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CASE STUDY ON STARBUCKS
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CASE STUDY ON STARBUCKS
Uploaded by
Sibil BaskeCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
/ 11
A® Journal of The Leribe bt ha
pO Chie itr Cy
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|
T
i
Becoming an International Brand: A Case Study of
Starbucks
Muhammad Azriuddin’, Daisy Mui Hung Kee”, Muhammad Hafizzudin®, Muhamad
Fitri‘, Muhammad Afiq Zakwan*, Dalal AlSanousi®, Aman Kelpia’, Olivia
Kurniawan®
Universiti Sains Malaysia, Penang, Malaysia'****
Kuwait University, Kuwait?
ABES Engineering College”
Machung University”
Correspondence Email: [email protected]
ABSTRACT
This paper aims to investigate how Starbucks becomes the best coffee shop worldwide
and how the organization overcomes its challenges and succeed to become an
international brand, Starbucks is a popular coffee restaurant from the beginning but has
just become a famous brand worldwide. Starbucks has over 20,000 stores in 62
countries around the world. In 1971 Starbucks opened its first store in Seattle's Pike
Place Market. Howard Schultz joins Starbucks as a director of Retail Operations and
Marketing. Starbucks focuses on its mission “Inspire and nurture the human spirt-one
person, one cup, and one neighbourhood at a time. Starbucks provides a variety of
drinks from hot to cold, and foods. The most famous beverage is Frappuccino®
Blended Beverages. Starbucks makes a beverage menu depending on the customer's
request to meet their satisfaction, Starbucks emphasizes on high-quality service from
the store environment to the work environment, Starbucks promotes its products
through mass media such as advertising at the television, social media, billboards, and
coupon card. The paper concludes with some recommendation.
Keywords: Customer relationship management, Product quality, Marketing strategies,
Starbucks.
INTRODUCTION
Nowadays, coffee around the world is gaining popularity as coffee has helped people
to work longer hours especially workers who work at night, Coffee is a brewed drink
prepared from the roasted coffee bean. Before this, coffee is only come out with
original and does not have any flavour. In the era of globalization, this coffee drink has
been innovative and has come out with a variety of coffee flavours such as Java Chip
Frappuccino® Blended Coffee. Coffee can be drink in hot or cool conditions. But
usually, people like to drink hot coffee. Coffee can also be obtained by the community
because the price is affordable and cheap.
Coffee is looked dark colour, a more bitter, slightly acidic and has a excite effect in
customers, primarily due to caffeine effect. itis one of the most popular drinks in the
world, and it can be prepared and presented in a variety of ways such as espresso,
French press, coffee latte. It is look usually served hot coffee, sometimes iced coffee is
very popular among customers alternative. Clinical studies indicate that moderate
coffee consumption is benign or mildly beneficial in healthy adults, with continuing
research on whether long-term consumption lowers the risk of some diseases,
although those long-term studies are of generally poor quality
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Starbucks Coffee Company is North America’s leading roaster and retailer of specially
coffee. Starbucks has 931 grocery stores and 75 major airport locations. In addition,
the Starbucks Company's objective is to establish Starbucks as the most famous and
respected coffee brand in the world. To achieve this goal, Starbucks will continue to
expand its retail operations and expand its sales orders and sales operations, and
selectively pursue other opportunities to leverage and grow the Starbucks brand had
through the introduction of new products and the development of new supplier around
the world.
Employees are one of the most important resources for Starbucks. If the company is to
prosper, the employees must be treated well. All employees are worth it for Starbucks
health and package of benefits, as well as a starting wage above the minimum.
‘Starbucks is strong commitment to the environment which is guided by an environment
committee. Starbucks guarantees that their coffee is a healthy product and offer an
environmentally safe product
‘There are some strategies used by Starbucks that used Starbucks to adopt a different
type of strategy to build its branding in the market. Starbucks has several capabilities
like market leadership and its outlets as customers mean its locations which means it is
the place where customers can relax from work or home and its supply chain
management. Starbucks also focuses on marketing mix which is a tool of external
‘marketing strategy which can increase the demand for a product (food and beverage).
