Starbucks's Use Of Big Data?
opinionated Essay
919 words
In the technology driven world we live in, it in inevitable that businesses today have access to vast amounts of data, which in previous times would have been unheard of. Today, many larger organsiations use “Big Data” in order to help them improve and expand their business. Big data is described as diverse, high-volume, high-velocity information assets that require new forms of processing to enable enhanced decision making, insight discovery, and process optimization, (Gartner Research: www.gartner.com). Big data is being exploited by more and more companies as its benefits are discovered. It allows organisations to make much more informed decisions, which involves less risk taking. Decisions which were previously based on guesswork can now …show more content…
In this essay, the author
- Explains that businesses today have access to vast amounts of data, which in previous times would have been unheard of. big data requires new forms of processing to enable enhanced decision making, insight discovery, and process optimization
- Explains that starbucks is an attractive asset for investors because of its consistency of store growth, customer loyalty and demand. starbucks has a loyalty program, my starbuck rewards, consisting of 6 million registered customers.
- Opines that starbucks' use of big data is limited due to the huge amount of data it collects, and the fact that a small number of stores don't accept starbucks card.
- Recommends that starbucks try and expand their mystarbucksrewards programme so that all customers have access to this. this would result in more accurate and reliable information.
- Explains how big data has allowed starbucks to expand and integrate its products into supermarkets, not just in their own coffee shops.
Starbucks was founded in Seattle, Washington in 1971 and today it operates in 23,768 locations worldwide. It is an extremely successful corporation that is continuing to grow and expand. Evercore research recently said that Starbucks is an attractive asset for investors because of its consistency of store growth, customer loyalty and demand. Just like many other large businesses today, Starbucks uses Big Data. Through its use of Big Data, Starbucks manages to have many shops in close proximity to each other. Starbucks has a loyalty program, My Starbuck Rewards, consisting of 6 million registered customers. With 25% of all transactions made by these customers, a huge amount of data is collected. Taking into account that Starbucks offers 87.000 possible drinking combinations across the globe, has almost 21.000 stores in 62 countries, has approximately 160.000 employees worldwide, serves almost 4 billion cups of coffee annually and had $ 13.3 billion net revenue in 2012, it may be clear that Starbucks creates a lot of data (www.cnbc.com, 6th April 2016). One of the benefits and oppurtunities of so much data combined with the large customer …show more content…
Using consumer data, the coffee chain designed its new line of products to complement the habits it gleaned from its own stores. The company talked to its baristas about how customers ordered coffee, lattes and tea while in Starbucks locations and culled several industry reports about at-home consumption. It used that data to create K-Cups and bottled beverages to sell in grocery
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- Case Study: Target Market For Starbucksexplanatory essayThese are but a few of the many strengths, weakness, opportunities and threats that the Starbucks company may face. This is why a marketing team along with data and analytics is essential to comprising a new product. It requires research, innovation, hard work, and a little luck, the Starbucks Brand is more than just coffee. It’s a simple yet detailed product tailored to meet the consumers need at home, at work, and in between. (Starbucks Corporation,
In this essay, the author
- Describes a useful aid for organizing information utilizing its strengths, weaknesses, opportunities, and threats.
- Explains that product recalls have hurt the starbucks brand as recently as 2015. specialization is a strength, but diversification and marketing products are weakness.
- Explains that product diversification has allowed starbucks to repackage their products and distribute it as a home product. the opportunity for continued expansion is present.
- Explains miller, r. k., food and beverage market research handbook. coffee shops.
- Explains william d. perreault, j. j, essential of marketing, a marketing strategy planning approach.
- Explains that starbucks didn't have a marketing plan in place at its inception. the company began selling coffee beans to espresso bars and upscale restaurants in 1982.
- Explains that starbucks' primary business is that of selling high-premium coffee. specialization allows them to deliver great quality and maintain their customer base. involving technology with their market structure.
- Opines that a marketing team along with data and analytics is essential to comprising the new product.
