Star Bucks Presentaion by ShakthiPrabhakarPresentation Transcript
STARBUCKS CASE STUDY
Starbucks Presented by: Shakthi Prabhakar, Paramesh, Priya, Damodaran, and Mohan Raj.
“ Starbucks represents something beyond a cup of coffee.” -Howard Schultz
To satisfy customers and to create a
“ third place” environment
It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done.
History of Starbucks…
Gerald Baldwin, Gordon Bowker, and Ziev Siegl – opened a small coffee shop in Seattle’s Pike Place Market in 1971 with the investment of $6350
Howard Schultz Joined the Starbucks marketing team in September 1982
Originally Schultz was the vice president and G.M of stylish kitchen equipment coffee maker in U.S
In 1982 Schultz wanted to join Starbucks but the owners have refused it.
History of Starbucks…
But finally Mr. Jerry Baldwin had given Schultz the opportunity to join Starbucks and they trained him about the secret behind the Top quality, Fresh roasted, Whole bean coffee.
Schultz have Traveled to Italy and became interested in the espresso bars and tried to bring it to America…
Schultz suggested that to open espresso bars as the part of Starbucks but the owners does not accepted. So he left the company…
Schultz started his own espresso bars by the name Il Giornale Venture in April 1986…
History of Starbucks…
Starbucks struck in heavy losses so the founders planned to sell it…
Founders sold the company to Shultz
By his introduction itself he has introduced the strategy of making the work people in the decision making process and that he would be open and honest with them.
Expansion Outside the Pacific Northwest
Starbucks has started its shops firstly in Chicago in 1987 and soon it has opened in Portland and San Francisco.
The Market of San Francisco proved more trouble some because it had an ordinance against converting stores to restaurant related uses in certain prime urban neighborhoods.
To overcome this situation in 1990 Mr. Schultz has introduced an another strategy consist of the below three: we have to attract a management team well beyond our expansion needs, We have to build a world class roasting facility, And we need a computer information system sophisticated enough to keep track of sales in hundreds and hundreds of stores.
Star bucks a Great place to work
One of the requests that employees had made to the prior owners of star bucks was to extend health care benefits to part time workers. This has been accepted by Schultz in 1988 as a health care coverage package which include part timers who worked at least 20 hours a week.
Began to open new stores and had 140 stores by 1992
Decided to take the company public and succeeded by opening more stores
Shultz continued to take the position as chairman and chief global strategist and hired CEO Orin Smith in 2002
Human Resource Handling in Starbucks
From the words of Schultz “We want passionate people who love coffee… we want people who enjoy what they are doing and for whom work is an extension of themselves”
The training topics included coffee history, drink preparation, coffee knowledge, customer service and retail skills.
Three guidelines for on the job in star bucks
Maintain and enhance self esteem
Listen and acknowledge and
Ask for help
Experiences in Star bucks
Most stores ranged in size from 1000 to 1500 square feet and were located in office buildings, downtown and suburban retail centers airports terminals, university campus areas, and busy neighborhood shopping areas convenient for pedestrian foot traffic drivers.
Starbucks a desirable gathering place where customers could meet and chat or simply enjoy a peaceful interlude in their day. A spot where people could gather and talk over a great cup of coffee
Since the August 2002 introduction of Wi-Fi at star bucks wireless internet service had been added at 1200 stores and the number of accesses was in the millions.
Product line in Starbucks…
Italian style hot and cold espresso drinks,
Hot and iced teas,
Fresh roasted whole bean coffees,
Fresh pastries, juices,
Coffee making equipments,
Coffee mugs and
PRODUCT LINE Espresso Con Panna Espresso Macchiato Espresso Creamice Frappé Tazo Iced Tea Tazo Iced Chai Latte Iced Caramel Macchiato Iced White Chocolate Mocha Iced Caffé Americano Iced Caffé Mocha Iced Caffé Latte Coke Float Milkshake Fountain Drink Steamed Milk Steamed Cider Hot Chocolate Tazo Hot Tea Tazo Chai Latte Caramel Macchiato Cappuccino Caffé Mocha White Chocolate Mocha Caffé Americano Caffé Latte Coffee of the Day Popcorn Cookie Gourmet Muffins Orange Push-Up Ice Cream Sandwich Mayfield Ice Cream
Frappuccino and Starbucks Doubleshot
2.Barnes and Noble To sell coffee products to their customers. 3.AT&T and T-Mobile. Complimentary Wi-Fi for Starbucks customers.
Pros and Cons…
Employees are motivated with more incentive to perform
Positive reinforcement which leads to higher feelings of job satisfaction
Better customer service
Improved customer focus could lead to higher sales
Pay and benefit structures dictated by corporate HQ
New reward system requires additional management
Staffing is a cost that will decrease profitability
Upper-level management perception of low employee productivity
Employees may get in each other’s way
Improving the reputation of their coffee
Strong advertising campaign
Beat starbucks in a blind taste test
AT&T Wi-Fi before starbucks offered it
Case Analysis What could starbucks do to make its stores an even more elegant “third place" that welcomed, rewarded and surprised customer?