RESULTS AND DISCUSSION
‘The coffee industry is one of the fasters drawing industries in the world. It is because
‘many people like to drink coffee in their daily life. For the first Starbuck open they don't
have a lot of compatitors. But there are several numbers of competitors such as Xi Fu
Tang, Daboba, Tiger Sugar, and The Alley in this same industry.
We can say that Starbuck is one of the best and most popular coffee shops around the
world. It was established in 1971 by Jerry Baldwin, Gordon Bowker, and Zev Siegl in
Seattle. Today, Starbucks coffee company has grown into the number of specialist
coffee retailers. It operates many coffee shops across the globe in more than 62
countries including Malaysia, India, Indonesia, and other countries. This case study
analysis plans to decide the best strategic options for Starbucks's future, and it reviews
‘Starbucks's performance and the environment from the organizational behaviour
perspective.
Before strategic recommendations are made in the conclusion section. Starbucks has
developed an organizational structure that matching current business needs with new
improvement. In this section, Starbucks did a good job in a firm structure. The
functional structure of Starbucks firm is structure by grouping based on the business
function. Like, facilitates is the top-down monitoring and a control, the president and
CEO is at the top.
2.1 IMPACTS OF POLITICAL FACTORS ON STARBUCKS,
The main political factor is sourcing raw materials. This has gathered a lot of attention
from politicians in the West and the source countries, Therefore, Starbucks companies
need to be aware of environmental and social regulations. It is willing to follow the
sourcing strategies. It gives importance to fair trade practices
‘Another impact is the need to follow the laws and regulations in the countries where
Starbucks buys the raw materials. Community activities have increased the awareness
of Starbucks and the nation to ensure that surrounding areas are always important.
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‘Some countries such as the US have tightened their grip on business processes to
avoid the unhealthy environment
‘The company Starbucks must monitor politcal stability within the country as well.
‘Some other factors to consider are:
* Tax policy
‘+ Employment laws
2.2 IMPACTS OF ECONOMIC FACTORS ON STARBUCKS.
We all know the current state of the world economy, just as Starbucks will have a
global impact as well. if customers or consumers are less likely to buy Starbucks coffee
drinks then Starbucks should know that they need to find another opportunity to
increase their coffee sales. they need to redefine their plans because of the impact of
the economic situation
‘Some other economic factors which can affect Starbucks are:
+ Local curreney exchange rates
‘+ The local economic environment in different markets,
+ Taxation level
2.3 IMPACTS OF SOCIO-CULTURAL FACTORS ON STARBUCKS
As already stated, Starbucks is actually can offer cheaper products, but Starbucks
have to sacrifice the quality. This is the main about socio-cultural challenge that they
have to faces. It will expand the consumer base to include the buyers from the lower-
income and the middle-income. The “green” and “ethical” consumers are also
conceming. They looking forward about the social and environmental costs of the
brands and Starbucks must be aware of this trending
The baby boomer generation is retiring. This means spending by older consumers will
decrease. Now, Starbucks will have to tap Gen Y and the Millennials as customers.
Other socio-cultural factors to focus on are:
‘+ Changing family pattems in the USA and Europe
Consumer preferences
Changing work patterns
Changes in lifestyles of the population
The level of education of the population in local markets
Changing values among the population
2.4 IMPACTS OF TECHNOLOGICAL FACTORS ON STARBUCKS.
‘Starbucks is a good position to enjoy the benefits of the technology which is WIFI,
Starbuck WIFI is very fast among another coffee restaurant. Technology is one of the
reasons why consumers and consumers are increasingly choosing places with great
technology. One example of technology is WIFI, here Starbucks has provided their
restaurant coffee with free WIFI to reach their desired level of speed. In addition to
providing attractive coffee drinks Starbucks has provided a comfortable setting for
customers and consumers to use the service. Therefore, they have emphasized the
technological factors of their restaurant. customers and consumers want fast
technologies like fast WIFI
They are testing this at locations in the US.
