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Group 8 Blueprint Project

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BPMM3083 SERVICE MARKETING
SESSION 2021/2022 (A211)
BLUEPRINT PROJECT
STARBUCKS PENANG
PREPARED FOR:
DR. SHAHRIN BIN SAAD
PREPARED BY:
GROUP 8
278497
JAMIE TAN
278634
MITUHNASRIE A/P ARUJUNAN
278663
NURUL IZYAN SYAMIMI BINTI MOHD NAZRI
278687
LAI MEY SAN
278697
WONG JONG HOU
Contents
Executive Summary ................................................................................................................. 1
1.0
Introduction and Background of The Company ....................................................... 2
2.0
Situation Analysis.......................................................................................................... 4
2.1
External Environment .......................................................................................................... 4
2.1.1 Demographic Environment ................................................................................................. 4
2.1.2 Technological Environment ................................................................................................ 4
2.1.4 Socio-cultural Environment ................................................................................................ 6
2.2 Internal Environment ................................................................................................................. 6
2.2.1 Organizational Structure .................................................................................................... 6
2.2.2 Value...................................................................................................................................... 6
2.2.3 Human Resources ................................................................................................................ 7
2.2.4 Vision, Mission and Objectives ........................................................................................... 7
2.3
2.3.1
Strengths ........................................................................................................................ 8
2.3.2
Weaknesses .................................................................................................................... 9
2.3.3
Opportunities................................................................................................................. 9
2.3.4
Threats ......................................................................................................................... 10
3.0
Interview Outcomes .................................................................................................... 11
3.1
Interview Outcome 1........................................................................................................... 11
3.1.1
Reasons That Attract the Customers to Visit or Revisit the Company .................. 11
3.1.2
Problems Faced by the Customers ............................................................................ 11
3.1.3
Proposed Solution ....................................................................................................... 11
3.2
4.0
SWOT Analysis ..................................................................................................................... 8
Interview Outcome 2........................................................................................................... 13
3.2.1
Reasons That Attract the Customers to Visit or Revisit the Company .................. 13
3.2.2
Problems Faced by the Customers ............................................................................ 13
3.2.3
Proposed Solution ....................................................................................................... 13
Service Blueprint ......................................................................................................... 14
Key elements of physical evidence that influence the customer’s experience ........................... 15
Potential bottlenecks and fail-points in the process ..................................................................... 17
Suggestions for proposed solutions ................................................................................................ 19
5.0
Conclusion ................................................................................................................... 21
Reference ................................................................................................................................ 23
Executive Summary
This assignment is about the service quality at Starbuck Penang. Starbuck is to be
chosen from our group to describe the possible service that could be implemented and how the
service of Starbuck can be described into the Blueprint process. The goal of Starbucks
"Starbucks Experience" is to increase brand awareness. Starbucks does this by providing
excellent customer service. Service is essential at Starbucks because customers can fully enjoy
their coffee or tea while enjoying excellent customer service, because good service encourages
them to return. Service marketing focuses on intangible products. The direct connection
between the service provider and the customer leads to the creation of the service. In general,
service quality refers to a customer's assessment of the company's performance based on their
service expectations. As a result, the quality of service is critical for customers to continue to
be delighted with our products and loyal to Starbucks in the future. Starbucks' high-quality
products have the potential to contribute significantly to the company's long-term revenue and
profitability. They also make it possible for Starbucks to charge and keep greater pricing. It
can not only meet the wants of clients, but also sustain the economic competitiveness of its
industry, by offering high-quality services.
However, this task was completed by our five-person team. The purpose is to better
understand the service blueprint and use the service blueprint to evaluate the service process of
Starbucks Penang. Additionally, we will develop two additional services that Starbuck can use.
One of the services that will be used through the Blueprint process is reception, while the other
two services will be explained in writing in this report, namely providing self-service kiosks
that do not require any staff and providing offer order and pick up service using the Starbucks
app.
1
1.0
Introduction and Background of The Company
In the year of 1971, the first store was opened near Seattle's historic Pike Place Market.
Starbucks was co-founded by Jerry Baldwin, Gordon Bowker and Zev Siegl. Starbucks now
has locations all over the world and is the world's largest coffee roasting and retailing company.
(Petruzzello, n.d.)
