Starbucks utilized this tool to determine where to install their high-end Clover Brewing machine. Atlas provides what locations have the highest coffee revenue per customer, to determine which location would be best suited for the high-end machine. The Atlas software provides Starbucks with the proper information to determine the most suitable location for a new store. Information such as, demographic data, local trade areas, retail clusters, traffic, transportation nodes and new local developments that may impact local population. All this information enabling Starbucks to make better decisions regarding new store locations. #3. Compare Starbucks decisions about store location in 2007-2008 and 2012. What made the later decisions more successful? What management, organization, and technology factors were involved?
Management: In 2008 Starbucks Management was focused on growing just for the sake of growing, meaning, they expanded and opened hundreds of new locations just for the sake of it, disregarding any financial logic. Starbucks believed that new locations would profit and succeed just because of the Starbucks brand recognition. This resulted in hundreds of stores closing down and millions of dollars lost.
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- Fall '12
- Decision Making, Data Drive Starbucks Locations Decisions