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For this assignment, you will compose a 1200-1500 word (not including cover page and reference section) case analysis in which you demonstrate your understanding of the following case dimensions.
a) The case opens with Christine Day reflecting upon the success of Starbucks over the prior decade; eleven consecutive years of 5% or higher comparable store sales growth.
- Based on your analysis, upon what was this success based?
b) Not surprisingly with the magnitude of the growth, the case suggests that the customer base was evolving with newer customers having a somewhat different profile and somewhat different expectations than established ones.
- Paint a succinct picture of each customer type, including what the Starbucks brand means to them, and assess their importance to Starbucks as it looks to the future.
c) The case shows that Starbucks relies on significant repeat business (e.g., Figure A on page 11); and that customer satisfaction has an impact upon both visit frequency and purchase pattern (e.g., Exhibit 9 on page 18). Such data provides a way to estimate the money value to Starbucks of moving a customer from a satisfiedlevel to a highly satisfied level; and hence to get a quantitative read on whether the $40M investment Day will likely propose has a chance of making financial success.
- Within this context, reflect on your analysis and provide a summary of what you conclude from it.
d) As the case ends, Christine Day asked Jim Alling to reflect on implications of the plan. Alling noted that the challenge was to link customer satisfaction to bottom line. He was seeking evidence.
- If you were Jim Alling, what would you recommend to Christine Day? Please justify your decision with a factual analysis.
- Your paper should be written and submitted in MS Word format.
- This document should be prepared in an eminently readable and business-like format as opposed to an APA, double-spaced format. It will thus be written as a professional, single-space document, using a proper cover page, introduction, structured paragraphs, conclusion, and references similar to the sample located in the Required Studies section.
- If you do use sources beyond the case, please cite (in paragraph) and reference (end of paper) them appropriately (in APA format). Visual items such as graphs, calculations, and diagrams can be incorporated into the text or included as an Exhibit, depending upon their size and the flow of your writing.