Starbucks: Delivering Customer Service

Starbucks management has come up with a proposal to sit down 40 million in increasing labor hours. Christine solar day, the Starbucks superior vice president said the idea is to improve cannonball along of attend to and thereby increase customer satisfaction. At the can of 2002 Starbucks reported a 215.1 million net income, projecting a very healthy financial condition. The companys fast exploitation in the last four years is reflected in net revenues rising from 1,308.7 million in 1998 to 3,228.9 million in 2002. For the same time period computer memorys increased from 1886 to 5886, as frequently as 312%. A comparison of net revenues (excluding specialty operations, which argon broken down in Exhibit 1) and store growth reveals a pattern of diminishing returns (Exhibit 2). This might contradict Days view that significant cannibalization…was more than offset by the total incremental sales associated with the increased store concentration.
reindeer Coffee, a competitor, differentiated itself from Starbucks by focusing on store environment, whereas Peets Coffee and Tea positioned itself as the freshest coffee bean on the market. Evidently there were thousands of independent specialty coffee shops which were in a position to provide highly personalized service to an eclectic clientele.



Furthermore, Dunkin Donuts, a 3700 store chain, was generating half of its profits from coffee and positioned itself as a fast service coffee-to-go brand. Despite this keen competition Starbucks is estimating that by 2005 would own approximately 20.5% of the US sell coffee market (Exhibit 6 in Case Study).
authoritative to the Starbucks success are its employees or partners; the companys shelter proposition revolves around 3 axes and this is one of them. Quality of coffee and nice atmosphere are the other 2 components. Partners touch on to the level of service and customer intimacy. It is important to note that the employee disturbance floated around 70% and that it would take sixteen full on the job(p) days for an employee to learn...If you want to get a full essay, tramp it on our website: Orderessay



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