‘Some other technological factors:
‘+ The emergence of innovative technology
‘+ Blotechnological developments
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* Developments in agriculture
2.5 IMPACTS OF ENVIRONMENTAL FACTORS ON STARBUCKS
‘An unhealthy environment will have a bad effect on business coffee like Starbucks,
+30 Starbuck needs to pay attention to every coffee maker
Some of the other environmental factors Starbucks need to worry about are:
+ Environmental regulations
* Areas of coffee production that will receive natural disasters
+ Global warming and other environmental issues at a global level
‘The above PESTLE analysis shows that Starbucks has a relatively stable extemal
environment. The main reason behind this is probably because it operates in the Food
and Beverage industry, as the beverage and dining industry is not receiving very bad
results.
3.0 HIGH MOTIVATION
Starbucks has become a popular coffee shop not only because of the taste but also the
service from the staff. For this reason, staff motivation is one of the most important
factors for Starbucks to be a successful company. Starbucks also has a nice shop floor
environment and making relax for consumers because they can access Wi-Fi for
internet users, and it is a good place for a short meeting and who wants to make
chatting with friends or colleagues. Motivation is psychological because employees
want to invest in the company, they work to make a profit, Usually, for the people,
‘motivation in the job is related to the salary. But not only salary is important but also
some factors need to be done within the job environment. Motivation is also based on
happiness to work.
‘Starbucks is the coffee house and drink sales are also dependant on the staff. If the
staff is happy and does customer service efficiently then the customer will come back
for the next time. Because of that businesses can get more and more loyal customers.
Potential employees think that their work is special, and that they are willing to do what
their manager says and can make more profit for the company. As managers, they
need to know their staff and have the ability and skills to manage their staff. Starbucks
knows that business is always dependant on customer requirements and satisfaction
as well as staff motivation. Good service means that more customers and profits.
Therefore, Starbucks support their staffs with good atmosphere and some other
rewards, Such as competitive salary and voluntary benefits. The reason why motivation
has become an important part of Starbuck's company is the workload that needs to be
done by their employees or staff. For example, itis the position of the barista. Working
as a Barista within Starbucks need to works within a busy environment, working to
keep an eye on customer needs, gives a high level of customer service, taking orders
and making sales transactions thought the use of a till provides beverages and food at
the Starbucks standard to customers and others. So, this situation leads to the
management of Starbucks company need to make sure that their staff always has a
high motivation. According to Herzberg's Theory, there are Motivators and Hygiene
factors. Motivators include Achievement, recognition, and responsibility. When they are
met, workers will be very satisfied and when they are not met, workers will not be
satisfied. In Starbucks, there are a series of training modules. They mentor and coach
‘employees to improve their job skills and drive them on the right path of career. Also,
the organizational culture of Starbucks emphasizes the value of people,
Every employee receives respect and attention from their leader. For example, their
suggestions and needs are recognized and respected by managers Each employee
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plays an important part in operating in the company and they have the right to
improving company policies and joining in working out the direction of Starbucks.
Hygiene needs include company policy, relationship with the boss, work conditions,
and relationships with peers. If these are met, workers will not be dissatisfied and if
they are not met, workers wil be very dissatisfied. In Starbucks, the company aims to
improve a good relationship between managers and employees. For example, grocery
store leaders treat basic employees as ‘partners’ rather than ‘subordinates’. In addition,
teamwork is encouraged within the company and itis used to eradicate different status
distances. The staff counts for each team are usually between three and six which help
to get to know each other easily. By teamwork, it not only shortens the distance of
every colleague but also achieves good performance easily and quickly.
In short, motivation is very important for the employee and employment should do this
as a priority. High motivation among employees is important for Starbucks company to
‘make sure that their company is in the best performance.
