1) Define the problem- - This case study was a good example of learning to understand their core mission and restructuring to get back to how they once were. Revamping Starbucks image and providing an authentic customer service experience that they had lost in 2006. In 2006 they oversaturated the market and the quality began to suffer, store sales dropped and Shultz resigned. Schultz came back to Starbucks and brought coffee back.
2) GATHERING FACTS-
• Schultz opened his own coffee shop within six months and was serving more 1,000 customers
• Starbucks focused on pleasing the customer and creating a happy work environment for their employees where morale was high.
• The company expanded internationally by 1996 and by 1998 they had about 5 million customers daily, they opened about one store a day on average.
3) DEVELOPING ALTERNATE SOLUTIONS-
1) Retraining the baristas to give the ultimate experience to the guest which consisted of treating the guest with first name basis making them feel right at home. Training them is a valuable asset and most important. Investing money on training so that the management team can lead the team and build.
2) Slowing down the expansion of chains this has cost them to lose the focus of the company with all the stores worldwide which have made money. Having so much spread out is just too much for such a great company.
3) Focusing on strengthening the operations of coffee shops opening fewer shops and keeping everything focused on stores that can be controlled within the United States. Knowing what they have and where they have it.
4) ANALYZE/PROS AND CONS
• Shultz is one of the original Founders who believe in making sure his employees are happy treated as family, providing healthcare even to those who were not full-time making sure that they felt that family environment.
• Shultz knows the brand and is a coffee expert he knew his stuff he spent time tasting different kinds of coffee educated himself on retail aspects of the coffee business.
• There may have to be some reconstructing in the company…