Starbucks Case study

1). Principal Management Question:

What are the best ways for Starbucks to develop and improve its operations by strategically
adding more Roasteries and Starbucks Reserve locations?
2). Evaluation of the Circumstance:
• The coffee industry is becoming more competitive, which calls for distinction.
• They are increasing customer desire for high-end coffee experiences.
• Change in the food and beverage industry towards customized products and immersive
shopping.
3). Other options:
• Put your attention on taking the Roastery concept global to position Starbucks as a
destination for specialty coffee.
• To meet the demand for special, limited-edition coffees, consider expanding the number
of Starbucks Reserve locations.
4). Selection Standards:
• Market share versus competitive edge
• Client contentment
5). Plan of Action:
• Conduct market research to find the best places to expand the Roastery and Reserve
stores.
• Create marketing initiatives to highlight the distinctive products that Roasteries and
Reserve stores have to offer.
• Teach employees to provide outstanding customer service in these upscale venues.
• To make the required changes for ongoing success, keep an eye on and assess the
performance of Roasteries and Reserve shops.
 Class Notes:
• When Peet's Coffee founder Alfred Peet launched the first location in 1951, he ignited a
revolution in coffee culture. Mike Pale Market did the same in 1971, concentrating just
on selling coffee beans, cups, and accessories. Peet's Coffee experienced tremendous
growth over time; by 1987, revenues had increased to $3 million from 1986 when shares
were sold. The business opened its 1000th store in Japan around the middle of the 1990s.
Their strategy became centered on consistency, which changed people's opinions about
coffee.
• Even with setbacks like a minor drop in sales as a result of cup size changes, 2008 saw
innovations like signature cocktails boost sales. Particularly in China, where a new store
opened every 15 hours, the rapid expansion persisted. Peet's has always upheld the value
of hard labor, mirroring the philosophy of its CEO, Howard Schultz, who occasionally
left and returned to the role in times of crisis. Their commitment to social responsibility
was demonstrated by projects like hiring veterans and immigrants and collaborating with
ASU to offer education.
• Fundamental Coffee Training made the loss of $50 million, which is indicative of its
commitment to excellence. Throughout its 40-year history, Peet's Coffee has fashioned a
tale of expansion, ingenuity, and social impact—from the first farm to interacting with
young warriors in Tacoma, Washington.