Research Project

1

Business Research: Starbucks Corporation

Executive Summary

Table of Contents

Introduction

Starbucks Corporation is an American coffee house that is often called Starbucks coffee. It is the largest coffee house in the whole world and has an estimated 22,766 stores all around the world in 65 different countries. The company has its headquarters in Seattle Washington in the United States and has presence in North America, South America, Asia, Europe and Africa. This has been attributed to very high rate of expansion that was done by the company in the 1980’s and the 1990’s. It has a global presence but its key markets still remain to be the American market. This is because about 12,800 of its currently operational stores are in the country, which is about half the total number of stores that it has in the world (Gerhardt, Hazen, Lewis and Hall, 2015).

Starbucks was founded on March 30 1971 by three partners who had meet during their time as students in the University of San Francisco. The three were Jerry Baldwin, Zev Siege and Gordon Bowker. An entrepreneur who had shown them how to roast coffee beans had inspired the three. They went forward selling coffee beans and coffee roasted beans, which started the world’s famous coffee shop. However, in 1987 the three partners sold the coffee shops to former employee Howard Schultz. Howard started his own coffee shops but rebranded the name under Starbucks and continued to expand rapidly.

After Howard Schultz took over as the owner and the chief executive officer of the company, he lead it in a very vigorous expansion to open many new stores around America where the coffee market was still very un utilized. Starbucks controlled a large market share of the coffee market compared to competitors and this gave them a financial advantage during the expansion of the company and also provides the finances required for expansion. The company gave its initial public offering in the stock market back in 1992 and by then it only had around 140 outlets in America. The value of the company rose steeply after its stock sales and the money gained provided the finances that were required for the expansion to other markets in North America and in the world (www.wsj.com).

Ethical considerations expected to be encountered.

The first among these are the set rules and regulations. As a researcher I am expected to be very observant of the rules that are set by the company while trying to research on whatever my interest is. I should be able to state clearly what the research is about to all the relevant authorities and the firm managers. I should also be able to state the duration that the research will take and this would help make the people to be informed about my presence. I should also follow all the procedures that are in place when gaining my information so as to make sure no person is by passed in the process (www.fastcompany.com).

Second would be the issue of privacy and confidentiality. All companies have information about themselves that they wish to keep from all the potential competitors in the industry. The company is in the food and beverage industry and having competition is something normal and key to maintaining their market share is keeping their strategies private from all the competitors and so it is important to know the limits of the information that I will expose (Elder, Lister and Dauvergne, 2014). Lastly it would be of a lot of importance to make sure that all those that are involved in the research do not fill infringed and this would also make the research to have a good view of personal experiences of the workers without stating facts that they wish to keep private.

The topic of research will be on change of products to maximize sales that are made by the stores. Sales are largely determined by the product that a company offers; the level of the demand of that product in the market where the goods are sold. I chose this topic because as it is common in the food and beverage industry, the types of goods that are offered by the company often increase the sales or decrease the sales depending on how the product is taken by the consumers. This being a major variable on how good a product performs in the market, I found it important to determine to which limits this company should have its products selling around the world.

Problem statement

“New products should be introduced in the market as soon as the current ones start to register a drop in the sales that they made.” In many industries, the general performance of the company is measured by the level of sales that the company is making and the amount of revenue that a company gets in the financial period that is being looked into. In the food and beverage industry, this is no different (Scott, 2015). It is even more sensitive compared to other industries because a reduction in sales may mean a very serious thing like a change in taste of the customers and if not looked into and the appropriate changes are made then there may be a long lasting effect on the reduced sales of the company.

In my research, I want to prove that when a product is no longer wanted in the market or when the demand of the product reduces reasonably, it makes most sense to introduce a new product that will cushion the reduction in sales and that will also increase the revenue that is generated closing the gap that is created by the other product. Companies have different ways of monitoring their sales whether physical or through the more technological ways. Whichever method is implemented should be able to notice a decrease in sales or an increase so that the management can be notified and they can be able to take a collective measure to make the situation right.

In most cases, a decrease in sales is noted by a decrease in the revenue that a company collects at the end of a financial period. The revenue is the money that is made from the sales that are made in a particular period of time. The other method of noting a decrease in sales is the reduction of clients served or customers that are served in a certain period of time. These two methods can be used to determine when products sales are reducing in the food and beverage industry especially. A company like Starbucks, which can easily monitor the sales, made on a product-by-product basis. This is often a good strategy because the company can effect changes on the basis of product by product and in the specific market where the sales are reducing.

I also wish to prove that not in all the cases that stopping to sale the products should solve a product reduction in sales. Sometimes there are many different cases in the reduction of sales including a different seasons and an increase in the number of competitors that are involved in the whole process of selling goods that are perfect substitutes for each other and these are all important factors that need to be taken consideration of before making a final judgment on the issue of reduction of sales.

