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Strama Starb

The document is a plagiarism undertaking signed by students from the Far Eastern University declaring that their strategic management paper on Starbucks was solely their own work and not plagiarized. It notes the university's strict plagiarism policy and that if the paper is found to contain plagiarism after graduation, the university may revoke their degree. The undertaking includes a table of contents for the Starbucks case study analysis paper.

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0% found this document useful (0 votes)
93 views46 pages

Strama Starb

The document is a plagiarism undertaking signed by students from the Far Eastern University declaring that their strategic management paper on Starbucks was solely their own work and not plagiarized. It notes the university's strict plagiarism policy and that if the paper is found to contain plagiarism after graduation, the university may revoke their degree. The undertaking includes a table of contents for the Starbucks case study analysis paper.

Uploaded by

Andre Azul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 46

FAR EASTERN UNIVERSITY

Institute of Accounts, Business, and Finance


Business Administration Department

Plagiarism Undertaking

We solemnly declare that the Strategic Management Paper presented and

submitted as final requirement in the course Strategic Management (BME1102)

entitled STARBUCKS is solely our group work with no significant contribution from any

other person outside our assigned group. Small contribution or help wherever taken has

been duly acknowledged.

We understand that the Department of Business Administration strictly adheres to

the Far Eastern University Plagiarism Policy and is absolutely intolerant towards cases

concerning plagiarism.

Therefore, as authors of the above titled case study analysis paper declare that

no portion of our paper has been plagiarized and any material used as reference is

properly referred/cited.
We undertake that if found guilty of any formal plagiarism in the above titled

paper even after award of our Baccalaureate degree, the Far Eastern University

reserves the right to withdraw or revoke our Baccalaureate degree and the University or

Department has the right to publish our names on the University or Department's

Website on which names of students who submitted plagiarized papers are listed.
Table of Contents

A. Case Abstract……………………………………………………………………….1

B. Vision Statement……………………………………………………………………3

C. Mission Statement………………………………………………………………….3

D. External Audit……………………………………………………………………….4

a) Competitive Profile Matrix (CPM)…………………………………4

b) Opportunities………………………………………………………..5

c) Threats……………………………………………………………….5

d) External Factor Evaluation (EFE) Matrix…………………………6

E. Internal Audit………………………………………………………………………...7

a) Strengths……………………………………………………………..7

b) Weaknesses………………………………………………………….7

c) Internal Factor Evaluation (IFE) Matrix…………………………....8

F. SWOT Strategies……………………………………………………………………10

G. Strategic Position & Action Evaluation (SPACE)………………………………..16

H. Grand Strategy Matrix (GSM)…………………………………………………….. 17

I. The Internal-External (IE) Matrix…………………………………………………..18

J. Quantitative Strategic Planning Matrix (QSPM)………………………………….19

K. Recommendation……………………………………………………………………23

L. Implementation………………………………………………………………………32

M. Strategies and Sustainable Development Goals…………………………………35


N. References……………………………………………………………………………37
A. CASE ABSTRACT

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,

pastries, and merchandise. Starbucks drinks, while fairly expensive, provide a

reasonable luxury from a valued brand. The brand's smart digital approach, exclusive

drinks, and app all add to its overall enticing qualities.

Over the years, Starbucks has achieved significant milestones and innovations

that modified customer experiences. Just recently, Starbucks accomplished another

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

social media, TV commercials, and advertisements. It is the combination of marketing

media that identifies their brand, as well as the constant message that is delivered every

time.

Last 2020, Starbucks encountered unprecedented challenges due to COVID-19.

In the Philippines, however, the company was able to adapt to the new normal by

implementing contactless transactions such as drive-thru services, digital paying and

ordering, and delivery through Food Panda and GrabFood, to prioritize the health and

safety of customers. These practices enabled Starbucks to effectively manage the

pandemic crisis and gradually restore its operations.

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

marketing strategy is centered on service development.

2
B. VISION STATEMENT

“to establish Starbucks as the premier purveyor of the finest coffee in the world, while

maintaining our uncompromising principles while we grow.”

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

purpose flourish. Together, we create an irresistible blend of excellence, brewing joy,

and connecting with every customer we serve (8).”

