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Starbucks created its uniqueness by delivering on two promises: customer service, and quality coffee. For example, when CEO Howard Schultz visited Milan, he was inspired by the high quality espresso and dynamic social experiences at Milanese espresso cafes, and sought to bring such a concept back to America. As a result, when he took over Starbucks, Schultz labored to ensure that baristas brewed great coffee from the best blends of ingredients, and made sure that they provided excellent customer service and a welcoming space for their customers. Starbucks baristas were told to write the names of their customers on their cups, to get to know the people they were serving, and to ensure that the teak-panelled, Scandinavian-designed cafes were always a comfortable, relaxing and welcoming space for its patrons to get quality, customized drinks, wherever in the world they were. Starbucks, under Schultz, also invested heavily in making each store the hub of a local neighborhood, and engaging with its customers, suppliers and partners, to ensure that the twin promises of great customer service and quality coffee were present in every store.
2. Why and how did Starbucks lose its uniqueness and struggle in the mid-2000s?
Starbucks lost its uniqueness and struggled in the mid-2000s because it focused too heavily on improving efficiency, economies of scale and company growth at the cost of its two key value propositions of customer experience and quality coffee. Foremost, Starbucks tried to grow rapidly in the mid-2000s, and failed to ensure that adequate quality control measures were in place at each of its franchisee and licensee stores. This resulted in a lower customer experience XXXXXXX XXXXXX XXX stores, and significant brand XXXXXXXXXX XXXXXX XX XXX XXXXXXXXX brand. XXXXXXXX, Starbucks XXXXXXX heavily on improving efficiency in its labor XXXXXXXXXXXX, and XXXXXXXXX XX scale in XXX production XXX supply XXXXXX, in a XXX XXXX XXXXXXXXX its XXXXXXXXX and its XXXXXXXXX. This resulted in a lower quality XX customer service, XXXXXX XXXXX XXX produced XXXXXXX, XXXXX also XXXXXXX XXX core XXXXX XXXXXXXXXXXX that had XXXXXX XXXXXXXXX to XXX initial XXXXXXX. For XXXXXXX, Starbucks XXXXXXX XXXXXX XXXXXXXXXXX, XXX XXXXXXXX XXXXXXX XXXXXXXX on the speed of order delivery rather XXXX XXXXXX XXXXXXX. This led XXX originally XXXXX XXXXXXX to XXXXXX to XXXX XXXXXXXXX XXXXXX XXXX XX Peets XXX Caribou XXXXXXX. XXX speed at XXXXX XXXXXXXXX introduced XXX products at this time also XXXXXXX superficial growth, XXX XXX XX XXXXXXXXXXXXXXX menus XXXXX XXXXXXXXX XXX and XXX XXXXXXXXX to XXXXXXXXXX. XXXXXXXX XXXX struggled XX XXXX XX XXXX XXX XXXXXXXXXXXX XXXXX variety XX XXXXXXXX XXX customisation. As a result, Starbucks’ customer service propositions declined.
X. What XXXXXXXXX XXXXXXXXXXX did XXXXXX Schultz put in XXXXX to re-create Starbucks’ uniqueness after his XXXXXX in XXXX? XXXXXX XXXX XXXXXXXXX initiative. Explain XXX a XXXXXXXX XXXXXXXXX XXXXXXXXXX was successful.
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XXXXXXXX, XXXXXXX, upon XXX return, XXXXXX XX XXXXXXXX XXX XXXXXXXXXXX’s XXXXX XX XXXXXXXX XXXXXXX. He famously XXXXXXX over 7,000 XXXXXXXXX XXXXXXXXXX to XXXXX for XX XXXXX, in order for baristas XX XXXXX how XX prepare XXXXXXX XXXXXXXXX XXX recreate XXX unique XXXXXXXXX experience XXXX made the chain XXXXXXXXXX. He XXXX introduced draconian but XXXXXXXXX XXXXXXXX service XXXXXXXXXX XXXX XX XXX ‘no multitasking’ rule, which XXXXXXX XXXX XXXXXXXX XXXXXXX XX XXX quality XX XXX XXXXXX they were making XX limiting them XX making a maximum XX X drinks at a time.
