StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

N/A - Research Paper Example

Comments (0) Cite this document
Summary
In this memo he cautioned that Starbucks’ attraction was being eroded. He emphasized that over the past decade, the company had expanded business from 1,000 stores to more than…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.1% of users find it useful
N/A
Read TextPreview

Extract of sample "N/A"

Commoditization of Starbucks of the of the Commoditization of Starbucks Question One Starbucks can prevent its product from being commoditized. The following discussion establishes the same.
The Chairman and CEO of Starbucks, Howard Schultz circulated a memo to his senior managers in 2007. In this memo he cautioned that Starbucks’ attraction was being eroded. He emphasized that over the past decade, the company had expanded business from 1,000 stores to more than 13,000. This had necessitated decisions that had resulted in the dilution of the Starbucks experience, and the commoditization of the brand. He was critical of the use of automatic espresso machines and the gradual elimination of in-store coffee grinding. In addition, several of the stores had laid greater stress upon automation, which had deprived them of their neighborhood café ambience (Enz, 2009, p. 564).
This commoditization of its product can be prevented by Starbucks, if it resumes its traditional methods of in-store coffee grinding, which would restore its erstwhile ambience.
Question Two
It is essential for Starbucks to adopt the following strategies, in order to obtain a competitive advantage over McDonald’s. The latter constitutes a serious competitor for Starbucks. This is discussed in the sequel.
Approximately, 80% of orders in the US, are consumed outside the premises of Starbucks outlets. In addition, 66% of the company owned stores sell lunch. These developments have produced a debilitating effect upon the ambience. Moreover, there has been a significant reduction in the education and average income levels of its customers. On the other hand, the customer base of McDonald’s has remained stable. Starbucks has resorted to selling lunch at many of its locations in the US, in order to gain entry into the area of food. As a consequence, the fragrance of coffee has been supplanted by that of food. The aim of this company is to remain one of the most recognized brands of the world, without sacrificing its unique status. Although, there has been a fifteen fold expansion in its stores, there are misgivings regarding its ability to grow in the face of stiff competition from McDonald’s and other fast food providers (Enz, 2009, p. 565).
Obviously, it is indispensable for Starbucks to increase its food outlets, in order to compete with McDonald’s. In addition, it has to reduce the price of its products. With reduced financial levels among the customers, the latter prefer the cheaper fast foods to coffee. Therefore, Starbucks has to sell fast foods that cater to the requirements of customers.
Question Three
Jim Donald had been removed from service, in Starbucks. This dismissal of its CEO was crucial and a wise decision, as he had failed to be innovative. His lack of vision had produced an adverse effect upon the growth and development of Starbucks.
The increasing and intense competition, diminishing stock price, and qualms regarding the US business, compelled the Board of Directors to discontinue with the services of Jim Donald in 2008. The latter had joined Starbucks in 2002, and had brought in his experience of a grocery executive. He embarked upon excessive expansion in the US, without innovation. This brought about his removal (Enz, 2009, p. 575). Howard Schultz, who had been the CEO until 2000, resumed this role. He concentrated upon global strategies and expansion of Starbucks, which had made its mark in 43 nations (Enz, 2009, p. 577). Being the CEO and Chairman, enabled Schultz to plan the overall strategy of Starbucks, with primary focus upon the customer.
Pros and Cons of change in Senior Managers
Senior leadership changes could influence staffing plans by reducing or enhancing the employee base of the company. These changes could destabilize the workplace and generate problems with employee satisfaction, morale and turnover, thereby compromising the goal of the company to possess a positive and engaged workforce. At the same time, senior leadership changes affect business operations and have the capacity to streamline operations and make the company function optimally (Mayhew, 2015).
Question Four
It would be incorrect to surmise that Starbucks has been deprived of its competitive edge. The following discussion establishes this.
Since its very inception, Starbucks had adopted the strategy of product differentiation. Thus, it had provided premium product mix, locations, coffee beverages reputation and excellent customer service. The outcome was the creation of a premium valued brand that competitors found to be very expensive to replicate. Moreover, Starbucks engaged in strategic alliances and smart acquisitions. Instead of adopting the franchising model, it conducted its operations from company oriented stores and joint ventures. As part of its product diversification strategy, Starbucks acquired Teavana, Bay Breads, and Evolution Fresh. Moreover, this company expanded its operations into the principal developed and emerging markets, thereby achieving geographical diversification. These endeavors had been extended to 60 countries (Nithin, 2013). These strategies provided substantial competitive advantage to Starbucks, vis-à-vis its competitors.
Question Five
It is the considered opinion of several analysts that Starbucks should concentrate upon its international operations. The saturated state of the domestic market requires it to foray into foreign locales, if it is to improve its growth and profits. This company commenced in 1971, when Jerry Baldwin, Zev Siegl and Gordon Bowker launched a coffee bean selling store. These budding entrepreneurs had named their store Starbucks. There were five such stores by 1981, and this company started a coffee bean roasting facility in Seattle (Subhadra, 2003).
Starbucks’ core competency consisted of its ability to take advantage of its basic product differentiation strategies, by providing a premium variety of high quality beverages and snacks. The value of this brand has been based upon the sale of the best quality coffee and related products, and the provision of the Starbucks Experience to its customers. The latter connotes unsurpassed customer service, and clean and properly maintained stores that mirrored the culture of the communities that purchase from these stores (Nithin, 2013). Another major feature of Starbucks has been the value based approach of its human resource management, which has created very powerful internal and external associations.
List of References
Enz, C. A. (2009). Hospitality Strategic Management: Concepts and Cases. Hoboken, NJ, USA: John Wiley and Sons.
Mayhew, R. (2015). Change in Senior Leadership & Its Effect on Achieving Business Goals. Retrieved March 3, 2015, from Hearst Newspapers: http://smallbusiness.chron.com/change-senior-leadership-its-effect-achieving-business-goals-44696.html
Nithin, G. (2013). Strategic Analysis Of Starbucks Corporation. Retrieved March 3, 2015, from Harvard University: http://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf
Subhadra, K. (2003). Starbucks International Operations. Retrieved March 3, 2015, from Business Internationalization: http://www.mi.rei.ase.ro/Site%20MI/Starbucks_EN.pdf Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“N/A Research Paper Example | Topics and Well Written Essays - 500 words - 6”, n.d.)
N/A Research Paper Example | Topics and Well Written Essays - 500 words - 6. Retrieved from https://studentshare.org/tourism/1680627-na
(N/A Research Paper Example | Topics and Well Written Essays - 500 Words - 6)
N/A Research Paper Example | Topics and Well Written Essays - 500 Words - 6. https://studentshare.org/tourism/1680627-na.
“N/A Research Paper Example | Topics and Well Written Essays - 500 Words - 6”, n.d. https://studentshare.org/tourism/1680627-na.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF N/A

