Starbucks – A paragon of Growth and Employee Benefits Faces Storm Clouds
1. Can Schultz's business model be challenged?
Yes, it can be. As there are increasingly more companies entering this industry from big companies who have already had their established market share such as McDonald’s, Dunkin Donuts to new comers such as Coffee Bean, Tim Horton’s, etc. Starbuck’s should be more careful with its business model in order to maintain their current position in the market.
2. How would you prove that happy employees lead to greater sales?
With this kind of business, customer-employee interaction is one of the most important factors to stay in business. Especially for Starbucks, as they have been building their coffee shops as not only a place to buy coffee but also to have the experience of enjoying the drink and relaxing, it is crucial to maintain a warmly-welcome atmosphere in the shop. In order to do that, the employees need to feel satisfied to provide better customer service and therefore yield greater sales.
3. Do you frequent Starbucks? If so, what is your opinion of it?
I go to Starbuck quite often. My general impression is its business model is simple yet quite effective for targeting a wide market segment. The drinks are not outstandingly high quality but decent enough for their prices. Customer service is good and constant in different stores.
4. If you do not frequent Starbucks, what might induce you to try it?
I think seeing people enjoying the drinks and chilling with their friends inside the shop might lead me to try it.
5. Do you see any limits to Starbucks' growth?
Options on their menu are somewhat limited. I heard about Starbuck’s secret menu, and have tried some of those. They turned out great. So limit to Starbucks’ growth is their limited menu.
6. Would drive-through windows make Starbucks more attractive or less attractive? Why?
I think it makes Starbucks more attractive as it serves people who do not have a lot of...