903 wordsRead More - Starbucks SWOT Analysisopinionated essaySeaford, B., Culp, R., & Brooks, B. (2012). STARBUCKS: MAINTAINING A CLEAR POSITION. Journal of the International Academy for Case Studies, 18(3), 39-57. Retrieved March 29, 2014, from http://search.proquest.com.proxy.davenport.edu/pqcentral/docview/1037815154/F93C2836F2E04403PQ/2?accountid=40195
In this essay, the author
- Explains how starbucks was inspired by the book and movie about moby dick. howard schultz introduced the new italian coffee bean and italian style of coffee drinking.
- Opines that starbucks is taking a route that is causing the brand to lose its well-known image of friendly coffee house.
- Explains that starbucks refocused its attention on coffee in 2009, and introduced via instant coffee to steal back the market that was once theirs from the competitors such as panera bread.
- Explains that branding a new product is not as easy as placing it on the shelves and hope for the consumers to buy it. a strong marketing team is required for affective branding, as they understand the issues while doing so.
- Opines that starbucks has done a good job for packaging their instant coffee.
- Opines that starbucks must increase its advertising budget and increase the use of the media to counter the said problems.
- Explains that the key issue starbucks via faces is the negative image already engraved in consumer’s mind by other brands of instant coffee.
- Explains that there are many solutions to brand via now that the key issues have been identified. the company must try to lower the price by cutting unnecessary overheads such as excessive advertisements.
- Explains that starbucks has done a great job with the current packaging, but it's flawed. the most effective packaging is the one that advertises the product until the end of its consumption.
- Recommends a few starbucks via cups with each package sold to keep the overhead cost moderately low. they also recommend giving customers the option to purchase additional cups for $0.10.
- Explains that via brand will be starbucks minus the baristas-and the brewing.
- Explains starbucks' mission statement, which can be found at http://www.starbucks.com/about-us/company-information/mission-statement.
1431 wordsRead More - Catching The Favorite: Starbucks: The Favoriteanalytical essayAccording to McEachern, one program that corporation is endorsing falls to “My Starbucks Rewards is often regarded as one of the best retail loyalty programs currently in existence. They have created a loyal following of customers both with their customer experience and revolutionary rewards program” (2014). McEachern also discusses several causes for the resulting expansion of the customer base as to the involvement of the application, outside buying from regular store locations, the capability to earn special offers while accumulating points, and “Exclusivity is the true motivator for Starbucks customers, not the perks” (2014). According to Matherson, there is also the “seasonal favorites” that are of big interest for the clients because some are offered only during specific times of the years (2013). Alternatively, the “all-day offerings” also brings up the bar for SBUX because it influences customer choices and selectivity through the expansion into other areas; for example, tea, pastries, bistro boxes, or sandwiches (Matherson, 2013). Matherson explains that this is also bait for the consumers that SBUX seeks to keep and procure because it has something to offer at any time of day (2013). The corporation operates and is a heavy weight on a global scale due to the expansion and different areas that it has gone into over past years. In
In this essay, the author
- Analyzes the starbucks corporation's preference for the preferred brand in the coffee market.
- Analyzes the reasons why sbux is a primary holder of the opinion.
- Explains that loyalty of the customer base is a principal goal for sbux especially with the numerous areas that the company produces and markets.
- Compares sbux to microsoft and the competitive edge that the business has on the industry of coffee.
- Explains that starbucks corporation holds the heart of this individual because of numerous factors and is the main leader in the coffee industry. the specialization of the product and availability demonstrate a willingness from the business entity to go beyond the usual day-to-day customer service.
1060 wordsRead More - Starbucks: A business model for success now and in the futureexplanatory essay“Starbucks was named after Starbuck, first mate of the whaleship Pequod in Herman Melville’s Moby Dick…Starbuck was pluralized for ease of use” (Burks, 2009, p. 1). Now President, Chairman, and Chief Executive Officer, Howard Schultz formed Starbucks Corporation in 1987 after purchasing the name Starbucks, six stores and a roasting plant from previous owners, Jerry Baldwin and Gordon Bowker (Burks, 2009). Starbucks operates under a successful value chain management strategy. Their value chain encompasses a systematic approach to the way business is done. Robbins and Coulter (2012) point out, “A good value chain involves a sequence of participants working together as a team, each adding some component of value” (p. 520). Starbucks continually reviews every aspect of their business; from the organizational culture to values and ethics to strategy, planning and operations, management control and finally human resources and performance management, searching for those items that don’t contribute to the “Starbucks experience” which is what makes the Starbucks Corporation a successful business model.