No. of words: 82 words

9 Components:

1. Customers 4. Technology 7. Self-Concept

2. Products/Services 5. Survival, Growth, and Profits 8. Public Image

3. Markets 6. Philosophy 9. Employees

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

Price 0.10 1 0.10 4 0.40 2 0.20 3 0.30


competitiveness

Product quality 0.15 4 0.60 2 0.30 3 0.45 1 0.15

Global 0.20 4 0.80 3 0.60 2 0.40 1 0.20


expansion

Customer 0.10 4 0.40 1 0.10 3 0.30 2 0.20

loyalty

Market share 0.05 4 0.20 3 0.15 2 0.10 1 0.05

Product design 0.10 3 0.30 1 0.10 2 0.20 4 0.40

Brand reputation 0.20 4 0.80 2 0.40 3 0.60 1 0.20

Profit margin 0.10 4 0.40 3 0.30 1 0.10 2 0.20

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

1. The growth of customer loyalty.

2. Expansion into emerging markets.

3. Rise in the usage of apps (eg. Grab and Food Panda)

4. Increase in utilization of sponsored social media ads with influencers.

5. Increase demands for coffee.

Threats

1. Imitation of products.

2. Price volatility in the global coffee market.

3. Intense competition because of the rise of local coffee shop businesses.

4. Consumers are becoming price sensitive.

5. Consumers are becoming health conscious.

6. Pressure of being socially active and environmentally focused.

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

2. Expansion into emerging markets. 0.12 3 0.36

3. Rise in the usage of apps (eg. Grab & Food Panda). 0.10 4 0.40

4. Increase in utilization of sponsored social media 0.07 1 0.07


advertisements with influencers.

5. Increase demands for coffees. 0.10 2 0.20

Threats
1.Imitation of products. 0.07 2 0.14

2. Price volatility in the global market. 0.08 1 0.08

3. Intense competition because of the rise of local 0.08 2 0.15


coffee shop businesses.

4. Consumers are becoming price sensitive. 0.07 1 0.07

5. Consumers are becoming health conscious. 0.06 2 0.12

6. Pressure of being socially active and 0.06 4 0.24


environmentally focused.

7. Government regulations. 0.08 2 0.16

Total 1.0 2.44


E. INTERNAL AUDIT

6
Strengths

1. Starbucks has a strong brand reputation amongst its competitors.

2. Use of technology and mobile outlets.

3. They offer a high level of customer service along with skilled and approachable

baristas and staff.

4. Offers high quality coffee and pastries.

5. Positive reviews/ratings from the customers.

6. Good location of branches.

7. Consumers are allowed to order customized drinks in accordance with their own

preferences.

8. Good interior and ambiance of the store.

9. Demonstrated strong financial performance with steady growth and favorable

profitability through the years.

10. Extensive store network with over 30,000 stores worldwide, it enjoys significant

economies of scale, market presence, and geographic diversity.

Weaknesses

1. Expensive products than its competitors.

2. Limited advertisements from the company itself.

3. Dependency on disposable cups can affect a sustainable environment.

4. Orders take longer to be completed caused by the long queue of traditional

ordering.

7
5. It has a narrower range of product diversification compared to certain

competitors, potentially limiting its appeal to customers with diverse preferences.

6. Inconsistent customer experience due to sheer size and rapid expansion of

Starbucks.

7. Limited market penetration in some regions or countries due to cultural

differences and local competition.

Internal Factor Evaluation (IFE) Matrix

Key Internal Factors Weight Rating Weighted

Score

Strengths

1.Starbucks has a strong brand reputation amongst its 0.08 4 0.32


competitors, globally.

2. Use of technology and mobile outlets. 0.04 3 0.12

3.They offer a high level of customer service along with


skilled and approachable baristas and staff.
0.06 3 0.18

4. Offers high quality coffee and pastries. 0.08 4 0.32

5. Positive reviews/ratings from the customers. 0.05 4 0.20

6. Good location of branches. 0.06 3 0.18

7.Consumers are allowed to order customized drinks in


accordance with their own preferences. 0.20
0.05 4

8
8.Good interior and ambiance of the store. 0.04 0.12

9.Demonstrated strong financial performance with steady


growth and favorable profitability through the years. 0.40
0.10

10.Extensive store network with over 30,000 stores 0.36


worldwide, it enjoys significant economies of scale, 4
market presence, and geographic diversity. 0.09

Weaknesses
1.Expensive products than its competitors. 0.04 2 0.08

2. Limited advertisements from the company itself. 0.07 1 0.07

3. Dependency on disposable cups can affect a 0.06 2 0.12


sustainable environment.

4. Orders take longer to be completed caused by the long 0.03


queue of traditional ordering. 1 0.05

5.It has a narrower range of product diversification 1


compared to certain competitors, potentially limiting its 0.04
appeal to customers with diverse preferences. 0.04

6. Inconsistent customer experience due to sheer size 0.05 2 0.10


and rapid expansion of Starbucks.

