Business Management Procedure At Starbucks Case Study

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Introduction of Business Management Procedure At Starbucks Case Study

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An important part of an American multinational chain, associated with roastery and coffeehouses can be mentioned as the company Starbucks. This company is currently operating under Kevin Johnson and it’s headquarter is situated in Seattle in the United States. Social media platforms play an important role in understanding the recent business progress and activities of an organization. The current business and service provision of the company Starbucks has been identified in this report on the basis of which relevant recommendations are presented.

Collected data from social media

Social media presence marketing consideration of an organization is considered to be one of the most important attributes of a successful organizational business. According to a recent report on the social media presence of Starbucks, it is found that customers of Starbucks mostly favor Facebook and Instagram, and Twitter to know and access this organization’s service (Novak and Richmond, 2019). The company has almost 39 Facebook pages in which customers of this company get to know about new organizational services. As per the information, collected from Facebook, the total number of new and existing customers in online marketing is around 36065914.

Social media platform

Total followers

Facebook

37.2 million

Twitter

11.9 million

Instagram

16 million

Youtube

153K subscribers

 Present social media statistics of Starbucks

(Source: Tikson, 2018)

Fan growth of the company Starbucks is found to be increased by 0.04%, presenting the market growth of this company. The recent social media presence of this company resulted in creating positive impacts on customers that helps in increasing brand awareness. The introduction of spring cups for both sunny and rainy weather is found to influence new customers that have helped this company to make a positive and effective market growth. As per the positive feedback and increasing demand of customers through social media, a total increase of around 35% in organizational business is recorded. Posts of the company Starbucks on different social media have presented the fact that in a post-pandemic situation, the company has improved its business in a more competitive and profitable way.

Analysis of collected data with appropriate qualitative and quantitative methods

The data collection process serves to be effective in gaining detailed insights about the business procedures. Considering quantitative methods can be regarded as useful to gain a compact and relatable knowledge about an existing business process. A critical and deep observation is required to identify each important component within an organization's process. The two most important methods of quantitative analysis are considering interviews and surveys. An interview of the customers can be regarded as beneficial to understand the perspectives and demands of customers in the recent market (Digitalcommons.sacredheart.edu, 2022). Face-to-face and online interviews with the help of social media can bring forward some significant information about the new introduction of a business.

Another important method of quantitative analysis can be mentioned as analyzing customers’ reactions and preferences about a particular service by using polls. In this regard, survey and interview can be conducted on different social media platforms such as Facebook and Instagram. The traffic reach of Starbucks’s official website is found to be around 34.33% that indicates a high demand and preferable service. Analyzing social media posts and shares of Starbucks’s services can be considered as an important part of quantitative analysis (Shim et al. 2021). As the data of the company’s increasing growth is found in the information, collected from the social media platforms, outcomes of direct interviews with the customers can be related to this.

In order to analyze the data, collected from social media, qualitative analysis can be beneficial for Starbucks. In this type of analysis, websites, internet sources, and online articles and journals can be regarded as essential. As per the opinion of Alwaleed et al. (2019), the official website of the company can be the most important component for considering a qualitative analysis. The traffic reaches of this company’s official website increased by 33.89% which is far better than last month’s result (Similarweb, 2022). It states that this website is a preferable site for the customers.

 Growth of Starbuck in customer’s visit

(Source: Similarweb, 2022)

As per the above-presented figure, total visits of the customer to this page are recorded as 19.2 Million for January, 17.1 million for February, and 22.9 Million for March. As per the qualitative analysis, it is also found that the global rank of Starbuck reached 2606 which was at 3149 just a few months back. As per the article, presented by Tikson (2018), the previous and current business strategies of Starbuck can be evaluated. As per this analysis, it is also found that the total visits of customers, to the official website of this company, is recorded as 22.9 Million which depicts a preferable service. As per the analysis, the bounce rate of this organizational website is recorded as 60.37%. The duration of a visit to the official website of Starbuck is recorded as 00.01.31. As opined by Nair et al. (2021), the recent organizational service of this company is preferred by customers, as the company’s social media posts are getting a high amount of likes and shares.

The current service provision of Starbucks with pros and cons

The service provision of Starbuck is found to be preferred and supported by potential customers. Social media responses and recognition can be considered as an important part of the information on the basis of which evaluation of the service provision of this company can be considered.

The maintenance of quality in the service-providing process is an important consideration of this organization. In terms of meeting customer demand, the company is found not to compromise on the quality of services. Introducing new areas in which more innovative services and products can be included, has presented a path for development for this company (Azriuddin et al. 2020). The pros of this service provision lie in its effectiveness in increasing customer preference. Quality management is often found essential to sustain in a competitive market. A con of this service provider is the company’s lack of management in pricing strategy. While maintaining the quality, the price needs to be considered also as a high price and reduce customers’ demand and preferences.

