Employee Monthly Rotation Schedule - PowerPoint by vqo83038

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									Starbucks
         Justin Kefal
       Alison Altomari
       Nicole O’Keefe
        Diane Ketler
          Karen Lau
      Nicholas Herman
                    Introduction
• Started 1971

• Gerlad Baldwin, Gordon Bowker, Ziev Siegel

• Original located in Seattle, Pike Place Market

• Original concept was to bring Espresso bar to
  America

• “A third place”
  Reasons for Unsatisfied
       Customers

• Focus on global expansion
  – Starbucks went public in 1992 - raised $25 million
  – Worldwide - Opening 3 stores daily on average
  – Optimistic growth plan - Own 10,000 stores USA
• Focus on product Innovation
  –   One half day VS. 16 days working 8 hr shifts
  –   Clientele is changing with menu
  –   Increase of customization
  –   “Just Say Yes”
       Since the beginning…
• One store: whole coffee beans
• Transitioned to selling coffee drinks
• NOW:
  – Went public in 1992, opened 140 stores
  – 5000+ stores, 20 million customers
  – Extensive drink menu
  – Starbucks outside the coffee shop
              Competition
• Big Coffee Stores:
  – Gloria Jeans
  – Caribou Coffee
  – Dunkin’ Donuts


• Small, Independent Shops
  – More intimate/personalized
  – More potential product mix
                 Demand
• 109 million daily coffee drinkers
• 52 million on-occasion coffee drinkers
• 1/3 coffee consumption outside the home

• $21.5 billion total coffee market
  – Starbucks share – 42%
Consumers and the Ideal Customer

• Changing clientele – new demographics
  – Younger, less well-educated, lower incomes


• Highly satisfied customers = most
  profitable customers

• Key factors for customer satisfaction
  – Clean stores and friendly/attentive staff
               Solutions

• Starbucks’ Proposal: Invest 40 million
  annually in the company’s 4,500 stores,
  which would allow 20 additional labor
  hours a week/per store.
• Our Proposal: Do invest the 40 million
  annually, but do not use every store.
  Research those stores with higher
  volumes and invest in those.
                Solutions
• Add “bar-back” type employee

• Offer discounts and incentive offers

• Better rotation schedule to help prevent
  sluggish employees
     Evaluating the Solutions
• We will continue evaluating the
  effectiveness of our plan by having
  monthly check-ups to determine customer
  satisfaction
• Keep checking sales with respect to
  customer satisfaction to make sure both
  stay positive
• Continue the Mystery Shopper Program
             Post-situation
• July 1st ,2008 – decision to close 600
  stores nationwide, expected to close within
  the next year

• Starbucks Value Card

• Iced Brewed Coffee Card

								
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