Research objectives

In undertaking this research, I have several objectives that I hope to attain by the end of this research. The first among these is to have a clear way in which all the sales of a company or that are made by companies in the food industry are recorded in a systematic way so as to allow for analysis. By defining the methods that are used to record the data in all the companies’ outlets, it is possible to compare them and depending on the best data, I can recommend a specific method to be used in the whole company. This would have an overall beneficial factor of making sure that the company is able to monitor all its sales in all the stores so as to reduce the response time that it takes to respond to a situation in a certain region.

Second is to determine the amount of time that a manager should take before responding to such a situation in the eventuality of a decrease in sales of a certain product. There should be grace periods given to monitor the performance of a product before taking the appropriate action to make sure the trend does not continue. This is because not all decreases are long term or have a significant meaning to the overall operations of a company (Martins, Rindova and Greenbaum, 2015). Such cases should be able to be noted out so that they don’t cause a significant change to the operations of a company or the organization. Through this research, I hope to be able to differentiate the different cases so that the management of the company can only react to the important cases in the stores.

Third among my objectives is to be able to determine the sustainability of different products. Different products have different time lines that they remain viable in the market. Through this research, I hope to be able to tell the different time periods that a product remains to be a favourite in the market before it reduces the amount of market share that it holds. This would enable them to time the periods between when they release a new product to the market and when the products market reduces requiring them to introduce another. This will make sure that there is no introduction of new products to close or too far away from each other so as to make sure that the organization holds the same amount of market share over time or increases it but avoids any reduction. In general the report should provide the company with information that will help them to improve their performance in the issue of new products to the market.

Scales of Measurement

Starbucks Corporation is an American coffee company and a coffee chain that operates in Seattle, Washington DC. It happens s to be the largest coffee house in the world. It has over 22,000 stores in 65 countries and territories. It includes 1,930 in China, 1,409 in Canada, 12, 6802 in U.S.A while the rest are in Japan, and U.K. Starbucks was founded back in the year 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker. They got the idea from Alfred Peet, who was from Peet’s coffee fame. Initially, they dealt concentrated on selling just coffee beans and equipment used to make coffee. They never sold drinks that have made them famous today. Before the World War 11, Washington was noted for its good coffee. However, the quality of its coffee declined so much by the late 1960s that its residents had to seek a way out. The founders of this company took the responsibility. They made pilgrimages to buy coffee beans in Britain and Vancouver. After seeking ideas from their Italian friends and Dutchman, Alfred, the first store was born.

Within its first decade, the company had opened several stores within the city. They included Bellevue, Capitol Hill, and University way. By the year 1982, they had established a solid retail business that entailed five stores, a roasting facility and a wholesale venture that sold coffee to several local restaurants. During this period, they also established several ethical policies. The most important one was to donate coffee that was old by eight days to charity. In the same year, they hired Howard Schultz to manage sales and marketing department. There were also a lot of lessons learned in this period too. Starbucks had to re-consider their target market. First, they were to shut out supermarkets since they were not ready to compromise on quality so as to lower prices. Secondly, they were required to source direct customers who fully understood the importance of quality rather and why their coffee was superior rather than complain about the price. These policies greatly contributed to the success of this company.

In the year 1983, Starbucks absorbed Peet’s coffee. It meant the expansion of their operations since Peet’s had five store operations too. The very same year, another coffee revelation came along, coffee bars were to be introduced in the United States. After considerations and a lot of research, several bars were opened in several cities. A lot of employees were recruited during this period.

In 1984, the company was experiencing some problems. The popularity of flavored coffee was frustrating the wholesale market. The company refused to produce this it resolutely. Lack of wholesale quality control was also a big challenge. Their only hope turned to be a merger. Starbucks was merged into Il Giornale, and they became Starbucks Corporation. There and then, preparation of operating nationally commenced. During this decade, their means of operations were expensive. They used high graded beans from the Arab world. They dark roasted them, a method that was very expensive. This strained the company since they had snubbed the supermarket and wholesale markets. Regardless of all these constraints, Starbucks Corporation was growing dramatically. Total sales grew from $50 million to $500 million in a period of five years.

Starbucks Corporation was expanding rapidly. Operations, on the other hand, were becoming complex. Therefore, it was necessary to incorporate means that will put up with these demands. As a step of advancement, they installed an expensive computer network that was meant to manage sales. They hired a specialist to design a point of sale system that will be used by the managers. The company developed a system where managers could report to the central headquarters. This made it possible to spot the trend of buying behavior in every region almost instantly. However, the company lost money during the expansion process that included upward $1 million in 1989 alone. Nevertheless, expansion process proceeded and by 1990, a new roasting plant was established. They also established a reputation of treating their employee fairly allowing them to own privately some company shares. It included part-time workers. By the year 1995, sales recorded an average annual growth of 65%. The company reached $284.9 million in 1994. Markets continued to expand.

Nowadays, the company has impressive revenue that reflects its good operations and expansion. According to the statistics, Starbucks Corporation recorded revenue that amounted to $16. 45 billion. This was an increase as compared to the previous year that they recorded $14.9 billion. The information is based on total sales in the sores worldwide.

