starbucks coffee
TO: Ms. Shay Hope, Assistant Professor
RE: Case Analysis: Starbucks Coffee Company
This memo is a case analysis about Starbucks Coffee Company written as a group assignment for our retail management class. Identify the problem
Decision and articulate reasoning
The main problem in this case is the fact that Starbucks is concentrating its business only in the central business area. Starbucks is heavily populated in large cities making it hard to locate one in smaller cities and suburbs.
· Starbucks is the nations largest specialty coffee chain.
· Starbucks has built an organizational culture based on two principle: (1) strict standards for how coffee should be prepared and delivered to customers and 2) a laid-back, supportive, and empowering attitude toward its employees.
· Starbucks historically invested very little in advertising – less than $100 million in its entire history.
· Since going public in 1992, earnings per share have grown at a 34
. . .
Starbucks could maintain their status quo. Starbucks’ target include adults between ages of twenty-five to the mid fifteen. Employees are trained to understand the different types of coffee and assist consumers in any way needed.
· Comparable store sales increased by 9%, 6% and 5% in fiscal 2000, 1999 and 1998, respectively. To consumers, the Starbucks brand represents a high quality product. in the late 1980’s began to fall due to the rise of sales in soft drinks, bottled water, juices and iced teas.
IMPLEMENTATION OF OUR DECISION
In order to implement alternative two, which is Starbucks broadening their customer base, they could implement new distribution channels such as college campuses and shopping malls. The disadvantage here will be that some consumers may pre ...