Amity Business School

By Anshul Guptha B-25 Prashant Anand B-26 T.S.SrirajB-28 Rahul cial-

Introduction

Amity Business School

Starbucks began as a single store in 1971 in Seattles historic Pike Place Market. The name inspired by the classic American novel MOBY DICK, Starbucks has since then offered some of the worlds finest fresh-roasted whole bean coffees and strives to do business responsibly with its customers and communities. And today with more than 17000 stores in 57 countries, Starbucks is the largest coffeehouse company in the world

Amity Business School

Amity Business School

Amity Business School

Our mission: to inspire and nurture the human spirit one person, one cup and one neighborhood at a time.

Starbucks' mission to "inspire the human spirit," is a something that can be served in a cup with whipped cream.

Amity Business School

Amity Business School

Starbucks vision was to become a national company with values and guiding principles that employees could be proud of.

Amity Business School

They further defined their vision for enhancing customer experience through In-store digital network. The Starbucks digital network would give Starbucks customers free access to digital content.

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How is it that Starbucks create the value to its customers as well to its employees

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Six Principles
Their Coffee It has always been, and will always be, about quality. Their Partners They always treat each other with respect and dignity. And hold each other to that standard. Their Customers When they are fully engaged, they connect with, laugh with, and uplift the lives of their customers even if just for a few moments. Their Stores Its about enjoyment at the speed of life sometimes slow and savored, sometimes faster. Always full of humanity. Their Neighborhood We can be a force for positive action bringing together our partners, customers, and the community to contribute every day. Their Shareholders - They are fully accountable to get each of these elements right so that Starbucks and everyone it touches can endure and thrive

People

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The theme was "just say yes" to customer requests. Employees were trained to go out of their way, taking heroic measures if necessary, to make sure customers were fully satisfied.

Employees are encouraged to speak their minds without fear of retribution from upper managementsenior executives wanted employees to be vocal. They wanted employees to contribute to the process of making Starbucks a better company.

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Employees are given good compensation and a comprehensive benefits package. Sharing the companys success with the people who made it happen helped everyone think and act like an owner, build positive longterm relationships with customers, and do things efficiently.

Howard Schultzs rationale was that if you treat your employees well, they will treat your customers well.

A Research on employees of Starbucks

Amity Business School

According to a study of Boston coffee shops conducted by anthropologists at the West Virginia University, Starbucks offered a better social environment than competing independent coffee shops in the area and came out on top in other categories as well. The researchers conducted their investigation by visiting three different Starbucks locations and three independent coffee houses and documenting each stores performance in five different categories: patrons and employees levels of sociability, seating characteristics, whether customers were there for work or relaxation, amenities, and atmosphere.

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An unexpected trend emerged: staff at independent cafs were not as friendly as those at Starbucks. For example, during two of the observations at the Central Square Starbucks, baristas greeted customers by name. They also knew regulars orders and chatted about current events and shared experiences while preparing food and beverages. Observations also detail how baristas treated customers who were undecided about what to order. The Starbucks baristas would help customers by explaining the many options available and even offering suggestions.

Relating Service-Profit Chain Amity Business School to Starbucks

Cycle of Success
Low customer turnover Repeat emphasis on customer loyalty and retention

Amity Business School

Customer loyalty

Higher profit margins Broadened job designs

Lowered turnover, high service quality Continuity in relationship with customer Employee satisfaction, positive service attitude

Train, empower frontline personnel to control quality

High customer satisfaction

Extensive training

Above average wages Intensified selection effort

Inverted Organizational Pyramid

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Customer Base Frontline Staff

Middle Mgmt & Top Mgmt Support Frontline

Value proposition

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Starbucks value proposition is inspiring because it places the customer and the service delivered to the customer above everything else. Even though Starbucks is a retailcoffee store, the value proposition is not about the coffee exclusively but about the coffee culture and the experience of drinking coffee. With its value proposition, Starbucks moves away from the tangible benefits that the coffee offers, such as taste, stimulation, alertness and concentrates on the quality of its coffee and the intangible benefits of the experience of drinking Starbucks coffee. Starbucks value proposition is not about coffee, it is about the experience of drinking coffee in a Starbucks store integrating the product with the emotional benefits.

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3 Reasons Why Starbucks Still Shines, Despite Market Shortcomings

1) A place for every one 2) Ambiance 3) Consistently convenient

www.forbes.com

Conclusion

Amity Business School

As our contemporary lives seem continuously to increase in pace and decrease in free time, the Starbucks model becomes even more relevant. Starbucks has an array of competitors some old and some new who also pride themselves on providing branded coffee with swiftness

These prominent companies show potential for further growth, but as of now, Starbucks competitors are either more regionallybased or simply fail to populate the world as densely.

Because Starbucks still maintains its spot as the worlds largest coffee chain, with almost 17,000 stores and counting in over 57 countries.

Thank you

Amity Business School