President Store Corporate operated around 300 Starbucks coffee outlets in Taiwan under a joint venture arrangement in 2013. It also ran over 2,000 of its own City Cafe outlets across Taiwan. Both enjoyed good market share and there appeared to be little cannibalization. What could be the reason for this in the competitive coffee landscape in Taiwan?
STARBUCKS Starbucks was founded in the U.S. in 1971 and its main product was Arabica coffee beans. In 1987, Howard Schultz took over Starbucks and introduced the roasting technologies and ambience of the Italian cafe. By May 2014, Starbucks had over 23,180 stores worldwide in 64 countries. Starbucks outlets primarily sell coffee, but also offer other hot and cold beverages, pastries, sandwiches, and snacks. Starbucks introduced low calorie coffee in 2008 and instant coffee in 2009. In 2010, Starbucks started selling beer and wine in some outlets in the U.S. In 2011, Starbucks introduced the Trenta, a 31-ounce cup of coffee. Starbucks ventured into the juice bar business in 2013. In January 1, 1988, the President Starbucks Coffee Corporation in Taiwan was officially founded as a joint venture between Starbucks Coffee International, Uni-President Enterprise Corporation, and the President Chain Store Corporation. Many people have suggested that Starbucks, as an international brand, has basically transplanted the American coffee culture into Taiwan. The concept appears to be good quality coffee at high prices to be enjoyed in a leisurely manner with friends. Coffee on offer includes cafe latte, vanilla latte, hazelnut latte, caramel macchiato, cafe mocha, and cappuccino with a price range of NT$75 (US$2.46) to NT$155 (US$5.08). However, subtle differences can be observed. The pastry cases look similar but their contents are different and include offerings such as curry chicken cannoli. There are numerous tea options including rose fancy tea, green tea, jinxuan oolong, bi luo chun, and oriental beauty (the latter three are specialty Taiwanese teas). By 2013, Starbucks had almost 300 outlets. Over the past three years, Starbucks in Taiwan has opened 20 to 30 new stores each year, and all stores have achieved their revenue targets and contributed to 10 percent sales growth over the last few years. A research study has concluded that Western culture adoration was an important dimension in coffee consumption for Taiwanese customers at Starbucks. Overall, Starbucks engages in experiential marketing, with the consumer associating the brand 2 with specific smells, tastes, visual elements, and sounds.
CITY CAFE In 1986, the President Chain Store Corporation launched Cafe Americano through its 7-Eleven chain stores. In 2004, the company began to shift from the American style Americano concept to the new 24-hour Italian City Cafe concept without closing the Americano outlets already in the 7-Eleven outlets. By 2005, there were 500 CITY CAFE outlets, 1,000 in 2007, and 2,000 in 2009. Television advertising was used to build brand awareness and image. The theme used was, “The entire city is my coffee shop;” targeted at students and workers aged between 20 and 40. The concept appears to be a local coffee brand offering low priced coffee anytime and anywhere. Coffee on offer includes latte, cappuccino, and City blend, with prices from NT$25 (US$0.82) to NT$45 (US$1.48).
CITY CAFE started a Music Conservatory in the Hankyu Department Store outlet in Taipei where aspiring local singers and performers can showcase their talents. Performers in March 2014 included Taipei Soul Brothers, featuring five musicians from three different generations, and Lin Ling, a local Taiwanese girl who has been performing since the age of five.
The success of the CITY CAFE coffee bar concept has resulted in many convenience chain stores and fast food chain stores near schools, offices, hospitals, subway stations, and train stations duplicating the idea. Examples of concepts by convenience stores include Mr. Brown Coffee of Family Mart and OK Cafe of OK Mart. McDonalds also launched the McCafe.
According to a review, the coffee scene in Taiwan can be categorized accordingly: I. Foreign Cafe Chain This group is currently dominated by Starbucks. They offer mainly espresso coffee at very high prices of NT$90 (US$2.95) to NT$180 (US$5.90).
