The process of recapturing the soul of the company in a successful way is accompanied by a slow rate of growth of the same company. However this has its own detriments since there is a possibility of the collapse of the company’s stock. This is the center of the trick behind the choice faced by the CEO. The essence of subjecting the company to a rapid fast growth as per the opinion as well as the initiatives of the former CEO was to offset the possibilities of cannibalization of the organization by other powerful chains.
This could bring about the consequences of wiping out the organization altogether. The duty of the CEO is to prevent the competitors from winning the goodwill of the customers of Starbuck. This requires the aggression of the CEO as well as staying rooted to the objectives of the company (Michelli, 2006). The competitors of Starbuck have the pleasure to take the advantages of the weakness that the company is currently facing. The performance standard is far below the required and this fact has been leaked to the competitors.
The growth of the company is deeply rooted on the desires of the management to conduct their business in
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The opening of new store is not a better indicator of growth as may be compared with the increased sales in the already existing stores. Since the latter would be limited in a situation that space for the establishment of new stores also becomes limited. There is a requirement for the segmentation of the company’s customers. The most appropriate approach of the segmentation of the customers would be demographic approach in which case measurable statistics such as age as well as income are the focus.
The expansion of Starbuck beyond the roots of coffee as well as coffeehouse to embrace participation in food as well as other brand is the root cause of its crippling. It is worthwhile to note that the experience of this company is rooted on coffee and therefore success will only be achieved in the instance that the company specializes in the products it is well versed with. The tendency to shift from the brand of coffee to indulge in the manufacture of lifestyle brand has resulted to the dilution of the brand which is not a very healthy approach in as far as improving the performance of the business is concerned.
A survey conducted indicates an escalation of the number of customers in competitor companies such as the Dunkin Donuts as well as the McDonald which was impacted to a greater extent by the memo (Michelli, 2006). Starbuck has positioned itself upon intangible dimensions. The set objectives with regard to the business enterprise are for the purpose of the satisfaction of the needs as well as the requirements of the customers in the society.
It is therefore the responsibility as well as a basic function for the business firms to conduct the process of marketing in the most efficient manner. The thinking of the business has shifted from the context of the product orientation of the past to the current orientation focusing the consumer. It will to the best interest for the purpose of success of Starbuck to lay its major emphasis on the concept of selling satisfaction in contrast to the mere belief of success based upon selling products (Michelli, 2006).