Starbucks Coffee Case Study

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Register to read the introduction… Business format franchises involve a complete business format rather than a single product or a trademark, it is a relatively new concept of franchising and is characterized by an ongoing business relationship between franchisor and franchisee. Not only includes product, service, and trademark but business format franchises include the entire business concept. From marketing strategy and plan, operating manuals and standards, quality control, group purchasing power, research and development, and a continuous process of training, assistance, and guidance, the franchisee is required to comply with the franchisor’s guidelines pertaining to all aspects of the business. As we can see from every Starbucks outlet in Malaysia, they have the same trademark, they sell all the same product in each outlet and the taste of the coffee is the same everywhere, the physical appearance of the business facility also alike as you can see from the decorations and layout of each Starbucks outlets are …show more content…
Howard Schultz, the Founder and CEO of Starbucks Starbucks was one of the retail companies to invest considerably in employee training and provide comprehensive training to all classes of employees, including part timers. Starbucks I often hang out in Starbucks outlet with my friend for afternoon tea, doing my assignment, study or online. All the employees of Starbucks which I met in KL outlets are all very friendly and always welcome you warmly. “Starbucks has become what I call the third place, the 1st place is home, 2nd place is work. We are the place between. It’s a place to feel comfort. A place to feel like you belong” says Schultz (2004). I must say that I’m totally agreed with what his saying. Employees of Starbucks were encouraged to interact among each other and with the customer with a spirit of friendliness. Starbucks relied on its baristas and frontline staffs to a great extend in creating the ‘Starbucks Experience’ which differentiated it from competitors. “The relationship we have with our people can the culture of our company is our most sustainable competitive advantage.” said Howard Schultz (2002). Schultz also strictly implements the Mission Statement of Starbucks (refer to Appendix 1) which lead to the success of Starbucks today. I also understand that why Starbucks can expand rapidly even without using TV advertising since it

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