Starbucks In 2012 Case Study

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STARBUCKS in 2012: Evolving into a Dynamic Global Organization

DIAGNOSIS:

Opportunities and Threats
• According to the case, Starbucks’ mission as a purveyor of fine coffee, transforming its original mission as a retail store to incorporate the Italian coffee bar culture defeated the whole purpose of the business, and both partners Baldwin and Bowker disagreed with Schultz new idea of change to the company. Baldwin believed that expresso drinks distracted the company’s purpose and core business of marketing Arabic coffee. On the other hand, Schultz interesting idea pushed him to open his own company. Both Baldwin and Bowker supported his efforts they invested in Schultz’s Il Giornale Venture; a coffee company that drafted Schultz vision of
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It became a huge threat to the company that resulted in declining sales at Starbucks stores. In which prompted top management to close 800 underperforming stores in the US and 100 stores operated in other countries. It did not just cut-down Starbucks stores but also affected 6,700 employees’ jobs. Although, Starbucks was experiencing these economic conditions, the company’s founder and CEO launched series of initiatives at the Starbucks stores to elevate the customer experiences. These initiatives contributed to boosting the company’s image and performance as it grows out of the robust recovery in years 2010-2011. Significantly, it was a huge turnaround for Starbucks to sustain growth in revenues and profitability…show more content…
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. Also included expansions in international countries.
• Provided employee training and recognition to accommodate its partners, as well as, all store and direct managers.
• Employees contributions and ideas (performance appraisals and surveys) were needed to evaluate Starbucks business operations; to seek

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