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starbucks paper - Caitlin Vodopia Final Individual Case...

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Caitlin Vodopia Final Individual Case Report Service Operations Management 12/04/09
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Starbucks experienced extraordinary success in the early 1990s for a few key reasons. First, the store offered some of the best quality whole coffee beans and brewed coffee in the world. On top of premium brewed and whole bean coffee, Starbucks’ baristas were coffee enthusiasts and experts as well. This led to not only a great product, but a great service experience as well. Starbucks’ goal was to create a “third place” for Americans, a place besides work or home to enjoy coffee by themselves or with others. The Starbucks’ value proposition revolved around the idea of “creating an ‘experience’ around the consumption of coffee.” To be successful at creating this experience, Starbuck’s had three main components: serving premium coffee, providing excellent customer service, and providing an atmosphere that was based on a sense of community. These three factors were to add value for the customers of Starbucks. Other factors contributing to the value proposition of Starbucks included making sure the stores were located in highly visible and high traffic areas, partnering with companies to create new products to bring awareness to potential new customers of the Starbucks, such as Pepsi and Dreyer’s, and making sure Starbucks’ employees, or partners, are treated very well. Adding these additional factors to the environment Starbucks created for its
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customers proved to be a compelling value proposition, because it touched on aspects of the customer, service, product, and how to maximize profits. Customer satisfaction scores have declined due to the service aspect, specifically the speed of waiting to order and receiving your order. Starbucks’ goal is to serve a customer from the end of the line to receiving their drink in three minutes or less. However, recently their service scores have been suffering and there are a few reasons that could contribute to this. First, over time the complexity of a barista’s job had increased. Each drink has a specific number of
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