The company is also found to consider changes in the supply chain management process to ensure a more profitable and beneficial service. Another consideration, included within Starbucks’ service provision is the increase in revenue. As per some reports, in the year 2008, the company increased its revenue portion up to $1.4 billion, which was just $4.1 Billion in 2003 (Foodnewsnews, 2022). This service provision is found to be beneficial to this company’s service in providing food and drink items. The pros of considering effective supply chain management are an increase in the company’s efficiency to reach its customers by supplying necessary services at the right time. A con of this service provider is its time-consuming nature.

The cultural aspect of this company is also an important part of service provision that has developed over time. In terms of ensuring a sustainable business, development in technological implementation is found to be considered by this company (Avila et al. 2019). The process of community service is found to be developed that impacts the overall performance of this company. The pros of this service provision are an improvement in cultural attributes that ensures a more recognizable and preferable service to the customers.

Recommendation

  • In terms of being more innovative in the service proving process, the company Starbucks can implement a more compatible social media marketing strategy. Being more available on some other social media platforms, this company can acquire more recognition from customers. This recommendation is justified as recent market areas and industrial approaches are supported by social media platforms.
  • The connection and attachment with customers can be increased by this company by considering the online and face-to-face interview process. Considering surveys on a regular basis can also be helpful for this company to improve its business.
  • Another recommendation can be to follow recent trends in the retailing industry which can present several opportunities for this company to increase its adaptability. New innovations and developments can be implemented within this company by identifying trending business approaches.
  • The growth of this organization can be ensured by implementing more innovative ideas regarding the digital marketing process. In the business era of the post-pandemic situation, giving importance to online connection with customers with digital services can be a beneficial step for Starbucks. This is the reason this recommendation is appropriate for this company’s future development.

Conclusion

The organization has customized and developed its business process in such a manner by which communication and direct engagement of customers are improved. In this way, the overall performance of this company has increased in recent times. In order to understand the impacts and market recognition of a particular organizational service, the process of the quantitative method is beneficial. The collected data from social media in which an increase in customer reach and demand is found, can be estimated and critically analyzed by further considering a direct interview. The outcomes of the interview and survey can be considered to understand the nature of customers regarding innovative and newly implemented developmental approaches within the organization.

References

Journals

Alwaleed, N., Al Huwail, N.H., Singh, S. and AlMejhem, A., 2019. A case study on Starbucks. Journal of the Community Development in Asia (JCDA), 2(2).

Avila, M., Parkin, H. and Galoostian, S., 2019. $16.7 Million To Save One Reputation: How Starbucks Responded Amidst a Racial Sensitivity Crisis. Pepperdine Journal of Communication Research, 7(1), p.4.

Azriuddin, M., Kee, D.M.H., Hafizzudin, M., Fitri, M., Zakwan, M.A., AlSanousi, D., Kelpia, A. and Kurniawan, O., 2020. Becoming an international brand: A case study writing of Starbucks. Journal of the Community Development in Asia (JCDA), 3(1), pp.33-43.

him, J., Moon, J., Song, M. and Lee, W.S., 2021. Antecedents of purchase intention at Starbucks in the context of COVID-19 pandemic. Sustainability, 13(4), p.1758.

Nair, R.K., Sinha, R., Crasto, S.G., Kian, K.W., Kee, D.M.H., Abdullah, S.A.B., Zaidi, S.N.N., En, T.S., Jain, A.K., Valecha, P.M. and Ganatra, V., 2021. The effect of Starbucks marketing campaigns on consumer buying behaviour. Asia Pacific Journal of Management and Education (APJME), 4(1), pp.72-81.

Novak, A.N. and Richmond, J.C., 2019. E-Racing together: How Starbucks reshaped and deflected racial conversations on social media. Public Relations Review, 45(3), p.101773.

Tikson, S.D.S., 2018. Human Resource Policies and Work Culture: A Case of Starbucks. JBMI (Jurnal Bisnis, Manajemen, dan Informatika), 15(1), pp.1-12.

Tikson, S.D.S., 2018. Human Resource Policies and Work Culture: A Case of Starbucks. JBMI (Jurnal Bisnis, Manajemen, dan Informatika), 15(1), pp.1-12.

Websites

Digitalcommons.sacredheart.edu (2022). About Starbucks Social Media Strategy Report. Available at: https://digitalcommons.sacredheart.edu/cgi/viewcontent.cgi?article=1729&context=acadfest [Accessed on 19th April 2022]

Foodnewsnews (2022). About How Starbucks Manage Their Service Provision. 

Similarweb (2022). About Starbucks. Available at: https://www.similarweb.com/website/starbucks.com/#traffic [Accessed on 19th April 2022]

 

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