...Read the case titled "Starbucks, Bank One, and Visa Launch Starbucks Card Duetto Visa" in the Resources and address the following components in your assignment: • Answer discussion questions 2 and 4 at the end of the case. 2. Build the management-research question hierarchy for this project. Step 1: Management Dilemma Is there a brand fit between credit card and Starbucks? How does the customer value the different benefits being offered by the Starbucks Duetto Visa card? How does the customer value "the give back to the community component"? Step 2: Management Questions If there is a match between the brand and the customers value the benefits of Starbucks Duetto Visa card, the card should be launched to as large an audience as possible. Step 3: Research Questions Starbucks should go in for the full launch of Starbucks Duetto Visa card. Starbucks should go in for a limited launch of Starbucks Duetto Visa card Starbucks should launch the Starbucks Duetto Visa card without give-back-to-the community component. Step 4: Investigation Questions Does Starbucks Duetto Visa card clash with the image of Starbucks? How much do the benefits of Starbucks Duetto Visa card appeal to the customers? How much do the planned give back to the community component appeals to the customers of Starbucks Duetto Visa card? Step 5: Measurement Question What is the extent to which the perception of Starbucks is hurt by Starbucks Duetto Visa card. In dollars what is the perceived value to...
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...UNIT IV CASE STUDY: STARBUCKS, BANK ONE, AND VISA BRUCE S. HARRINGTON COLUMBIA SOUTHERN UNIVERSITY The Starbucks Duetto project was approached in four basic stages: the exploratory stage, concept testing stage, product launch stage, and post-launch stage. Each stage used a variety of research types in order to determine the best course of action within that stage, and for the project overall. The exploratory stage consisted of exploring the basic idea of the new product, and exploring possible partners to help develop and bring the product to market. This stage began with early secondary research designed to determine if a similar product already existed in the market place. This was followed by further exploratory research with several possible business partners, and consisted of interviews of possible partners, visits to their sites, and observations of their businesses at work to assess culture-compatibility (Cooper & Schindler, 2011). Starbucks decided to work with Bank One and Visa as a result of early exploratory research. The next stage of product development was the concept testing stage, which started with focus group research designed to better understand the customers’ wants in a new product, and the customers’ ability to understand the product that was being developed (Cooper & Schindler, 2011). The focus groups were used to refine the features and uses of the card, and ultimately the value proposition that the new card had to offer to the customer base...
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...Was the research well designed? Was it a good research? This case study detailed stages of research conducted by Starbucks, Bank One and Visa on the Duetto Card and overall the researches in all stages are well designed and are good examples of research. Firstly, the purposes of research, from understanding the perception of dual-function card concept, understanding user preference and finally to satisfactory level examination, are clearly defined. Secondly, the researches processes are detailed such as the steps to acquire participants, sampling method and the representativeness. Other researchers for card loyalty program can repeat similar research accordingly. Research design is thoroughly planned. For example, at the concept testing period, the feedbacks gathered from focus groups of existing customers is more relevant than asking the general public. Another good example is Bank One directly use observable business metrics to provide the return on marketing investment. Moreover, ethical standard is addressed during the research period. The intercept study outside the Starbucks store is discarded since they think they don’t own that space. Knowing the limitations of feedbacks, in the product optimization study, Bank One has compared the research results to norms that have resulted from more than 200 similar concept studies. On the other hand, for the quantitative online survey, the sample size should have been larger in order to give more reliable results. All three parties...
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...From there, management can find important information to answer that question and develop their strategy. In the case study, “Starbucks, Bank One, and Visa Launch Starbucks Duetto Visa”, the three companies collaborated to give Starbucks customers a new way to pay for their products. This new way was not designed to only benefit Starbucks, but also allow Visa and Bank One to benefit as well. The idea was to create a dual-function card that would allow customers to only swipe once but then provide different methods of payment. This would cut down on the number of cards customers would carry and cut down on transaction times. The dilemma in this case was how can Starbucks introduce a new credit card in an already mature and established industry, and be successful. Starbucks viewed this idea as an opportunity to reinvent the industry. They sought to make it relevant and exclusive to their customers in a way that was never done before. To figure this out, they needed to know if their customers could fully understand the value proposition of the dual functionality. One idea Starbucks used to answer these questions was to use focus groups moderated by an independent source. Through these focus groups, they were able to recognize areas that needed more explanation, and were able to measure the appeal of monthly rewards and possible ways of delivery. Starbucks used the data collected from their focus groups to refine their concept and restructure the way they communicated the idea with...