On December 1998, Starbucks opened its first store in KL Plaza in the center of Kuala
Lumpur, Malaysia. The world's first Starbucks is located in Bangsar Second Village, Malaysia.
Starbucks Malaysia is operated by Berjaya Starbucks Coffee Company Sdn Bhd. Berjaya Food
Berhad owns Berjaya Starbucks Coffee Company Sdn Bhd, the Starbucks Coffee International
licensee. Starbucks has expanded across Malaysia since opening its first location on December
17 in Kuala Lumpur. Starbucks presently has branches in 11 states and 3 different federal
jurisdictions. In Malaysia, there are approximately 320 outlets, including 58 drive-thru and 10
Reserve stores. Starbucks has become not only Malaysia's most popular cafe, but also a
significant member of the national community, after more than two decades of existence.
Since its inception, Starbucks has positioned itself as a one-of-a-kind company.
Starbucks does business by connecting with the community, participating in, and diversifying
festivities, in addition to offering high-quality coffee. At Starbucks, a culture of empowerment
has developed as a result of the diversity of experiences and viewpoints. Through everyone, a
community, and one cup of coffee, the purpose is to inspire and nurture the human spirit.
Starbucks Malaysia was recognized for their great training and development methods
in 2017, receiving the Asian Responsible Enterprise Award (AREA 2018) in the "Talent
Investment" category and Asia's "Best Working Company in Asia." Starbucks' "Sustainability
Award" is a homage to the company's ongoing learning and development programs, such as
the Coffee Master Certification Program, this enables employees to quickly increase their
professional knowledge and skills in various fields of the coffee industry. The Starbucks coffee
masters' black aprons are easily identifiable, demonstrating their knowledge of coffee and
enthusiasm for crafting.
In 2009, Starbucks Malaysia established a new drive-thru concept store to keep up with
the world's rapid development while preserving consistency. Consumers may now enjoy their
favorite coffee not just while on the road, but also in the store if they like to stretch their legs
2
and relax. Starbucks Drive-Thru concept stores can be found in over a dozen Malaysian states
and federal territories.
Starbucks Coffee has developed into one of the most popular cafes in Penang. We can
find it in shopping malls or in independent street shops in various regions such as George Town,
Batu Ferringhi and Batu Kawan. It is Penang's turn to welcome the new style products of
Starbucks based in Seattle. On 2 February 2020, The new Starbucks reservation is located in
Gurney Plaza, the commercial center of the city, with an interactive coffee bar, coffee brewing
equipment, and professional beverages. (Halo, 2020) This is the last scene in which the
company maintains the state of the domestic market. The difference between Starbucks
Reserve Drive Thru and other Starbucks drive thru is that we can buy high-quality Starbucks
Reserve coffee outside of the main flavors at Drive Thru here. Basically, it is a more advanced
Starbucks store that will give you a little warm cafe atmosphere.
Starbucks' corporate mission is to inspire and nurture people's hearts. The body of this
mission is now everyone, every cup, and every community. Starbucks brings the unique
experience of Starbucks into the life of every customer by providing every cup of coffee,
pursuing excellence, and practicing the corporate mission and values. Therefore, Starbucks has
a very positive image in the minds of customers.
3
2.0
Situation Analysis
2.1
External Environment
"External environment" is an external factor that influences the operation of enterprises. The
company must take some actions or respond to keep the operation smooth. These external
forces may help or hinder the activities of enterprises. Managers often monitor the changes and
situations of external environmental factors, so that they can identify the problems caused by
these factors, find solutions and make necessary changes.
2.1.1 Demographic Environment
Population has a very important influence on enterprises, including size, density, age, sex,
occupation and other statistical data.
According to demographic calculation and analysis, Malaysia is multi-ethnic. They usually
speak many languages and are proficient in two languages, mainly English. Because English
is widely used in business, this language is very important, and it will influence the company's
decision to hire employees who serve customers.
Young people nowadays love to try new drinks which going viral in social media especially.
Starbucks Coffee will release new recipe each month which creates curiosity to the younger
generation to try out the drink. Some influencer on social media was doing food review as their
job in YouTube and Tik Tok as per the audience’s request. Many influencer have reviewed
Starbucks Coffee’s drink and left many positive comments which eventually attracts the
attention of people to try out the drink.
2.1.2 Technological Environment
The technological environment refers to the factors that lead to the development of new
technology and, as a result, new product and business opportunities.
