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Unformatted text preview: Problem: $40 mil investment = 74 eps , Add labor Customer: Busy times , Slack times , Service time will be improved3 mins Menu: Fancy: multi steps, Proliferation Old Days: Ambiance: 3rd place, Menu consistent, White collar 25-44, Educated , female Today: Stop on the way, Complex menu, Younger, Trendy, mixed Relationship with the customer: Free cups, know their names and favorite drinks, Relationship with Employee: stock options , health care, Value of Highly satisfied customers is high will repay more than $40 mil When we calculate the 12 months total a customer spends at Starbucks and given the total customer base of Starbucks it crosses way above $40 million mark, which justifies the spending in that direction. Also that the main reason for customer dissatisfaction according to Exhibit was serving time. So before Starbucks lost its market share or people...
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- Spring '10