Starbucks - 1 Starbucks Case Analysis Abstract During the...

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Abstract During the last few months of FY2002, Starbucks Corporation stood at a crossroads. Their past year had been another excellent performance, and Starbucks still held a firm position in the market. However, recent market research had suggested that customers were dissatisfied with the level of customer service they were receiving. Starbucks had decided that a solution would need to be in place to win back these customers, and to ensure that no other customers would be dissatisfied or lost to the competition. An idea had been presented to invest $40 million into additional labor hours for Starbucks 4,500 stores – a share of 20 labor hours per week per store. Starbucks will need to make a decision, as to whether or not the investment will work and if so, will the return on the investment net a profit for the company in the years to come. 1
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Table of Contents Background………………………………………………………………………………. .4 Situation Analysis…………………………………………………………………………4 The Environment………………………………………………………………….4 The Industry……………………………………………………………………….5 The Firm…………………………………………………………………………. ..6 The Marketing Strategy…………………………………………………………. ..6 SWOT Analysis…………………………………………………………………………. ..8 Strengths…………………………………………………………………………. .8 Weaknesses….…………………………………………………………………….8 Opportunities………………………………………………………………………9 Threats……………………………………………………………………………. .9 Identification of Problem………………………………………………………………. ..10 Identification and Evaluation of Strategic Alternatives………………………………….10 Recommendation Statement………………………………….………………………….11 References………………………………………………………………………………. .13 2
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Background Nearly all coffee drinkers – and for that matter non-coffee drinkers – have heard of a little place called Starbucks. Known for their fresh roasted, imported Arabic coffee beans, and friendly Milan-styled coffee bars, Starbucks offers premium coffee in a friendly, unique environment. Many visit Starbucks for the experience alone, even those who may not normally drink coffee.
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Starbucks - 1 Starbucks Case Analysis Abstract During the...

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