The food service industry should not only focus on the taste of the dishes or products or
services provided, but also have high requirements for services. We can see from many aspects
or factors that in terms of competition, the main challenge of Starbucks coffee is how to
safeguard the interests and loyalty of customers. Therefore, maintaining competitive advantage
is the best way for Starbucks to respond. In addition to focusing on dealing with time
constraints, the company should also avoid any mistakes made in the transaction, thus
discouraging customers' interest and the loyalty to be formed.
4
Another factor to consider is the increasing popularity of wireless connections in various
places, that is, wireless networks and mobile Internet. The company can establish contact with
customers through this convenient technology, thus establishing good relations and loyalty.
Providing free wireless Internet connection is an additional attraction or a crucial marketing
tool of Starbucks. However, it is most important to build a website compatible with this
technology, which is beneficial to the long-term interests of the company.
2.1.3 Political and legal environment
Political policies often have a certain impact on enterprises, so Starbucks must pay close
attention to political turmoil. Because when different politicians take over, there will be
different policies. Legislation must be followed by enterprises in order to prepare for any
changes caused by political inconsistency.
Political external factors have brought unpredictable risks to Starbucks and its global
expansion, of course, there are opportunities. These factors include political integration,
regional market disintegration and so on. Disintegration has caused many troubles and
obstacles to the expansion of Starbucks Cafe Company, but integration has given the company
opportunities. Because integration allows regional market penetration, Starbucks can develop
new markets more easily.
In addition, the government's plan to upgrade the infrastructure will enable Starbucks to
know and contact more customers and suppliers. However, bureaucratic red tape still exists in
some countries. This foreign political component is a big problem, because it brings many
obstacles to the economic development of coffee companies, and it may be beneficial to local
competitors with deep political relations.
Compliance with product safety regulations is one of the methods Starbucks can use to
improve its performance. At the same time, in order to comply with the laws governing
genetically modified ingredients, the company can appropriately improve its supply chain.
Although Starbucks has done a good job in these areas, appropriate and timely improvements
will contribute to the company's development and future achievements.
5
2.1.4 Socio-cultural Environment
Factors that shape society's basic beliefs, desires, and actions are related to socio-cultural
environment forces.
Starbucks Coffee might release new recipe in the future and there a half chances that it will
be either a success or flop, but they have the belief that our people are willing to support our
new initiative and give it a try.
2.2 Internal Environment
Although the internal environment can be controlled, it cannot influence the external
environment.
2.2.1 Organizational Structure
The structure of the organization means how to guide the task based on the ultimate goal of
the organization.
Organization structure is crucial in every company or organization. We will train every
employee to become qualified for the job requirement. Training is a critical component of
overall management. This is due to the fact that an organization's knowledge, skills, and ability
are reflected in the knowledge, skills, and abilities of its employees. Because Starbucks Coffee
is regarded as a premium product in Malaysia and other parts of the world, the company is
establishing a high set of standards for the physical aspects and behaviour of its employees.
Starbucks adopts a matrix organizational structure. This structure integrates many aspects
of different organizational structures. The connections between several business components
are covered in this result design. For example, product-based departments cross functional
departments and geographic departments, which in turn cross other departments of the
organization.
2.2.2 Value
The supervisory system is all the elements that make up the value structure, such as the
community, environment, workflow, management strategy and norms of the organization.
Starbucks Coffee are prepared using high-quality coffee beans which makes the price is
expensive. As a result, customers are willing to pay premium pricing for Starbucks coffee.
6
Customers are actually more concerned with the quality of the products and the company's
brand image than the price of the Starbucks Coffee.
2.2.3 Human Resources
Human resources is the most important asset of an organization, because it can determine
the success or failure of an organization.
With numerous opportunities to advance within our organisation ranging from Kitchen
Crew to Service Manager and above, you will gain many skills along your career path such as
teamwork, leadership, accountability, and communication. The selection and hiring process has
a significant impact on the implementation of any project system. This is due to the fact that
they will be in charge of the system in the future.
Employees are the most important property of Starbucks. They regard employees as partners,
so they only hire the best people. Employees can achieve or destroy an enterprise. Therefore,
Starbucks also pays great attention to the skills and performance of employees, often trains
them, and encourages and retains them in various ways to achieve competitive advantage. The
specialty of human resource management lies in attracting, developing and maintaining the
best and most qualified talents. Pleasing customers is emphasized by Starbucks management.