Starbucks Corporation
	2014	2013	2012
Total Net Revenues (in millions)	$ 16,447.8	$ 14,866.8	$ 13,276.8
Mean	14,863.8
Standard Error of Mean	915.39008
Median	14,866.8
Mode	#N/A
Standard Deviation	1,585.50213
Sample Variance	2,513,817.00
Kurtosis	#DIV/0!
Skewness	(0.008514622)
Range	3,171.00
Minimum	13,276.80
Maximum	16,447.80
Sum	44,591.40
Count	3

Starbucks Corporation/Sampling Design

The table considers total net revenue of Starbucks Corporation from 2012 to 2014. The company has consistently increased its net revenue over those three years. Increase in revenue between 2012 and 2013 being 12% and between 2013 and 2014 being 10.6% showing a consistent trend of net revenue increase. This is important in predicting future revenues which also requires analysing different sectors of the company that is assets, liabilities, company operated stores, licensed stores, consumer packaged goods, food service, and product supply among others.

The mean value which is $ 14,863.8 million is the average net revenue for the three years. This is a sample mean since the data considered is only for the last 3 years out of the thirty years, to-date, Starbuck has been in operation. The sample mean is the population mean estimator. The sample size which is also the count is 3 as shown in the table, referring to the 3 years. Standard error of the mean is the standard deviation of the possible sample means which are from the entire population. The standard error, $ 915.39008 million, shows the possible positive or negative deviation from the sample mean that can be considered when the sample mean is an estimate of the population mean. This standard error is mostly necessary when the sampling distribution is assumed to be normal. Median shows the middle value in the sample size which is $14,866.8 million. Considering the sample size is an odd number, therefore the median is automatically the value of the net revenue for year 2013. Mode in this case is not applicable because it refers to the most common value and since all the years have different net revenues then mode cannot be calculated.

Standard deviation, $1585.50213, is the measure of dispersion of data set from the mean. Assuming that the net revenue is a normal distribution, Starbucks approximately makes annual net revenue ranging between $12,801.29787 and $ 15972.30213 million. When the standard deviation is larger, it implies a wide range of possible net revenues can be made, meaning higher losses or higher gains. If it is zero then it would imply Starbuck has been earning the same net revenue which means that it doesn’t make any profit. Sample variance is simply the square root of the standard deviation. It has the same effects as the standard deviation only that it is more difficult to use since it has different units from those of the data.

Skewness is a measure of symmetry of the distribution. The skewness value is -0.008514622 which means the distribution is left skewed. This goes to show that if a sample distribution graph were to be drawn, then most values would be concentrated to the right of the mean. This implies that the sample data is not normally distributed because a normal distribution has a skewness of zero meaning it is perfectly symmetric. Using the old notion of nonparametric skew, negative skew also shows the mean < median which is actually the case here.

The range is difference between the largest and the smallest value. The maximum value is $16,447.8 million and is the net revenue of 2014 while the minimum is $ 13,276.8 million and the net revenue of 2012. This further shows that the total revenue of Starbucks is increasing annually which implies that revenues for the future are expected to increase. The bar and line graphs, graphically show the same.

Ethical Research Design

A research design is the method that a researcher chooses to use in order to integrate the many different parts of a research so as to make sure that the target or the research question is well answered so as to make sure that the research achieves its initial targets. It is a very important component of the research as it gives the researcher a direction on how the collection of data and the analysis of the information should be given. This means that it is very important to have it so as to make sure that no steps are missed in the process. For my research on the Starbucks Corporation, it is important to make sure that all the information is well gathered and analyzed and for this reason I looked at the different research designs that can be used.

The first is a case study. This is a research design that is used to study a specific item and this is mostly used to get the items or study topics information in detail. The method does not entail the collection of data in overall view and this means that not a lot of data is collected and also there is no taking of sample data so as to make it possible to generalize over large sample sizes. The main advantage with this method is that it helps us to understand complex issues and also makes it possible for us to analyze a specific item or theory. On the other hand, it is impossible to do a research on large topic that has a large sample size like the one at hand because it cannot be research into a lot of details the way this method requires.

There are also a number of other designs that would have qualified to be used in this research but they all had several factors among them that made them to be very unfavorable and this made them to be incomplete (Smith, 2013). For this research project, I found the most appropriate research method to be the mixed-method design. This method does not present any specific methodology that can be used but in turn advocates for the use of different research methods to examine a specific research problem. This method aims at reducing the weaknesses of both the quantitative and the qualitative research and come up with a method that is more complete and hence provides a better set of data when used.

The main advantages that I will derive from using this method are the narrative information adds to the meaning of numerical data. This means that I will be able to get information that is more complete compared to an instance where I only had one of the set of information. This means that also the data that I analyze and the information that I process from it is more complete. The information found is also more accurate because a lot of considerations are undertaken so as to make sure that it gets the needed details (Nadagouda and Varma, 2008). Among other advantages is that his design can be used for a lot of research problems in the main research because it is not restricted to certain research methods.

However, the research design just like any other has it down side and this may be a disadvantage during my whole research. Among the most common disadvantages is that this method requires expertise to be able to use. This means that one has to have a certain level of knowledge so as to be able to successfully use it in developing of a good research from it. Second is the fact that this method brings with it the risk of collecting conflicting information because it has so many methods that can be used within the whole process.

