Case Study Presentation Starbucks Delivering Customer Satisfaction

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Case Study Presentation Starbucks; Delivering Customer Satisfaction

AHMED KHANZADA ANEEZA ALVI ANUM ABU HURRAIRA IQRA ASIF OMAR SHAHID RIDA AJMAL

CASE FACTS
With clear core values towards providing

quality coffee, the best service, Atmosphere

Starbucks has enjoyed great success since it was

founded 30 years ago.


Serious concerns regarding company problem

meeting customers expectations.

Quantitative Facts
With the additional labor dollars, this could make the partners

day to day tasks less stressful improve their ability to focus on the speed of service, their level of friendliness and the cleanliness of the store.

To make the argument stronger and to put it in financial terms:

The $40 million spread over 4500 stores

would equate to $8888 per store per year, or $171 per week.
store running about $15400 per week.

Currently the hourly employee labor poor is about $3240 for a

Exhibit Analysis

PROBLEMS AND ISSUES


Cannibalization

Speed of Service
Customer Satisfaction is on Decline

Lost Sight of Customer

Long Wait Times

CORE PROBLEM
This study aims to identify possible solutions on

how the company could resolve the gaps that exist


between customer

expectations and what Starbucks delivers.

In order to meet customer

satisfaction and gain customer loyalty.

DECISION CRITERIA
To determine if Days $40 million proposal could

solve Starbucks' dilemma regarding increasing customer satisfaction

Since the assumption is that speed of service is the

number one driver for satisfaction and that the additional labor will provide the increase of speed of service.

Emphasis on

INCREASING THE COMPANYS SALES.

ALTERNATIVE SOLUTIONS
Alternative 1 Starbucks make the $40 million investment in labor in the stores Alternative 2

Invest more money in automated espresso machines


Alternative 3

Educate poor partners to utilize their soft skills to treat their customer as valuable.
Alternate 4 Improve the speed of service to less than 3 minutes by increase labor hours

Alternate 5 Establish Loyalty Programs

FINAL SOLUTION
After analyzing the current situation of

Starbucks, the best course of action they could consider doing is to

educate poor partners to utilize their soft skills

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