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Starbucks is a coffee house of American origin with several chain stores all around the world and is headquartered in Seattle, Washington. The company is recognized for its prowess in the coffee industry, thanks to its many years of industry experience, to improve production and efficiency. The company is recognized for its ability to improve its flavor, consistency and outstanding consumer service in the roasted coffee sector (Kurzban, et al 661). The company has made critical investments in research and development activities that have made it possible to provide goods to satisfy the growing demands of different consumers. The organization has the expertise, improved technology, and latest machines that have contributed to increased economies of scale and customer traffic. The organization has expanded its product offerings and currently, it leads the market by quality and variety of products that meets customer needs and experience (Dorn, Claude and Michaela 363).

Starbucks Trade-Off

Starbucks is experiencing a severe problem of making the decision on tradeoff in fear of losing customers in the market. The organization is constantly focusing reducing the forgoing techniques and programs in exchange of other desirable outcomes in maximizing total return under given circumstances (McCrae 20). The organization is considering to enhance increased performance and effectiveness through increasing various product offering in the market enhance enhanced customer experience. The organization is focused on providing quality products at the expense of reducing the quantity to its customers. Many customers for Starbucks yearn for the quality of roasted Arabica coffee to ensure increased experience and attracting many customers to achieve its goals (Kurzban, et al 661).

Starbucks takes its trade off as a strategy focused on ensuring it remains focused and relevant in the competitive coffee market. The organization has been operating under the low-cost strategy to attract many customers although the quality of products was compromised. The organization decided to source quality raw materials to enhance customer satisfaction levels (Guex and Olivier 119). The organization further desires to sacrifice on identity as well as its social aura to its customers to meet enhanced performance and effectiveness. Starbucks is committed to enhancing its availability, accessibility and simplicity to enhance increased performance and effectiveness. The organization is further focused on sacrificing on need as well as loyalty since it desires to move to a premium status in the market (Dorn, Claude, and Michaela 363).

Starbucks Opportunity Cost

Opportunity costs are some of the benefits that people receive but decided to take another course of actions instead. Business organizations are presented with various scarcity challenges in the market and thus choosing other alternatives that are more yielding is considered an appropriate strategy to meet enhanced effectiveness (Kurzban 661). Starbucks of often confronted with situations that demand the use of opportunity costs by giving up on the available opportunities thus adopting others. Starbucks is one of the most popular brands in the world and has several opportunities for its growth in the market (Dorn, Claude, and Michaela 363). Some of the growth opportunities for the organization are not involving the traditional operations of the company such as its signature as well as coffee. The management of the organization is focused on enhancing quality production of tea, food as well as soda to enhance increased performance and profits (McCrae 16).

The organization is currently concerned with a process of replacing its traditional pastries with sweets that are in different brand name “La Boulange” that is a favorite of San Francisco for a longtime. Furthermore, the organization is offering more sweets and heating up its pastries before they are served to customers (Dorn, Claude, and Michaela 62). In addition, the organization is adding drive-thrus at various location in the larger America and it is driving meaningful sales and profits. Starbucks also considered enhancing the test of its lunches with sandwiches and soups in various locations to contain grilled chicken, noodle soup, pork sandwiches among others. Lastly, the organization is currently rolling out more of its carbonated beverages as well as Teavana teas categories and expects to expand to all locations to meet enhanced performance and effectiveness (Guex and Olivier 19).

Scarcity and Starbucks

Scarcity is assumed to be a constant phenomenon that is characterizing various markets in many parts of the world. Starbucks is not an exception in this case because it deals with various products that are obtained from various suppliers. Starbucks is faced with a threat of scarcity of world coffee supply amid the increasing global climate threat (McCrae, 2016). The management of Starbucks focuses on influencing climatic organizations to enhance their efforts in protecting the environment to ensure sustainable production of coffee beans. The organization switched to the use of Arabica coffee that has quality but it is usually affected by climatic changes. The scarcity of coffee in various regions across the world indicates that the organizations to enhance productivity and performance (Guex and Olivier 119).

The scarcity of essential raw materials of the organization has resulted in the organization meeting mediocre results in the market. The organization has increased investments in corporate social responsibility as a strategy to meet increased performance and effectiveness in the market (Guex and Olivier.117). Starbucks is still making huge resources in the market as a result of reduced supply of various coffee beans that led to increased prices for coffee grains and this affected its profitability. Starbucks worked with Obama administration to persuade the united nations environmental program and other stakeholders to meet increased performance and effectiveness (Kurzban, p.661).

Economies of Scale in Starbucks

Starbucks is one of the most successful organizations that have made critical contributions to the customer experience. The organization met its economies of scale through increased performance and effectiveness in various markets it operates. The organization established a good brand in the global context and this gave it an easy entry into foreign markets to meet enhanced performance and effectiveness. Starbucks was able to produce quality coffee through its unique technique of roasting quality beans that meets the quality desired by many customers. In addition, the organization was able to lower its prices for various products and this acted as a strategy of attracting customers to meet its focus and profitability.

Conclusion

Starbucks is a multinational organization with a chain of coffee stores established in various parts of the world. The organization got famous during the time it started procuring Arabica coffee that is known to meet the required quality discerned by various customers. The organization is the leading in the coffee market because of its expertise in roasting beans and market entry to meet increased performance and effectiveness. However, the organization has been faced with challenging moments thus resorting to the adoption of various strategies to enhance increased performance and effectiveness in the market (McCrae 20).

Work Cited

Dorn, Michael, Claude Messner, and Michaela Wänke. “Partitioning the Choice Task Makes Starbucks Coffee Taste Better.” Journal of Marketing Behavior 1.3-4 (2016): 363-384.

Guex, Delphine, and Olivier Crevoisier. “8 A comprehensive socio-economic model of the experience economy.” Spatial Dynamics in the Experience Economy (2015): 119.

Kurzban, Robert, et al. “An opportunity cost model of subjective effort and task performance.” Behavioral and Brain Sciences 36.06 (2013): 661-679.

McCrae, Richard M. “State of the Art Review on Climate Change and Coffee.” Revista Vinculando (2016).

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