In order to ensure the satisfaction expected by customers, employees are taught to always
follow the concept of "just say yes to customers".
Starbucks attaches great importance to organization. Through job analysis and research,
Starbucks can learn and master the job information in an organization. Determine the
responsibilities, skills and tasks required for each job position, as well as the required abilities
and knowledge. This organizational process includes retaining suitable high-performance
personnel, managing employee performance and setting suitable salary and welfare schemes
for each position.
2.2.4 Vision, Mission and Objectives
Starbucks' vision is to develop Starbucks into the premier supplier of the best coffee in the
world, while maintaining its uncompromising principle in the process of development. The
mission of Starbucks coffee is to constantly inspire and nurture the human spirit-one person,
one cup, and one neighbourhood at a time.
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2.3
SWOT Analysis
STRENGTHS
▪
▪
▪
WEAKNESSES
Brand recognition.
▪
The rising of competitors.
Great ambience and surroundings.
▪
The locations of the stores.
▪
Premium coffee beans and ingredients.
OPPORTUNITIES
▪
THREATS
▪
Alliances with another brand.
▪
2.3.1
Products offered are easy to be imitate.
▪
Reinforce online channels.
▪
Products offered are expensive.
Competitors offered cheaper price.
▪
Initiate new products.
Halal issues.
Strengths
Strength is an element that the company has that give them advantages over their
competitors. The main strength that Starbucks has is a brand recognition. Starbucks is the
strongest and most famous brand in the food and beverages industry. The brand worth $13.01
billion as per 2021 Statista’s report. Besides, Starbucks had a unique and great ambience for a
good dine in experience. There are variety of interior design and architecture concept
depending on the locations of the store itself. As an example, Starbucks store in Penang has a
laidback resort concept that allow you to enjoy the sunset view while sipping on your coffee.
This uniqueness cannot be found in any of their competitors. In addition, Starbucks only used
a high-end ingredients and coffee beans to prepare their drinks. Hence, the after taste of their
products are usually different from their competitors that offered the same products with a
cheaper price.
8
2.3.2
Weaknesses
Weakness is an element in a company’s internal environment that are harmful to the
company. The main weakness of Starbucks is the rising of the competitors such as Coffee Bean,
McCafé and Baskbear Coffee. The rising of the coffee chain outlet that has wide range of
products offered will give an impact to Starbucks especially when most of the competitors
outlet are located nearby. Furthermore, the products that Starbucks offered to their customers
are way pricier than their competitors offered. Even a regular cup of coffee at Starbucks would
cost you up to RM 15 while you can get the exact size of coffee only for RM 10 from their
competitors. As per Insider’s Report, Starbucks products cost 38% more than products sold
by the competitors. In addition, there are several regions and states in Malaysia that did not
have Starbucks store yet. The locations of Starbucks store are not reachable. It will be hard for
the consumer from that area to purchase the products and in the end, they will have to choose
the other options. These issues will lead the consumer to switch to the competitors’ products.
2.3.3
Opportunities
Opportunity is a characteristic in a company’s external environment that allow the
company to develop and apply any strategies that can increase their profit. In order to grow,
alliance is always good options. Starbucks can gain a lot of advantages if they do a partnership
with a major brand in Malaysia and keep cross promoting their products. It is not only can
enhance the sales, but it can also increase the company share market. In addition to that, it
would be a great opportunity if Starbucks can reinforce their online channels. During this
pandemic, in – store consumption in Malaysia has been declined drastically. Starbucks can take
this opportunity to provide their consumers a better online sales channel that provide a pick –
up service. It will be more convenient for their customers who want a quick service. Starbucks
as well can initiate a new product that are based on the country. For an example, Starbucks
perhaps can include Onde Onde or Cendol series for the outlet in Malaysia as those are some
of a famous food and beverages in this country. Starbucks is a big brand to begin with, hence
the introduction of a new product absolutely will be a big success for the company.
9
2.3.4
Threats
Threat is a characteristic in the company’s external environment that can be detrimental
to the growth of the business. The products offered by Starbucks is a major threat for the
company as their products are easy to be imitated by their old and new competitors. Therefore,
the competitors can find a cheaper substitute for the high – end ingredients used by Starbucks.
