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Starbucks

After evaluating (Exhibit A), Starbucks should invest $40 million per year to increase labor hours per store in order to solve the problem with the quality of service. Starbucks should also set up an internal strategic marketing team. This will allow Starbucks to have a proactive feedback of customer satisfaction and hence faster improvement. Labor cost is high for Starbucks' North American operations. To keep labor cost at reasonable level, Starbucks should reduce waste in making drinks, keep consistency in drinks, and improving productivity. The company needs to invest more money in automated espresso machines. Currently, sales of coffee beverages account for most of total sales, and therefore, Starbucks should increase its sales on food items and whole-bean coffees, and develop non-retail sale channels, which do not require as much special training as making coffee beverages.
Due to an increase in number of Starbucks' customers and highly customized drink demand, the workload......


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Approximate Word Count: 871
Approximate Pages: 4 (250 words per double-spaced page)

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