STARBUCKS CONTINUOUS IMPROVEMENT:

A CASE STUDY

Prepared by:
Group 3
Fruelda, Adrian Lester F.
Estayan, Thomas Jefferson Y.
Lopez, Pearl Hannah N.
Mamangon, Maria Angelica M.
Mamaril, Alwyna Marie
Medina, John Marvin
Mira, Jude Altair
Nerveza, Mary Joy

I. TIME CONTEXT

In 1971

In 1982

In 1992

- Opened by Gerald
Baldwin,
Cordon
Bowker & Ziev Siegl
- A small coffee
shop in Seattle's
Pike Place Market

- Howard Schultz
joined
the
marketing team
- Set
up
an
espresso bar at
downtown shop

- 140 stores in
Northwest
&
Chicago

-Competed against
Gloria
Jean's
Coffee Bean and
Barnie's Coffee &
Tea

- Specialized in
selling
whole
arabica beans

- Schultz took over

and began opening
new stores

In 2008

Financial Crisis,
especially in
America

- Closure of almost
600 stores

II. VIEWPOINT
A statement from CFO Troy Alstead paints this picture:
We clearly hit a wall and didnt do very well in the 2007/2008 time
period. From here forward, when we grow Via, Seattles Best Coffee
and consumer products, theres less investment for each dollar of
revenue.
Actual store closures may differ depending on a variety of factors
including, but not limited to, risks related to finalization of third party
agreements, expected costs savings, income tax and other benefits
associated with the store closures in the anticipated time frame, if at
all.

III. PROBLEM
What are the measures, practices, and strategies
Starbucks can do to continually improve their
products, services, and amenities in order to comply
with the customers dynamic and changing taste
preference and demand, and achieve customers
satisfaction?

IV. OBJECTIVES
To achieve customer intimacy
To attain customer satisfaction using hard
skills and soft skills
To become America's "THIRD PLACE", a
place that would be separate from home or
work.
To establish Starbucks as the "Most
Recognized and Respected Brand in the
World"
To inspire and nurture the human spirit
one person, one cup and one neighborhood

V. AREAS OF CONSIDERATION
Strength
S1S2S3S4S5S6S7

Brand Identity
Quality
Variety
Locations
Convenience
Store Ambiance
Ethics

O1O2O3O4-

Customization
International Markets
On-the-Go Lifestyle
Partnerships

Opportunities

Weakness
W1- Overexposure
W2- Too many products
W3- Risky investment in
more locations

Threat
T1- Direct Competition
T2- Cheaper Alternatives
T3- Recession

VI. ALTERNATIVE COURSES OF

ACTION
PRODUCT INNOVATION
Represents packaging innovation.
Represents meeting a high consumer
need.
Represents processing technology.
Represents the ability of an innovative
product to change consumer behavior.

VI. ALTERNATIVE COURSES OF

ACTION
SERVICE INNOVATION
Installation of Wi-Fi hotspot.
Using Starbucks Stored Value
(SVC)
My Starbucks Reward.
Mobile and Mobile Payments

Card.

VI. ALTERNATIVE COURSES OF

ACTION
DESIGN INNOVATION
New Social Media Innovation.
Cultural Change and Adaptation.
Experience Customization.

VII. RECOMMENDATIONS
1.
2.
3.
4.

Product Diversification
Starbucks in Campus
Reservation Service
Delivery Service

VIII. FINAL ANALYSIS