXXX to XXXX: starbucks in China."<i>XXXXXXX XXXXX and Restaurant XXXXXXXXXXXXXX Quarterly</i>46, no. 2 (2005): XXX-283.</span></p> <p><span XXXXX="XX"></span> </p> <p><span XXXXX="XX">Moon, XXXXXXX, XXX XXXX X. XXXXXX.<i>XXXXXXXXX: XXXXXXXXXX customer service</i>. XXXXXX, XX: Harvard Business School, XXXX.</span></p> <p><span XXXXX="s1"></span> </p> <p><span class="XX">XXXXXXX, Howard.<i>Pour XXXX XXXXX into it: How Starbucks built a company XXX XXX XX a XXXX</i>. XXXXXXXX Books, 2012.</span></p> <p><span class="s1"></span> </p> <p><span XXXXX="s1">XXXXXXX, Howard, and XXXXXX XXXXXX.<i>Onward: How XXXXXXXXX fought XXX its XXXX XXXXXXX losing its XXXX</i>. Rodale XXXXX, XXXX.</span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="s1">XXXXXXXXXXXXX, XXXXXX. "Starbucks’ XXXXXXXXX communications XXXXXXXX XX Twitter."<i>Journal of Marketing XXXXXXXXXXXXXX</i>23, XX. X (2017): XXX-XXX.</span></p>">
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