Ethical Research Method

Using my research design, there are several methods that I would use in the research so as to collect the required information. The first would be use of secondary sources of information. This would include looking into any of the past researches that have been conducted and this makes sure that the past researches have or don’t have the information that I am looking for. This means that it is best to have this information so that it is applied where relevant. Second would be use of questioners. This is a method that I would use to get information from both the customers to the coffee house and also to get information from the employees who work in these places (Austin, 2012).

Another method that I would utilize is that of interviews. An interview is conducted when one person meets another so as to answer to the questions that the person may ask. This is a very effective method of collecting the data as it helps to get first-hand information. It is also through this method that I can learn about the experiences of the workers about the research problem and use this so as to get a more complete picture about the research problem. These research methods are all very suited for this research as they give the researcher a variety of information. Information is used can be presented in a variety of means like charts and graphs.

Pros and cons of Ethical Considerations

There several ethics that I have to observe when it comes to the research and these includes the set laws and regulation from both the state and the company. However these laws are good because they often protect privacy but on the negative side they may be used by the organization so as to hide information that they do not want to give out but is crucial for the research. Second is the issue of privacy. It is very important to respect the privacy of all the people and this is will do but on the negative side, some of the company’s staff may use it so as to prevent my research from getting all information from them (Elliott, 2010).

In conclusion, the research design and research methods that are used play a huge role in determining the data that will be collected and also it is important to analyze the difference that the different methods offer so as to have the best decision made by you.

Limitations

In the research, I will utilize both nominal and ratio scales of measurement. The choice of the measurement level is based on the dependent variables that we measure in the data. In our analysis, we will involve both qualitative and quantitative variables. Qualitative variables come up where we have data that cannot be quantified, but we wish to carry out analysis utilizing it. Quantitative variables, on the other hand, means that our data contains values that are quantified and can be assigned in a specific manner. While using nominal level measurement, we will be trying to classify schemes. Here we shall classify categories of the elements in our data. The limitation we shall encounter is that every element will fit to exactly one category. There will be no ordering of the responses. While using ratio level of measurement, we shall consider a true zero point that we have in our data. Mathematical calculations will be carried out to come up with ratios that can help draw conclusions.

In our case, that is Starbucks Corporation, opinions of both employees, managers, and customers will be incorporated in our data. Information such as customer satisfaction, regarding quality and price, will be used. Employees will provide their opinions on how they feel regarding treatment as they work. Managers will give information about the level of expansion and whether they feel it should have been better or whether it was too fast. All this information cannot be quantified since every respondent gives an opinion. Therefore, the most suitable level of measurement will be nominal.

There is a lot of quantitative information available on Starbucks Corporation. There is the description of their sales from the time it as a small a store to time it started recording billion dollars annual revenue. To measure the rate of expansion with a goal of giving appropriate recommendations, mathematical computations will be carried out to come up with specific ratios. For instance, the percentage increase in revenue is a mathematical computation, and it’s a ratio. Therefore, the appropriate measure level of measurement, in this case, will be the ratio.

To conduct sufficient and reliable analysis for the Starbucks, both nominal and ratio level of measurements will be necessary. They will facilitate analyzing opinions of the parties’ involved as well measuring expansion and failures.

Design and pre-code 40 research questions and Findings

When Starbucks began their run to success in the early 1990s, many noted it wasn’t simply about coffee, but that the company was focused on the following factors: Atmosphere, Quality Coffee, Customer Service, and Partner (employee) Satisfaction. Starbucks sought to be a place where people could lounge with a good drink and friends or maybe just a book. This atmosphere was created to establish a friendly and welcoming environment. Through their success they changed the mind-set of coffee customers worldwide: from a coffee shop being a place to buy a cup of coffee to a place to experience a good cup of coffee.

In this research, we form a hypothesis testing so as to predict the customers and employees response to the pre-coded questions already prepared.

Quality control is an element that plays vital role in customer satisfactions. Starbucks seeks to enrich the quality of the products they offer by working with the suppliers to ensure smooth operations every time, as well as enforcing standards, many of which have become industry norms.

The null hypothesis would be therefore, Star Bucks provides the best customer and employee satisfaction.

Star Bucks dedicates considerable time to providing quality products to customers as well as training the employees on new technology. Each employee is trained in both the technical aspects of creating the drinks as well as how to connect with customers to maintain the same customer experience across locations. This commitment creates employees that weren’t just focused on drinks, but customers too.

All of these factors created a perfect storm of superior customer experience. There have been a lot of changes to the product offerings, including adding food and expanding the drink menu. However, the following qualities that started their success in the 90s are what continue to make them successful in today’s market:

1. Atmosphere: Every time you walk into a Starbucks, you know you will be greeted with a smile and a friendly attitude. 2. Continuity of Brand and Product: Every Starbucks has a similar feel, and your drink order will taste the same whether you are in New York or Spain. 3. Employee Satisfaction and Training: The training of the staff, in both how to be personable with customers and knowledge of the product offering provide a superior experience that the Starbucks client base has come to expect.

