...differentiation is the degree to which consumers see a particular brand as being different from other brands. One point is that new competitors have copied what differentiated Starbucks initially in a good atmosphere brought about by free Wi-Fi, comfy seats, newspapers to read, cheerful welcomes and great tunes. This links to 2 of porters 5 forces, firstly threat of new customers, in that it isn’t too difficult to set up a coffee shop, there are very low barriers to entry, and secondly substitute products meaning that customers have the option to swap to very similar competitors. This means that Starbucks lack a competitive nature due to the fact that what they initially differentiated themselves from the market with is now being copied by new entrants to the market, this means that customers will have low brand loyalty, and can easily move to Starbucks competitors who may focus more on the quality of coffee and thus explain why they made a loss of $6.7million for the first time in their 15 year history. However, Starbucks still managed to differentiate from competitors in that they opened Europe’s very first drive through coffee store. Another factor for Starbucks recent difficulties is the lack of advertising and being solely dependent on word of mouth advertising, this is an issue to Starbucks as they are unable to get their message across as they do not control what one customer says to their peers or family etc. This can be an issue as due to the inability of maintaining...
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...are we developing our understanding of the consumer, and the broader economy. The work of Arnould and Thompson has provided students of consumer behaviour with the necessary environment to debate, innovate and advance the field of study.1 CCT is important within the scope of consumer behaviour because it places a focus on meaning and identity creation; it delves deeper in the mentality that surrounds consumers in the marketplace, and an understanding of this mentality is useful to all that engage the market (buyers, sellers, producers, etc...). “CCT explores how consumers actively rework and transform symbolic meanings encodes in ads, brands, retail settings, or material goods to manifest their particular personal and social circumstances and lifestyle goals.”2 In understanding CCT, we understand the market in a broad sense, for example, acknowledging that marketing symbols are significant to consumer culture, and the way 1 Eric J. Arnould & Craig J. Thompson. “Consumer Culture Theory (CCT): Twenty years of research” Journal of Consumer Research 31: 868-82. 2 Ibid, 871. 1 that free choice is exercised alongside consumer culture. CCT focuses on meaning: what do brands mean to consumers, and what role consumption plays in the life of these consumers. Is there more to...
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...and acts upon those values and beliefs openly and candidly. An authentic leader is selfless, listens well and is honest. (2011) This leadership style describes that of Starbucks CEO, Howard Schultz. Mr. Howard Schultz demonstrates ethical behavior and articulates value filled words within the organization and with its customers and suppliers. As a result of the tone in communication from Mr. Schultz employees perceive that they are important to the success of the organization and are also open in communicating. The idea of enlightened self-interest which is a main theme of Starbucks is exhibited to employees through the company’s dealings with its customers and suppliers. “Enlightened self-interest” entails that the company is still aware of its purpose of making profits, but it does so in a way that the other party wins too. (2008) Communication is very positive, inspiring and uplifting. Employees have a sense of meaning and are motivated to perform effectively. Maintaining effective communication, Starbucks uses a model of communication used generally by smaller group networks, all channel communication. All channel communication allows employees to communicate actively with each other, making all members free to contribute (Robbins, 2005). How would different leadership styles affect communication at Starbucks? First, a charismatic leader would affect communication at star bucks in that a charismatic leader will only exhited behavior that algin with his own goals and interests...
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......STARBUCKS PLANNING 1 To understand the relationship between strategic and financial planning we first need to determine both of their meanings. The definition of strategic planning states that it is a “systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.” Strategic planning is a management tool that helps an organization focuses its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization’s direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson’s Strategic Planning in Public and Nonprofit Organizations) From these definitions and quotes we can understand that strategic planning allows a company to develop goals easily so that they can keep the company prospering. Financial planning is similar to strategic planning because both types of plans are used to help the company reach its overall goals. The definition of financial planning states that it is “a comprehensive evaluation of an investor’s current and future financial state by using currently known variable to predict future cash flows, asset values, and withdrawal plans.” This definition helps us to understand...
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...organization. As a Starbucks employee for over two years I was able to identify many areas in which Starbucks applied various organizational behavior concepts in order to foster a positive work environment. Starbucks has successfully used three primary organizational behavior concepts in order to promote a positive work environment and strengthen the organization. These concepts include organizational culture, organizational motivation, and organizational structure. Implementing these concepts has not only created positivity and fostered a team environment between employees, but it has also created an environment where goals are reached, and customers are satisfied. One key component of Starbucks is the consistency both in product and service. Employees are friendly and customer oriented, and the standards for products held high. As an employee of Starbucks I was trained according to these standards, and new what would be expected of me as a customer service representative prior to being hired. Starbucks has applied the concept of organizational culture in order to foster consistency across the organization, no matter how many new stores open, or where they are located. Organizational culture is defined as a system of shared meaning held by members that distinguishes the organization from other organizations (Robbins, Judge, 2013). The organizational culture within Starbucks is very strong, and is maintained well by management and employees. Starbucks is a customer-service...