7.Limited market penetration in some regions or countries


due to cultural differences and local competition. 1 0.06
0.06

Total 1.0 2.93

9
F. SWOT STRATEGIES

10
Strengths Weaknesses

1. Starbucks has a 1. Expensive products

strong brand than its competitors.

reputation amongst 2. Limited

its competitors, advertisements from

globally. the company itself.

2. Use of technology and 3. Dependency on

mobile outlets. disposable cups can

3. They offer a high level affect a sustainable

of customer service environment.

along with skilled and 4. Orders take longer to

approachable baristas be completed caused

and staff. by the long queue of

4. Offers high quality traditional ordering.

coffee and pastries. 5. It has a narrower

5. Positive range of product

reviews/ratings from diversification


compared to certain
the customers. competitors,
potentially limiting its
6. Good location of appeal to customers

branches.

7. Consumers are
allowed to
order

11
customized drinks in with diverse

accordance with their preferences.

own preferences. 6. Inconsistent customer

8. Good interior and experience due to

ambiance of the sheer size and rapid

store. expansion of

9. Demonstrated strong Starbucks.

financial performance 7. Limited market

with steady growth penetration in some

and favorable regions or countries

profitability through due to cultural

the years. differences and local


competition.
10. Extensive store

network with over

30,000 stores

worldwide, it enjoys

significant economies

of scale, market

presence, and

geographic diversity.

12
Opportunities SO WO

1. The growth of 1. S5O4 1. W2O4

customer loyalty. Partner with social media Increase Starbuck’s brand

2. Expansion into influencers to launch a exposure by developing and

emerging UserGenerated Content executing creative influencer

markets. (UGC) campaign showcasing advertising initiatives for

3. Rise in the usage their authentic experiences product endorsements and

of apps (eg. Grab with Starbucks' coffee, mentions.

and Food Panda) recommending products and 2. W6O2

4. Increase in new offerings to their Deliver the same quality of

utilization of followers service as well as consistent

sponsored social 2. S10O1 information across the

media ads with Propose exclusive events or company’s numerous

influencers. personalized offers for channels to further improve

5. Increase eligible loyal customers that the expansion of customer

demands for have accomplished the base.

coffee. required points 3. W5O5

3. S2O3 Conduct a market research

Exclusive delivery app to identify emerging trends

rewards and promos for and marketing demands

Starbucks customers. then utilize the findings to


develop new coffee

13
14
products aligned with

customer preferences.

4. W1O1

Provide quality products with

unique features and

premium ingredients making

it worthy of its price as well


as the customers’ loyalty.

15
16
Threats ST WT

1. Imitation of 1. S1T3 1. W7T1

products. Introduce new variants of Conduct a study about the

2. Price volatility in products that cater to the preference and cultural

the global coffee evolving tastes and demands differences of the different

market. of healthconscious local regions and develop

3. Intense consumers. packaging of the products

competition 2. S7T5 and merchandise inspired or

because of the Encourage baristas to with a touch of their culture

rise of local recommend healthier options and preferences.

coffee shop through order customization. 2. W4T3

businesses. 3. S2T5 Develop a unique way of

4. Consumers are Improve mobile application ordering such as launching

becoming price by highlighting healthier an app or QR code where

sensitive. alternatives based on their consumers can take and pay

5. Consumers are dietary preferences, such as for their orders without

becoming health low-sugar, low-fat, or vegan queuing in the cashier.

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

regulations pastry at a discounted price

compared to individual

purchase.

5. S3T3

Provide the greatest


customer service to
outperform competition by
giving comprehensive
training to staff and creating
a good working culture to
maintain the team at its
peak.

18
G. Strategic Position & Action Evaluation (SPACE)

Internal Strategix Position External Strategix Position

Competitive (CA) Industry (IS)


A

X -1 Product Quality +7 Financial Stability

I -1 Brand & Image +6 Growth Potential

S -1 Market Share +6 Productivity

-2 Customer Loyalty Capacity Utilization


X
+6 Profit Potential
Average: -1.25
Average: +6.25

Total axis X score: 5.00

Financial (FS) Environmental (ES)


A

X +7 Return on -1 Technological

I Investments Changes

S +7 Working Capital -2 Rate of Inflation

+6 Cash Flow -2 Demand Variability


Y
+5 Inventory Turnover -2 Competitive

Pressure
Average: +6.25
Average: -1.75

Total axis Y score: 4.50

19
H. Grand Strategy Matrix (GSM)

20
I. The Internal-External (IE) Matrix

Box #: 5

Reg.: Hold and Maintain

21
J. Quantitative Strategic Planning Matrix (QSPM)

Key Factors Weight Service Market


Development Penetration

AS TAS AS TAS

Strengths

1. Starbucks has a strong brand


0.08 2 0.16 2 0.16
reputation amongst its competitors,

globally.

