Significance of Critical Thinking in Services Marketing: A Case Study of Starbucks in Australia

Running head: SERVICES MARKETING
Services Marketing
Name of the student:
Name of the university:
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1SERVICES MARKETING
Table of Contents
Introduction:....................................................................................................................................2
Identification of the problem:..........................................................................................................2
Conclusion and recommendation on how the problem can be resolved through Critical thinking
approach:..........................................................................................................................................3
Reference list:..................................................................................................................................6

2SERVICES MARKETING
Introduction:
In the increased uncertainty in business environment, integrating creativity in the internal
functionality of a firm is one of the major factor. This is the way, through which the intense
competition in the market can be handled. According to West et al. (2015) there lies the
significance of critical thinking, which paves the way for corporate entities to generate new ideas
there by run the business with utmost efficiency. Present Paper will cover the significance of
critical thinking and problem solving in the context of Starbucks’. The problem, faced by
Starbucks’ will be discussed. Recommendation will also be provided for the firm, on the way
through which the firm can resolve issues through Critical thinking approach.
Identification of the problem:
Starbucks’- one of the major coffee chain is successfully running their business
throughout the world. The company has experienced sustainable growth along with striking rate
of profit for decades. However, there were certain issues, being faced by Starbucks’ in the way
of running their business in Australia. Proctor (2014) commented that it is that the coffee culture
of Australia is extremely mature and sophisticated. Still, intense competition in Australian retail
market has created barrier for Starbucks’ to introduce lifestyle coffee experience in the nation.
The inclusion of wide range of smaller boutique-style coffee shops have restricted the giant like
Starbucks’ to open coffee shops in Australia. The notion of intimacy, personalization and
familiarity with the local taste of coffee has made it difficult for Starbucks’ to drag the attention
of the customers. Based on the discussion of Spanjol et al. (2015) it can be said that lack of
effective market expansion strategy is one of the biggest issue faced by Starbucks’. This issue
has made it difficult for the firm to enter in the tough retail market of Australia.