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Starbucks Service Operations Report

1680 Words7 Pages

Executive Summary
The purpose of this report was to develop a thorough understanding in the service operations of Starbucks and recommend ways in which they can improve on. This report has considered the strengths, weaknesses, opportunities, threats and external environmental factors. After taking all the findings done for this research into consideration, it is shown that Starbucks is operating in a stable external environment and their service operations is going well.

1.0.0 Introduction
1.1.0 Purpose
The purpose of this report was to develop a thorough understanding in the service operations of Starbucks and recommend ways in which they can improve on.

2.0.0 Project Framework or Approach
2.1.0 Method
The information used in this report …show more content…

Hence, Starbucks customers would not get to decide what Starbucks’ final decision should be.

3.6.5 Rivalry among Existing Firms
Starbucks has a lot of competitors ranging from local coffeehouses, cafes and big name chains that serve coffee too like McDonalds and Burger King. Some examples of coffeehouses that are as popular as Starbucks is The Coffee Bean & Tea Leaf.

4.0.0 Selected Company
4.1.0 Service Marketing Mix
4.1.1 Product
Starbucks us specialised in selling specialty coffee, cold-blended beverages and a fine selection of premium brewed teas. Starbucks also sells coffee-related accessories like mugs, cold cup, tumblers and brewing equipment. In addition to that, they also sell their own line of instant coffee and whole beans & ground coffee so customers can get their everyday fix of coffee in their very own kitchen. Their own line of tea called Teavana® and Tazo® are also sold both online and …show more content…

Howard Schultz joined Starbucks as a director of retail operations and management in 1982, the same year Starbucks began providing their premium coffee to restaurants and espresso bars. In addition to that, he’s also a strong believer of treating his staff as partners and not just employees as they all share the same goals and mutual success. Starbucks spend a lot of time training their staff to equip them with both coffee related skills and communication skill so that they can maintain a high level of service for their customers and make them feel welcomed to their store.

4.2.0 Market Positioning
Starbucks Corporation has positioned themselves as a highly respected brand in the food and beverage industry. Products from Starbucks can be easily distinguished from their competitors, which gives them an advantage. Starbucks main competitors in Singapore are The Coffee Bean & Tea Leaf and McCafe.

4.3.0 Market Segmentation
Starbucks uses both demographic and geographic segmentation to identify their target audience. Starbucks main target is adults aged 25-44, that brings in 49% of Starbucks’ sales. Young adults aged 18-24, are the next large group that Starbucks target as they bring in about 40% of their sales.

Starbucks also uses geographic segmentation to locate suitable places where they can open up their stores. Majority of their stores are located in upscale locations, locations that a lot of

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