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...customers (Customer Acquisition - Meaning and its Process, n.d.). New customer is a must to be acquired by a company no matter you are new company or well established company....
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...it only given appreciated by some? Tim Horton’s was opened in 1984 and was open only to serve coffee and donuts, to some of us, that seems like a great big deal because now Tim Hortons offers a wide range of products to consume in, it has changed from being that small corner coffee shop to a break time lunch location. The city of Toronto for example is surrounded by many different coffee places at every corner of the city, franchises like Starbucks, McDonalds, Timothy’s coffee and Second Cup are only some of the popular coffee places of today’s generation but the question is, do they target the same general consumer population or do they target different groups, and the answer is yes, they are all targeted towards different social classes indirectly. When was the last time that one saw an individual experiencing homelessness was drinking a Christmas drink from Starbucks or eating a gourmet brownie from Second Cup, well the answer is hardly, unfortunately many other franchises such as the ones listed before don’t serve all cliental, meaning, their prices, their marketing and their products overall do not target the population in general, it segregates individuals into their separate classes and financial differences, different franchise are geared to different individuals which not only enforces class segregation but creates an unfortunate consumer identity that categorizes people based on what they consume. Is that really how we should...
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...MAUREEN JESSAN M. DARJanuary 14,2014 Tuesday/8-11am SWOT ANALYSIS OF HONDA COMPANY Strengths• High and powerful research and development R & D• Innovation• Best market share leadership• Strong and powerful brand equity• Different and unique products• One major strength is the revolutionary engine technology with the help of the which Honda is Gaining success day by day• Popularity is termed as one of the best strength of the which results in betterment for the companyWeaknesses• Cost structure of the Honda is high as compare to other automobile manufacturers• Apart from Nissan and Toyota, Honda requires privileged purchase deposit• Honda focus more on international deposits as compare to domestic deposits• Civic model is Consider as one of the major weakness for the Honda Company• Honda products are termed as inoffensive in terms of style and design• Prices for non-luxury vehicles are far high as compare to other manufacturers• In truck line, the Honda Company is not offering strong products and proposalsOpportunities• Honda has the best opportunity to use its R & D in producing cars According to the needs and demands of Their customer. This is only possible Because of the increase is in demand for less pollution cars.• Emerging markets is one of the best opportunity for this company• Various models there are the which caters the lower segment• Fuel efficiency is now a days termed as one of the best opportunity the which cans results in the best productivity for...
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...Horizontal Structure and one is the Vertical Structure. With a company such as Starbucks the company falls under what is known as the Horizontal Structure, meaning they use a “functional” form of organization versus a hierarchy. According to Bateman and Snell (2011), this means the jobs and departments are specialized and grouped according to business functions and the skills they require. This kind of function influences the type of organizational structure much like blue prints determine the type of building will be made, whether it is a one story home or a ten story office building. The final step in the structure of the business is the actual design, known as the organizational design. All these factors combined determine what type of business structure each company will fall into. Horizontal versus Vertical Structure With a company such as Starbucks that operates over 17,000 stores in 50 different countries (“Starbucks”, 2011) the Horizontal Structure works the best for operational purposes. The company does have a Chief Executive Officer (CEO) but he does not run a hierarchy. There are departments that are organized to run different aspects of the business from Human Resources to Marketing and Sales. With organizations such as small businesses or the Federal Government who both run on Vertical Structures the CEOs make the final decisions. These two organizations incorporate the use of authority, meaning “the right to make decisions and to tell other people what to do” (Bateman...
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...is incorporated by making and implementing quality planning, quality assurance, quality control, and also quality improvement (Rijn, 2004). Additionally, discussing 'quality', it actually doesn’t happen by being fortunate. In any case, it needs planning. Nevertheless, Quality Planning and Quality assurance characterize the quality objectives that an organization would like to accomplish and how to keep up the nature of the association's items and administrations. It additionally includes on figuring out the deformities of the organization's items and administrations and in the time being discovering the suitable practice to wipe out those imperfections (Pyzdek and Keller, 2015). It is important for an organisation to agree on what the meanings of Quality Assurance (QA) and Quality Control (QC). Both...
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...Case Analysis of Starbucks, Pepsi, & Coca- Cola International Marketing February 13, 2012 Starbucks, Pepsi, and Coca-Cola are companies that are globally well known. While all three companies initially started in the United States, they are now located in over 50 countries worldwide. Yet going into global expansion has caused a couple issues in which all three companies have had a setback. Despite having so much success in few years, Starbucks has reached a barrier which it has to overcome in order to continue succeeding. Starbucks has gone abroad in order to become a global market yet it must first reform the home market strategy, overcome the barriers in overseas market, and take into account the newer generation of consumers. In contrast, Coca-Cola and Pepsi needed to have done its homework prior to entering the market, since both are guilty of not thoroughly researching the Indian market before expanding their operations into India. To nurture the human spirit and to inspire through a cup of coffee with respect and dignity by Starbucks employees is the well-known Starbucks experience. Today Starbucks through its different flavors of coffee and mixtures of pastries, fresh foods, teas, and ice cold products has become known as one of “the fastest growing brands” to which many consumers can connect. In about 25 years, Starbucks has grown from a small coffee shop in Seattle to over 16,000 stores open in...