In this essay, the author
- Explains that howard schultz formed starbucks corporation in 1987 after purchasing the name starbucks, six stores, and a roasting plant from previous owners, jerry baldwin and gordon bowker.
- Explains that the starbucks experience is an all-encompassing culture that revolves not just around customers but also to employees, or "partners" and suppliers.
- Explains that baristas learn how to treat customers, which is the final, but most important phase of the starbucks experience. schultz aims for starbucks to become the third place.
- Explains that starbucks' values and ethics surpass just paying employees fair wages or paying fair prices for coffee beans. starbucks began buying fair trade certified coffee in 2000.
- Explains that starbucks is a third place between work and home. they have undergone several types of business strategies, such as expanding their geographic presence and re-evaluating the current business model.
- Explains that starbucks' annual meeting of shareholders starts over a cup of coffee; company's impact now extends well beyond stores' four walls.
- Cites koehn, besharov, miller, and overholt, a. (2008). starbucks coffee company in the 21st century.
1470 wordsRead More - Starbucks Case Studyanalytical essayPreliminary Starbucks – one of the fastest growing companies in the US and in the world - had built its position on the market by connect with its customers, and create “third place” beside home and work, where people could relax and enjoy others or themselves. It was the motto of Starbucks’ owner Howard Schultz and mostly thanks to his philosophy; company has became the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there is shown some concerns, that company has lost the connection with customers and it must been taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. I will briefly summarize and examine issues facing Starbucks.
In this essay, the author
- Explains that starbucks has enjoyed great success since it was founded 30 years ago with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession.
- Opines that after reviewing the starbucks case, there are some possible alternatives to fix starbucks' situation.
- Opines that investing 40 million per year to increase labor hours per store does not appear to be the best way to fix starbucks' problems.
- Argues that starbucks could lower prices for its products, which would bring more new customers to the company, but with profitability around 6% in 2002, every change of lowering the price will implement more variable costs and fixed costs to reach similar revenue.
- Argues that starbucks would increase prices of its products to receive more money to be spent for speeding up the service and to increase the quality of customer service.
- Recommends starbucks set up an internal strategic marketing team and invest more money in automated espresso machines to speed up the service.
- Explains that starbucks is one of the fastest growing companies in the us and the world. they will examine the most important issue and suggest steps to keep the company on the right path regarding customer satisfaction.
- Analyzes the growth of the starbucks from 1998 to 2002. the exhibits show payroll structure and income volume per location, and product mix for north american company-operated stores.
- Recommends that starbucks use the last proposition to improve customer satisfaction. it is the most complex alternative, and it will require a lot of work from all company’s members.
1287 wordsRead More - Big Technology: The Impact And Implications Of Big Data?explanatory essayBig Data is a concept that has existed for a while, but only gained proper attention a couple of years ago. It can be described as extremely large data sets that have grown so big that becomes almost impossible to manage and analyze them with traditional data processing tools. Big Data can be used by enterprises in by building new applications, improving the effectiveness, lowering the costs of their applications, helping with competitive advantage, and increasing customer loyalty. It can also be used in other industries to enable a better system and better decision-making. Big Data has become a valuable asset to everyone around the world and continues to impact society today.
In this essay, the author
- Explains that big data is a concept that has existed for some time, but only gained proper attention in recent years. it can be used by enterprises in building new applications, improving effectiveness, lowering the costs of their applications and increasing customer loyalty.
- Explains that the first big data challenge came in the form of the 1880 u.s. census, when the information concerning approximately 50 million people had to be gathered, classified, and reported.
- Explains the 7 v's of big data: volume, velocity, variety, veracity, variability, visualization, and value.
- Explains that the definition of big data is changing rapidly, so purity of the information is critical to its value. visualization makes data comprehensiveness in a manner that is easy to read and understand.
- Distinguishes between structured and unstructured data sources that contain critical information, and explains that structured data is easiest to work with because it is already defined, indexed, making access and filtering easier.
- Explains the processes that are included in big data, including traditional business intelligence, data mining, statistical applications, predictive analysis, and data modeling.
