This report focuses on analyzing the key strategic and business operation issues of a Starbucks coffee shop on 91 Clarence high street in Kingston town (Kingston Upon Thames, London, UK). The report identifies the business context and main operational aspects of this Starbucks shop which will be shown briefly in the Introduction part.
Methods of analysis include the secondary-data, primary-data (qualitative and quantitative research), relevant theories and relative information from books, online databases, as also student’s works and so on.
The report figures out the problems of this Starbucks shop, such as the atmosphere and layout inside the store, as also some customer services. However, those issues depend on many different cases which cannot meet a specific solution to improve themselves. In addition, the general feedback of customers indicates that although the problems exist, these issues are not big impacts.
Recommendation for the business of this Starbucks shop is to keep managing their current operating system and extend their competitive advantage, based on the ideal location (order-winner), to target the potential segment customers as non-coffee drinkers.
This report might not avoid the shortcomings and limitations itself. For instance, a lack of experience in doing the actual surveys which led to incomplete data and information; some results are based on past performance or general context which can be subjective.
Unformatted text preview: CASE STUDY Overview • Company History • Industry Profile • Competitive Advantages • Future Challenges • Recommendations Southwest Airlines History • Founded in Texas in 1971 as a small regional airline • Mission – “Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual price, and Company Spirit.” • 31 consecutive profitable years and consistently high quality ratings – Fewest customer complaints for the 13 th straight year in 2003 – Multiple Triple Crown winner in U.S. DOT rankings • Today Southwest is the largest airline in the United States Industry Profile • Southwest competes in the domestic airline market • Legacy carriers – United, Delta, US Airways, Continental • Low Cost Carriers – Southwest, JetBlue, AirTran Airways, Frontier Airlines • Hub and spoke vs. spider web • Difficult financial time for the industry – Rising fuel costs, economic downturn, post 911 fallout Industry Competitors 14.9 20.1 20.7 21.8 37.8 42.8 44.2 72.2 92.5 95.9 25 50 75 100 Alaska Airlines SkyWest Airlines AirTran Jet Blue Continental United US Airways American Airlines Southwest Airlines Delta Air Lines January - October 2011 Passengers (in millions) Hub-and-Spoke vs. Spider-Web System • Largest US Hubs by number of passengers: – Atlanta, Chicago, Los Angeles, Dallas/Fort Worth, Denver, Las Vegas Corporate Culture • Herb Kelleher – longtime CEO credited with creating the family friendly atmosphere that has led to high employee morale • Unconventional CEO – Quarterly he would perform employee tasks such as load bags, serve drinks, and had out boarding passes – Settles disputes “the old fashioned way“ Corporate Culture...
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