Strama Starb
Strama Starb
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Table of Contents
A. Case Abstract……………………………………………………………………….1
B. Vision Statement……………………………………………………………………3
C. Mission Statement………………………………………………………………….3
D. External Audit……………………………………………………………………….4
b) Opportunities………………………………………………………..5
c) Threats……………………………………………………………….5
E. Internal Audit………………………………………………………………………...7
a) Strengths……………………………………………………………..7
b) Weaknesses………………………………………………………….7
F. SWOT Strategies……………………………………………………………………10
K. Recommendation……………………………………………………………………23
L. Implementation………………………………………………………………………32
Starbucks was established in 1971 and has emerged as a prominent and globally
recognized brand in the coffee industry and is the world's leading specialty coffee
roaster and retailer. With 300 outlets across the country, it is the leading coffeehouse in
the Philippines. The company caters to a wide range of customer base by offering
various products and services including high quality beverages such as coffee and tea,
reasonable luxury from a valued brand. The brand's smart digital approach, exclusive
Over the years, Starbucks has achieved significant milestones and innovations
milestone by expanding its presence across the Asia Pacific region reaching a network
of 5,000 stores. Starbucks promotes its products using a variety of methods, including
media that identifies their brand, as well as the constant message that is delivered every
time.
In the Philippines, however, the company was able to adapt to the new normal by
ordering, and delivery through Food Panda and GrabFood, to prioritize the health and
1
Starbucks' gross profit for the fiscal year ending December 31, 2022 was $22.313
billion, up 5.52% year on year. In 2021, the company's gross profit climbed by 7.93% to
$21.933 billion. Starbucks has a premium pricing strategy in place. The advanced
technology and diversity, as well as the finest customer experience, justify the price.
Premium pricing enables Starbucks to uphold their quality promise and appeal directly
to the financial and lifestyle preferences of their target customer. The suggested
2
B. VISION STATEMENT
“to establish Starbucks as the premier purveyor of the finest coffee in the world, while
C. MISSION STATEMENT
Actual:
“to inspire and nurture the human spirit — one person, one cup, and one neighborhood
at a time.”
Proposed:
“At Starbucks, our mission is to ignite the world with extraordinary (7) coffee moments
(2), infusing global markets (3) with flavor and innovation. Powered by cutting-edge
technology (4), we thrive, grow, and brew prosperity (5), driven by our unwavering belief
in making a positive difference (6). Our baristas, the heart and soul of our story (9), craft
magic with every cup, building a community for their customers (1) where passion and
9 Components:
3
D. EXTERNAL AUDIT
Competitive Profile Matrix
Starbucks Tim Hortons Costa The Coffee
Coffee
Bean & Tea
Leaf
Critical Weight Rating Score Rating Score Rating Score Rating Score
Success
Factors
loyalty
4
Total 1.0 3.60 2.35 2.35 1.70
Based on the matrix above, Starbucks gained the highest score among its
competitors with a 3.60 weighted score. Starbucks distinguishes itself from its
competitors with its global presence and brand reputation. On the other hand, Starbucks
has the most global branches than the other competitors. Meanwhile Starbucks has the
most market share because they served over 30 million customers around the world.
Opportunities
Threats
1. Imitation of products.
7. Government regulations
External Factor Evaluation (EFE) Matrix
5
Weighted
Key External Factors Weight Rating
Score
Opportunities
1.The growth of customer loyalty. 0.11 4 0.44
3. Rise in the usage of apps (eg. Grab & Food Panda). 0.10 4 0.40
Threats
1.Imitation of products. 0.07 2 0.14
6
Strengths
3. They offer a high level of customer service along with skilled and approachable
7. Consumers are allowed to order customized drinks in accordance with their own
preferences.
10. Extensive store network with over 30,000 stores worldwide, it enjoys significant
Weaknesses
ordering.
7
5. It has a narrower range of product diversification compared to certain
Starbucks.
Score
Strengths
8
8.Good interior and ambiance of the store. 0.04 0.12
Weaknesses
1.Expensive products than its competitors. 0.04 2 0.08
9
F. SWOT STRATEGIES
10
Strengths Weaknesses
branches.
7. Consumers are
allowed to
order
11
customized drinks in with diverse
store. expansion of
30,000 stores
worldwide, it enjoys
significant economies
of scale, market
presence, and
geographic diversity.
12
Opportunities SO WO
13
14
products aligned with
customer preferences.
4. W1O1
15
16
Threats ST WT
the global coffee evolving tastes and demands differences of the different
conscious. choices.