Keeping employee satisfaction high is the key to providing a superior customer experience. Starbucks keeps its employees satisfied with competitive hourly wages, health benefits, and stock options.

This means that customers and employees are given a questionnaire regarding their satisfaction at Star Bucks the results will be that they are completely satisfied.

Effective measurement questions

For the customers

1. Overall, how satisfied are you with Starbucks service and products?

· Very satisfied

· Fairly satisfied

· Satisfied

· Not satisfied

Satisfaction Level	Total Response	Starbucks Customers	Non Customers
Very satisfied	30%	3	0
Fairly satisfied	40%	3	1
Satisfied	20%	1	1
Not Satisfied	10%	0	1
Total	100%	70%	30%
	n=10	n=7	n=3

2. Is it your pleasure that you would refer someone to buy and continue to use Starbucks service and products?

· No

· Yes

Would you refer a new Customer?	Total Response	Starbucks Customers	Non Customers
YES	70%	4	3
NO	30%	1	2
Total	100%	50%	50%
	n=10	n=5	n=5

3. Is it likely that you will continue visiting Starbucks for their service and products?

· No

· Yes

Would you continue visiting?	Total Response	Starbucks Customers	Non Customers
YES	80%	4	4
NO	20%	0	2
Total	100%	40%	60%
	n=10	n=4	n=6

4. Are the employees caring?

· No

· Yes

Are the employees caring?	Total Response	Starbucks Customers	Non Customers
YES	70%	4	3
NO	30%	1	2
Total	100%	50%	50%
	n=10	n=5	n=5

5. Does the offering of services compare to the ideal service offering to you?

· No

· Yes

Starbucks Services	Total Response	Starbucks Customers	Non Customers
YES	60%	2	4
NO	40%	1	3
Total	100%	30%	70%
	n=10	n=3	n=7

6. Do you like the variety of coffees that Starbucks has to offer?

· No

· Yes

Do you Like coffee variety?	Total Response	Starbucks Customers	Non Customers
YES	80%	6	2
NO	20%	2	0
Total	100%	80%	20%
	n=10	n=8	n=2

7. Will you continue to use Starbucks products and visit?

· Strongly agree

· Somewhat agree

· Strongly disagree

· Somewhat disagree

Question	Total Response	Starbucks Customers	Non Customers
Strongly agree	60%	2	4
Somewhat agree	20%	2	0
Strongly disagree	10%	0	1
Somewhat disagree	10%	0	1
Total	100%	40%	60%
	n=10	n=4	n=6

8. How important are the product features in your decision to purchase from us?

· Very important

· Not important

How important are the products?	Total Response	Starbucks Customers	Non Customers
Very Important	40%	3	1
Not Important	60%	2	4
Total	100%	50%	50%
	n=10	n=5	n=5

9. Do you enjoy the coffee selections available at Starbucks?

· No

· Yes

Do you enjoy coffee selection?	Total Response	Starbucks Customers	Non Customers
YES	70%	4	3
NO	30%	2	1
Total	100%	60%	40%
	n=10	n=6	n=4

10. Do you feel value as the most important asset of the organization?

· Yes

· No

Is value Important?	Total Response	Starbucks Customers	Non Customers
YES	80%	5	3
NO	20%	0	2
Total	100%	50%	50%
	n=10	n=5	n=5

Employees

11. Are you motivated to come to work every morning?

· No

· Yes

Are you motivated to come to work?	Total Response	Old Employees	New Employees
YES	90%	6	3
NO	10%	0	1
Total	100%	60%	40%
	n=10	n=6	n=4

12. Does the top-level management motivate and inspire you?

· No

· Yes

Does top level mgmt. motivates you?	Total Response	Old Employees	New Employees
YES	80%	3	5
NO	20%	2	0
Total	100%	50%	50%
	n=10	n=5	n=5

13. Are there days that you feel you do not want to come to work?

· No

· Yes

Question	Total Response	Old Employees	New Employees
YES	80%	3	5
NO	20%	0	2
Total	100%	30%	70%
	n=10	n=3	n=7

14. Are the days that you feel you do not want to come to work more that the days you feel you want to work?

· No

· Yes

Question	Total Response	Old Employees	New Employees
YES	100%	4	6
NO	0%	0	0
Total	100%	40%	60%
	n=10	n=4	n=6

15. Are you proud to associate yourself with Starbucks?

· No

· Yes

Are you proud with Starbucks?	Total Response	Old Employees	New Employees
YES	100%	4	6
NO	0%	0	0
Total	100%	40%	60%
	n=10	n=4	n=6

16. Are you provided with enough resources for effective job handling?

· No

· Yes

Is there enough resources?	Total Response	Old Employees	New Employees
YES	70%	5	2
NO	30%	0	3
Total	100%	50%	50%
	n=10	n=5	n=5

17. Is there participatory decision making?

· No

· Yes

Is there decision participatory?	Total Response	Old Employees	New Employees
YES	40%	3	1
NO	60%	3	3
Total	100%	60%	40%
	n=10	n=6	n=4

