Starbucks Case Study
1. Starbucks has some specific goals it wants to achieve. Given
this, do you think managers would be more likely to make
rational decisions, bounded rationality decisions, or intuitive
decisions? Explain.
Managers that work for Starbucks are able/allowed to make
rational decisions when they are at work. This allows managers
to react to what they think is the best way to approach a
situation. Also, this can make the managers of the store feel as if
they are more in charge because they can make bold decisions
within the companies rules. This is what puts Starbucks about
everybody else in the coffee house business, with their unique
way of running a business; Starbucks can have trust in their
employees to make the right decisions. This doesn't just apply to
managers, employees also have the authority to make decisions
on their own. This makes working a whole lot better when your
allowed to make decisions on your own and not get in trouble for
it. There is also some risk with allowing employees to make
rational decisions, because their are some people out their that
don't have any common sense to make decisions that are
rational. So what this means is that they have to be very careful
when hiring and new employee, they have to have that "it" factor
about them. Honestly when you walk into Starbucks anywhere in
the world you are greeted with respect and you always feel
welcome. When you have employees that make their customers
feel like that you don't have to make rational decisions that often,
but when employees do have to make decisions they are bright
enough to do so.
3. Make a list of Starbucks goals. Describe what type of goal
each is. Then describe how that stated goal might affect how the
following employees do their jobs: (a) a part-time store employee
in Winnipeg; (b) a quality assurance technician at one of the
company's roasting plants; © a Regional sales manager; (d) the
senior vice-president of new markets; and (e) the president and
CEO.
- meet costumer's needs for value and quality. Stability strategy
- expand into global markets. Growth and Corporate strategy
- help defining society's pop culture menu. Growth strategy
a) A part time Barista working in Winnipeg has to contribute to
keeping the quality and value of the drinks and food they are
serving. They have to serve drinks that are just as good as the
other stores around the world. That's what makes Starbuck's
better than everybody else is because they have a high standard
for what they serve. The Barista has to know the right amount of
milk, syrup, sugar, etc. to put in the right drink. A part time
worker in any company does not have any say in what the
company should do to expand their global market. But the
Barista can help imply the image that you would see at any
Starbucks across the world. With the high quality training that the
barista received, he or she can work in any Starbucks in the
world. They would just have to learn the trends and language of
that preticullar store. The Barista can help define the pop culture
in the store by playing the music that the general customer would
like to listen too or bring up certain issues that have happened in
the neighbour hood so the customer feels like its the local coffee
shop; and thats the feeling Howard wants his customers to feel.
b) A technician working for a roasting plant plays a huge roll in
the value and quality of the coffee Starbucks is selling.
Customers know that when they go to Starbucks that they will
get a top of the line coffee with the finest coffee beans. The
technician of a roasting plant would not have any corporate
decisions in the expansion of the global market but it would be
sending the coffee beans to the new stores opening in the world.
He or she would have no impact in helping define society's pop
culture menu.
c) Region sales managers help with the value and quality of the
product because they enforce the rules upon the workers of the
store to produce the best coffee they possibly can. Sales
managers can help with the expansion of the global market
because they are the ones selling the product. They can help
with the presentation to the new markets and share their
personal experiences with the presenters so the presenters have
positive stories to tell the new market. How they can contribute to
defining society's pop culture menu is it research what the new
fads are and what kind of music the general public is listening
too.
d) The Senior Vice President of new markets does not spend a
lot of time focusing on customer needs but if his/her input is
needed then he will contribute. What they would be focusing on
the most is to expand the global market. They would be thinking
of new ideas and markets to attack and find out the local trends.
The vice-president of marketing must have a good imagination
and believe in what he is selling one hundred percent.
e) Howard Schultz the President and CEO is involved with
customers needs, expansion into global markets, and defining
society's pop culture because he is Starbucks. He lives and
breathes Starbucks, he is that type of person that is involved with
everything that goes on with his company. That's why he is so
successful to this day, he comes up with new ideas to make his
franchise that much better.
4. Discuss the types of growth strategies that Starbucks has
used? Be Specific.
Starbucks are continuing to grow it company and come up with
new, better ways to make your experiences better at Starbucks.
But Starbucks is not just a coffee house anymore, its a brand.
From coffee drinks to expresso makers, Starbucks is always
looking for new ways to grow their business. When Starbucks
came up with the "Starbucks Card" it became a huge success,
this product is now being sold in countries such as Mexico,
Australia, Hong Kong, Thailand, Greece and Great Britain. Know
since they have conquered the world in coffee, they are now
trying to sell music. Customers liked the music that they where
playing in their stores they started asking for copies of the disc's.
Know Starbucks sells a number of artists CD's right in front of
the cash register and they don't just sit their collecting dust. The
store plays what they sell so customers know what they are
buying.
6. What competitive advantages do you think Starbucks has?
What will it have to do to maintain that (those) competitive
advantages?
First and for most, Anywhere you go in the world you will be
able to find a Starbucks. The biggest competitive advantage they
have over there competitor's is their size as a company and the
popularity. You will find every type of person you can think of in a
Starbucks, why? Because they know that their paying for a
coffee that they know will be good. That's the biggest advantage
they have over any coffee house. Another advantage Starbucks
has is that they have seasonal drinks, during christmas time they
showcase they eggnog latte. The company know that they have
regular customers, but with them coming out with seasonal
drinks attracts people to come and try their "drink of the season".
They do not just sell coffee, Starbucks sells a very good tea as
well which is call Tazo. Tazo teas come in any flavour you can
think of and are at an affordable price. In the end Starbucks will
alway have that edge on all the other coffee house's because
they are still coming up with new ways to make your visit at
Starbucks rememberable.