Secondly, XXXXXXX XXXXXX corporate XXXXXXXXXXXXXX XX emphasizing the emotional XXXXXXXXXX, neighborhood XXX XXXXXXXXXX XXX partner XXXXXXXXXX that XXXX XXXXXXXXX store XXX to XXXXXXX in order XX XX successful. This allowed Starbucks stores to XXXX again connect with their XXXXXXXXX stakeholders, XXXX XX their customers, retailers and XXXXXXXXX, in order to deliver on their XXXXXXX of XXXXXXX XXXXXX XXX great customer experience.
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X. XX Howard XXXXXXX an effective XXXXXXXXX XXXXXX? XXX or why XXX? Buttress your XXXXXXXXX.
XX effective strategic leader XX a leader who is able to XXXXXXXX XXXXXX XXXXXXXXXXX XXXXXX opportunities, XXX XXXXX his or her company in XXX XXXXXXXXX of XXXXX opportunities through the judicious XXXXXXXXXXX of XXXXXXXXX XXXXXXXX. By XXXX definition, XXXXXX Schultz XX an XXXXXXXXX strategic XXXXXX as he invested in social responsibility XXXXXXX as the head of Starbucks, and XXXXXXX XXXX XXXXXXXXX XXXXXXXX in the public eye as an XXXXXXX and sustainable XXXXXXXXXXX. Schultz XXX so by pursuing strategic initiatives XXXX XX XXX Coffee and Farmer Equity (CAFE) practices, Fair XXXXX certified XXXXXX, XXXXXX XXXXXXX Centers in Africa and the Caribbean, and Leadership in Energy XXX Environmental Design (XXXX) certifications. This was XXXXXXXXX in XXXXXXXX that XXXXXXXXX capitalized XX XXX opportunity XX XXXXXXXXXXX business, as XXXXX XX the rapid XXXXXXXXX of XXXXXX XXX XXXXXXXX in Exhibit X post XXXX XXXXX XXXXXXX’s leadership, from XXXXX XX,XXX XXXXXX XX XXXXXX 25,000 stores in XXX period 2008 XX 2016.
X. XXX is Starbucks trying XX grow in the future? What are its XXXXXXX XXXXXXXXXX?
XXXXXXXXX is trying to grow XXXXXXX XXXXXXXXX XXXX XXX high-end food and XXXXXXXXX market, and the use XX technology to XXXXXXX a XXXXXXXX XXXXXXX XXXXXXXXXX. XXXXXXXX, Starbucks XX trying to enter XXX XXXX-XXX XXXX XXXXXX, XXX is XXXXXX XXXXXX XXXXX an XXXXXXX XXXX-XXX-wine destination, XX well XX a XXXXX-XXXX-end XXXXXX chain. Given XXXX XXXXXXXXX XXX already begun XX diversify into XXX-traditional XXXXX such XX flatbread pizzas, cheese platters, XXXXXXXX and alcoholic XXXXXXXXX with some success, XXX XXX launched higher-end coffee experiences such as XXX XXXXXXX Roastery shops, this strategy represents a significant XXXXXX XX growth potential XXX XXXXXXXXX.
Secondly, XXXXXXXXX XX trying to expand through the XXX XX technology to XXXXXXX a seamless digital XXXXXXXXXX. XXX XXX XX XXXXXX XXXXX platforms, a XXXXXXX XXXXXXX XXXXXXX XXX an app to order XXX XXX XXXXXXXX XXX food XXX beverages XXXX been XXXXX XXXXXXXXX of XXXXXXXX’s XXXX to deliver a XXXXXXXX XXXXXXX XXXXXXXX XXXXXXXXXX.
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6. XXXX XXXXXXXXXXXXXXX would you XXXX XXX new XXXXXXXXX XXX, Kevin Johnson, to XXXXXXX XXX XXXXXXXXXX XXXXXXXXXX in Question X? XX XXXXXXXX.
Recommendations for the new Starbucks XXX, Kevin XXXXXXX, XXXX into XXXXX categories: XXXXXXXXXX a XXXXXXXXX XXXXXX, expanding XXXX an XXXXXXXX XXXXXX, XXX XXXXXXXXXX the XXXXXXXX XXXXXXXXXX.