6. Pressure of 3. W1T4
being socially
active and 4. S4T4 Offer lower-cost coffee
environmentally products in smaller sizes to
focused. Introduce bundled increase market for
alternatives such as a pricesensitive consumers.
17
7. Government combination of beverage and
compared to individual
purchase.
5. S3T3
18
G. Strategic Position & Action Evaluation (SPACE)
X +7 Return on -1 Technological
I Investments Changes
Pressure
Average: +6.25
Average: -1.75
19
H. Grand Strategy Matrix (GSM)
20
I. The Internal-External (IE) Matrix
Box #: 5
21
J. Quantitative Strategic Planning Matrix (QSPM)
AS TAS AS TAS
Strengths
globally.
outlets.
22
8. Good interior and ambiance of the 0.04 0 0 0 0
store.
years.
0.09 2 0.18 0 0
10. Extensive store network with over
diversity.
23
Weaknesses
traditional ordering.
24
5. It has a narrower range of product 0.04 0.04 3 0.12
1
diversification compared to certain
preferences.
expansion of Starbucks.
Opportunities
Threats
25
1. Imitation of products. 0.07 0 0 4 0.28
market.
7. Government regulations
0.08 2 0.16 2 0.16
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K. RECOMMENDATION
development plans. Starbucks may gain important insights from the QSPM to boost its
market share and competitive edge. Starbucks can determine the best solutions for
service development by examining the QSPM data. This research aids Starbucks in
effectively allocating resources and prioritizing actions for greatest impact. Utilizing the
QSPM enables Starbucks to create focused marketing efforts, improve its product line,
and develop perfect pricing schemes in order to draw in more clients and boost sales.
Starbucks can implement service development strategies with the QSPM as a guide to
Self-ordering kiosks like those operated by McDonald's could be considered for usage
by Starbucks. Customers are given a quick and easy option to place their purchases via
self-ordering kiosks, which improves the overall customer experience and cuts down
waiting times. Starbucks may improve the ordering process, reduce human error, and
possibly enhance order volumes by installing self-ordering kiosks in a few key locations.
expectations while extending its market footprint, and this breakthrough technology is in
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Figure 1. Example of Kiosks used in fast foods restaurants
company has grown and developed a loyal consumer base through offering the
individuals who acquire its products with a distinct and personalized experience. In line
with this, we aim to strengthen the company's customer engagement and entice
differentiates it from all other up-to-date kiosks. This kiosk would include a card payment
option. Each of its features offers an advantage or collection of positive aspects to the
consumer. Starbucks customers may use touch screens to engage with this self-service
ordering kiosk. This feature would allow them to obtain the information and services they
seek. Consumers must make payments to acquire items and services from the kiosk
machine. As a result, these kiosks will incorporate a method of payment process feature
that allows consumers to make transactions using cards and e-cashes directly through
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the kiosk, as opposed to lining up for a queue in the standard process of completing
instore transactions.
Moreover, Customers can also print a physical copy of their financial transactions
using the kiosk's printer. The device would additionally include a customizable selection,
customer base.
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The implementation of self-order kiosks in Starbucks holds significant benefits for
both the company and its customers. Due to the intense competition within the coffee
industry, Starbucks has to increase its market presence through service development.
The self-order kiosks serve as a strategic approach in achieving higher market share.
To begin with, the convenience and ease of use inclined with self-order kiosks
can contribute to exceptional brand recognition which can attract new customers and
they serve as an alternative for the traditional ordering methods. With the help of this
machine, customers can easily browse the menu, customize their beverages and
pastries, and proceed to the payment. Self-order kiosks minimize waiting times and
enable customers to enjoy their orders without unnecessary delays. The convenience of
self-order kiosks caters individuals who are time-sensitive such as professionals and
In addition to that, self-order kiosks intend to save valuable time for its customers
and increase the overall productivity rate of the company by effectively addressing the
issue of long queues of a traditional way of placing an order. This problem is streamlined
by allowing customers to directly place and pay their orders through the kiosks.
