Case Study - 1124 Words

Case A-7: Starbucks—Going Global Fast Description of challenges The major challenges facing the decision maker, Schultz, include the following: the challenge of the fast saturating U.S. market (Going Global Fast, n.d, p. 2). According to analysts, in two year time, Starbucks will have saturated the U.S. market. This will lead to stagnation or slow growth in sales and reduce the effect of increased sales per new stores opened. For instance, in Seattle, Starbucks has a cafà © to serve every 9400 people; a number considered to be the upper limit of the coffee shop saturation. The challenge of 30 percent self-cannibalization a year as Schultz admits, where blanketing an area with new stores to dominate market culminates to cutting sales at†¦show more content†¦Even though the use of local operators makes it easy to enter new markets, it lowers profitability from overseas stores. Increasing the number of stores will result to increased profit products from overseas market by virtue of the multiplication effect. That is, 20 to 50 percent mult iplied by a large number of outlets gives a larger figure. Implementation program Key Activities Timing Resources Evaluation 1 Market research on meals preferences 3-4 weeks Finances to fund outsourced research services Identify meals/recipes for specific categories of the market population. Pilot test of meals sales in 3 different outlets 2-3 weeks Recipes/meals Determine level of meals sales per outlet. Official introduction of the meals in Starbuck outlets 2-4 months Recipes/meals and compliments such as utensils. Performance level of the project in terms of sales revenues from meals. 2 Training of employees 1-3 weeks (at intervals regularly) Training materials and finances to fund external trainers Level of performance improvement in terms of productivity after training. Introduce team building sessions 1-7 days Playgrounds, meals and drinks, games, transportation. Level of improvement in communication across the company structure. Increase basic compensation and introduce bonuses 2-6 months Increased finances allocated to compensation. Evaluate the level of motivation Increase number of employees 2-6 months New employees and more finances for recruitment ReducedShow MoreRelatedCase Studies : A Case Study Approach Essay1157 Words   |  5 PagesA case study is a specific instance that is frequently designed to illustrate a more general principle (Nisbet and Watt, 1984). Hitchock and Hughes (1995) further suggest that the case study approach is particularly valuable when the researcher has little control over evens. Case studies strives to portray ‘what it like’ to be a particular situation, to catch up reality and ‘thick description’ (Geertz, 1973) of participants’ lives experiences of, thoughts about and feelings for a situation. 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