Question

CASE STUDY/PROJECT REPORT ASSIGNMENT

Starbucks’ Growth Destroyed Brand Value

Leadership & Managing People Case

Starbucks announcement that it will close few stores in Saudi Arabia admission of limits to growth.

The founder Howard Schultz recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special.

How will you help company to recover and expand its operation in Saudi Arabia. The Company hired you as CEO of Starbucks coffee in Saudi Arabia

Assignment Objectives & Requirements:

1-To sustain and expand the Starbucks Stores in Kingdom of Saudi Arabia, you have to write the: (400 – 500 words)

a. Identify the competitive advantage (s) in business for growth

b. What are the different Products and type of services that can be offered.

c. Business objective/goals/vision

2-Identify and describe the four managerial functions that can be applied in Starbucks business in Saudi Arabia. (200 – 300 words)

3- Explain the different types of planning for the different levels of management in Starbucks in KSA. Include the typical time frame for which each plan is created. (200 – 300 words)

4- Discuss different theoretical perspectives about management in context of Starbucks. Give at least three reasons. (100 - 200 words)

5- Conclude your report. (100 – 200 words)

Answer 1

1

a. Competitive advantage in business for growth:

• New Products: Developing new products according to customer need. foe ex starbucks make coffee sachet for ready to use by customer.
• understanding changing customer preferences very well and capitalizing on it: developing new flavours and varities according to new demand of customer.
• New ideas for better customer experience. coming up with new ideas like free wifi, own music albums and offering customized coffee mugs.
• Loyalty program and starbuck reward card: offering reward points on every transaction creating loyalty.
• Finest quality coffee beans for making its product: The best coffee beans is used which is unparalled and better than any existing competitiors.
• Brand image: Its has a international image and they service in many countries. they have a luxury food joint image.

b) Different products and service that can be offered:

• Different flavour coffee: They can offer many combinations in cold and hot coffees according to the consumer preference there.
• Different eatables and add ons: Eatables like sandwich, brownie and cakes which are acceptable combination with coffee can be offered.
• Seesha and flavoured hookah: Saudi arabia has a culture of smoking seesha. Starbuck can offer seesha with coffee.
• Free wifi and customized coffee mugs: They can offer free wifi for better footfall and customized coffee mugs for a better customer experience
• Creating its own music albums:: This will result in reachingmore consumer and brand awareness.

c) Business Vision:

To establish starbucks in kingdom of saudi arabia as a premier coffee outlet while maintaining the principles of starbucks as it grows.

Business goals:

To make the Starbucks in saudi arabia the most preffered coffee oulet by 2020 with doubling its revenue.

Business objective:

• To improve customer experience
• To increase brand awareness
• To enhance staff expertise