By doing that, the competitors can sell the exact drinks sold by Starbucks with a cheaper price
and still gaining a huge profit. In addition, for the past several years and even until now, there
is a rumour about Halal issues in Starbucks. Since Malay is a major population in Malaysia,
Halal issues is a huge issue as this is religions related. This incident can affect Starbucks
financial performance. Hence, Starbucks should pay a lot more attention to dissolve this issue.
10
3.0
Interview Outcomes
3.1
Interview Outcome 1
3.1.1
Reasons That Attract the Customers to Visit or Revisit the Company
Based on the interview, the reason that attracts customers to visit or revisit the
Starbucks is having good ambience and surroundings. Starbucks has soft lights and relaxing
music to create a smooth and peaceful surrounding in the shop. Thus, Starbucks has become a
popular place that people like to come for business work, chat and study. The customer is
feeling comfortable and relaxed to enjoy the drinks or desserts in Starbucks. Therefore, a good
ambience and surrounding is the reason that attracts customers to visit or revisit the Starbucks.
3.1.2
Problems Faced by the Customers
According to the interview, Starbucks has good ambience and surroundings but
the customer still facing a problem in Starbucks. The customer is facing a long wait and
complicated order process in Starbucks. It seems Starbucks is a popular place for people, so
there cause a crowd on it. Thus, the customer needs to have a long wait to his turn for order in
Starbucks.
Furthermore, the menu board of Starbucks at the counter just showed the price
of drinks but didn't show the price of add on ingredients such as syrup, chocolate chips, sugarfree vanilla and so on. When the barista takes an order from the customer, the barista normally
will mention whether to add ingredients but didn't mention the add-on ingredients' price.
Therefore, the customer will be confused and feel complicated with the order process. In the
end, the price of drinks will be higher than the customer expected due to the complicated order
process. The customer is facing a problem, which is long wait and complicated order process
in Starbucks.
3.1.3
Proposed Solution
The solution for the problem faced by the customer is to offer order and pick up
service through the mobile app. Everyone normally will own a phone because the mobile phone
has already become an essential accessory in our life. Therefore, offering order and pick up
service through the mobile app will bring convenience to the customer. Furthermore, Starbucks
already has its app, which is called Starbucks Malaysia. However, the Starbucks Malaysia app
11
is just providing the details of the Starbucks card, reward status, latest news and nearest store
location.
To solve the problem faced by the customer, Starbucks should implement the
order service in the Starbucks Malaysia app. First, the order service will show the details of
drinks to the customer for the order. After the customer chooses the drinks, it will turn to the
add on ingredients page, showing the price and details of ingredients specifically. Lastly, it will
be the payment pages. Order service through the mobile app will let the customer order the
drinks more clearly and easily. Moreover, the barista will call the customer's name after being
well prepared, which follows the registration name in the mobile app. Then, the customer needs
to take the drinks at the pick-up service area.
The customer who arrives at Starbucks can directly find seats and sit down.
Then, the customer can order through the order service at Starbucks Malaysia app and take
drinks at the pick-up service area. Offering order and pick up service through the mobile app
will solve a long wait and complicated order process problem which faced by customers in
Starbucks.
12
3.2
Interview Outcome 2
3.2.1
Reasons That Attract the Customers to Visit or Revisit the Company
Interview outcome 2 shows that the reason that attract the customer to keep
visiting Starbucks is the high-quality coffee bean that has been used by Starbucks. As they are
a coffee lover that do not have a coffee maker at home, they preferred to grab a cup of coffee
from Starbucks daily. The interviewee also added that, its price does not become an issue to
her as the coffee from Starbucks has an addictive and unique aftertaste compared to their
competitors. Hence, the main reasons that attract the customers to keep visiting the company
is the high-quality coffee bean and as well as other ingredients used by them while preparing
the drinks.
3.2.2
Problems Faced by the Customers
The interviewee stated that the only problems that always been faced by her is
bad customer service. It happened almost every time and gets worsen during the peak hours.
The interviewee felt it is a very unpleasant situations to go through especially when she is the
regular customer of the company. In additions, the interviewee realised that the cashier on duty
constantly upselling the drinks, merchandise, and membership without informing the
customers about the extra charge that the customers need to bear. Thus, bad customer service
has been a reason for the interviewee to stop going to Starbucks and went to their competitors
instead.
