Monday, February 24, 2020

TROUBLE BREWS AT STARBUCKS--Case Study Case Example | Topics and Well Written Essays - 500 words

TROUBLE BREWS AT STARBUCKS-- - Case Study Example Essentially, the 5Cs analysis, which was initially the 3Cs strategy, includes elements such as customer, company, collaborators, climate and competitors. The key aspects that Schultz had in mind were customer, competitors, and the company itself in order for the vision to expand Starbucks to be realistic. In essence, Schultz intended for Starbucks to serve coffee at its outlets with the same taste of that made at home and factored in the growing competition from entrants such as McDonalds, which was winning its customer base. The main target market for Starbucks as part of this vision was to be the people that prefer to brew their coffee from home because not many chain stores served coffee that was of their desired quality. The value positioning to customers would be that Starbucks would be able to serve coffee that was the same as that brewed at home hence saving their customers the hustle of having to only rely on home ground coffee with the taste that they know. Additionally, Schultz also examined Starbucks position and sought to remain relevant in the market by providing its needs and meeting customer satisfaction while register ing profits. Schultz vision met resistances, but Starbucks later bought into the idea in which the first step in implementation based on the 4Ps marketing mix was to create a place or atmosphere that customers would relax in. The idea was to create the third place after home and work where their target market would enjoy the ambience of Starbucks while sipping on a cup of coffee (3). The ambience of the ‘third place’ included the access to music, books, and movies as part of its product delivery options, which was successful in increasing customer flow to their stores (7). The other factor was that Starbucks also targeted areas with heavy population flow such as airports, which succeeded in capturing a wider target market. Secondly, Starbucks also trained its staff on the

Saturday, February 8, 2020

Discussion- CH5 Coursework Example | Topics and Well Written Essays - 250 words

Discussion- CH5 - Coursework Example Bank loans are not accompanied by any ownership condition. In addition, the bank personnel are not involved in the running of the business (Sloman and Sutcliffe, 104). The disadvantage of loan is that they are difficult to obtain and also the borrowers need to provide their personal guarantees. The pros of equity financing include no payment of interest. The investors are not paid interests though they will owe the entrepreneur some portion of profit. Equity financing has no liability. The entrepreneur is not liable and in case of failure, the investor takes the risk. No monthly payments are needed in equity financing. This allows for more money in the business to keep things running. Con associated to equity financing include giving up ownership. This is due to investors owning part of the business (Sloman and Sutcliffe, 303). Pros for stock include them being considered being having potential for higher returns as compared to other types of investments that are used by companies. Stock is considered to pay dividends. Extra income can be used to buy more shares for the company. Cons for stock include dramatically rise and fall that occur in stock price (Sloman and Sutcliffe, 167). Stack is seen also to have no guaranteed return. I agree with you that the most common types of financing for small entrepreneurs would be equity financing and debt financing. This is due to unavailability of ready finances. Debt financing allows using the finances and later pay to the lenders. Selling of shares is convenient to them as the money need not to be repaid. I equally agree with you that there are so many important skills that managers should have in order to drive success towards the company. The skills that are needed by the managers including ability to be a leader, positive relationship with employees, proper planning, proper delegation of duties, effective