2. Use of technology and mobile 0.04 3 0.12 4 0.16

outlets.

3. They offer a high level of customer 0.06 3 0.18 0 0

service along with skilled and

approachable baristas and staff.

4. Offers high quality coffee and


0.08 0 0 4 0.24
pastries.

5. Positive reviews/ratings from the


0.05 2 0.10 1 0.05
customers.

6. Good location of branches. 0.06 1 0.06 1 0.06


7. Consumers are allowed to order 0.05 2 0.10 3 0.15
customized drinks in accordance with
their own preferences.

22
8. Good interior and ambiance of the 0.04 0 0 0 0

store.

9. Demonstrated strong financial 0.10 1 0.10 0 0

performance with steady growth and

favorable profitability through the

years.
0.09 2 0.18 0 0
10. Extensive store network with over

30,000 stores worldwide, it enjoys

significant economies of scale,

market presence, and geographic

diversity.

23
Weaknesses

1. Expensive products than its


0.04 0 0 0 0
competitors.

2. Limited advertisements from the


0.07 0 0 0 0
company itself.

3. Dependency on disposable cups can


0.06 2 0.12 0 0
affect a sustainable environment.

4. Orders take longer to be completed


0.03 3 0.09 2 0.06
caused by the long queue of

traditional ordering.

24
5. It has a narrower range of product 0.04 0.04 3 0.12
1
diversification compared to certain

competitors, potentially limiting its

appeal to customers with diverse

preferences.

6. Inconsistent customer experience


0.05 0 0 0
0
due to sheer size and rapid

expansion of Starbucks.

7. Limited market penetration in some


regions or countries due to cultural 0.06 0 0 0
differences and local competition. 0

Sub-Total 1.25 > 1

Opportunities

1. The growth of customer loyalty. 0.11 0 0 0 0

2. Expansion into emerging markets. 0.12 4 0.48 1 0.12

3. Rise in the usage of apps (eg. Grab

and Food Panda) 0.10 4 0.40 0 0

4. Increase in utilization of sponsored

social media ads with influencers. 0.07 4 0.28 0 0

5. Increase demands for coffee. 0.10 2 0.20 3 0.30

Threats

25
1. Imitation of products. 0.07 0 0 4 0.28

2. Price volatility in the global coffee 0.08 2 0.16 1 0.08

market.

3. Intense competition because of the 0.08 2 0.16 2 0.16

rise of local coffee shop businesses.

4. Consumers are becoming price


0.07 1 0.07 1 0.07
sensitive.

5. Consumers are becoming health


0.06 0 0 0 0
conscious.

6. Pressure of being socially active and 0.06 3 0.18 2 0.12


environmentally focused.

7. Government regulations
0.08 2 0.16 2 0.16

Sub-Total 2.09 > 1.29

TOTAL 3.34 > 2.29

26
K. RECOMMENDATION

Based on the information from Quantitative Strategic Planning Matrix (QSPM),

Starbucks, a well-known international coffee brand, may successfully implement service

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

further establish its position as a dominant force in the coffee business.

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.

Starbucks is committed to utilizing cutting-edge solutions to fulfill changing consumer

expectations while extending its market footprint, and this breakthrough technology is in

line with that objective.

27
Figure 1. Example of Kiosks used in fast foods restaurants

Starbucks emphasizes consumer satisfaction and service. As a result, the

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

prospective customers through introducing an innovative ordering approach for market

growth, a self-service ordering kiosk.

To begin with, our proposed kiosk possesses a distinct characteristic that

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

28
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,

enabling consumers to make changes or customize their beverage choices and

commodities according to their personal preferences. It will additionally offer healthier

alternatives for products and goods, thereby marketing to the health-conscious

customer base.

Figure 2. Proposed design of Starbucks Kiosk.

29
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.

The advantages of implementing this machine includes convenience, time-saving

benefits, enhanced order accuracy, smooth order customization, improved customer

experience, and budget management.

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

encourage repeat visits. Convenience is crucial in the success of self-order kiosks as

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

students who value efficiency and convenience in their daily routines.

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

30
such as order preparations, especially during peak hours, which ultimately enhances the

store’s operational efficiency.