3.2.3
Proposed Solution
In order to avoid this situation to happen again in the future, Starbucks can
initiate self-service kiosk that did not involve any manpower. The kiosk should be fully
operated by the latest technology, and only accept cashless transactions. Due to the usage of
emotionless technology and machine, any negative situations regarding customer service can
be avoided. In addition, this method as well can help the company to reduce cost on manpower.
The only disadvantage of this proposed solutions is it required a lot of expenses on the
maintenance and utilities.
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4.0
Service Blueprint
Physical
Evidence
Customer
Action
Building
Signage
Parking lot
Arrive at
Starbucks
Drive-Thru
counter
Follow the
social
distance
mark and
wait in line
F
S
F
Do a
payment
Make an
order
Onstage
Magazine
Tables
Chairs
Menu
Advertisement
Marker pen
Straws
Self-service
kiosk
F
Wait for
the drink
Collect money (if
the customer pays
with cash)
Employee
Pickup
counter
Get the
drink
Starbucks
interior
decoration
Stay or
leave
Give drinks to
customers
Action
Backstage
Employee
Material and
equipment
preparation
Update the menu at
the kiosk
Prepare food and
drinks
Clean the machine
and disinfect the
environment
Replenishment
resources and
materials
Coffee machine
Sterilizer
Stock management
Action
Support
Processes
S
Bottlenecks
F
Fail-point
Order system
Card swiping
system
Cash register
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Key elements of physical evidence that influence the customer’s experience
We believe that the drive-thru counter and front desk, marker pen, and interior
decoration of Starbucks are the key elements of physical evidence revealed in the blueprint.
The four elements of physical evidence are of different importance to Starbucks.
Drive-in counter and front desk are important places for a coffee shop. It can directly
affect guests' impression of the coffee shop, and then affect the income, success and reputation
of the coffee shop. These two places are the first places where guests come into contact with
employees when they enter the coffee shop, and the service performance of employees is
evaluated from here. At these two counters, guests will queue up and order drinks, and at the
same time, they can clearly observe the neatness and cleanliness of the counters. Therefore,
employees should pay great attention to these two counters and often clean and disinfect them.
Especially in the extraordinary period of this epidemic, the hygiene and cleanliness of the work
area need to be paid more attention. However, the difference between the two counters is that
one is that the guests enter the store to order drink in person, and the other is that there is a
drive-thru counter to accept orders for the convenience of the guests. Guests can drive outside
the store to order drinks and get drinks.
In addition, the marker pen is a unique symbol of Starbucks. Only Starbucks has the
culture, special features and services of writing guests' names in cups. The marker makes guests
feel that the drink cup they get is very special. We can see that the marker pen is the soul
representative of one of Starbucks. Unconsciously, it is indelible and deeply rooted in the hearts
and impressions of guests. Writing a name is like writing it into a guest's heart. Therefore,
Starbucks employees must pay great attention to the stock of marker pens to ensure that the
supply of marker pens is sufficient, and avoid the situation that there is not enough ink and no
replacement marker pen when giving guests the name writing service. Guests usually take
photos of Starbucks cups and put them on social media. If there are bad rumors, Starbucks will
suffer abuse and face loss of interests. So, if the not enough ink or no replacement marker pen
situation really happens, employees should stop and inform the guests in time, and employees
can make up for the guests with some small gifts or coupons. Because as I said before, the
marker pen is the representative image of Starbucks, so we should pay great attention to it. In
addition, employees should pay attention to the writing font, keep it beautiful, and let guests
have a pleasant coffee to enjoy their time.
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Of course, the internal environment of the coffee shop is also one of the important
physical evidences. Although some guests will not stay in Starbucks after buying coffee drinks,
they will temporarily feel the atmosphere brought by the environment when ordering food in
the internal environment of Starbucks, not to mention those who choose to stay in Starbucks to
enjoy coffee and food. Coffee shops have a wide range of customers, such as students who read
and review their lessons, businessmen who talk about business or trade, coffee lovers who love
coffee and retirees who like afternoon tea and desserts, etc. From this point of view, all aspects
of the coffee shop are very important, which affects the experience of all kinds of customers.