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...ee lovers in general, or r is a specific portion of t the populat tion signific cantly more e attracted to the atmo osphere Starbuck ks exudes? Is going to Starbucks a ritual‐like e compulsio on for some e people in n our post‐mo odern era? I I wanted to know the a answers to these questions. In this report, I analyze the brandin ng choices of the most t famous co offee shop in the world d. After rea ading and analyzing the q quotes featu ured on the e back of St tarbuckʹs to o‐go cups (ʺThe Way I See Itʺ quote es), which a are submitt ted by custo omers and s selected by y Starbucks, , I argue tha at Starbuck ksʹ subtle branding tec chniques en ncourage a specific life estyle for th heir target market. Overview Skylar, a wealthy British student at Harvard, approaches Will, an Irish‐American janitor from South Boston, hands him a slip of paper, and says, “There’s my number. So maybe we can go out for coffee sometime.” Taking her number, Will replies coyly, “All right, yeah, or maybe we can just get together and eat a bunch of caramels.” “What do you mean?” Skylar asks. “Well, when you think about it, it’s as arbitrary as drinking coffee.” ~Good Will Hunting It doesn’t really matter where in the world you go these days, because you can probably still get your grande non‐fat latte at Starbucks as if you had never left home at all. For many people, their latte is an indispensable part of their day. Or perhaps their espresso...
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...Starbucks In Taiwan Learn How President Starbucks Localized An International Industry President Starbucks was established in 1998 as a joint venture of Starbucks Coffee International, Uni-President and President Chain Store Corporation. In a rapid expansion, President Starbucks has opened 233 stores in Taiwan. Continuing the innovative “Starbucks Spirit” from Starbucks founder Howard Schultz, President Starbucks in Taiwan also develops its own special products and marketing strategies in line with the Taiwanese culture and market. As a result, President Starbucks survived the competitive coffee market and gained the leading position in Taiwan. While Starbucks Coffee International is cutting the number of its stores in the US, President Starbucks is using marketing activities across the retail group's different brands to bring in new customers. For example, bonus points gathered by shopping at President Chain Store can be used in a “Buy-One, Get-One-Free” program that doubled the number of President Starbucks customers nationwide. By fully utilizing the marketing expertise of its local partner, the strategy has yielded outstanding results. The group-wide activity continued for a month, and on the last day, Starbucks shops and President Chain Store had long lines of customers wanting to exchange their accumulated bonus points. In addition to marketing activities, the President Starbucks team developed its own products according to Taiwan diet preferences. They found that Taiwanese...
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...Executive Summary: Starbucks case Proposal Overview: To improve customer satisfaction by providing: * Better service * Highest quality coffee(product quality) Problem: Market research results show that Starbucks doesn’t always meet customer’s expectation in area of customer satisfaction. The research suggests that some of the main components of customer’s satisfaction, that aligns with the three components of Starbuck’s experiential branding strategy: Coffee itself, customer intimacy and atmosphere, are: * Friendly and knowledgeable staff * Clean and pleasant atmosphere for people to meet and relax * High quality coffee (product quality) The research data also suggests, that it is of utmost importance to bring down the speed of service to three minutes in-order to meet current customers definition of “excellent service”. But, then there’s a tradeoff between the speed of the service and other components of the customer’s satisfaction. The reason behind conflict of interests is due to difference in the service expectation of the evolving customer base, to which Starbucks has been losing some of its qualitative brand meaning to Independent specialty coffee shops. Considering, the current competitive environment, it is important for Starbucks to maintain its current pool of customers. It is also important for Starbucks to continue towards its main objective of being ‘most recognized and respected brand in the world’ Proposed Solution: Invest...
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... Why is the price of Starbucks coffee rising? Please explain. Answer: There are many factors to include when considering the economic reasoning behind Starbucks raising its prices. The company, in their news release stated that their costs are going up including energy and fuel, however there is much more to it than that. The coffee beans typically used by Starbucks are Arabica beans that are grown mainly in Brazil, Vietnam and Columbia, yet emerging growers on the Ivory Coast and Ethiopia are beginning to experience higher yield crops and quality beans. The rising cost of the green beans is largely due to a decrease in the available supply due to poor crop output which has driven the cost of Arabica beans to a 13 or 14 year high. While more affordable beans like the Robust beans are frequently more in demand causing their prices to rise considerably as well. Another contributing factor is Brazil’s response to higher global pricing for Arabica beans which has been to withhold crops to push the price of beans higher, resulting in supply and demand imbalances. Add to that the increases in fuel and energy prices and the supply and demand imbalances there, in which inevitability of increases in product prices on a global scale were bound to increase as well. The cost associated with distribution alone could be seen as reason enough for the increase. Q2. What will happen to the quantity of Starbucks coffee demanded, the quantity of Starbucks coffee supplied, and...
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