Case Study: Starbuck’s: Delivering Customer Service.

Delivering Customer Requirements

'Starbucks'

Practice Case Study

Case Study: Starbuck’s: Delivering Customer Service.

The paper contains FIVE questions. All questions carry equal marks. You should attempt ALL five questions.

1. What factors accounted for Starbucks’ success in the early 1990s and what was so compelling about its value proposition?  What brand image did Starbucks develop during this period?                                                 (20 marks)

1. How has Starbucks changed since its early days?                                                   (20 marks)

1. Why have Starbucks’ customer satisfaction scores declined?  Has the company’s service declined or is it simply measuring satisfaction the wrong way?

                (20 marks)

1. Describe the ideal Starbucks customer from a profitability standpoint.  What would it take to ensure that this customer is highly satisfied?  How valuable to Starbucks is a highly satisfied customer?                                         (20 marks)

1. Should Starbucks make the $40 million investment in the stores?  What’s the goal of this investment?  Is it possible for a megabrand to deliver customer intimacy?                                                                         (20 marks)