4,0 STRESS MANAGEMENT
‘As we know that stress is the body's reaction to any change that requires an
adjustment or response. Our body systems respond to these changes with physical,
‘mental, and emotional responses. Meanwhile, stress management is a wide spectrum
of techniques and psychotherapies aimed at controlling a person's level of stress,
especially chronic stress, usually for and for the motive of improving everyday
functioning. Stress affects the morale of employees and their performance in the
workplace. By using good stress management skill, we can boost our employee's
‘morale which motivates and keeps them focused on their jobs and performance.
There are 4 types of stressors which are work hindrance stressors, work challenge
stressors, nonwork hindrance stressors, and nonwork challenge stressors. From our
research at Starbuck Coffee Company, we were able to identify the example of work
hindrance stressors which is role overload. Role overload is a situation where an
individual must perform multiple roles that cause the person simply cannot perform
some or all the roles effectively. At Starbuck Coffee Company, temporary
circumstances may also lead to role overload. For example, that a workgroup consists
of four employees, and one employee quits. Retired workers will eventually be
replaced, but this situation usually take some time. In the meantime, other members of
the workgroup may be asked to pick up the slack and take on the work left by the
departing employee. Another work hindrance stressor at Starbuck Coffee Company is
role ambiguity. Role ambiguity refers to a lack of information about what we must do in
a role given, as well as uncertainty about the impact of performance on that role, Based
‘on the research that was held, Starbuck Coffee Shop new employees usually take a
long time to understand the scope of their work. At first, they may feel a litte bit
stressful because they may be confused by the scope of work to be done. This problem
can be solved with the help of more experienced workers and systematic manuals
available for them to do the work.
Next is a work challenge stressor. One type of the work-related challenge stressor is
work complexity, Work complexity refers to the degree to which requirements of the
work-in terms of knowledge, skills, and abilties-tax or exceed the capabilities of the
person who is responsible for performing the work. In these cases, Starbuck Coffee
Shop tends to hire experienced barista (coffeehouse employee, a person who prepares
and serves espresso-based coffee drinks). Starbuck Coffee Shop wants to ensure that
the quality of coffee produced is high quality and the customers are happy with what
they pay for. The baristas need to work hard to maintain their standards and
‘mannerisms to avoid any inconvenience to the company. Another work challenge
stressor is work responsibilty. Work responsibility refers to the responsibilities that we
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‘must perform toward one another. The level of responsibility in a job will become higher
when the scope, number, and the importance of the job requirement is higher. For
example, all employees at Starbuck Coffee Shop must be aware of the great standards
and brands the company holds. Every employees’ movements and behaviours will
always be perceived by customers and the public. Employees need to take
responsibilty for maintaining their company reputation while at work or outside of work.
‘Anything that goes wrong will cause the company’s reputation to be impaired,
Also, it is nonwork hindrance stressors. Nonwork hindrance stressors are stressful
demands that take place outside of a work environment such as work-family conflict,
negative life events, and financial uncertainty. Firstly, work-family conflict. Work-family
conflict occurs when individual experiences incompatible demands between work and
family roles, causing participation in both roles to become more difficult. This imbalance
creates conflict at the work-life interface. Based on the interviews conducted with the
employees, few employees face this conflict. For example, suddenly one Starbuck
Coffee Shap employee found herself a newly single mom of three young boys. Her
busy schedule often prevents her from spending time with her children and attending
their activities. She recently overheard her youngest son tell his classmate that his
mom was too busy and that she always working, This situation may interfere with her
work performance. Secondly are negative life events, Research has revealed that
several life events are perceived as quite stressful, particularly when they result in
significant changes to a person's life. For example, the death of family members such
as parents and siblings will affect an individuals work performance over a period,
Then, the third type of nonwork hindrance stressors is financial uncertainty. This type of
stressor refers to conditions that create uncertainties regarding the loss of livelihood,
savings or the ability to pay expenses. This type of stressor is mostly relevant during
recessions or economic problems. For example, at Starbuck Coffee Shop most
‘employees find this to be the thing that worries them the most, This matter is caused by
the rising cost of living standards and low employment rates. So, they need to strive for
a good work ethic to guarantee their future in the company. They will also avoid things
that could jeopardize their work such as disciplinary problems and come late to work as
they know nowadays itis so difficult for a person to get a permanent job that can cover
his or her daily living expenses.
