Reference no: EM13968876 , Length:
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Starbucks has been famous for its beverages since the very beginning. The coffee chain sells millions of beverages every day with cappuccino being loved by the customers worldwide. Even after achieving such a success, the company has been recently following a strategy to increase the number of products and services that it can offer to its customers. Strategical moves like adding new and more eatables along with beverages and serving alcoholic drinks at some of the selected stores have been an effort to increase the product portfolio so that more customers can be attracted (Cooper, 2016).
It has been a fact that no food chain has been able to survive by shifting its focus towards new products other than its core offerings. Only by sticking to the core product, food chains have been able to achieve such high positions. The company might be right on its part because with the changing trends and increasing market competition, the customers want to have an option of side orders to choose from rather than just beverages but the company's strategy to increase the product portfolio has been interfering with its work operations, staff efficiency and customer satisfaction levels. The customers have reported that they were not given the adequate service quality when they placed an order for side products along with beverages. The choice overload has not only made the choice for customers difficult but has also made it difficult for the employees to handle a large variety of orders and prepare those food products for which they had not received any training (Cooper, 2016). The lack of coordination and work overload has decreased the coordination amongst employees and they end up serving wrong orders to the customers. Therefore, the strategy to increase the product portfolio is becoming a negative point for the customers in an unexpected way.
The strategy adopted by Starbucks is definitely required to survive in the competition (Academia.edu, 2016) but the company and the leaders of the organisation have not given it a careful thought because the overall burden is affecting the performance levels of the employees.
REFERENCES
Academia.edu, (2016). Starbucks Strategic Change. [online] Available at: https://www.academia.edu/4504511/Starbucks_Strategic_Change [Accessed 7 Feb. 2016].
Cooper, T. (2016). 3 Glaring Problems With Starbucks' U.S. Strategy -- The Motley Fool. [online] The Motley Fool. Available at: https://www.fool.com/investing/general/2014/06/24/3-glaring-problems-with-starbucks-us-strategy.aspx [Accessed 5 Feb. 2016].
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