From the point of view of decoration, the internal environment of Starbucks holds the unique
fashion sense of Westerners, and there is no lack of the unique traditional coffee atmosphere
of Starbucks. The interior design will not be luxurious, but it is a simple but emotional feeling,
so that guests can calm down and enjoy the aroma of coffee. The most important thing is that
guests feel comfortable. Therefore, the environment of the coffee shop is not only beautiful,
but also clean and tidy. Employees should regularly clean the internal environment of
Starbucks, so that they can leave a good environmental impression on Starbucks in the minds
of guests. Of course, in the event of a minor accident, such as a guest's coffee spilling,
employees should clean it up in time to avoid any peculiar smell.
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Potential bottlenecks and fail-points in the process
There will be a few potential bottlenecks or fail points that might appear in the service
process. First and foremost, the potential bottlenecks will be the slow desserts and beverages
service when too many orders to handle during peak times. The slow desserts and beverages
service is the insufficient staff in Starbucks. Starbucks' desserts and beverages service times
usually will be around 3 to 4 mins. However, desserts and beverages service times will be
longer because there is not enough staff to handle orders during peak times. Slow desserts and
beverages service will cause inconvenience to customers and even will make the customer
impatient in the wait.
Next, one of the fail-points will occur in the process of do a payment by self-service
kiosk, which is unable to be paid with the cashless payment app such as Touch 'n Go, Grab
Pay, Boost and others. Although the self-service kiosks still accept card swiping systems for
payment, the cashless payment app is trending now. People will no longer carry a wallet with
a wad of cash or cards in daily life because cashless payment app with phones is already
gradually replacing them. Unable to be paid with the cashless payment app in the self-service
kiosk will inconvenience the customer. Not all customers will have cash or cards on hand, some
of them are already relying on the cashless payment app. Therefore, they will force to give up
on buying desserts or beverages at Starbucks due to not having any cash and cards on hand.
Another fail point is that the customer receives the beverages that do not belong to them
due to the same name which others, which occurs during the process of getting the drinks. In
Starbucks, the barista will call the customers' names that customers state at the order through
self-service kiosks to get their beverages. However, there are possible to have the same name
along with the customer. Therefore, the customers may receive the wrong beverages due to the
same name as other customers. Then, the customer will complain to the barista that they receive
beverages that do not belong to them. Their satisfaction with the product in Starbucks will
decrease.
Moreover, another fail point is that self-service kiosks may be breaking down, which
occurs during make an order. The breakdown of self-service kiosks is not predictable because
Starbucks' self-service kiosks are for all customers to use for ordering. Starbuck won't control
who uses the self-service kiosks. As a result, the self-service kiosk is vulnerable to vandalism
and abuse by people who don't understand how to care for it. The sudden breakdown of the
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self-service kiosks will cause the customers to have a terrible experience because they face
problems to order and need to complain to the barista at Starbucks. It also will waste the
customers’ time.
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Suggestions for proposed solutions
There will be some solutions to solve the potential bottleneck and fail-points. The
possible solution to solve the potential bottleneck, the slow desserts and beverages service, is
to recruit part-time employees for the peak time. The management of Starbucks can recruit
part-time employees and arrange for them to work on the peak times such as weekends, public
holidays and others. There will be more workers on hand during peak times, whereas on a
regular day, there will be less. It can improve the efficiency of the arrangement of Starbuck
while also saving costs. With sufficient staff at Starbucks during peak times, the slow desserts
and beverages service will be solved and wait times for customers will be the same as usual
day.
Next, the possible solution is corporate with the cashless payment app company to solve
the fail-points, unable to be paid with the cashless payment app. Starbucks can have a
corporation with the cashless payment app company such as Touch 'n Go, Grab Pay, Boost and
others. The self-service kiosks can be updated and accepted to pay with the cashless payment
app in the corporation. The customer will be more convenient to use the self-service kiosks due
to the instalment of the payment with the cashless payment app.
Furthermore, the possible solution to solve another fail-point, the customer
receives the beverages that do not belong to them due to the same name which others, is to use
the number to call the customer to receive their order. Starbucks can install the call number
machine that will state the order number and state the order number on the receipt, which will
receive by the customer after paying at self-service kiosks. Every order number will not repeat
in a day and will be different from others. The possibility for customers to get the same order
numbers will be very low. Then, Starbucks will use the call number machine to show the order
number for calling customers to pick up their beverages. The customers can get to know their
order numbers from the receipts and pick up their beverages when the call number machine
shows the same order numbers on the receipt. Using the number to call the customer to receive
their order can solve the fail-point that occur in the process of getting the drinks.
