Strategic and business operation

Published: 2019-04-22 13:46:04
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Sewanee University of the South
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This report focuses on elaborating the key strategic and business operation issues of Starbuck s shop on the London Oxford Street. The report in it position can identify the main operational aspects and the key business context of this Starbuck shop which will be briefly shown in the introduction part. Ideally, the methods of analysis include primary, secondary data that involves the quantitative and qualitative research including relevant information from online databases and books.

The reports are also relevant in figuring out the challenges of the Oxford Street Starbuck shop such as layout and atmosphere in the store and also some of the customer services. However, some of the issues are dependent on various cases which are in the position of meeting particular solution to improving themselves. Additionally, the feedback that was received from the customers was an indication that although the challenges are there, the issues have no big impacts.

The recommendation that was generated from the business of Oxford Street Starbucks shop is to maintain managing their existing operating system and expand their competitive advantage, based on order -winner (ideal location) to gain market share by targeting the non coffee drinkers as segment customers. This report in its state might not avoid the limitation and the challenges, for example, poor experience in that lead to incomplete information and data with some result based on general context and past performance which are viewed to be subjective.

Starbucks being one of the famous brands with a global chain of coffee shops has in its diversification of portfolio incorporated the Starbucks located in the London Oxford among its operating stores, the London Oxford shop has been achieving one of the modest growing growth during the past years best on improvements which depend on consumers’ confidence. With the globally famous brand, the store service system is also based on fast food delivery service. The small one floor of the shop has fifty-five to sixty seats available which are mostly busy and uncomfortable especially on a Saturday. The main products that are being offered in the shop include coffee latte and coffee with the amount of consumption being 900 drinks in a day with an average price of three pounds of both food and drinks (“Costa Coffee, Oxford Street, London | Restaurants/Cafes and Delis in London | LondonTown.com,” n.d.).

Strategic background of the organization 

Competitors 

The main competitors in the market include Nero, Costa, and Republic who are offering healthy competition.

Market shares 

Regarding market shares, oxford Starbucks shop has high market share with sustainable growth since the shop as just a kilometer away from the Oxford Street with an estimated share of twenty percent.

Market order winners and qualifiers 

The target market, market qualifiers, and winners include different age segments, commuters, behaviors of customers and lifestyle, with the majority of the customers being the one who are traveling and who are moving around the high street. Starbuck has the high chance of accessing various and diverse types of consumers which include every individual who is traveling and walking around Oxford Street. Ideally, it can be one of the alternative operational strategies for this shop. Therefore, a suggestion is that an alternative customer segment for the Starbucks shop is a target for those individuals who are not drinking coffee.

Research Methodology 

Starting with the secondary data, market reports of online sources as Mintel Keynote, primarily the secondary data provide an overview of the coffee market in general context making an analysis that Starbucks shop in the Oxford Street in specific. Experts produce Keynote and Mintel reports in the market survey which is necessary and significant for both purposes of practices and studying.

Focusing on primary data, the actual survey from Oxford Street Starbuck customers, that’s quantitative and qualitative research and an interview with the managers. The primary data supports on understanding the Oxford Street core operating system and assisting in accessing the specific information that is to be involved in the report. Additionally, relative and relevant information that require online resources  such as reviews, blogs of customers and articles about some of the issues that are surrounding  Oxford Street, Starbuck.

Description of an issue in the area of OM

As reported by Wu (2017), Starbuck has encountered some operational issue as a result of the payment of the United Kingdom corporation tax. Through this, some negative impact on the brand of Starbuck has been experienced in small quantity. However Costa coffee has been portrayed to be a great rival as they continue to be the leader and the biggest Starbuck rivals, with obstacle created by the poor layout in the Oxford Street Starbuck, the constraint is created during the operation time.

According to Higdon (2016), operation functions of a company or a business concentrate on specific capabilities that offer a competing priorities or edge; such involves quality, cost, and flexibility. From the practical survey that is offered online, the argument can be raised that Starbucks coffee shop in the Oxford Street is handling its operation in an efficient manner, through providing products with high rate but still are fitting the competitive market. On quality, the shop provides product and services with high, with an additional s free delivery for error products. The shop maintains time through delivery reliability

Ideally, Starbucks need to put into consideration their operation strategy in line with the order winners as their ideal location in Kingston coffee market context. Through the argument, recommendation can be raised that the Oxford Street Starbuck should be able to target another alternative segment of customers who are non-coffee drinkers.

 

Reference

Costa Coffee, Oxford Street, London | Restaurants/Cafes and Delis in London | 

LondonTown.com [WWW Document], n.d. URL 

http://www.londontown.com/LondonInformation/Restaurant/Costa_Coffee/ddb6/ 

(accessed 4.12.17).

Higdon, B. 2016. Strategies Independent Coffee Shop Owners Require to Survive Beyond Five 

Years.

Wu, H.C. and Wu, H.C., 2017. What drives experiential loyalty? A case study of Starbucks 

coffee chain in Taiwan. British Food Journal, 119(3), pp.468-496.

sheldon

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