Lastly is nonwork challenge stressors. The nonwork domain also can be a source of
challenge stressors. Some of the nonwork challenge stressors are family time
demands, personal development, and positive life events. Firstly, is family time
demands. Family time demands is to refers to the time that a person commits to
participate in an array of family activities and responsibilities, Based on our research,
most Starbuck Coffee Shop employees listed specific examples of family time
demands such as traveling, attending social events and return to the hometown, Next
is personal development. These activities include participation in formal education
programs, hobby-related self-education, and participation in volunteer work. For
‘example, two employees at Starbuck Coffee Shop are still pursuing their studies at a
nearby university. They work to cover their university and daily living expenses. They
need to be able to spit between study and work time so that their education will not
affect their work performance and will not make them feel pressured to do two jobs at
the same time. Thirdly, positive life events. For example, are marriage and the addition
of a new family member. However, the stressors will bring more positive rather than
negative emotions.
Managing stress is all about taking charge of our thought, our emotions, our schedule,
‘our environment and the way we deal with the problems. The goal is to get balanced in
life. Stress management is starts with the identifying the sources of stress in our life
Each stress problem requires a different solution. To identify the following problems
and accurately solve them. To ensure that the performance of the workers is at their
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best, an organization or a company should play an important role in helping their
employees to avoid stress at work. Employee psychology is an important factor that
needs to be taken care of to keep the company sustainable and competitive in the long
term,
5.0 ORGANIZATIONAL COMMITMENT
Organizational commitment is defined as a desire on the part of an employee to remain
a member of the organization. Organizational commitment influence whether an
‘employee stays a member of the organization or leave to pursue another job. From the
results of our research at a Starbuck coffee company, we have found commitment to
Starbuck ‘employees,
In industries coffee which at Starbuck Coffee there is the employee that has several
commitments like affective commitment. Starbucks employee chooses to stay at
Starbuck coffee and doesn't want to choose another company because of they already
‘comfortable with each other and they are enjoyed the atmosphere at their current job
which is it's fun not having stress with their job. Then all staff in Starbuck Coffee.
Managers are very friendly and understanding staff also tolerant. This makes the staff
at Starbuck coffee very comfortable and when workers will be at a disadvantage if they
leave this job because this comfortable working environment has already made them
decide not to move and they are stil planning to work for a long time. In addition,
managers now are knowledgeable employees. Therefore, these Starbucks workers will
feel sorry for a manager if they want to leave
Second Starbucks's employee also satisfied with the salary his employer gave him
‘Their salaries including allowances could reach RM2000. These workers initially chose
to work as Starbucks staff because they did not want to quit after graduation. at the
same time, they are applying for jobs related to their field on a job search website Job
Street. Everyone must need necessities and necessities but to get them all one must
work. The employees at Starbucks are also working to meet their needs. even though
they earn less than RM2,000, but it is worth it than not having a job. To work at
Starbucks every employee must be fluent in English because Starbucks is an
international company, so they emphasize more to English. Also, there was a worker
who got him a technician's offer, but he did not leave because of the higher salary
received from Starbucks and his housing area near his workplace. almost all these
Starbucks employees are highly educated. says a worker today we cannot choose a
job, we must work to survive. The Starbucks worker also thinks that if she quit her job
at Starbucks, her chances of finding a new job are very difficult, even worrying about a
job situation that is not like her old job, The reasons related to organizational
behaviour, which is a type of commitment, continuance commitment. I's defined as a
desire to remain a member of an organization because of an awareness of the costs
associated with leaving it. Employee Starbucks also has a continuance commitment to