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...Mastering Teacher Leadership Read the case study Mastering Teacher Leadership. Answer questions 1 and 2 at the end of the case study. 1. Build the management-research question hierarchy for this opportunity. Research question hierarchy 1) Management Dilemma- Due to the large number of University’s within the area raises concern if developing another Master’s program would be successful. 2) Management Question- Would creating a new Masters of Arts degree program for Wittenberg University be beneficial to the school and the surrounding communities? 3) Research Questions- What are the needs of the various school districts? How can these needs be implemented and focused into Wittenberg University Masters of Arts program? What are the desired steps to develop an effective educational program? 4) Investigative Questions- Is there a demand for another Master’s of Arts program in the area? 5) Measurement Questions- How many teachers needing to receive their master’s degree would consider this program for their continual education? 2. Evaluate the appropriateness of the exploratory stage of the research design. This particular case used a communicative research design. By using focus groups consisting of local educational professionals and a mailed survey the University was able to collect the required data. The focus group narrowed in on the elements needed to build a strong program and determined the likelihood of its success. The distribution of the survey was a cost effective...
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...stage began with early secondary research of the market and indicated that such a product did not exist in the credit services industry. Starbucks went on to explore possible partners by approaching major card service companies. It conducted interviews with bank executives, visited call centers; even listened in on phone calls to learn how each resolved customer credit card problems. Through exploration researchers develop concepts more clearly, establish priorities, develop operational definitions, and improve the final research design. * After Starbuck identified their perfect partners, stage two was conducting focus groups. They tested the idea of a dual functionality card with four focus groups, using the services of an independent moderator. The focus groups involved two major groups of Starbucks customers who owned a credit card: those who used the Starbucks Card and those who did not. The data obtained from the focus groups proved to be extremely helpful. In exploratory research, the qualitative data that focus groups produce may be used for enriching all levels of research questions and hypotheses and comparing the effectiveness of design options (Cooper & Schindler, 2014). This was definitely true for this case. “The focus groups helped us refine the concept, and define what might comprise the ‘surprise and delight’ features of the card,” explains Gupta. “We learned that the concept of dual functionality was difficult for some to grasp. * The focus groups were followed...
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...Customer Retention Strategies Customer Retention Strategies Project Report on Customer Retention Strategies Table of Contents Introduction 4 Executive Summary 5 Jabong 6 Myntra.com 8 Airtel 10 Starbucks 12 Big Bazaar 14 BSNL 16 Comparison 18 Conclusion 19 References 20 Introduction Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections. A company’s ability to attract and retain new customers, is not only related to its product or services, but also strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace. Companies can go through the following steps to develop plan for retaining their customers: * Define Customer Loyalty * Identify factors that affect customer loyalty * Discuss practical and relevant strategies to retain clients 1) Customer Loyalty- It is the customer’s commitment or attachment to a company. It can be to the brand, the manufacturer, to the service provider or any other entity. 2) Factors- There exist numerous factors that may affect customer loyalty. To name a few will include choice of customer, history of company, trust and emotional bonding etc. 3) Strategies- The companies can develop their strategies on the basis of common factors such as gaining the trust of the customer, creating awareness about their brand value etc. Executive Summary The objective of the project...
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...Case 29 Starbucks’ Global Quest in 2006: Is the Best Yet to Come? Arthur A. Thompson The University of Alabama Amit J. Shah Frostburg State University Thomas F. Hawk Frostburg State University n early 2006, Howard Schultz, Starbucks’ founder, chairman of the board, and global strategist, could look with satisfaction on the company’s phenomenal growth and market success. Since 1987, Starbucks had transformed itself from a modest nine-store operation in the Pacific Northwest into a powerhouse multinational enterprise with 10,241 store locations, including some 2,900 stores in 30 foreign countries (see Exhibit 1). During Starbucks’ early years when coffee was a 50-cent morning habit at local diners and fast-food establishments, skeptics had ridiculed the notion of $3 coffee as a yuppie fad. But the popularity of Starbucks’ Italianstyle coffees, espresso beverages, teas, pastries, and confections had made Starbucks one of the great retailing stories of recent history and the world’s biggest specialty coffee chain. In 2003, Starbucks made the Fortune 500, prompting Schultz to remark, “It would be arrogant to sit here and say that 10 years ago we thought we would be on the Fortune 500. But we dreamed from day one and we dreamed big.”1 Having positioned Starbucks as the dominant retailer, roaster, and brand of specialty coffees and coffee drinks in North America and spawned the creation of the specialty coffee industry, management’s long-term objective was now to establish...