18. I have a complete comprehension of the way my role in the company contributes to the organization’s success

· Strongly agree

· Agree

· Strongly disagree

· Disagree

Are you sure of your role?	Total Response	Old Employees	New Employees
Strongly agree	50%	3	2
Agree	10%	1	0
Strongly disagree	10%	0	1
Disagree	30%	1	2
Total	100%	50%	50%
	n=10	n=5	n=5

19. Are you provided with enough and reliable information to complete your tasks?

· Yes

· No

Question	Total Response	Old Employees	New Employees
YES	80%	3	5
NO	20%	1	1
Total	100%	40%	60%
	n=10	n=4	n=6

20. Do you feel that the organization values your work and general contribution?

· No

· Yes

Does Org. value your work?	Total Response	Old Employees	New Employees
YES	80%	6	2
NO	10%	0	1
Total	90%	60%	30%
	n=10	n=7	n=3

21. I am paid fairly in comparison to the work I do

· Yes

· No

Are you paid fairly?	Total Response	Old Employees	New Employees
YES	90%	4	5
NO	10%	1	0
Total	100%	50%	50%
	n=10	n=5	n=5

22. I have a clear comprehension of the benefit plan that the organization offers

· Yes

· No

I am aware of org. benefit plan	Total Response	Old Employees	New Employees
YES	10%	1	0
NO	90%	5	4
Total	100%	60%	40%
	n=10	n=6	n=4

23. I am satisfied with the benefit package that the organization offers?

· No

· Yes

I am satisfied with org. benefit plan	Total Response	Old Employees	New Employees
YES	30%	1	2
NO	60%	4	2
Total	90%	50%	40%
	n=10	n=5	n=5

24. Does the organization encourage teamwork?

· No

· Yes

Does Starbucks encourage teamwork?	Total Response	Old Employees	New Employees
YES	100%	5	5
NO	0%	0	0
Total	100%	50%	50%
	n=10	n=5	n=5

25. Is everyone held accountable for the work that they do?

· No

· Yes

Is everyone held accountable?	Total Response	Old Employees	New Employees
YES	80%	5	3
NO	20%	2	0
Total	100%	70%	30%
	n=10	n=7	n=3

26. Does quality of products contribute very much to the organization’s success

· No

· Yes

Does product quality contribute to success?	Total Response	Old Employees	New Employees
YES	90%	8	1
NO	10%	0	1
Total	100%	80%	20%
	n=10	n=8	n=2

27. My efficient job has great role in the mission accomplishment.

· No

· Yes

My job play a role in the mission accomplishment.	Total Response	Old Employees	New Employees
YES	80%	3	5
NO	20%	0	2
Total	100%	30%	70%
	n=10	n=3	n=7

28. Does the management provide regular information for the intended goals to be accomplished?

· No

· Yes

Does mgt. provide regular information on goals?	Total Response	Old Employees	New Employees
YES	100%	6	4
NO	0%	0	0
Total	100%	60%	40%
	n=10	n=6	n=4

29. Does the job you do provide a feeling of personal satisfaction?

· No

· Yes

Does your job have personal satisfaction?	Total Response	Old Employees	New Employees
YES	90%	5	4
NO	10%	0	1
Total	100%	50%	50%
	n=10	n=5	n=5

30. I am responsible in playing my part towards the maintenance of quality products?

· No

· Yes

31. Does the organization provide enough opportunities for professional growth?

· No

· Yes

I am responsible towards product quality?	Total Response	Old Employees	New Employees
YES	50%	2	3
NO	40%	0	4
Total	90%	20%	70%
	n=10	n=3	n=7

32. Does the organization provide adequate training for effective handling of tasks?

· No

· Yes

Does Starbucks offer good work Training?	Total Response	Old Employees	New Employees
YES	60%	4	2
NO	40%	1	3
Total	100%	50%	50%
	n=10	n=5	n=5

33. Does the top management support professional development?

· No

· Yes

Does top mgmt. support professional dvp?	Total Response	Old Employees	New Employees
YES	90%	7	2
NO	10%	1	0
Total	100%	80%	20%
	n=10	n=8	n=2

34. Does the top management embrace you and let you learn from our mistakes?

· No

· Yes

Does mgmt. allow one to learn by mistakes	Total Response	Old Employees	New Employees
YES	40%	0	4
NO	60%	4	2
Total	100%	40%	60%
	n=10	n=4	n=6

35. Choose the word that best describes the kind of work you do

· Challenging

· Stimulating

· Rewarding

Word to describe my work	Total Response	Old Employees	New Employees
Challenging	30%	1	2
Stimulating	10%	1	0
Rewarding	60%	4	2
Total	100%	60%	40%
	n=10	n=6	n=4

36. Are you provided with reasonable amounts of work?

· No

· Yes

Are you provided with reasonable amounts of work?	Total Response	Old Employees	New Employees
YES	90%	4	5
NO	10%	0	1
Total	100%	40%	60%
	n=10	n=4	n=6