2. Specialist Cafe This group offers excellent coffee with a large variety of beans. They have varied origins, create their own blends, and roast their own coffee. They sell beans and offer a mix of espresso and brewed coffee. The baristas are experts and know their coffee in a passionate way. Prices of their coffee range from NT$60 (US$1.97) to NT$150 (US$4.92). Examples of such cafes are Orsir and Mojo Coffee in Taichung. 3
3. Specialist Cafe Chain This group offers excellent coffee but with a more limited range. They sell beans and offer mainly espresso, though they do have limited brewed coffee options. They have trained baristas, and the price range is NT$30 (US$0.98) to NT$70 (US$2.30). Examples of such cafes include Wilbeck in Taipei and Cama Cafe across Taiwan.
4. Taiwanese Cafe This group serves a variety of coffee from different regions in Taiwan. The cafes are operated by single owner and they roast in small batches. They are often in business for a long time (over 15 years) and they have a small group of loyal customers. They offer mainly brewed coffee, but they have espresso as well. The price range is from NT$70 (US$2.30) to NT$120 (US$3.93).
5. Taiwanese Cafe Chain This group serves a single unannounced blend of coffee with no other options. They serve mainly espresso though some may offer drip or brewed coffee. Some baristas may receive training but quality is uneven. The prices range from NT$35 (US$1.15) to NT$75 (US$2.46). Examples are 8S°C and Bakery.
6. Convenience Store Coffee This group offers bean to cup machine coffee. They use cheap Taiwanese roasts of unannounced origin. Prices range from NT$25 (US$0.82) to NT$60 (US$1.97). Examples of coffee entities in this group are City Cafe by 7-Eleven and Mr. Brown Coffee by Family Mart.
Three main groups have been identified:
Coffee Connoisseur It is primarily interested in discovering new, high quality brews of coffee. He is very price insensitive and would frequent specialty cafes with baristas who are experts and know their coffee in a passionate way.
Café Hangout The Café Hangout Coffee drinker values his coffee as an aspirational drink, to be drunk with a group of friends or to be seen consuming the beverage by others. He is relatively price insensitive, valuing the brand of the Café over the coffee type. The ambience and mood of the café is important to him. He would prefer to have food options available with his coffee as well. This group is a mix of students, who visit cafes as a place to hangout or study at, and working professionals, who value the café as an informal place to relax
Coffee Fix The Coffee Fix Coffee drinker values his coffee as his daily sustenance, requiring the energy boost which caffeine from the coffee provides. He may drink up to several cups a day and is not overly concerned with the quality of the coffee. He is also price sensitive as he is not after a premium product.
A survey found that the Taiwanese drink coffee in the following frequencies per day: one cup-46 percent, two cups-13 percent, and various frequencies depending on day and occasions-36 percent. The most frequently consumed coffee is: latte-48 percent, Americano-19 percent, cappuccino-17 percent, cafe mocha-4 percent, others-12 percent. Their favorite coffee venue is: Starbucks-29.1 percent and City Cafe-29.1 percent. Areas in which Starbucks must improve: prices-68.1 percent, promotional offers-15.3 percent, charity activities-9.2 percent, quality-6.9 percent, and refreshments- 6.1 percent. Areas in which City Cafe must improve: quality-29.4percent, refreshments- I4.7percent, promotional offers-14.0 percent, store ambience-13.3 percent, and peripheral merchandize-9.8 percent.
Question 1 What variables should be used to segment the coffee market in Taiwan? (10%)
Question 2 What group is Starbucks targeting in Taiwan and how do Starbucks offerings fit their requirement? How do Starbucks and City Café position themselves in the market and what do they communicate to their target customers? (25%)
Question 3 Why is the President’s group able to dominate the coffee market in Taiwan with the Starbucks and City Café concept rather than cannibalise itself with two brands in the same market? (15%)
In: Operations Management
A comic book publisher must meet the following demand for a popular comic book on time or risk long term loss of revenue as schools change to another comic: quarter 1-60,000; quarter 2-40,000; quarter 3-50,000; quarter 4-15,000. The comic can be printed for $25 with regular-time labor and for $35 with overtime labor. At most 30,000 comics can be printed with regular-time labor in a single quarter. The publisher currently has 5,000 comics on hand. It costs $4 per quarter to hold a comic in inventory. Formulate an LP to meet the demand on time at minimum cost.
