case study of starbucks

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Starbucks Coffee Presented By: Sales, Kathleen Ann Torreon, Alison Jojesmary Alonzo, Mary Lilibeth Bernardo, Klinton Valdez, Harvey Velasco, Vincent Luzana, Christine Jules Merencello, CJ

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you will know why Starbucks change their baristas to the automatic machine.

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Page 1: Case Study of Starbucks

Starbucks Coffee Presented By:

Sales, Kathleen Ann

Torreon, Alison Jojesmary

Alonzo, Mary Lilibeth

Bernardo, Klinton

Valdez, Harvey

Velasco, Vincent

Luzana, Christine Jules

Merencello, CJ

Page 2: Case Study of Starbucks

History 1971

The first Starbucks opened in Seattle’s Pike Place Market.

1982Howard Schultz joins Starbucks as director of

retail operations and marketing. 1987

Il Giornale acquires Starbucks assets with the backing of local inventors and changes its names to Starbucks Corporation. 1990

Starbucks expands beyond Seattle. 1994

Opens first drive thru location. 1995

Begins serving Frappuccino and blended beverages.

Introduce Starbucks super-premium ice cream.

Page 3: Case Study of Starbucks

Baldwin, Bowker and Siegl

Page 4: Case Study of Starbucks

1996Begins selling bottled Frappuccino coffee drink

through North America. December 4, 1997

The Philippines had its first taste of the Starbucks. 2000s 

The Starbucks phenomenon continues. 2006

Launches the industries first paper beverage cup containing post-customer recycled fiber. 2008

Acquires coffee equipment company and its clover brewing system. 2009

Launches Starbucks card, iPhone apps and Starbucks card mobile payment.

Page 5: Case Study of Starbucks

2010Expands digital offerings for customer with free

unlimited Wi-Fi, Starbucks digital network. 2012

Announces verismo system by Starbucks premium single-cup espresso machine. Present

They expand stores in many countries.

Page 6: Case Study of Starbucks

Howard Schultz

Page 7: Case Study of Starbucks

Time Context

Problem arise - 2001

Page 8: Case Study of Starbucks

View Point

Amid customer complaints that the Seattle-based coffee chain has reduced the fine art of coffee making to a mechanized process with all the romance of an assembly line, Starbucks made new guidelines in which baristas are being told to stop making multiple drinks at the same time and focus instead on no more than two drinks at a time—starting a second one while finishing the first, would probably help reposition from its economic downturn.

- Allison Joyce (Journalist)for The Wall Street Journal

Page 9: Case Study of Starbucks

Statement of the Problem

In what ways should the new guideline for the baristas to slowdown the production that

can help reposition on its economic down turn?

Page 10: Case Study of Starbucks

Objectives

Short Term To give customers the quality and consistency of drinks

Long Term To completely enforce the new rule all through out the years.

Page 11: Case Study of Starbucks

V. Areas of Consideration SWOT analysis

StrengthsGood relationship with suppliersNo. 1 brand in coffee houseLargest coffeehouse chain in the worldBrand name recognition

Page 12: Case Study of Starbucks

Weaknesses

Lack of internal focus (too much focused on expansion)

Product Pricing is high Negatively publicity

Page 13: Case Study of Starbucks

Opportunities

Extend Supplier range Emerging international markets Increasing product offerings Expansion into retail operations

Page 14: Case Study of Starbucks

Threats

Rising prices of coffee beans and dairy products Competition (restaurants, street carts,

supermarkets, other coffee shops, other caffeine based products)

Consumer trends toward more healthy ways and away from sweet coffee beverages and cakes

Change in customer tastes

Page 15: Case Study of Starbucks

Alternative Courses of Action

By ensuring the customer it gives them a quality of the beverage in taste, temperature and appearance

Advantage • Customer satisfaction come through

Disadvantage• Requires planning and consumes time

Page 16: Case Study of Starbucks

By changing the baristas to automatic espresso machine

Advantage• Less time consuming • Less human errors

Disadvantage• Coffee taste is not traditional• Missing the traditional coffee value

for baristas

Page 17: Case Study of Starbucks

By eliminating wasteful activities since it baristas focus only on the drinks they make.

Advantage

Disadvantage

Page 18: Case Study of Starbucks

Recommendation

Completely implement the new regulation for making store efficiency. Since the quality of espresso drink is “average” and that its preparation is inconsistent, enforcing all baristas to slowdown will probably make this new drinking method to produce beverages at a more consistent pace. It ensures the quality of the beverage in taste, temperature and appearance.

Page 19: Case Study of Starbucks

Conclusion

Overall Starbucks has maintained a competitive advantage since creating its original blue ocean of bringing quality, bistro-style coffee choices to the masses. In order to stay current it will need to focus on its core competencies and avoid spreading themselves to thin. To avoid competitors such as McDonalds and other coffee chains, they will need to create new value innovation by enhancing the customer experience by investing in online content and interactivity. Rather than creating more new products, I think their strength lies in their brand and by enhancing the connection to their loyal customers, they will separate themselves from McDonalds and others.

Page 20: Case Study of Starbucks

Plan of Action Plan

Completely enforce the new guidelines in which baristas are being told to slowdown.

Do

To produce beverages "at a more consistent pace."

Page 21: Case Study of Starbucks

Check Analyze when focusing on just two drinks at a time reduces possibility for errors and improve essence and firmness of drinks.

Action

Insist new procedures like: Steaming milk for individual drinks , other instructions include rinsing pitchers after each use; staying at the espresso bar instead of moving around; and using only one espresso machine instead of two.

Page 22: Case Study of Starbucks

http://philippines.starbucks.com/enUS/_About+Starbucks/History+of+Starbucks.htm http://www.slideshare.net/asfawm/starbuckscasestudy http://www.coffee.org/history-of-starbucks http://www.starbucks.com/ http://nicolelaoutaris.com/?page_id=32 http://www.starbucks.com/about-us http://www.starbucks.com/responsibility/sourcing/store-products

REFERENCES

Page 23: Case Study of Starbucks

STORES

Page 24: Case Study of Starbucks
Page 26: Case Study of Starbucks

VIDEO

Page 27: Case Study of Starbucks

MENU

Page 28: Case Study of Starbucks

COFFEE

Latte Doppio Cappuccino

Café Mocha Café Americano

Page 29: Case Study of Starbucks

FRAPPUCCINO

Java Chip Frappuccino Mocha Frappuccino

Salted Caramel Mocha

Strawberries and Crème Frappuccino

Tazo Chai Frappuccino

Page 30: Case Study of Starbucks

DRINKS

Caramel Plan Latte

Caramel Mocha

Vanilla Latte

White Chocolate Mocha

Page 31: Case Study of Starbucks

DESERTS

Caramel Desert

Page 32: Case Study of Starbucks

PASTRIES

Chonga Bagel8 –Grain Roll Almond

Croissant

Bavarian Style Pretzel

Banana Pecan Loaf Cake

Bountiful Blueberry Muffin

Page 33: Case Study of Starbucks

SANDWICHES, PANINIS AND SALADS

Chicken & Greens Caesar Salad Bowl

Chicken BLT Salad Sandwich

Chicken Santa Fe Paninis

Ham and NY Cheddar Sandwich

Hearty Veggie & Brown Rice Salad Bowl

Page 34: Case Study of Starbucks