Quality Management Assignment - Starbucks

RUNNING HEAD: Research project on Starbucks product quality
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Name of the student-
Topic- : Research project on Starbucks product quality
University name

Research project on Starbucks product quality
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Acknowledgment:
I would like to express my gratitude to my guide, senior and supervisor for their
assistance and support in the accomplishment of my research. It is their support and helping
nature that helped me in completing research study in an effective manner. Without their
support and help, it would be hard to complete this research report in-depth manner. Along
with my supervisors, I would also like to thanks my teachers and my parents who have
helped throughout the time for my better understanding. The significant amount of
participation was also very good to help for me in gaining relevant information on the
research topic.

Research project on Starbucks product quality
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Executive summary
With the ramified economic changes and complex business structure, each and every
organization is using advanced technologies and offering quality services to gain over the
market. This research report has reflected the key understanding of the business functioning
of Star bucks and how a company has implemented its strategies to increase to establish
effective customer's loyalty in a market. The main purpose of this research report is to
identify all the internal and external factors which influence the products quality and
Starbucks loyalty towards its customers. This research report has divulged that customer
loyalty is very important for the sustainable future of an organization. Starbucks has used
loyalty member card and high quality of its coffee products to establish effective customer's
loyalty.

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Table of Contents
Executive summary..................................................................................................... 3
Introduction............................................................................................................... 4
Literature review................................................................................................... 6
Research methodology........................................................................................ 13
Research Limitation................................................................................................ 16
Summary............................................................................................................. 17
Data analysis/ Results................................................................................................. 18
Discussion/ Results................................................................................................ 37
Summary............................................................................................................. 38
Recommendation................................................................................................. 41
Conclusion........................................................................................................... 42
Appendix................................................................................................................ 45
References........................................................................................................... 49

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Introduction
With the ramified changes and complex internal and external business factors,
Starbucks Company has gained momentum in a market by following its effective strategic
planning. In this research report, the main focus has been made on the quality of the products
and services offered by the Starbucks. However, Star bucks have maintained a strong brand
image in the market. This research study has focused on the strategies and advances
technologies implemented by the management persons of Starbucks in its business
functioning. However, the main focus has been made on the loyalty of company towards its
clients and brand image set up by it in a market. The customer analysis of Starbucks
Company has shown that company has created the core competency in the market by
following two main strategies such as cost leadership and product differentiation strategy.
Present description of company
This Starbucks Coffee Company was founded in 1971. It has total 37 countries
around the globe, having headquartered in Seattle, USA. Starbucks Coffee Company has
evolved from being a $ .50 million business to business having worth $ 6.4 billion. This
company has increased business efficiency and expanded its stores around the globe. It is an
American coffee company, having operations around 23,768 locations worldwide. Starbucks
Coffee Company offers coffee beverages, tea, baked goods and sandwiches and other
beverage products to clients. Company has the strongest brand image in food and beverage
industry and established as second largest coffee serving venue around the globe. However,
there are several big rivals who give tough competition to Starbucks Coffee Company in a
market such as Dunkin' Donuts, McDonald's and “The retail coffee Game”. These companies
have increased their turnover by very drastic amount. Nonetheless, Dunkin’ Donuts has
increased its overall turnover by average 22.3% since last five years. Presently, Starbucks

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Company has total sales of 22.39 billion in 2017 which is 28% higher as compared to last
past five year data. The main problem in this research is related to determine whether
Starbucks Coffee Company has provided customers satisfaction through its offered products
and services in a market (Kim and Davis, 2016). Throughout this report, the main focus
would be made on the marketing technique and strategic planning uses by Starbucks Coffee
Company to create competitive advantage in market. Firstly, current marketing strategy will
be analyzed to identify how Starbucks Coffee Company offers brings value to its customers.
After that, ethical engagement, strategic alliance and advance technologies used by Starbucks
Coffee Company offers have also be evaluated to analyze the market position of a company
and its loyalty towards its clients. Another part of this, research report discusses the research
methodologies and recommendation which could be used to make this research report
effective for the reader (Lee and Vachon, 2016).

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Literature review
With the ramified changes of the client’s needs and demand in the market, Starbucks
Coffee Company has been re-engineering its value chain activities with a view to satisfy their
needs in determined approach. As per the perception of Ko, and Chiu, 2006, it t is reflected
that Starbucks Coffee Company has focused on developing core competency by following
two strategic program named cost leadership and product differentiation. Starbucks Coffee
Company has focused on developing and implementing its strategies and plans based on the
companies which are the closest rival under its group mapping. The main rivals are Dunkin’
Donuts, McDonald’s and “The retail coffee Game” that influence the strategic planning of
Starbucks Coffee Company most. However, with the GDP growth of the Australia and
increasing purchasing power of clients, the turnover of company has increased with the
drastic rate. After analysing the annual report of company, it is found that company has
increase of average 20% sales since last five years. As stated by Yu and Fang, 2009 it is
revealed that it has shown that coffee business has high growth potential which may also
attract more businessmen to diversify their business in this field. Customer loyalty is very
broad term which could not be justified by using some words. It could be defined in terms of
values, brand image and quality of the products offered by company to its customers. The
main vision of Starbucks Coffee Company is to satisfy clients need and demand in market by
offering best quality of services and products. Nonetheless, with the increasing changes in
client’s value, perceptions and assumptions, Starbucks Coffee Company has been re-
engineering its value chain activities. As per the views of Kim, et al. (2017) it is reflected that
these strategic plans allow it to adapt with the advanced technologies and install newly
designed system in its stores. Starbucks Coffee Company has adopted cyber computing
enterprises resources planning to provide optimum level of satisfaction to its clients. This

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assists clients to buy all of its products and services through offline and online mode in easy
and determined approach. Moreover, customer loyalty is not limited to selling best quality of
food and beverage products to its customers but also include employees’ behaviour towards
clients in market. Starbucks Coffee Company has established strong brand image in people’s
mind on international level which is surely a positive point for increasing growth of the
organization. In addition to this, there are other rivals such as Dunkin’ Donuts, McDonald’s
and “The retail coffee Game” who are using advanced technologies such as loyalty card,
membership numbers and best offers to attract clients to attract clients in market.
Nonetheless, customer’s loyalty of particular company is highly based on the quality of
services and products offered by company and the extent of client’s satisfaction. In this
research, primary and secondary data have been collected to determine whether Starbucks
Coffee Company has maintained client’s loyalty through its existing offering in market. The
primary data collected through meeting, seminars and observation has reflected that the main
core competency of Starbucks Coffee Company in market is related to providing best quality
of food and beverage products in market. This company never compromise with the quality
of products offered in market. Nonetheless, adoption of advanced technologies has helped
company to increase its client’s satisfaction in effective manner. As stated by Wu and Wu,
2017 it is reflected that the main competitive advantage of Starbucks Coffee Company is
related to implementing effective value chain activities. It is observed that company has used
cyber computing enterprises resources planning in its business. This has established
automation in its several business steps which establish nexus between all the activities. This
cyber computing enterprises resources planning in its business also helps management
department to connect with all of its domestic and international functioning. Starbucks Coffee
Company has been credited with revolutionizing the coffee industry. As per the views of
Leduc, (2017) it is revealed that the main focus of management department of company