their company, because they should thankful to mangers to take them as Starbucks
works
Starbucks's coffee policy is after process new recruitment they have to works at that
‘Starbucks house for a one month or two month and then they will be sent off to another
place around Malaysia to gain their experience and giving them training because to
make a perfect coffee or to make what people customer to make sure their satisfying
be done. The employee must train to make a perfect coffee or doing their coffee
signature such as a swan picture on the top of the coffee. The reason why Starbucks's
coffee doing lke that i's because to make an employee feel good about the company
of grateful to the company. During the training of workers or better known as baristas,
they are not only taught to make coffee, but they are also taught how to serve
customers, controlling their emotions when in poor customer conditions. In addition,
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they were also taught to maintain hygiene and were brought in to hear motivations
about the hygiene of a restaurant. Starbucks also supports the Go Green campaign, so
employees are required to wear green aprons. Form the explanation it's related to
normative commitment which is defined as a desire to remain a member of an
organization due to a feeling of obligation. I's good for Starbucks for doing those ways
to make sure their employee stays with them
Almost all Starbucks employees or barista have a good commitment, but they have a
withdrawal behaviour, defined as a set of actions that employees perform to avoid the
work situation-behaviours that may eventually culminate in quitting the organization
Managers Starbucks told that they face withdrawal behaviour which is psychological
withdrawal and physical withdrawal. Psychological withdrawal means consists of an
action that provides a mental escape from the work environment. Their inside is not in
the work. On today the highest in withdrawal behaviour is socializing, because today
people have their phone then every minute employees always on-screen on their
phone. At the rest time, everybody sees their phone. An example of socializing is every
time you want to chitchat with friends but task not going, Then we can see barista
always makes looking busy to secure from doing their task. Looking busy mean that
‘employee has a light task but make a task very clumsy. After that employee Starbucks
is oyber loafing, every time with media social such as Instagram, Twitter, Facebook,
and so on. For physical withdrawal consists of actions that provide a physical escape,
whether short term or long term, from the work environment. Sometimes employee
‘Starbucks looks tardiness at the workplace. I's because they sleep late at night and
cannot wake up early in the morning. The second highest is absenteeism, absentee'sm
is one of the withdrawal behaviours used by these Starbucks barista workers to avoid
doing tasks or work. This absence is bad in every workplace because it will ruin one’s
reputation. they still want to work with the company, but they do not maintain the ethios
of a job because being an example worker is very important. if they frequently back to
work they will be suspended. Some workers do that because they don't want to resign
but they will make it possible for their employer to retire due to certain problems. On
that day there must be one or two absentees coming to work.
However, although they often do not come to work, they remain committed to working
with Starbucks as Starbucks is one of the coffee beverages companies where barista
workers receive high pay rates
5.1 The ways to handle that employee withdrawal behaviour
1. Absence
‘the employer must meet with the absentee worker in person. hear what is the
problem is or motivate the worker. transfer the employee to the new department
to allow the employee not to get bored quickly. the feedback stated that
most absentee workers are tire dof the work they do.
2. Cyber loafing
limiting each worker to the use of a mobile phone. providing a place to store
‘your cell phone before going to work.
6.0 BETTER TASK PERFORMANCE
Task performance describes the core job responsibilities of an employee. It is also
called "in-role prescribed behaviour” (Koopmans et al. 2011) and is reflected in specific
work outcomes and deliverables as well as their quality and quantity. Task
performance is important because it relates to producing job-specific goods and
services and requires employees to acquire and demonstrate core technical skills.
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‘Starbucks has a very strong organizational culture and strives to maintain its brand as
the best coffee shop in the world. As a result of our study, we found that Starbucks
cares about its partners' (employees) task performances.
