The Advantages and Disadvantage of Starbucks Essay Example

admitted the streamlining that enabled the chain to grow to 13,000 units had "watered down" the brand.

It had an expansion schedule of one new store per day has come to be sipping such a bitter brew ignoring all the things that made customers loyal to the brand. It failed to remember the interaction that takes place between customers with the “Experience” and the “Soul of the past”.Starbucks not only forgot to understand its audience but also the local customs and its target market, instead trying to impose its cookie-cutter American business model on all around the world business. It made a dire mistake and "assumed" it would always be on a high velocity growth curve. The alarming issue is that the events that triggered this change didn't show up immediately in the financial results. And, by the time they did it was already too late to do anything about it as a trend had already developed that will have long-term financial implications.

Antidotes After Starbucks has been going through these significant changes.It saw the renewed focus on the basics that made Starbucks a household name and the essence of a relationship of trust and confidence a company has with its customers and employees. Starbucks committed to reinvent and reinvest in training the employees who the experience they create for customer. It has now done very well and focused in international markets where there has not traditionally been a coffee drinking culture such as Japan and China.

Conclusion Human-Oriented Principles Leadership is vital and inevitable in running business. Communication and building relationship resumed has saved the coffee giant from catastrophe. By now Starbucks made the U.

S. operating margin increased 17.

1 percent and international operating margin more than doubled to 9. 8 percent . It is always true of the concept it has, Starbucks is not in the coffee business serving people – it’s in the people business, serving coffee.