The case 'Starbucks: Delivering Customer Service' is further facilitated by a video that can be played in the class or be made a part in a digital course pack. Teachers should be careful about ensuring that the video is available for the students as when needed by the course design as it divulges key information pertaining to the case. Starbucks, the leading specialty – coffee brand in North America, must react to a market study of the late which highlights that the organization is failing to match the customer expectations in the realms of its service. To enhance consumer loyalty and satisfaction, the organization is debating on an arrangement that would increase the number of employees in stores, and in thory, lead to a quicker service speed. However, the effect of the chalked plan (which can be accomplished with an yearly sum of $40million) on the company’s bottom line is uncertain.
1. What factors accounted for the extraordinary success of Starbucks in the early 1990‟s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period?
2. Why have Starbucks‟ customers satisfaction declined? Has the company‟s service declined, or is it simply measuring satisfaction the wrong way?
3. How does the Starbucks of 2002 differ from the Starbucks of 1992?
4. Describe the ideal Starbucks customer from a profitability standpoint. What would it take to ensure that this customer is highly satisfied? How valuable is a highly satisfied customer to Starbucks?
5. Should Starbucks make the $40 million investment in labor in the stores? What‟s the goal of this investment? Is it possible for a mega-brand to deliver customer intimacy?