Starbucks Assignment Questions:

1. What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition?

a. What are the key elements of Starbucks' value proposition?

2. What brand image did Starbucks develop during this period? Perform a strategic group mapping for Starbucks as part of your answer.

3. Perform a competitive strength assessment for Starbucks and its competitors based on the key success factors in their industry. How does Starbucks rate vs. its competition?.

4. Why have Starbucks customer satisfaction scores declined? Has the company's service declined or is it measuring satisfaction the wrong way?

a. If Starbucks is measuring satisfaction the wrong way, how should they be measuring satisfaction?

5. How does the Starbucks of 2002 differ from the Starbucks of 1992?

6. What channels does Starbucks use to attract customers? How are new customers the same or different from existing customers - spending, behavior, service?

7. Describe the ideal Starbucks customer from a profitability standpoint. What would it take to ensure this customer is highly satisfied? How valuable is a highly satisfied customer to Starbucks?

8. Should Starbucks make the $40 million investment in labor and in its stores? What's the goal of this investment? Is it possible for a mega-brand to deliver intimacy?