Starbucks
...for increasingly higher number of businesses, customer relationships are the key strategic resource. He observes how organizations are changing from a hierarchical pyramid like structure to a more flexible wheel shaped structure. Strategic alliances are the need of the hour as they help a business prioritize resource allocation and develop core competencies. Further, he suggests that marketing can no longer be the responsibility of selected few; rather it is an umbrella function that everyone at each level is responsible for. In the report that follows, Starbucks is examined in the light of the Webster's article. The report begins by looking at the Starbucks strategy and going forward, analyses how each of the components of its strategy (structure, people, systems and culture) are aligned to customer relationships. Its many partnerships and alliances are discussed that eventually leads to the conclusion that Starbucks is a customer centric, network organisation.
INTRODUCTION
"You get more than the finest coffee when you visit a Starbucks—you get great people, first-rate music and a comfortable and upbeat meeting place," says Howard Schultz, Starbucks chairman. "We establish the value of buying a product at Starbucks by our uncompromising quality and by building a personal relationship with each of our customers. Starbucks is rekindling America's love affair with coffee, bringing romance and fresh flavor back to the brew."1
Starbucks' guiding principle is to develop enthusiastically satisfied customers all the time.2 It is not only creating the ultimate coffee beverage, but also providing excellent service that ensures customers leave the store completely satisfied and eager to return - maybe next time with friends or family.3 Starbucks believes in bonding emotionally with the customer and forming long lasting relationships. It prides itself in being the...
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