- Explains that statistical applications are used to look at data using algorithms based on statistical principles. predictive analysis is important in the financial and scientific worlds and is able to identify the risks and opportunities for business process, markets, and manufacturing.
- Explains how companies like facebook, amazon, and google are relying on big data analytics as part of their primary marketing strategies and a means to serve their customers better.
- Explains that big data analytics is able to break down and understand trends and explain the purchasing process by simply looking at what they have purchased in the past.
- Explains that big data has many advantages, but there are obstacles that hinder its use. gathering the data is usually half the battle in the analytics game.
- Explains that analyzing large data sets has become a key basic of competition, causing new waves of productivity, and consumer surplus. business leaders in every sector will have to deal with the implications of big data, either directly or indirectly.
- Explains that big data will have a gigantic impact on society, the way organizations are managed and operated, government is organized, and eventually, how the global economy functions.
1414 wordsRead More - Big Data and the Reality of a New Digital Ageopinionated essayBig Data is being widely utilized by large corporations and the government for many practical uses, tracking crime, finding terrorists, redefining shopping, and changing how we go about everyday life. Price says that big data is leading to large advances in medicine, social sciences, astrophysics, business, and crime fighting. According to IBM, 90% of the worlds Big Data...
In this essay, the author
- Opines that the government needs to regulate big data and be transparent with their policies in order to create a solution for the issues at stake.
- Explains how big data is being used by large corporations and the government for many practical uses, such as tracking crime, finding terrorists, and redefining shopping.
- Explains how the nsa and police use big data to catch criminals and predict and prevent crimes. cameras can identify faces in an immense crowd within a short period of time.
- Explains that while the government has privacy restrictions due to multiple laws, commercial use remains unregulated meaning we may see a large jump of commercial uses in the years to come.
- Opines that modern commercialism and justice enforcement could soon be redefined through technological advances if allowed by the public.
- Opines that big data is good, but that it must be accessed in order for it to be successful.
- Analyzes the controversy generated by big data use by the government. the usa patriot act allows legal monitoring and spying on citizens; the electronic communication privacy act permits email access without warrant; and the proposed cyber intelligence sharing and protection act.
- Opines that the government needs to create new policies restricting big data usage for themselves and for commercial use.
- Opines that big data can revolutionize crime prevention and big business, but it will only cause controversy without regulation.
- Opines that big data will have a profound effect upon the modern world, and it will affect young people more severely than older people.
2294 wordsRead More - Starbucks Case Analysisopinionated essayStarbucks Case Analysis Background The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses. In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others.
In this essay, the author
- Opines that there is a great differentiation between starbucks and the independent coffee houses, favoring the latter.
- Explains that starbucks' marketing strategy can trace the causes of these problems, since a strategic marketing group is lacking anyway, maybe that's why we cannot even talk about "marketing strategy."
- Opines that communication company's positioning suffered due to a major flaw in the marketing strategy. this was the most important cause for the wrong positioning and brand image.
- Explains that no market researches have taken place to determine whether starbucks brand is positioned in the right place in consumers' minds.
- Analyzes how the defective measurement of product and service quality, wrongly mistaken with the customer satisfaction, is a third cause.
- Opines that starbucks is doing a great job of collecting and analyzing data regarding employee satisfaction and turnover, but the development of new products focuses on the partner satisfaction rather than on customer satisfaction.
- Opines that investing only in labor in order to reduce with 20 second the waiting time could be a myopic perspective. fast service is only on the seventh place (65% of responders).
- Opines that re-positioning starbucks as originally intended, address to its original segment, properly communicate the positioning, would consume considerable resources, and it is risky.
- Explains that starbucks started its activity in 1971 as small coffee shop located in seattle specialized in selling whole arabica coffee beans. in 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for starbucks customers.
- Analyzes how starbucks' usp was a place where every american could escape from home or work, for coffee drinking rituals, and their image was supposed to appeal to anyone, based on the idea of community.
- Analyzes how starbucks' customer base has changed due to overall market change, and the company's image has taken an unwanted turn. they conclude that the lack of a clear and sound marketing strategy led to major problems
- Argues that the brand image should be altered to appeal more to the current customer base. the ideal customer would visit the shop on a regular basis, consume higher priced products, and use t-mobile hotspot.
