Respond to 2 Colleagues Discussions 1-2 paragraphs each Colleague

1st Colleague to Respond to:

Diagram Analysis ~ Starbucks

Why did Starbucks overlook negative outcomes?

Why are the competitors successful?

What are the impacts to our sales and profitability?

Why did Starbucks lack meeting customer satisfaction?

Why was performance slow?

Competitors offer more products and create a high-quality experience for consumers

High turnover rate, less consumers, low revenue

No marketing strategy in place & employees were not satisfied

Employees were not limiting customer service to 3 minutes

Lacked a marketing strategy

No Marketing Officer

Root Cause

Starbucks needs to pay employees a standard living wage and create a unique experience for customers

Summary

Starbucks is one of the largest coffee companies in the world. Their logo cannot be missed. They have a green and white logo and have different varieties of coffees for every season. Starbucks has been the top leading organization in the coffee industry for their customer satisfaction. Their success tells a story. However, after many years competition arises and Starbucks failed to meet customers’ demands.

Day stated that according to the data, they are not meeting customers’ expectations.’ With that in mind, they planned on investing $40 million in stores to add 20 hours of labor work and improve service and quality. Starbucks is known for its quality coffee beans imported from Africa, Central and South America, and the Asia Pacific regions. This fresh flavor is known for its various backgrounds. To introduce their brand they present every customer a welcoming experience. For regular customers, it is by knowing their drink and customizing it without them having to say anything. Their last branding technique is by giving customers that aroma of lounging and feeling at peace while drinking coffee. This invites more people to try out their coffee and engage in conversations. Starbucks is seen on campuses, stores, offices, or hospitals.

Starbucks employees are hourly wage employees. They are called partners. According to Moon and Quelch (2018), “Alling remarked, “From day one, Howard has made clear his belief that partner satisfaction leads to customer satisfaction” (p. 4). But Starbucks had one of the highest employee turnover rates. This was due to managers or employees resigning. New employees must be trained before even starting work. Employees were to learn soft and hard skills upon the job. Workers gave customers the option of a few refills if a drink was spilled or a free sample if paying with a check. Some of the issues were not enough baristas for the workload. However, labor was the highest expense. To minimize costs Starbucks removed extra tasks and amplified facility design. The store was based on four categories, service, cleanliness, product quality, and speed of service. However, the scores were not perfect. Another issue was competition. Pete’s Coffee and Tea had a wider range of beverages including a brewery, wine, coffee, or tea. The coffee beans were premium based. The last issue I identified was that there was a lack of market strategy. There was no chief marketing officer. Marketing related trends can be overlooked with this system in place. These are some of the root causes that can factor in Starbucks decrease in customer satisfaction.

In conclusion, to improve this system I would limit customer service to three minutes per person. This way the line would speed up and wait time for every customer was not long. The lesson I have learned is that Starbucks needs to use the thinking system in place and understand that customer satisfaction comes from employee satisfaction. Employees need a better earning wage to feel their job is worth it. Poor employee performance leads to a higher turnover rate. I would apply this system in my organization if I were a manager. It is important to address employees who feel they are a part of a team and can balance home and work life. With these recommendations, I believe Starbucks can lead to a better result.

Reference

Moon, Y., & Quelch, J. (2018). Starbucks: Delivering customer service [Case study]. HBS Case 9-504-016. Boston, MA: Harvard Business School.

2nd Colleague to Respond to:

Summary

Starbucks have been around since 1971 and still is the leading American multinational chain of coffeehouse chains. At this time there is not a single place one can travel and not run into a Starbucks, rather it be at store front or inside a retailer. The article discusses the Starbucks performance which listed a question in the article I found valid. “Are we clearly communicating our value and values to our customers, instead of just our growth plans?” (Moon & Quelch 2018). Starbucks didn’t do a great job at addressing the consumers views and concerns because they were so focused on revenue success of the company. Based on the survey from the customers, from 2000 53% of the customers agreed that Starbucks was making money to 61% in 2001. Interesting for just a year later and the customers still feel the same.

Root Cause Analysis

The root cause was that Starbucks was not good at improving for positive improvement in customer feedback, Ineffective marking strategies, and challenging employee expectation. For example, the partners had to endure intense trainings but the experience they gained from the training didn’t decrease the turnover rate. Starbucks not having a marketing team is just another example of the root cause in the failure of the customer overall satisfaction. Which in turn effects the company bottom line. While all of these things are affecting sales and customer dissatisfaction responses, Starbucks kept opening stores across North America.

Recommendation

First thing that Starbuck must address and work to improve is receiving and accepting the customer feedback as areas of GROWTH. Customer relations is important for the success of any business. No customer who doesn’t feel connected the brand is going to support it. I remember reading a little in the beginning of the analysis, and it speaks to reason why Starbuck’s prides itself compared to other competitors. When I go to Starbucks I’m always appreciative of the ambience of being able to get my tea, and sit in and browse the web with their Wi-Fi or read a book in peace, and let’s not forget the little to no wait time. I offer the following recommendations:

· Marketing Team

· Including Chief Marketing Officer

· Quarterly Marketing Strategies

· Branding Strategies

· Marketing Research

· Customer Relations Team

· Team keeps and presents Customer data survey results

· Innovative plans to increase and retain positive customer relationships

Having the above will eliminate negative feedback and customer experiences. The customers will feel like the company appreciate them for patronizing their business and not just trying to garner success off their investment in the company.

Takeaway

I can think of a number of things learned from this course, but what really hits home for me is no matter how success an organization is or appears to be, the customers, clients, consumers are what contribute to their success. Moreover, organizations must remember to make sure all contributing partners feel valued. Customer relations is just one of those major components to success of any organization or company. Customers are the driving force of their business operation. Lastly all of this is needed along with a strategic plan in place. I’m reminded even in my role education; my parents are my customers and I always make sure that I provide them the best experience in enrolling their child at our schools. In turn they will share their experiences with family and friends and they will want to enroll their child in our school too.

Decrease in Customer Service

Lack of Marketing

Lack of Customer Relation

No Chief Marketing Officer

Focused on revenue & new locations

Poor Customer Service

No increase in new customers

High expectations for staff

(Performers/Barista’s)

High Turnover

Reference

Moon, Y., & Quelch, J. (2018). Starbucks: Delivering customer service [Case study]. HBS Case 9-504-016. Boston, MA: Harvard Business School.

Read through your colleagues’ posts and respond to two or more of your colleagues in one

or more of the following ways:

 Compare your conclusions about the root causes and potential solutions in the case study

to those offered by your colleague.

 Provide a different or expanded perspective by offering an insight that you gained by

reading your colleague’s conclusions.

 Ask a question that will help your colleague think about his or her conclusions more

deeply or broadly. Make sure you provide context and/or ref erences based from the class

readings, your own investigation, or your experience.

 Provide an example that further illuminates the conclusions or demonstrates how such

thinking is employed elsewhere.

 Offer other lessons you learned from the case and sugges t ways your colleague could

implement those at his or her organization.