Apart from time-saving benefits, self-order kiosks also enhance order accuracy

by allowing customers to customize their orders according to their own preferences

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

happens in traditional ordering methods, resulting in outstanding customer experiences.

Additionally, with the user-friendly interface of self-order kiosks, customers can

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.

This innovative device eliminates potential problems such as complex ordering

processes, which ensures seamless transactions and convenient experiences for

customers. Being able to visually see what they are ordering enhances customer

confidence and

satisfaction.

Another notable advantage of self-order kiosks is the boost in overall customer

experience. Starbucks strengthens the customers’ satisfaction and loyalty by providing

them the freedom to personalize their orders. Such experience lets the customers to

31
acknowledge their choices which fosters a sense of engagement and positive

connection with the brand.

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

financial awareness and entitles customers to make informed decisions, further

increasing their satisfaction

While the integration of kiosks in Starbucks outlets can enhance the customer

experience and streamline ordering processes, several shortcomings may arise as a

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

Starbucks. Additionally, the ongoing maintenance of these devices necessitates regular

updates, system checks, and repairs, further adding to the overall expenses.

Furthermore, if the kiosks rely heavily on internet connectivity, any disruptions or

slow internet speeds can hinder the ordering process and cause dissatisfaction among

customers. This dependency on a stable and reliable internet connection introduces a

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
32
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

to ensure a seamless and satisfying customer experience while mitigating potential

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.

In order to improve equipment maintenance, track assets, and better plan

preventative maintenance, this article will look at how maintenance managers and

technicians can use QR codes in maintenance.

33
Estimated Production Cost

Figure 3. Estimated Timeline for the Implementation of the Strategy

34
Timeline for Strategy Implementation

35
L. IMPLEMENTATION

IMPLEMENTATION CONTROL & MONITORING

Management Discuss and delegate tasks to the Monitor the


appropriate teams on what their
roles are in the implementation of effectiveness of the new
this strategy.
strategy through asking for

reports from different teams.

Assess the positive and

negative impact of the newly


implemented strategy.

Human Incharge with the execution of Ensures that the store


employees have expertise to
Resource training to the baristas and crew with the new adjustments from the
traditional ordering practice.
the usage of the new innovative

device to assist the customers with it.

36
Sales & Serves as the bridge that Engage more with

Marketing connects customers to companies customers and ask for


by developing effective introduction
of the new strategy to the market. feedback if this innovation is
Incharge of launching and promoting effective or not. Then, they
the new implemented strategy to its will keep track of its impact
on the succeeding sales.

market. (e.g. Posters and Online


announcement)

Production/ Ensures high Supervise


quality of the
Operations
production and delivers a consistent performance of the kiosk

supply of coffee products through machine if it improves the

this production of the store. They

innovation to meet customer will keep on monitoring the


demand.
maintenance of the new

innovation for its consistent


efficiency.

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.

Research & Focus on how to enhance Gather data from the

Development sustainability and improve quality of management of the


goods and services with the use of
the innovative device and stay information system about the
attuned to consumers’ needs, driving
growth and competitiveness in the performance of this
market.
innovation, such as its pros

and cons during the

enactment of the strategy for

the successive research and

development of the future

strategies.

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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.

M. STRATEGIES AND SUSTAINABLE DEVELOPMENT GOALS

9- Industry, Innovation and Infrastructure

39
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

users to access information and applications for the commerce of Starbucks.

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

also promotes the company in achieving economic and corporate achievement by

means of innovation while being competitive in today's competitive marketplace.

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

provide opportunities for upselling.Furthermore, Acrelec's head of marketing, Benoit

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

40
level.

Finally, as a byproduct of this innovation, consumers are likely to be more

inclined to invest in larger purchases beyond what they were initially anticipating,

culminating in increased revenue for Starbucks.

O. REFERENCES

Pearson+. (n.d). Chapter 4: Types of Strategies.

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/

41
Retail, L. (2021, September 17). Starbucks Philippines chose LS Retail software

solution. Starbucks Philippines.

https://www.lsretail.com/customers/starbucksphilippines

Starbucks Corporation. (2022, March 14). At-a-glance: Our response to COvid-19.

Starbucks Stories. https://stories.starbucks.com/stories/response-to-covid/

Starbucks reaches 5,000-store milestone in its continued expansion across Asia Pacific:

Starbucks Stories Asia. (2023, February 16). Starbucks Stories Asia.

https://stories.starbucks.com/asia/stories/2023/starbucks-reaches-5000-

storemilestone-in-its-continued-expansion-across-asia-pacific

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