- Opines that returning to original core values and original target sector would be the appropriate solution, having also in mind starbucks' core competencies.
1693 wordsRead More - What Is Starbucks Supply Chain Strategyanalytical essayStarbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
In this essay, the author
- Explains that starbucks is an international coffee house with 21,000 stores in 65 different countries. it is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of specialty coffee.
- Explains that the purpose of this report is to analyze the starbucks' supply chain strategy and then to make a literature review of the case.
- Analyzes the different aspects involved in the supply chain management of starbucks.
- Explains starbuck's intention to create a more sophisticated supply chain through which the company can promote better collaboration between distribution, sourcing and planning.
- Analyzes the rapid store expansion strategy of al-mutair coffee, which grew rapidly from 11 stores to 500 stores in the first nine years. the company's culture follows strict principles for how the coffee must be prepared and delivered, combined with a friendly attitude towards employees.
- Explains that the company is opening 300 new stores around the united kingdom over the next five years. they also want to introduce their drinks in planes and trains.
- Explains that starbucks knows that china is going to be the largest international market in 2014 and they will try to stablish 1,500 stores in 70 cities in 2015.
- Explains that caffeine is one of the main points which attract people, and this makes coffee such a vast business. the first starbucks coffee shop was opened in 1971.
- Explains that starbucks' coffee purchasing strategy is an important factor in its strategy. purchasing needs to be strategic to facilitate an effective supply chain.
- Explains that in 2009 starbucks obtained two main coffee purchasing objectives: increase annual coffee purchases and achieve the double purchases of fair trade certified coffee. for 2015, starbucks is trying to assure that 100 percent of its glasses are recyclables.
- Explains that starbucks has recently developed a new type of coffee called green-coffee. these strategies are created with the objective of supporting starbucks’ commitment to buy coffee that has grown and processed by suppliers.
- Explains that the coffee purchasing strategy is quite important for the company's development due to they must do big efforts in factors such as marketing with the objective to attract new customers.
- Explains that customer service strategy is important in competitive markets like coffee shops. price is an important factor for customers when choosing a coffee shop.
- Opines that starbucks has created a great company due to some skills they have developed efficiently: employee motivation, excellent customer service and satisfaction, and an adequate environment.
- Explains that when a person is hired to work in starbucks, that person must pass two types of training: the first one is based on "hard skills" where the new employees must learn how to use the cash register and mix drinks. the second one focused on soft skills where managers teach employees to connect with customers.
1078 wordsRead More - Big Data and Data Analyticsexplanatory essayIn today’s society, technology has become more advanced than the human’s mind. Companies want to make sure that their information systems stay up-to-date with the rapidly growing technology. It is very important to senior-level executives and board of directions of companies that their systems can produce the right and best information for their company to result in a greater outcome and new organizational capabilities. Big data and data analytics are one of those important factors that contribute to a successful company and their updated software and information systems.
In this essay, the author
- Explains that companies want to make sure that their information systems stay up-to-date with the rapidly growing technology. big data and data analytics are important factors that contribute to a successful company.
- Explains that sas describes big data analytics as the process of examining data to uncover hidden patterns, unknown correlations, and other useful information that can be used to make better decisions.
- Explains how big data and data analytics have changed some companies and/or their industry practices.
- Explains how big data has helped improve security and law enforcement, cities and countries, and even sports performance.
- Opines that big data will change the field of accounting in the same way.
- Opines that keeping up-to-date on technology is important to adapt to the affects and challenges in accounting. they cite an article informing accountants about what skills they need to enhance since big data has taken over.
- Opines that big data has already played a vital role in many different industries and is expected to rapidly grow.
- Describes the awesome ways big data is used today to change our world.
- Explains how big data can revolutionize pharmaceutical r&d. mckinsey & company.
- Narrates how andrea zavadszky, "new accounting needs data and analysis skills." classified post, 30 nov. 2013.
- Explains davenport, thomas h., paul barth, and randy bean. "how big data is different." mit sloan management review.
- Explains that big data users differ from traditional data gathering in three ways: they pay attention to data flows instead of stocks, rely on data scientists and product and process developers rather than data analysts, and move analytics away from the basic it functions.
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