N/a

...?Law College: Principles of Equity and Trust The concept of equity and trusts has been a controversial issue in the English law especially while dealing with complex issues that arise between trustees and beneficiaries. Trusts are legal bonds in which one person, the settlor, grants powers to another, the trustee, to act on his behalf, say after his death, to pass his properties to their rightful beneficiaries. In this case, the trustee bears an obligation to pass the property to the beneficiaries, either as stated by the settlor or at his own discretion. As opposed to express trusts where the beneficiaries are explicitly stated, in discretionary trusts, the trustee has the power to elect the beneficiaries depending on the class... College:...
12 Pages(3000 words)Essay

N/A

Allowing Performance Enhancing Drugs in Sports Introduction: The area of human activity that is associated with a dramatic spurt in the quality and quantity of performance enhancing drugs is the arena of sports. The performance levels required to succeed at the highest levels of sport are at the limits of human endeavor and with so much competition and money involved in the success associated with sports, there is the strong temptation to indulge in the use of performance enhancing drugs to gain the required edge and be a part of fame and financial gain that success in sports brings.
Performance Enhancing Drugs in Sports:
The use of performance enhancing drugs in sports is defined as “the administration to sportsmen or spo...
2 Pages(500 words)Essay

N/A

...Photography Photography is the prosaic fusion of arts and science. It is the process of capturing light and electromagnetic waves into durable images. Classifying photography into genres is a bit difficult; differentiating one technique from other can be tedious. For instance, is portraiture a genre or a technique? Similarly who will decide in which category to place high speed photography? There are tons of photographic genres defined so far. To name a few; fashion photography, flash photography, aerial photography, black and white photography, stock photography, environmental photography, erotic photography and the list goes on. As far the evolution of these genres is concerned, one needs to trace each genre back to its... Photography ...
2 Pages(500 words)Essay

