Description of Assignment Starbucks

Description of Assignment Starbucks - AEM2200 Fall 2011...

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AEM2200 – Fall 2011 Wednesday, October 5 th Case Study: Starbucks: Delivering Customer Service Study Guide: In 2002, Starbucks is the dominant specialty-coffee brand in the world with more than 4,500 retail outlets in North America alone. Its aggressive expansion strategy calls for an additional 750 North American retail outlets in 2003, even as the company explores other avenues of growth. At the same time, however, the company has gathered evidence that customer satisfaction is on the decline, its brand image is showing some rough edges, and its customer base has changed in significant ways. To address these problems – in particular, the decline in customer satisfaction – Starbucks is considering investing an additional $40 million in labor in its stores. Consider the following questions: 1. What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period?
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