Investigation Of The Harvard Business School Case Study "Starbucks: Delivering Customer Service"

3563 words - 15 pages

The focus of the paper is to explore the marketing process at Starbucks and evaluate the firm's decisions. Marketing concepts portrayed in the case will be examined as well.Mission StatementThe company's mission is to: Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. Starbuck's mission statement sets a corporate vision for the company by identifying the focus of expertise, coffee, and establishing the desire to grow larger.In addition to their mission statement, Starbuck's operates on the following principles:1. Provide a great work environment and treat each other with respect and dignity2. Embrace ...view middle of the document...

Sales History/FutureFollowing the initial public investment in 1992, sales grew by an annual compound percentage rate of 40% and net earnings had risen over 50%. From 1998 to 2002, gross profit has increased in millions from 730.2 to 1938.9 and the number of Starbuck's retail stores have increased from 1,886 to 5,886. As sales continue to grow, Starbuck's itself seems recession proof. Even following the 9/11 attacks as other segments of the economy took a dive, Starbuck's continued to open new stores and increase sales. In considering Starbuck's long-term outlook for investor, titanstocks.com said:"We recommend purchase for aggressive growth-oriented investors with a longer-term time horizon. Despite a weaker economy and what some thought would be soft demand for an optional premium-priced food product, consumers show that they would not forgo their Starbucks in the morning. Bottom line-the core business remains healthy despite the challenging economy, and we expect that investor confidence in the story will remain strong".Financial Health of the Company/StocksFor the fiscal year 2002, Starbucks reported that profits rose 19 percent to $215.1 million, compared with $181.2 million the previous fiscal year. Revenues for fiscal year 2002 were $3.3 billion, up 24 percent from last year's revenues of $2.65 billion. Starbucks had 5,886 stores at the end of the quarter; with 1,177 of those opening in 2002.The income statement shows strong sales growth for the years 1999 - 2002. Revenues grew at an annualized rate of 22%. Percentage of revenues being applied to cost of goods sold has declined every year from a high of 48% in 1998 to 41% in 2002.This company is growing fast and generating profits and cash.The Four P's of MarketingProductThe brand components at Starbucks are products, service, and atmosphere. The tangible products are coffee beverages, food items, whole beans, and equipment/accessories. Other products such as service and atmosphere are intangible. Service is geared toward customer satisfaction, giving the customer what he/she wants, including customized beverages. This process can take a little longer, which causes time delays in line. Employees are to make friendly conversation with customers while they wait. The friendly environment adds to the homey atmosphere inviting customers to hang out and come back.Coffee beverages come in various forms. Classic favorites include traditional espressos, cappuccinos, and lattes. Brewed coffee takes form in a variety of gourmet flavors including seasonal and the "coffee of the day." Cold beverages are typically chilled versions of the traditional flavors. Hot chocolate, ciders, and teas are also available as coffee alternatives, as well as frappuccino's in regular, crème, and tea.There are food items available for snacking while enjoying a nice beverage at Starbucks. Cookies, brownies, danishes, mini-cakes, and bisquetti are some of the common favorites. There are also seasonal food items,...

Other Papers Like Investigation Of The Harvard Business School Case Study "Starbucks: Delivering Customer Service"

Harvard Business Apple Case Study

1719 words - 7 pages Harvard Business School Case Study Analysis Harvard Business School Case Study Analysis Description At the end of 2014, Apple Inc. recorded the most profitable quarter of any firm in history, and its market capitalization soon topped $700 billion. 'Apple Inc. in 2015' explores the history of Apple, its successes under Jobs, its continued growth under Tim Cook, and the challenges

Starbucks Harvard Case Essay

687 words - 3 pages Starbucks – Delivering Customer Service 1. What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? 2. Why have Starbucks’ customer satisfaction scores declined? Has the company’s service declined, or is it simply measuring satisfaction the wrong way? 3. How does the Starbucks of 2002 differ

Case the Customer Service Agent

2133 words - 9 pages Compensation Management Assignment one Case 1: The customer service agent Case 1: The Customer Service Agent Case Question one: Does the Day Diary include sufficient information? The day diary conducted includes sufficient information. The day diary includes a full day for one employee working as a customer service agent. Through the information provided it reveals the different activities conducted throughout the day. These data can

Harvard Business School

4536 words - 19 pages , mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. 1 Purchased by KRYSTLE JAMES (krystlebd@yahoo.com) on September 28, 2011 293-135 Friendly Cards, Inc. distribution network. Sales trends within the industry were often characterized (especially in the case of smaller companies) by seasonal peaks, as most of the actual sales occurred in a short period of time even though cards were in