In: Operations Management
Explain the main differences between polygraph testing and integrity testing including any legal issues surrounding them.
In: Operations Management
Conduct research, and share examples of the methods today’s Human Resources Departments are able to train and develop its people.
In: Operations Management
Billionaire real estate mogul Glenn Rhee owns two large parcels
of land in Alexandria, VA: Greenacre and Blueacre. Greenacre is to
the north and Blueacre is directly south. Both parcels of land are
surrounded by protected conservation land. A state highway runs
perpendicular to the properties.
Six years ago, Mr. Rhee decided to leave the real estate business
and open a chain of pizza restaurants called “Maggie’s
Slice.”
Greenacre was quickly purchased by Walker Treatment Inc., which is
a hazardous materials treatment center. For the past six years
Walker Treatment Inc. has crossed over Blueacre in order to reach
the highway that runs perpendicular to the land. Greenacre does not
have its own access to the highway. Walker Treatment Inc. uses the
highway to pick up hazardous waste from all over the county and
processes it at its treatment center. Occasionally, customers will
transport their hazardous waste to Walker Treatment and cross over
Blueacre.
Rick and Michonne Grimes have decided to purchase and develop
Blueacre. They have plans to build a large shopping mall and
high-end condos near the highway to attract commuters. They are
also going to construct a large sound barrier wall to help improve
the ascetics of the mall and condos.
Walker Treatment Inc. has now come to the Grimes asking for an
easement to transport hazardous materials over Blueacre in order to
reach their facility on Greenacre. Rick and Michonne consult their
attorney for answers:
For this assignment, you are the attorney. Please write thorough
responses to the Grimes’ questions below. How would you advise them
on the following topics?
1. Are we in danger of losing our property through adverse possession? Why or why not?
2. As husband and wife, what are our rights in the property?
3. What if Walker Treatment possesses a nuisance with all their trucks, fumes etc. what protections will we have?
4. Are there any special protections against toxic waste?
5. Can the easement be terminated? If so how?
In: Operations Management
Assume that you are planning to develop a policy for your company where you want to introduce drug testing.
Based on the reading, develop a policy which is non-discriminatory and legitimate.
In: Operations Management
Course Learning Outcomes-Covered
Question - Develop a hypothetical technological company of your own choice(1) Ikea 2) Nike 3) Seventh Generation 4) Panasonic 5) IBM 6) Unilever 7) Allergan 8) Patagonia 9) Adobe) in any field which follows the concept of ‘Sustainable Development’. Draw an outline of your company’s basic fields of operation and explain how it makes use of various sustainable techniques for its development. (Minimum 3 elements of Sustainable Development should be present in your company’s techniques.)
NOTE:
In: Operations Management
In the international business environment, what is the recommendations for Australian cotton manufacturer moved into the Philippines? ( mainly focus on Environment (Culture) Business ,Environment (Ethics) Business ,Environment (Trade) Potential in Emerging Markets) approx 150 words
case study: M&S Textiles Australia is a manufacturer of quality cotton fabrics. Due to increased competition from cheaper imported goods, the company is contemplating the establishment of a manufacturing plant in Asia to reduce the cost of manufacturing at home. The company has identified Bangladesh, Vietnam, Philippines, and Malaysia as potential countries for the establishment of the overseas manufacturing plant. As a complement of the current production in Australia, this new facility will supply products to customers around the world (include Australia), but it will not sell products itself. The headquarters of M&S Australia is responsible for sales and marketing in Australia and overseas.
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Question 1 - From the below listed companies, select any two and on the basis of your research, elucidate what new standards, measures and policies adopted by the company (minimum 2 each) played a major role in helping it to reach high environmental quality.
