Starbucks has strong market position and brand awareness make the company gain a significant competitive advantage in further expanding the international market and contribute to the growth of domestic and foreign markets. Strategy is a balanced problem, sometimes difficult (Allard, 2004). Ultimately, the strategy is about making a choice, the company will succeed if chose a unique strategic location which is different from the position of each competitor (Markides, 2000). One of the key strategies pursued by Starbucks since its inception was product differentiation, providing differentiated products such as premium product mix, location, coffee beverage reputation and the highest customer service, transformed into a high-value brand for competition
Starbucks has success to operate in CSR. There are various factors to affect the company succeeds of Starbucks in CSR. First of all, A company need development of a good brand image and responsibility into society. Company builds conscience of brand image is the most important in business. Starbucks is demand to provide high-quality
Starbucks is known to be the number one brand in the coffeehouse segment. Starbucks has had and still has a strong reputation associated with quality coffee and excellent customer service. Having a strong brand name is a marketing strategy with the capability to make any product or service a household name. Strong brand names have the ability to increase customer loyalty and product sales. Starbucks is also said to deliver to their customers with perfectly blended coffee, premium music, friendly staff & a warm atmosphere, which results in incomparable customer service as compared to their competitors.
Benefits also contributed to the wellbeing of all employees, resulted in gaining more interests, attraction, motivation and rewards for the employees to want to work enthusiastically for Starbucks. Significantly generate great commitment and higher levels of customer services (Thompson). • Customer Base Loyalty: loyalty base programs involving Starbucks Rewards program, and Starbucks Card. • Starbucks entered license agreement upon its expansions to have the ability to locate its own outlets. For the company to operate stores with licensing agreements instead of franchising, allows Starbucks to gain more control over operations.
Unlike before, not all baristas were hand-picked who had mastered ‘both’ the hard-skill and soft-skill required for the job. Moreover, the diversification of customer base and increased product portfolio meant that they had to deliver ‘customer-made’ beverages as quickly as possible and maintain the ‘customer intimacy’ quotient at the same time. The above table clearly states that the most profitable / valuable customer for Starbucks is a ‘Highly Satisfied Customer’ with an average lifetime revenue of
Starbuck a company in pursue of high customer services, high quality products and focuses on the comfort of their customers, a company that is known to be one of the world’s great companies, and a company that create a great work environment and believe in the power of people by invest in staff. A company that focuses on growing big internationally without losing focus on customers’ satisfaction, quality product offering, staffing and the environment (Honack, R. 2009). Staying small of Starbucks can be appreciated in the area of their Human Resources (HR) strategy and Human Resources (HR) policies that they adopt in making sure that no matter how big the company becomes, what matter most is the connections between the staff and the employer
By enhancing diversity, it enhances business success and also works culture (Starbucks Coffee Company, 2015). Howard encounters difficult problems in establishing a multicultural company that gives importance to diversity. With regard to achieve success, Howard shifts their traditional methods, implement organizational culture, construct new organizational structures, alter the operation approaches, revise policies, and ordinate human resources systems. Starbucks manage diversity using strategically created ways on employee relations’ objectives (Govendo, 2005). Howard determines to train and educate their employees for the sake of develop the principles of diversity.
Starbucks also promotes a situation that encourages staff to team working and collaboration. As such it also encourages managers to follow the motto of their personality, train the skill. Hence through the outstanding service, customer will be keep coming back possibly and Starbucks has one of the lowest staff revenue rate in the industry. The strengths offer a favourable impact to Starbucks. Weaknesses Although Starbucks provides excellent customer service due to their loyal and dedicated employees, they do this at a cost.
In this respect, it is famous for providing spectacular coffee with outstanding variety of different coffee types (Venkatraman, 2008). However, human resource management is an important department for an organization. In other words, personnel are perceived as valuable assets that contribute their role in achieving business goals in the competitive environment. The purpose of this research program is to enable researcher to evaluate motivation of employees and ways to maintain a healthy culture (Venkatraman, 2008). Type of Investigation Quantitative Research Nevertheless, quantitative research approach deals with testing of objective theories by inspecting the correlation among variables.