37. Are you in a position to make a balance between your job and family?

· No

· Yes

Can you balance job and family?	Total Response	Old Employees	New Employees
YES	70%	5	2
NO	30%	0	3
Total	100%	50%	50%
	n=10	n=5	n=5

38. Is there equal and fair treatment of employees?

· No

· Yes

Is there equal and fair treatment of employees?	Total Response	Old Employees	New Employees
YES	80%	4	4
NO	20%	0	2
Total	100%	40%	60%
	n=10	n=4	n=6

39. Are you satisfied with the top management?

· No

· Yes

Are you satisfied with the top management?	Total Response	Old Employees	New Employees
YES	100%	5	5
NO	0%	0	0
Total	10%	50%	50%
	n=10	n=5	n=5

40. Are strong leadership skills depicted in the organization?

· No

· Yes

Are strong leadership skills depicted in the organization?	Total Response	Old Employees	New Employees
YES	70%	4	3
NO	30%	2	1
Total	10%	60%	40%
	n=10	n=6	n=4

Starbucks is seen to narrow its strategies on the insight of value creation in its line of foodstuffs and thus introduce favourable pricing strategies in the right expected range. Various goods are priced contrarily in respect to the nature of the consumer group and to whom the products appeals most to. A wide-ranging value menu is an integral chunk for every fast-food menu nowadays. Pricing strategies and products themselves in a value menu will always determine whether to make or break a company in the like of Starbucks, this is in regard to the competitions in the value menus.

Starbucks also specialize in making business clients to be incorporated in their market segment. Corporate clienteles may avert in the course day and can depend on fast amenity, and constantly good food. One other notable strategy is Starbucks publicizing is to youngsters and new clients.

On the part of stuff management and administration activities by top management, Starbucks employees are satisfied with the management mainly due to factors such as favourable payments and being given an environment for professional advancement. Old employees are seen not to feel equally appreciated but are more conversant with their work terming it as rewarding which is contrary to new employees who feel the job being challenging despite feeling equally taken care off.

In conclusion, the recommendations are for Starbucks is to move on with the times to secure a place and maintain its position as time goes by. As competitors snowball sales, revenue, and a good chunk of market share, Starbucks should hang on its strengths, this include comprehensive market research, and product development for it to keep offering the most valuable product assortments that stay in line with fluctuating customer preferences. They should keep on having increased amount of prospective consumers and may have the capability to capitalize on a cumulating amount of health mindful client base who will still ask for a fast, outgoing experience.

Starbucks have no choice but to keep on innovating and changing as customers and their values evolve. They should keep check of the technologies, innovations and actions of their competitors. Starbucks should be keen to pamper each and every market segment in its market by keeping in touch with all market groups in the entire market framework. Finally, they should not neglect old employees citing experiences so that they can keep their strategies up to date even when trying to infuse new blood.

References

Starbucks Corporation. Form 10-K Fiscal 2014 Annual Report Filed October 30, 2014. Retrieved October 30, 2015 from http://www.starbucks.com/

Satisfaction Level

Total Response Very satisfied Fairly satisfied Satisfied Not Satisfied 0.3 0.4 0.2 0.1 Starbucks Customers Very satisfied Fairly satisfied Satisfied Not Satisfied 3.0 3.0 1.0 0.0 Non Customers Very satisfied Fairly satisfied Satisfied Not Satisfied 0.0 1.0 1.0 1.0

Would you Refer someone to Starbucks?

Total Response YES NO 0.7 0.3 Sturbucks Customers YES NO 4.0 1.0 Non Customers YES NO 3.0 2.0

would you continue Visiting?

Total Response YES NO 0.8 0.3 Sturbucks Customers YES NO 4.0 1.0 Non Customers YES NO 4.0 2.0

Are employees Caring?

Total Response YES NO Starbucks Customers YES NO 4.0 1.0 Non Customers YES NO 3.0 2.0

Does Starbucks Services Compare to Ideal Services?

Total Response YES NO Starbucks Customers YES NO 2.0 1.0 Non Customers YES NO 4.0 3.0

Do you like the variety of coffees that Starbucks has to offer?

Total Response YES NO Starbucks Customers YES NO 6.0 2.0 Non Customers YES NO 2.0 0.0

Will you continue to use Starbucks products and visit?

Total Response Strongly agree Somewhat agree Strongly disagree Somewhat disagree Starbucks Customers Strongly agree Somewhat agree Strongly disagree Somewhat disagree 2.0 2.0 0.0 0.0 Non Customers Strongly agree Somewhat agree Strongly disagree Somewhat disagree 4.0 0.0 1.0 1.0

How important are the product features in your decision to purchase from us?

Total Response Very Important Not Important Starbucks Customers Very Important Not Important 3.0 2.0 Non Customers Very Important Not Important 1.0 4.0

Do you enjoy the coffee selections available at Starbucks?

Total Response Challenging Stimulating Old Employees Challenging Stimulating 1.0 4.0 New Employees Challenging Stimulating 2.0 0.0 2.0

Do you feel value as the most important asset of the organization?