N/A

It was established in 1958 from its predecessor NACA – National Advisory Committee for Aeronautics – and has posted remarkable performance including the famous Apollo moon-landing missions and lately, the Space Shuttle project.
O’Keefe came from a financial management background when he joined NASA with his mission being to mitigate $4.8 billion overrun problem of the International Space Station. The administrator faced pressure from enthusiastic astronauts to land to the Moon and Mars. But O’Keefe intended to have an overhaul of the policies of NASA before embarking on the Moon-Mars mission (Lambright, 2008). The aim of this paper would be to evaluate the leadership portrayed by O’Keefe in NASA towards attainment of the set m...
5 Pages(1250 words)Essay

N/A

...Negligence in nursing practice Negligence in nursing practice I personally think it is a negligent for a nurse to leave a patient without confirming if the other nurse has returned to the floor. This is because sudden risks may arise in the course before the other nurse reports on duty. Such situations are considered as negligence of the highest order and are considered as vice by the nursing code of conduct. According to Croke, negligence is a failure to take the appropriate responsibility or care on a person from injury or damage of similar kind. According to the nursing code of ethics, if a nurse leaves his duty before handing over to the next person if in shift is believed to be an inhuman practice. This is because, each... in nursing...
2 Pages(500 words)Assignment

N/a

...Spanish Culture Spanish Culture Food Service Styles Spanish culture adopts food and table service styles that are used across the globe though there could be variations that are unique to Spanish culture. Spaniards maintain a notable consistency in menu, décor, uniforms, cuisines, table setting and ambiance (Eichler, 2013). i. French service-it involves three courses at the table side. Food is mostly cooked from Gueridon (Eichler, 2013). French service is considered a reserve for the elegant in Spain. ii. Platter service-this service is faster than French service and it is used in banquets. Hot food is served from a silver platter at the tableside. iii. Butler service- it is a personalized food service where they choose... Culture Spanish...
2 Pages(500 words)Essay

N/a

... Creative Writing Everyone has a preferred location to escape when he feels like relaxing. They always go there when they want to be alone away from noise and disturbance of people. My best and comfortable place is spring. Spring is considered the king of seasons. The springtime makes me relax as no other location could do. I normally enjoy the beauty and charming nature of this wonderful season. During spring season, I prefer spending more hours outside my house, be it mountains or fields. I love sitting on grass as I listen to the sound of nature around. When I glance around me , during this time, I see beautiful and clear things. For instance, the tall green vegetation and leaves of the trees sway breeze. Then I see pastel... Creative...
2 Pages(500 words)Essay

N/A

...Problem Identification of the of Assignment 3 Problem Identification Introduction Previously, research had been conducted on customer reviews through websites, such as Trip advisor, Open table and Yelp, with respect to the Oak Room Restaurant. Thereafter, the data obtained had been analyzed, in order to assess the competitive advantage of this restaurant. The following possible areas of improvement were observed with regard to the Oak Room Restaurant. 2. Possible areas of improvement 2.1 Quality of Services-Staff Attentive, efficient and innovative staff constitute the backbone of any organization, and this is especially true of restaurants. The importance of the staff emerges from the fact that they interact directly... Identification of ...
5 Pages(1250 words)Research Paper

N/A

... Task: Position Advertisement A new catering company in town is looking for qualified and ambitious individuals to fill the position below. This is a great opportunity to be part of an ambitious catering team and work closely with an experienced team to provide high quality service to our clients. Catering manager The manger will coordinate all activities in the catering department and ensure that the highest quality and excellence in service provision. This involves motivating employees, developing new dishes and experiences and working towards the general reputation of the company. A bachelor’s degree in hotel management and 3 years experience are necessary for the position. Qualified candidates should apply through the website...
1 Pages(250 words)Admission/Application Essay

N/A

...PSY403: Unit 6 Questions Importance of Central processes in auditory perception. Auditory perception refers to the ability to perceive and immediately understanding different sounds produced, normally with particular organs like ear. Sound existence is in the form of vibrations traveling through air and other substances (Yost, 2008). The organ detects the vibrations, changing them into impulse immediately sent to the brain for interpretation. Here the brain is primarily responsible for many processes that convert most incoming noise into something meaningful and understandable. The central auditory processes, however include the auditory mechanisms as well as the processes responsible for behavioral characters like auditory... Unit 6...
2 Pages(500 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic N/A for FREE!

Contact Us