Question

Leadership & Managing People Case

Starbucks announcement that it will close few stores in Saudi Arabia admission of limits to growth.

The founder Howard Schultz recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special.

How will you help company to recover and expand its operation in Saudi Arabia. The Company hired you as CEO of Starbucks coffee in Saudi Arabia

Assignment Objectives & Requirements:

1. To sustain and expand the Starbucks Stores in Kingdom of Saudi Arabia, you have to write the: (400 – 500 words)

a. Identify the competitive advantage (s) in business for growth

b. What are the different Products and type of services that can be offered.

c. Business objective/goals/vision

Answer 1

Firstly , the essense of Starbucks , its value of the service/ products and quality of starbuck's experience has to be taken care of . The customer satisfaction and reviewing the performance , adhereing to customer's prefrences and tastes - giving them a world class experience. Its all about customers , as they are the ultimate demanders with profit and pricing to be smart at same time , can be a challenge. The experience must be original, social and served with best quality of coffee .The pricing must be such that , it evens out the customer's expenses and ongoing costs . Price has to come with quality ie , as quality will improve -customers will themselves pay the premium price . The premium the experience , more wil be amount of sales

The competative advantage in business is to sell the product or service which they can produce at lowest cost as compared to other businesses. It has surely a competative advantage in producing and serving coffee and thus stands to worlds largest coffee brand.

THE innovation can be prought through sellling books/novels ,providing a library space etc.The goals of the business must be growth , profit in lieu with customer satisfaction. The objective must be to provide world class coffee experience.