Case study 3

Sturbucks Corporation

Sturbucks is a corporation company that deals with a wide range of products specifically selling coffee to consumers. Some of the products line that Sturbucks’ deals with is at least 30 variety and a particular kind of coffee, blended beverages, the espresso, teas, also deals with bottled coffee drinks and the Sturbuck shots. Sturbucks offers home machines, grinders and brewers, the fresh pastries, ice cream, chocolates, salad, sandwiches, mugs, compact discs, accessories, and the various gift items. Sturbucks offers a very successful Sturbucks card which is a reloaded store-value card that allows customers to prepay their order.

McDonalds Corporation has increased its sales volumes and the profits by offering a high-quality type of a coffee compared to the Sturbuck coffee (McGraw-Hill, 2006). Sturbucks has concentrated its efforts in opening up new stores all around the world and this gives McDonalds Company to move up its scale by concentrating on offering the best services not opening up new stores. The rapid growth in the number of stores at Sturbucks fueled the growth in expenditure as well as the earnings making it a common place, not a special place. The opening up of more sandwich stores and at the same time offering coffee beverages to consumers made the store seem like a fast food rather than a coffee shop (McGraw-Hill, 2006). McDonald Corporation concentrated its efforts at offering only coffee-related products making it a coffee shop determined to retail coffee to its consumers. Reducing the quality of a product to offer more differentiated services to consumers makes Sturbucks a store instead of a coffee shop.

Sturbucks Corporation became a more successful corporation for its mission in ensuring a clean clear environment for the members of a society it had its stores in. Sturbucks shared its information with partners thereby creating customer service for the store (McGraw-Hill, 2006). Understanding issues that affect a common individual create a liking and a successful business for both parties. Offering flexible and innovative solutions to customers enabled corporation growth. For example, Sturbucks card which allows customers to prepay their order on the various products that Sturbucks offers. The card has been a huge success in selling more than 27 million cards in the first quarter of the year 2008. Sturbucks Corporation concentrated on buying, selling and using environmentally friendly products in its line of business which made it a more preferred company than the others (McGraw-Hill, 2006). Sturbucks recognized that the fiscal responsibility is vital for the continued of business as it is a way to save the environment for future generation. Being responsible for the measuring and monitoring the projects to the society also increased the level of the corporation being successful in business. Encouraging various members in the society to share the vision that Sturbuck possessed creating a business that catered for the environment and ensuring that success at the end of the day was the outcome.  Sturbucks Corporation also concentrated at offering the best services when it comes to its employees. Sturbucks corporation employees were assured of a good future since the company had guaranteed and paid for various services such as the health care, benefits, vision coverage, dental care, medical care, and good bonuses. Most employees are motivated to work if a company considers their wants (McGraw-Hill, 2006). Offering comprehensive bonuses is such a good way to improve employee morale, therefore, the work they are employed for will be done happily and the customer service will be excellent.

Strategic factors that allow the company to have a future in business are the fact that the company has opened more than enough stores in the world. By the year 2008, Sturbucks Corporation had opened at least 15,000 stores in only 44 countries and had a vision of opening twice the number in the world. On a single day, the Sturbucks Corporation had the capability to handle more than 33 million customers in its various store in just one week. This dedication to offering best services to its customers increased consumer awareness of Sturbucks Corporation. Stores for the company are located at strategic locations specifically to attract customers to its stores (McGraw-Hill, 2006). In the United States, statistics show that there are more than 166 million individuals who are coffee drinkers. This data shows that the many numbers of stores the company has opened will increase the earnings for the company, therefore, a marketable business.

Advantages of having the Sturbucks Corporation cards to customers is the fact that, one can reload money whenever they want and not necessarily at the company premises. It is a convenience customer service to every individual since the cashless system is safer although there are no discounts if one uses the card or cash at the store (McGraw-Hill, 2006). Sturbucks card can also be used by individuals at the Sturbucks.com site to cater for customer needs more conveniently. To Sturbucks Corporation, the cards offered a simple way to conduct business as the cards had brought in more than $400 million in the first quarter of 2008. In countries like Greece and Japan, where the initial rollouts had been launched, international recognition was inevitable.

Sturbucks Corporation can have a more successful business if they concentrate at offering coffee services instead of mixing the business. In most successful business in the world such as Samsung, concentrating on a single line of business is very vital in order to beat out the competitors (Michell, 2010). Diverting creates a notion in customer’s mind that reduces their interest in whatever solution one is offering (McGraw-Hill, 2006). Sturbucks Corporation had a successful business when they only offered coffee to customers. On mixing the coffee shop to retail sandwiches diverts the minds of its customers from being a special coffee shop to being just like any other business in the town centers. Integrating the business with other companies such as the Pepsi-Cola company which has a wide market creates consumer awareness of the products offered at Sturbucks Corporation. Many companies that have tried to offer differentiated services have lost market since mostly in America, people love differentiated and specifics instead of a variety. Sturbucks Corporation should now vision establishing and maintaining its brand as a coffee shop instead of other business like being a retailer of sandwiches (McGraw-Hill, 2006).

According to the company’s mission statement and guiding principles, Sturbucks Corporation cares about the needs of the society as the environment is what assures an individual of continuity. Conserving the environment is very important since the hazards that might be created once there is a destruction of the environment will ultimately affect the earning capability of the business. Getting the best standards to project the best is essential for success and Sturbucks Corporation has established that in its line of business. Sturbucks Corporation contributes to better the society and the living standards of its employees thus a company that many will prefer to work at compared to others which don’t offer similar services.   

 

 

 

 

 

Reference

Marketing Management. (2006). S.1: McGraw-Hill.

Michell, T. (2010). Samsung Electronics and the struggle for leadership of the electronics            industry. Singapore: Wiley.