4. Training
‘Since 2012, Starbucks has been running its six-level apprenticeship scheme to help its
people grow, in areas such as IT, digital skills, finance, accountancy, business, HR and
the more obvious, being Baristas and Managers. Starbucks currently has 250
apprenticeship places and their commitment to helping its people achieve their
potential has led them to agree to create a further 1,000 apprenticeships by 2020. Their
industry-recognized certification and degree-level qualifications are helping their
employees and apprentices forge a career whilst they are earning. This is helping
Starbucks to retain staff and as a result, is bucking the trend in a high tum-over of staff
that is often experienced within the retail industry. The progression within the business
is clear for those who are accepted onto the program, candidates start to master new
skills and gain qualifications in Barista Mastery and Customer Service, and then can
‘opt to progress to a supervisory role and higher levels of apprenticeships. As a result,
‘Starbucks has seen many of its employees from the program move through the ranks
and take up supervisory positions or as assistant managers and store managers.
2. Salary increases among its employees
Starbucks gives all its employees an upgrade. The company's coffee recently
\creased its employee's pay percentage by 5 percent. As such, Starbucks has taken
steps to raise its salaries, but only 3 percent. For Starbucks, the move is aimed at
increasing employee morale, which can help businesses provide great customer
service and potentially reduce employee tumover. It could also have an impact on the
company’s reputation with employees and non-employees alike.
3. Workplace culture
In the workplace, Starbucks has an emphasis on three sectors of its employees. First,
are global human rights, their commitment to basic human rights as a core component
of the way they do business and how they engage with their partners. Second is equal
employment opportunity, their non-discrimination policy helps many their employees
have a steady working situation. The third is health care, their support for healthcare
reform that allows them to continue to offer affordable coverage to our partners,
7.0 RECOMMENDATION
To tackle the threats which include decreasing market share, less growth, market
cannibalization, and market saturation, Starbucks needs to enhance their value
proposition by creating a new subsidiary for ordinary coffee drinkers as many
‘Americans tend to grab coffee and travel to work as an essential aspect of American
coffee drinking culture. Starbucks needs to extend beyond by creating a new sales
channel to grab a coffee with drive throes and quick take away options. Making
changes in distribution and place strategy will enable Starbucks to operate at a lower
cost and enable them to decrease the cost of coffee, making it more affordable for
ordinary people. Starbucks needs to extend beyond 7 categories and introduce new
products. Starbucks should launch a new strategic business unit which is specialized in
tea as there are extensive customers of tea United States such as green tea, English
tea, and black tea. A study by Haskova, (2015) mentioned that the company has
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already acquired the desired coffee sale and now it should focus on the tea market.
Furthermore, Starbucks should improve its retail strategy by introducing new
decaffeinated coffee as many consumers are shifting towards healthy alternatives such
as decaf coffee. Lastly, the company needs to enhance its digital relationship with its
customers. Starbucks must develop the technical aspect as the introduction of digital
strategy which will help Starbucks in maintaining effective communication with the
customers. Lastly, Starbucks should open a new service where customers can be
served on-road using new technologies such as drones to personalize the coffee
drinking experience with technology.
CONCLUSIONS
‘One possible conclusion is that Starbucks needs to make some changes to grow its
market early. Starbucks needs to keep pace with the current era of the 4.0 industry
revolution where everyone is using technology. the use of this technology also needs to
be leveraged from every aspect of the organization to the workforce. this is because
today's workforce is more than tech-savvy. for example, to request leave permission it
is easier to use it as an application to apply for leave. In addition, Starbucks is stil
gaining customer attention due to the excellent service quality that enables one person
to work one day at Starbucks Coffee.
Starbucks has become a stalus symbol to most people, especially college age
students, but more and more the main priority in people's lives is just getting by and
paying bills on time. If Starbucks offered meals or even more dessert options, it would
be able to greatly extend its product base and increase its scope of operations.
Starbucks would diversify its product base and offer more economical ways of buying
its products, then it would greatly prosper as a company even through the toughest of
‘economic times. Starbucks it should expand its global market presence and spread out
its profit base to insure a more stable the economic base for the company. Expanding
its geographic is scope will be key to allowing Starbucks to grow as an organization.
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starbucks.himl
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