Total Response YES NO Starbucks Customers YES NO 5.0 0.0 Non Customers YES NO 3.0 2.0

Are you motivated to come to work every morning?

Total Response YES NO Old Employees YES NO 6.0 0.0 New Employees YES NO 3.0 1.0

Does the top-level management motivate and inspire you?

Total Response YES NO Old Employees YES NO 3.0 2.0 New Employees YES NO 5.0 0.0

Are there days that you feel you do not want to come to work?

Total Response YES NO Old Employees YES NO 3.0 0.0 New Employees YES NO 5.0 2.0

Are the days that you feel you do not want to come to work more that the days you feel you want to work?

Total Response YES NO Old Employees YES NO 4.0 0.0 New Employees YES NO 6.0 0.0

Are you proud to associate yourself with Starbucks?

Total Response YES NO Old Employees YES NO 4.0 0.0 New Employees YES NO 6.0 0.0

Are you provided with enough resources for effective job handling?

Total Response YES NO Old Employees YES NO 5.0 0.0 New Employees YES NO 2.0 3.0

Is there participatory decision making?

Total Response YES NO Old Employees YES NO 3.0 3.0 New Employees YES NO 1.0 3.0

I have a complete comprehension of my role towards org.success.

Total Response Strongly agree Agree Strongly disagree Disagree Old Employees Strongly agree Agree Strongly disagree Disagree 3.0 1.0 0.0 1.0 New Employees Strongly agree Agree Strongly disagree Disagree 2.0 0.0 1.0 2.0

Are you provided with enough and reliable information to complete your tasks?

Total Response YES NO Old Employees YES NO 3.0 1.0 New Employees YES NO 5.0 1.0

Do you feel that the organization values your work and general contribution?

Total Response YES NO Old Employees YES NO 6.0 0.0 New Employees YES NO 2.0 1.0

I am paid fairly in comparison to the work I do

Total Response YES NO Old Employees YES NO 4.0 1.0 New Employees YES NO 5.0 0.0

I have a clear comprehension of the benefit plan that the organization offers

Total Response YES NO Old Employees YES NO 1.0 5.0 New Employees YES NO 0.0 4.0

I am satisfied with the benefit package that the organization offers?

Total Response YES NO Old Employees YES NO 1.0 4.0 New Employees YES NO 2.0 2.0

Does the organization encourage teamwork?

Total Response YES NO Old Employees YES NO 5.0 0.0 New Employees YES NO 5.0 0.0

Is everyone held accountable for the work that they do?

Total Response YES NO Old Employees YES NO 5.0 2.0 New Employees YES NO 3.0 0.0

Does quality of products contribute very much to the organization’s success

Total Response YES NO Old Employees YES NO 8.0 0.0 New Employees YES NO 1.0 1.0

My efficient job has great role in the mission accomplishment.

Total Response YES NO Old Employees YES NO 3.0 0.0 New Employees YES NO 5.0 2.0

Does the management provide regular information for the intended goals to be accomplished?

Total Response YES NO Old Employees YES NO 6.0 0.0 New Employees YES NO 4.0 0.0

Does the job you do provide a feeling of personal satisfaction?

Total Response YES NO Old Employees YES NO 5.0 0.0 New Employees YES NO 4.0 1.0

Does the organization provide enough opportunities for professional growth?

Total Response YES NO Old Employees YES NO 2.0 0.0 New Employees YES NO 3.0 4.0

Does the organization provide adequate training for effective handling of tasks?

YES Old Employees New Employees 4.0 2.0 NO Old Employees New Employees 1.0 3.0

Does the top management support professional development?

YES Old Employees New Employees 7.0 2.0 NO Old Employees New Employees 1.0 0.0

Does the top management embrace you and let you learn from our mistakes?

YES Old Employees New Employees 0.0 4.0 NO Old Employees New Employees 4.0 2.0

Choose the word that best describes the kind of work you do

Total Response Challenging Stimulating Rewarding Old Employees Challenging Stimulating Rewarding 1.0 4.0 New Employees Challenging Stimulating Rewarding 2.0 0.0 2.0

Are you provided with reasonable amounts of work?

YES Old Employees New Employees 4.0 5.0 NO Old Employees New Employees 0.0 1.0

Are you in a position to make a balance between your job and family?

YES Old Employees New Employees 5.0 2.0 NO Old Employees New Employees 0.0 1.0

Is there equal and fair treatment of employees?

YES Old Employees New Employees 4.0 4.0 NO Old Employees New Employees 0.0 2.0

Are you satisfied with the top management?

YES Old Employees New Employees 5.0 5.0 NO Old Employees New Employees 0.0 0.0

Are strong leadership skills depicted in the organization?

YES Old Employees New Employees 4.0 3.0 NO Old Employees New Employees 2.0 1.0

Years 2012.0 2013.0 2014.0 Total Net Revenues 13276.8 14866.8 16447.8

Years

Total Net Revenue

Years 2012.0 2013.0 2014.0 Total Net Revenues 13276.8 14866.8 16447.8