Moreover, it also enables the Starbucks employees to focus on other important tasks
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such as order preparations, especially during peak hours, which ultimately enhances the
Apart from time-saving benefits, self-order kiosks also enhance order accuracy
independently. They are entitled to select specific ingredients and provide instructions
on the specifications of their orders to ensure that these are prepared precisely how
they want it to be. Self-order kiosks also enable customers to take note of the
ingredients and products that are currently unavailable in the store as they place their
orders. This prevents errors and mistakes in preparing the orders to occur, which usually
customize their orders easily. With a simple tap, they can now navigate the kiosk
screen, visually see the available options in the menu, and select products smoothly.
customers. Being able to visually see what they are ordering enhances customer
confidence and
satisfaction.
them the freedom to personalize their orders. Such experience lets the customers to
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acknowledge their choices which fosters a sense of engagement and positive
Finally, self-order kiosks enable customers to keep track of their expenses. They
can view their running bill as they make selections. This is helpful for the customers with
tight budgets because they can simply edit their selections or explore alternative menu
items if the running bill exceeds their budget. Nevertheless, self-order kiosks promote
While the integration of kiosks in Starbucks outlets can enhance the customer
result. First and foremost, hardware and software failures can disrupt the smooth
functioning of the kiosks, leading to delays and frustrated customers. These technical
issues not only inconvenience patrons but also require dedicated technical support and
potentially expensive repairs. The initial cost of implementing and installing kiosks
throughout numerous locations can also pose a significant financial burden for
updates, system checks, and repairs, further adding to the overall expenses.
slow internet speeds can hinder the ordering process and cause dissatisfaction among
potential vulnerability to the system. Another drawback of kiosks is the potential for a
connection barrier, particularly for older or less tech-savvy individuals who may struggle
to navigate the interface or feel uncomfortable with the technology. Lastly, the
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installation of kiosks can occupy valuable space within Starbucks stores, potentially
limiting seating areas and diminishing the cozy ambiance that the company strives to
create. Balancing the advantages and disadvantages of kiosks is crucial for Starbucks
shortcomings.
Cleaning and maintaining a kiosk begins with the designing board, even before a
company decides to install one to boost sales. After that, each part of the kiosks is made
with the panels in mind, which are easy to clean but hard to change. One more
fundamental thing to recollect is where the booths will be set, guaranteeing that the
stand is very much kept up with in any condition it has been put. You can ensure that the
kiosk is adequately cleaned in the following ways. QR codes can be utilized to smooth
out work processes and access data faster than you pour some espresso. This helps
keep production lines running smoothly and frees up time on your already packed
schedule.
preventative maintenance, this article will look at how maintenance managers and
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Estimated Production Cost
34
Timeline for Strategy Implementation
35
L. IMPLEMENTATION
36
Sales & Serves as the bridge that Engage more with
37
Finance & Its expertise helps the company to Since they
maintain financial stability, make are
Accounting informed decisions, and achieve
sustainable growth. It is responsible responsible for the financial
to examine and make a report for planning, they are also in
the annual budget plan of the charge of auditing its
estimated expenses to make sure previous financial execution
that there is enough budget to and then allot additional
implement the new strategy. budget for the future
maintenance of this
implemented device.
strategies.
38
Management Implement an organized Constant check-up if
Information system to gather information from the the system is being utilized
thoroughly.
System overall performance of this
innovation.
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Self-Service Ordering Kiosk
Our suggested strategy for service development, the self-service ordering kiosk, meets
with UN SDG 9: "industry, innovation, and infrastructure" since it falls under innovation
due to the fact that it is a technological breakthrough that may be used for the public’s
benefit. The kiosk is equipped with specialized technology and software that allows
Utilizing this effective marketing machine assists consumers to feel more secure
while making an order simply as they can do it without involving others in the course of
the transaction. They are able to keep a private presence while using the products and
services provided by Starbucks, enabling them to gain trust in the company. Starbucks
can use the innovation of the kiosk to grow accustomed to and manage change and
challenges as it may assist the company in its efforts to encourage development. This
Additionally, kiosks can assist retailers with workforce acquisition, training, and
management issues. These issues frequently result in high and unpredictable costs due
to the high rate of employee turnover in retail. Kiosks, on the other hand, can shorten
wait times for customers, reduce revenue losses caused by incorrect orders, and
Dupuit, claims that a self-service kiosk can be recouped in one to two years. After that,
maintenance and occasional kiosk upgrade costs are reduced to a more manageable
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level.
inclined to invest in larger purchases beyond what they were initially anticipating,
O. REFERENCES
https://plus.pearson.com/courses/buenconsejo87637/products/107053/pages/12
9?locale=&platformId=1030&lms=Y
Pereira, D. (2023, May 29). Starbucks Mission and Vision Statement. Business Model
Analyst.
https://businessmodelanalyst.com/starbucks-mission-and-vision-statement/
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Retail, L. (2021, September 17). Starbucks Philippines chose LS Retail software
https://www.lsretail.com/customers/starbucksphilippines
Starbucks reaches 5,000-store milestone in its continued expansion across Asia Pacific:
https://stories.starbucks.com/asia/stories/2023/starbucks-reaches-5000-
storemilestone-in-its-continued-expansion-across-asia-pacific
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