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...JUNE 6, 2008 NANCY F. KOEHN MARYA BESHAROV KATHERINE MILLER Starbucks Coffee Company in the 21st Century On the morning of March 19, 2008, 6,000 Starbucks shareholders gathered at McCaw Hall in Seattle for the coffee company’s annual meeting. The first in line appeared outside the building’s glass-fronted façade while it was still dark, and before long, the performance hall was packed.1 As the crowd streamed inside, one team of Starbucks employees handed out cups of hot coffee, while another wrote down shareholders’ comments about the company on stacks of white cards.2 From the early morning Seattle skyline to the crew of green-aproned workers, the annual ritual was steeped in Starbucks tradition. But for the iconic coffee company, this had been no ordinary year. Starbucks got its start as a Seattle-based coffee roaster in 1971. At this time, the larger coffee market was dominated by supermarket brands such as Folgers and Maxwell House, and per-capita coffee consumption in the U.S. was on the decline.3 During the next two decades, however, sellers of specialty, high-quality coffee beans began to attract a niche following.4 In 1987, entrepreneur Howard Schultz bought Starbucks with an eye toward introducing European-style coffee culture to the American market. Under Schultz’s aegis, Starbucks spread the gospel of high-quality, customized coffee drinks to urban areas around the country. The enthusiasm of Starbucks customers helped the company grow its revenues from about $10...
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...Starbucks Shared Planet - Our Responsibility MY CUSTOMIZED REPORT CREATED AT WWW.STARBUCKS.COM/SHAREDPLANET ©2009 Starbucks Coffee Company. All rights reserved. https://test.starbucks.com/SHAREDPLANET/customGRPage.aspx (1 of 108)6/1/2010 2:23:02 PM Starbucks Shared Planet - Our Responsibility Mission Statement Our Starbucks Mission To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. Here are the principles of how we live that every day Our Coffee It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. Our Customers When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers— even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. Our Stores When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment...
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...S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II www.ibscdc.org 1 Transformation Corporate Transformation Korean Air: Chairman/CEO Yang-Ho Cho’s Radical Transformation A series of fatal accidents, coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven...
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...an offer by its largest rival, KDDI, of flat-rate rather than traffic-based pricing. Finally, rivalry in the mobile phone industry would escalate following two expected regulatory changes: the licensing of one or two new entrants and the introduction of number portability. With DoCoMo’s first wave of growth (mobile voice) subsiding and its second wave (mobile data) cresting, management believed mobile FeliCa could unleash the third wave of DoCoMo’s evolution: “lifestyle infrastructure” services. FeliCa, developed by Sony, transferred information by radio over short distances—about 10 centimeters—between a contactless integrated circuit (IC) and a “reader.” By building FeliCa into its handsets, DoCoMo could move beyond telecommunications into many new applications. For example, customers could hold mobile FeliCa phones close to a reader to quickly and easily make payments in stores, ride commuter trains, or secure entry to buildings. DoCoMo’s first FeliCa phones were introduced in July 2004. Five months later, Masao Nakamura, appointed CEO in June, was meeting with Kei-ichi Enoki, executive vice president and managing director, products and services division, to discuss how DoCoMo should drive mobile FeliCa adoption. Enoki had headed the very successful launch of DoCoMo’s...
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...GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Sector Leadership Best Global Brands 2013 10 86 BISH Methodology Creative Leadership 70 120 Contributors China’s New Brand Leaders 74 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership roles are converging, traditional structures are crumbling, the consumer’s voice carries more weight than ever, and less tangible strengths like emotional intelligence and psychological insight are just as key to leading a brand...
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...Rules of Brand Leadership 2 From Information to Intelligence 82 Best Global Brands 2013 Sector Leadership 86 BISH 10 Creative Leadership 70 Methodology 120 China’s New Brand Leaders 74 Contributors 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership roles are converging, traditional structures are crumbling, the consumer’s voice carries more weight than ever, and less tangible strengths like emotional intelligence and psychological insight are just as key to leading a brand...
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...someday we can open a bank account or ask for a loan without physically having to come to the bank?” — Bill Gates TSYS® is excited to publish its first research report exploring mobile payments (m-payments) in the U.K. The report includes information regarding U.K. consumer payment preferences and other insights. The aim of this report is to provide valuable information to help our clients and other stakeholders in navigating the current market trends for m-payments and related topics like mobile banking, communication and retailer apps. In line with our belief in keeping payments people-centred, this primary research is based on the end-user of the technologies explored. The goal of this research is two-fold: 1) to investigate consumers’ current behaviour; and 2) to understand how their attitudes and concerns could help predict future behaviour. With the increase of choices among consumers, mobile payments is approaching a critical mass, if not maturity. In 2013, worldwide mobile payments reached $154 billion, and it has been predicted that this figure will reach $721 billion by 20171. In the U.K., mobile payments are expected to reach £53.6 billion in the next ten years, and 75 percent of the U.K. population is expected to have a smartphone by 20192. According to The Financial Times3, U.K. consumers are increasingly using mobile phones and tablets to make purchases — with mobile spending reaching £9.7 billion last year. Moreover, the July 2015 launch of Apple pay in ...
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