COMPANIES- 1) Ikea 2) Nike 3) Seventh Generation 4) Panasonic 5) IBM 6) Unilever 7) Allergan 8) Patagonia 9) Adobe
Word Limit – Minimum 350 words for each question.
In: Operations Management
What is Lean Production? Stopping waste is a vital part of Lean Production.
Identify some sources of waste in your home or work and discuss how they may be eliminated. Why must Lean have a stable schedule?
Will lean work in service environments? Why or why not? Discuss ways to use Lean to improve one of the following: a pizza restaurant, a hospital, or an auto dealership
In: Operations Management
The Levy Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 600 boxes per day, in two 8-hour shifts (300 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 400 boxes per shift. Labor costs average $13 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $4,000 per day, and rose to $4,200 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day.
a) What is the firm's multifactor productivity (exhibit 2.5) before and after the changes?
b) What is the firm's labor hours productivity before and after the changes?
c) What is the percent change in the multifactor productivity before and after the changes?
In: Operations Management
In: Operations Management
One advantage of using leasing companies for human resource management is that _____.
it eliminates the need for strategic planning
employers can hire permanent employees
employees can receive better benefits than a small company can offer
it exempts employers from following EEOC regulations
Which of the following statements is true about recruiting diversity?
An organization that advertises job openings for individuals with “Christian values” employees would be considered unbiased
Affirmative Action Plans include hiring goals for protected classes that the employer must try to meet with its recruiting efforts.
Employee brand should not be represented in recruiting materials.
Organizations are given quotas by the EEOC that they are mandated by law to achieve in hiring people from protected classes.
In: Operations Management
a. bonus
b. commissions
c. merit pay
d. piecework
e. standard hour
f. nonmonetary awards
g. praise
____ 11. I’m an auto mechanic at a dealership, and we have a set amount of time to complete each type of repair work. I complete a job before a stated time so that I can go on to the next car and get paid extra for being faster than the average guy.
____ 12. I just sold that top-of-the-line BMW M3. I can’t wait to get my pay this week.
____ 13. I’m the top producer in the entire department, so I will get an extra raise for high performance this year.
____ 14. The boss had me come to the front of the room at the annual meeting to get a plaque for 5 years of service to the company. She listed some of my major accomplishments.
____ 15. The boss just thanked me for getting a shipment that was behind schedule out on time
a. base pay
b. wage and salary add-ons
c. incentive pay
d. benefits
____ 1. I’d like to work for a firm that will help pay for me to get my master’s of business administration (MBA) degree.
____ 2. I get paid only $11 an hour, so I’m looking for a better job.
____ 3. I like getting paid the same each week. It helps me to budget my expenses.
____ 4. I like being paid for every sale I make, but my pay does vary from week to week.
____ 5. I like working nights because it pays more.
In: Operations Management
Match each of the following statements with the appropriate selection decision making strategy. BE SURE TO EXPLAIN BRIEFLY WHY YOU TAKE A PARTICULAR STAND.
|
a. |
Multiple regression |
d. |
Combination method |
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b. |
Multiple cutoffs |
e. |
profile matching |
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c. |
Multiple hurdle |
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9. A "double-stage strategy" is a variation of this approach |
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10. A hybrid of multiple cutoff and multiple regression approaches |
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11. A nonsequential procedure |
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12. A sequential procedure |
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13. Applicants with different individual predictor scores can have identical overall predicted job success. |
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14. Appropriate when there is a clearly best type of employee for the job |
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15. When relatively small samples are used to determine weights, the weights may not be stable from one sample to the next |
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16. Assumes predictors are additive |
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17. Assumes predictors are linearly related to criterion |
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18. Is appropriate when the applicant pool is large and when some of the selection procedures are expensive to administer |
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19. Most appropriate in situations where subsequent training is long, complex, and expensive. |
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20. Most appropriate when tradeoffs among predictors do not affect overall job performance |
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21. Most useful when physical abilities are essential for job performance |
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22. Uses a d2 statistic |
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23. Only identifies those applicants minimally qualified for the job |
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24. Predictors are not additive |
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25. Sometimes referred to as a compensatory method |
In: Operations Management