Moreover, the possible solution to solve the last fail-point, self-service kiosks may be
breaking down, is having regular maintenance. Regular maintenance is any task performed
regularly and planned to identify and prevent problems before they cause equipment failure,
such as monthly. As known as the breakdown of self-service kiosks is not predictable. Thus,
regular maintenance to the self-service kiosks is necessary to make sure the self-service kiosks
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perform well and won't break down unpredictably. Therefore, Starbucks should to have regular
maintenance for self-service kiosks to solve the fail-point.
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5.0
Conclusion
Starbucks opened its 300th branch in Malaysia in 2019 to commemorate the company’s 20th
anniversary in the country. Starbucks stores may currently be located in more than 14 states
and federal territories in Malaysia, with more than 3,000 employees wearing green aprons.
Since 2011, Starbucks partners and volunteers have volunteered more than 70,000 hours in our
local communities. Since entering Malaysia, Starbucks has been committed to serving and
implementing social responsibility programs locally and nationwide.
The strengths of Starbuck Penang which it has a unique and wonderful atmosphere,
allowing customers to have a good dining experience. According to the location of the store
itself and local culture, there are various interior design and architectural concepts. For example,
the Starbucks store in Georgetown Penang has a leisurely vacation concept which is within a
Heritage Building. The design is charming tiled floors, old-fashioned furniture and comfortable
wooden furniture and it is located in a beautiful historical building. In addition, we can grab
our coffee and take some great photos on the beautiful white walls and charming interior of the
store. This uniqueness can stand out among their competitors.
On the other hand, Starbuck Penang has its weakness and threat that have overcome.
The weakness of the Starbuck is the price of products offered are expensive. Even a regular
cup of coffee is much more expensive than nearby competitor stores, and Starbucks has dozens
of beverages and customization options. This makes consumers tend to go to other cafe to buy
such as Coffee Bean, San Francisco Coffee and Baskbear Coffee.
Although facilities and service of Starbuck are completed and perfectly, the generations
of new service are important to the Starbuck. For service, we have decided to provide selfservice kiosk for customer of Starbuck Penang in order to ensure the convenience of customer
while making their order. This service is let customers are free to choose the ingredients to
avoid some bad service. For example, the cashier will add ingredients with adding charge
without notifying the customer, which will cause the customer to have a bad impression of
Starbucks. We also decided to provide pick up service and offer order through Starbuck app to
Starbuck Penang’s customer. In generally, Starbuck app only provided for reload our Starbuck
card, transfer balance and receive new updates. Offer drinks and pick up service that we want
to provide in Starbuck which is only have in Starbuck Kuala Lumpur outlets. We will develop
Starbuck app that can let customer directly order and pay through the app. In addition, the
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Starbucks app will display all the detailed information of the product, list all added ingredients
and prices, which is more convenient for customers.
Therefore, the front service and unique of Starbuck are important. This can directly
affect customer’s first impressions and the service performance of employees in Starbuck. The
internal environment which the unique fashion sense of Westerners that suitable unique
traditional coffee atmosphere of Starbuck. From this point of view, customer can relax and
enjoy the aroma of coffee. In conclusion, the improvement has increased the competition of
the Starbuck. Starbuck must always alert to the change of the environment which is including
internal and external in order to face the challenge in future.
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Reference
G.R. (2018, June 27). Starbucks gets away with expensive coffee in the morning — but it’s
losing out to cheaper competition in the afternoons (SBUX).
Markets.Businessinsider.Com. Retrieved November 12, 2021, from
https://markets.businessinsider.com/news/stocks/starbucks-stock-price-expensivecoffee-in-morning-losing-to-cheaper-competition-afternoons-2018-6
Halo, V. (2020, February 4). Starbucks opens first Starbucks Reserve store in Penang. Retail
in Asia. Retrieved November 15, 2021, from https://retailinasia.com/inshops/starbucks-opens-first-starbucks-reserve-store-in-penang/
M.P. (n.d.). Starbucks | Description, History, & Facts. Encyclopedia Britannica. Retrieved
November 15, 2021, from https://www.britannica.com/topic/Starbucks
Statista. (2021, November 3). Global brand value of Starbucks from 2010 to 2021. Retrieved
November 12, 2021, from https://www.statista.com/statistics/1033406/starbucksbrand-value-worldwide/
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