Understanding and Engaging in the Customer Experience at Starbucks

Understanding and Engaging in
the Customer Experience
BMSW 5103
Lecturer – Zainab Atta
Student name: Andreia Buliga 2018956

CONTENTS
INTRODUCTION.....................................................................................................................................1
TASK – 1.................................................................................................................................................1
OVERVIEW OF THE ORGANIZATION......................................................................................................1
Starbucks...........................................................................................................................................1
BREIF INTRODUCTION OF THE KEY MARKETING THEORIES...................................................................2
Pestle analysis....................................................................................................................................2
Porters five force analysis..................................................................................................................2
SWOT analysis...................................................................................................................................2
Consumer decision making process...................................................................................................3
Internal and external factors affecting the quality systems of Starbucks and controls for customers
...........................................................................................................................................................3
TASK – 2.................................................................................................................................................6
Systems supporting the quality processes at Starbucks and the manners in which they are
effective in meeting the needs of the customers and maintains good relationship..........................6
Critical comprehension of quality process (relating to customer service) in the workplace.............8
Relevant marketing (service) theories for evaluating the customers’ experience of an organisation
...........................................................................................................................................................9
7Ps marketing mix.............................................................................................................................9
The benefits and challenges of developing good customer relationships.......................................10
CONCLUSION...................................................................................................................................12
REFERENCES........................................................................................................................................13

INTRODUCTION
The experience of the customers is at the heart of the everything for attaining
sustainable competitive advantage however because of the pandemic of covid19, there has
evolution in this term rapidly. Due to the present global crisis of coronavirus, there has been
alteration in the behaviour of the customers and this has compelled the companies to utilized
their customer relationship management as a strategic function for improving the experience
along with engagement of their clients. With the shifting in the expectation of the clients,
experiences with the changes in the businesses as well as interactions move solely online,
firms all across the globe are adapting to the novel customer base who have a new established
priorities that might be importantly varied to those being adopted few months ago (Ferrell
and Hartline, 2014). Considering this, the current research report is being prepared with an
aim to explore the internal and external factors which has impacted the quality system and
controls for the customers in the selected organization. the company chosen for the present
research purpose is Starbucks. The report will further throw light on the ways company will
deal with this new situation and attain the objectives of the business through development as
well as maintenance of good customer relationships. In doing do, relevant marketing theories,
concepts, quality processes and models for evaluating the experience of the clients will be
applied effectively.
TASK – 1
OVERVIEW OF THE ORGANIZATION
Starbucks
Starbucks is an American multinational chain of coffeehouses as well as roastery
reserves being headquartered in Seattle, USA. It was founded in the year 1971 and opened
around 3300 stores all across the world. The sells different kinds of products such as coffee,
tea, fresh food, merchandise and handcrafted beverages. Furthermore, there are varied kinds
of products which are being sold by the firm such as while bean coffee, bottled water and
assortment of tea and coffee. Starbucks operates in the industry which is very competitive in
nature and high fragmented (Starbucks, 2019). There are different large players which are
operating in the market such as Dunkin donuts, Krispy Kreme Doughnuts, Einstein Noah,
Subway etc. who are giving fierce competition to the company. Starbucks has been operating
successfully over the years and earning good number of profits, however with the recent
pandemic of covid19, the financial and economic conditions of the company has been
severely affected. At the starting of the year 2020, the global economy was in shock.
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Moreover, there has been reduction in the demand of the customers for Starbucks which has
impacted the income of the company.
BREIF INTRODUCTION OF THE KEY MARKETING THEORIES
Pestle analysis
Speaking in context of the Pestle analysis tool, it is being utilized for gaining macro
image of the industry environment. The acronym PESTLE analysis stands for Political,
Economic, Social, Technological, Legal and Environmental factors. Further, it also enables
the company to form an impression of the factors that may influence the novel business or the
industry. Political factors are being referred as the governmental control as well as influences
over the economy or industry. Economic factors have direct influence on the supply and
demand model. Social factors such as demographics, culture and beliefs can impact the
industry environment through impacting purchasing habits (Chok, Isa and Siddiq, 2017).
Technology factors such as licensing, automation, communication and patents can have direct
and indirect affect. Legal factors include employment laws, consumer protection laws,
environmental regulations etc. the last one of environmental factors which includes weather,
global climate change and geographical location.
Porters five force analysis
Porters five force analysis is being regarded as a simple outline for assessing as well
as analysing the competitive strength and position of a business. This theory is being
grounded on the notion that there are five forces that identify the competitive intensity as well
as attractiveness of a market. This tool is quite beneficial in comprehending the strength of
the current competitive position of the firm and the strength of the position that the firm
might seems to move into. It involves five forces such as bargaining power of the suppliers,
bargaining power of the buyers, threats of new entrants, threats of substitute products and
competitive rivalry. Furthermore, this tool is quite significant and must be helpful in
considering the altering features of the industry (Buttle and Maklan, 2015).
SWOT analysis
Talking in relation with the SWOT analysis, it is being regarded as strategic planning
tool that can support the firm in evaluating what it does the best and devise a successful
strategy for the future. Further, it is a strategic management technique that is being utilized
for helping a person of the firm to determine strength, weaknesses, opportunities, and threats
in concern with the organization competition or planning of the project. It is often been
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