XXXXXXXX, Johnson XXXX XXXXXXXX to XXXXXX XXXXXX XXXXXXXXX for a XXXXXXXXX North American XXXXXX. XXXXX XXX XX achieved XXXXXXX the expansion XX XXXXXXXXX’s product XXXXX into XXXXXXXX such as XXXX XXXX, XXXXXXXXXX XXXXXXXXX and Frappuccinos. XXXXXXX should eye mergers XXX acquisitions, XXX XXXXXXXX investment XXXX R&D labs, in order XX XXXX a steady XXXXXX XX XXXXXXXXXX XXXXXXXXX XXXXX XXX launch. Johnson could also lead strategic XXXXXXXXXXX to roll out healthier food options XXXXX XXXXXXX XXXX XXX XXX XXXXX, in order XX XXXXXXXX competitive edge XXXXXXX XXXXXXXXX XXXX XX Dunkin XXXXXX. Like XXXXXX, XXXXXXX XXXXX also XXXXXX XX XXXXXXXX XXX XXXXXXXXXX flavors, XXXXXXXXXX and preservatives. Finally, Johnson XXXXXX XXXX more XXXXXXXXXXXX into high end coffee, XXX invest in ‘third wave’ or ‘XXXXX’ coffee that delivers novel XXXXXXXXXXX and ‘blue XXXXX XXXXXXXX’ opportunities for Starbucks XX grow in a XXXXXXXXX North XXXXXXXX market.
Next, Johnson must focus on emerging markets XXXX high growth XXXXXXXXX. Starbucks’s expansion XXXX XXXXX, XXXXXXX XXX use of savvy XXXXXXX marketing and a XXXXXXXXX XXXXXXXX store, was XXX XXXX given how XXXXXXXXX XXX Italian coffee XXXXXX XX. XXXXXX, Johnson XXXXXX XXXXX XXXXXXX on XXXXXXXX markets in east Asia XXX XXX-saharan Africa. The XXXXXXXX Reserve Roastery in XXXXXXXX, China is a prime XXXXXXX of XXXX, XXXX XXXXXXX XXXXXX XXXXX XXXXXXXX XXX the XXXXXX XXXXX, catering to a XXXXXXX XXXXXX class in a Tier X Chinese XXXX. This allows XXXXXXX to position the Starbucks XXXXX XXX growth in XXXXX markets, XX branding XXXXXX as a XXXXXX product and XXXXXX symbol. Rwanda, XXX XXXXXXXX XXX Morocco are XXXXXXXXX tourist XXXXXXX XXXX XXXXXXX could consider XXXX. Johnson XXXXX XXXX XXXX the XXXXXX craze in XXXXX, Japan and South XXXXX, where an emerging middle XXXXX XXXX is XXXXXXXXX XXXXXXXX and XXX XXXXXX disposable incomes is XXXXX to consume XXXXXXX XXXXXXXX coffee.
XXXXXXX, Johnson should push Starbucks’s digitization XXXXXXXX XXXX forcefully through the use XX XXXXXX digital XXXXXXXXXXX XXXX XX virtual reality showrooms, digital XXXXXXXXXXXXX campaigns, and XXXXXXX XXXXXXXXXXXX. XXXXXXX XXXXX also spearhead a push to integrate Starbucks with e-payment XXXXXXX in XXXXXXXX XXXXXXX such XX M-XXXX, WeChat Pay XXX XXXXXXX.
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References
Chua, Alton XX, and XXXXXXXXX Banerjee. "Customer XXXXXXXXX management XXX XXXXXX XXXXX: the case of XXXXXXXXX."XXXXXXX of Knowledge XXXXXXXXXXXX, XX. X (2013): 237-XXX.
XXXXXXXX, Jeffrey S., Eun-Young XXXXX, Carina XXXXXXXX, Todd Joerchel, XXXXX XXXXXXX, and Meng Wang. "XXXXXXXXX a North American concept to XXXX: starbucks in China."Cornell XXXXX and XXXXXXXXXX Administration XXXXXXXXX46, XX. X (2005): XXX-XXX.
XXXX, Youngme, and XXXX A. XXXXXX.XXXXXXXXX: delivering customer service. XXXXXX, MA: Harvard Business XXXXXX, XXXX.
Schultz, Howard.Pour your XXXXX XXXX it: XXX XXXXXXXXX XXXXX a company XXX cup XX a time. Hachette Books, 2012.
XXXXXXX, Howard, and Joanne Gordon.XXXXXX: How XXXXXXXXX fought XXX XXX life XXXXXXX XXXXXX its soul. Rodale XXXXX, 2012.
Taecharungroj, XXXXXX. "Starbucks’ marketing communications strategy XX Twitter."Journal XX Marketing Communications23, no. X (2017): XXX-XXX.
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