Case Analysis: Airborne Express (a), Harvard Business School

1586 words - 7 pages Case Analysis: Airborne Express (A), Harvard Business School. Not so long ago, there was no such thing as overnight express service and freight delivery. Then Federal Express, United Postal Service (UPS) and Airborne Express, among six second-tier companies, came upon the scene. In 1973, Federal Express invented the concept of overnight express package, soon followed by the other two largest express companies–UPS and Airborne, during the

Harvard Business Case

2176 words - 9 pages Harvard Business Case 10-16-07 The Overhead Reduction Task Force: A Case Analysis The Facts Central Foods Corporation just hired a new General Manager, Georgia Dixon, to run the deteriorating Countertop Appliances Division. This new division was formed after Central Foods acquired Kitchen Help, Inc. six years ago. With sales decreasing quite dramatically over the past three years and overhead costs at their peak, Dixon is in charge of

Harvard Case Study: Ledina Lushko

1453 words - 6 pages Case: Ledina Lushko The case of Ledina Lushko, a patient enrolled in a Blue Cross and Blue Shield of Illinois individual plan, highlights many of the issues that have plagued the United States healthcare system for some time. As an insurance plan provider, BCBS of Illinois takes pride in the health outcomes of our members and has a responsibility to contribute positively to their care. The fractured, ineffective care Mrs. Lushko received

Cialis - Harvard Business School Case: Product Team Cialis: Getting Ready To Market

1631 words - 7 pages side effects (compatible with high fat meals; important since American diet in general seems less healthy + 43% of ED patients have high blood pressure and /or high cholesterol)Pricing: Premium pricing strategy; we believe that we can convince the customer that the attributes of Cialis exceed those of Viagra, therefore the price should not only resemble this, furthermore we are sure that customers are willing to pay a premium for a better product

Starbucks Case Study Answers

4616 words - 19 pages M512 MARKETING STRATEGY Starbucks: Delivering Customer Service R.A I have neither given nor received unauthorized aid on this assignment 1. What factors accounted for the success of Starbucks in the early 1990’s? What was so compelling about the Starbucks value proposition? The success of Starbucks in the early 1990’s can be attributed to Howard Schultz’s vision of the Starbucks brand. Schultz inspired of a company which would make the customer

Starbucks Case Study

4635 words - 19 pages advancement which will make the business runs easier such as the coffee equipment, that are not available much in the industry. Threat of Substitute products There are massive substitutes in the coffee market that means some people prefer to drink the local coffeehouse, which is the price much cheaper. Nevertheless, Starbucks sells the uniqueness of coffee to the customer as well as the service friendly to make the customer satisfy with

Starbucks Case Study

1499 words - 6 pages -operated retail stores such as hotels, airlines, and restaurants. This has allowed the Starbucks’ brand to be recognized not only in freestanding Starbucks stores, but also throughout other channels as well increasing their brand awareness. Starbucks has always tried to expand the number of retail stores as well as product and service innovations. New products are launched on a regular basis, such as one new hot beverage every

Related Essays

Starbucks: Delivering Customer Service Essay

2305 words - 10 pages there drink and customize it just the way they like it. This can be accomplished through intensive training on "hard skills" and "soft skills". SWOT Analysis Strength- Global presence- Brand name- Market leadership | Weakness- Price- Competitor Increase- Reliance on beverage innovation | Opportunities- Technology development- Distribution channel upgrade- Market expansion- New products | Threats- Domestic market saturation- Coffee price volatility- Rising dairy costs- Competition | References: "Starbucks: Delivering Customer Service"; Youngme Moon & John Quelch; July 10,2006.

Analysis Of Starbucks Delivering Customer Service

2438 words - 10 pages Analysis of Starbucks Delivering Customer Service Problem statement: • In 2002, market research has shown that Starbucks has a gap in meeting its customer’s expectations in terms of customer satisfaction. • On interpretation the marketing research data, Christine Day, Senior Vice President concluded that the speed of service was the main reason for this decline in customer satisfaction. So she proposed to improve the service time such that

Starbucks Delivering Service Essay

1766 words - 8 pages Starbucks’ value proposition and service core competency, a crucial piece to their brand image and continued success.   References Moon, Y., & Quelch, J. (2006). Starbucks: Delivering customer service. HBS Case No. 9-504-016. Boston, MA: Harvard Business School Publishing.

Mem Case Study Questions (Harvard Business School)

1258 words - 6 pages and service. With reference to Exhibit 6, English leather has lost more than 10% of the market shares to its competitors by not venturing into food stores. As English leather had entered into Kmart, dilution to its brand name would be less likely to take place. Food stores are where consumers most often frequent to pick up their regular toiletries. By entering into the food stores, MEM products would be widely available, thus reaching out to more