UNIVERSITI TEKNOLOGI MARA, KAMPUS SHAH ALAM, SELANGOR

COLLEGE OF BUILT ENVIRONMENT

TECHNOLOGY ENTREPRENEURSHIP

ENT 600

ASSIGNMENT 1

COURSE CPAF229

COURSE CODE ENT 600

SEMESTER MARCH 2024 -

DATE OF SUBMISSION 21 April 2024

GROUP AP2295B

TOPIC CASE STUDY: STARBUCK

LECTURER’S NAME DR. KHAIRUL NAZLIM KAMARUZAMAN

BY: NUR KHAIRUNNISA BINTI MOHAMAD RAOS (2022464386)

TABLE OF CONTENT
EXECUTIVE SUMMARY............................................................................................................ 1

1.0 Company Information ........................................................................................................... 2

1.1 Background .......................................................................................................................... 2

1.2 Organizational Chart ............................................................................................................ 3

1.3 Product & Services............................................................................................................... 3

1.4 Business, marketing and operational strategy ...................................................................... 4

1.5 Financial Achievement ......................................................................................................... 6

2.0 Company Analysis................................................................................................................ 7

2.1 SWOT Analysis .................................................................................................................... 7

3.0 Finding & Discussion............................................................................................................ 8

3.1 Problem Faced..................................................................................................................... 8

4.0 Recommendation and Improvement..................................................................................... 9

5.0 Conclusion ..........................................................................................................................10

6.0 Appendices ......................................................................................................................... 11

7.0 Reference ...........................................................................................................................12

EXECUTIVE SUMMARY
Starbucks a global coffeehouse chain established in 1971, boasts over 30,000 stored
worldwide. It offers a wide range of high-quality coffee beverages, food items, merchandise. Key
strengths include its strong brand loyalty, commitment to sustainability and innovative digital
initiatives. Despite challenge, Starbucks maintain robust financial performance and continues to
pursue growth opportunities while priotizing customer experience and social responsibility.

Thus, Starbucks focuses on offering a high-quality coffee, tea and other beverages. Their
goal was to also to become the Third Place in our daily lives. (Home, Work and Starbucks).
Additionally, Starbucks places emphasis on ethical sourcing, sustainability and community
engagement. Starbucks also offers a more unique coffee experience through its Starbucks
Reserve stores which invited the customer to discover and explore more about coffee.

Through this case study the theory that will be used is SWOT (Strength, Weakness,
Opportunities, Threats) analysis. This case study will be conducted at the most famous
international coffee brand which is Starbucks. As a student of UiTM Shah Alam, it is important for
us to conduct and experienced study project. Therefore, I got the opportunity to conduct my
research at a company named Starbucks that offer not only beverage but also food in their
business which are located at IOI Mall Puchong.

The information was collected and gathered from conducting face to face interview
session and from their official websites and other trusted sources on the internet to support the
facts and elaboration of statements on this case study. The goals of these project are to deal with
the background organizational structure and service that Starbucks offers. The purpose of this
study is very useful for many purposes in terms of company analysis technology entrepreneurship

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1.0 Company Information
1.1 Background

Figure 1 Starbucks IOI Mall Puchong store

Starbucks was created by Jerry Baldwin, Gordon Bowker and Zev Siegl and has been
operating since 1971 near the historic Pike Place Market in Seattle. In the early 1980’s, they sold
this company to Howard Schultz. The name “Starbucks” was inspired after the first mate in
Herman Melville’s “Moby Dick” The logo was also inspired by the sea featuring a twin -tailed siren
from Greek Mythology. In December 1998 Starbucks has entered Malaysia by opening the first
store in KL Plaza. Malaysia is also home to the first Starbucks Signing Store in the world, located
in Bangsar Village II. Additionally, in Malaysia Starbucks is operated under Berjaya Starbucks
Coffee Company and owned by Berjaya Food Berhad.

This business is located at IOI Mall Lot G42, Jalan Puchong, Bandar Puchong Jaya,47100
Puchong Selangor. The location is selected since it is inside a well-known shopping mall in
Puchong where it also near commercial, educational and residential area. Not only that, this mall
is also public transportation friendly where the LRT and the bus station is just a walking distance.
The location of this store is also very strategic as it is facing Lebuhraya Damansara- Puchong
highway where there will be high volume people that will be passing by this mall.

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1.2 Organizational Chart

Staff
Shift
Supervisor
Store Staff
Manager
Shift
Staff
Supervisor
Figure 2 Organizational Chart

The leader, Nurul Najwa Binti Amir Hussin is the person that will be incharge with the
Starbucks, IOI Mall Puchong operation and management and there will be 2 shift supervisor that
will be helping her which is Siti Sarah Binti Salim and Minarwan Shah Binti Zainuddin. Beside that
there will be 3 staff that will ensure that the product and service are given based on the standard
operation procedure to the customer which are Muhammad Irfan Hakim Bin Noordin, Siti Maryam
Dania Binti Muhammad Fakhri and Sara Jean. As a team, their aim will be attracted customer
with their best service to create a welcoming environment where customers can enjoy high quality
coffee and beverages.

1.3 Product & Services

Figure 3 Starbucks product & services

Starbucks Malaysia offers a wide range of beverages that includes coffee tea, refreshers
and frappucinos. The actual number of drink choices can be vary based on seasonal offerings
and regional purposes. Seasonal offerings such as the popular Pumpkin Spice Latte in the fall
and festive beverages during holidays will ad excitement throughout the year. However, on a
normal basis, Starbucks typically offers around 30 to 40 different beverage choices in their
Malaysia stores. These includes various- based drinks like lattes, cappucinos, tea options from

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the Teavana tea bag, fruid based refreshers, and a variety of frappucinos. Additionally, customer
can customize their own drinks with other types of milk options such as almond milk, oat mild or
syrups and toppings to the overall of choices available. Beside that customer also can join variety
of pastries, cakes, andwiches and wrap for a quick meal or snack where they can also customize
to which they can add extra cheese, caramel or chocolate drizzle and etc. Not only that, Starbucks
Malaysia also provide a range selection of merchandise including mugs, tumblers, tote bag and
many more. It also came with a gift bag that we can add for a reasonable prices.

Furthermore, the experience in Starbucks are not only at the product itself, with services
like customization options of beverages, mobile app orders and a rewarding Starbucks reward
programme. Starbucks also offer a comfartable seating, free WIFI for 2 hours and a relaxed
surroundings for customer to enjoy their drinks. Starbucks Malaysia is commited towards
sustainability through ethical sourcing of coffee beans, collabration with OKU organization to
create a pouch bag by using a coffee bean bag and many more.Through this wide approach,
Starbucks Malaysia aims to provide not only excellent coffee but also a memorable and enjoyable
experience for its customer.

1.4 Business, marketing and operational strategy

Starbucks has always primarily targeted the food and beverages industry. The goal of
Starbucks business is to focus on providing a premium coffee experience, seen its focus on high
quality beverages and comfortable store environment. Nowadays, they are more company
offering remote work, with “work from home” (WFH) becoming more common, presents a
stratergic opportunity. Starbucks cafés can become the ideal “third place” which means a
welcoming space between work and home. With comfortable seating, free WIFI and a focus
productivity, they can attract professionals seeking a place to work outside the office or having a
meeting with a client. Not only that young adult such as university student can have their group
assignment discussion or they just want to be alone and doing their own activity.

Starbucks Malaysia's business plan aims to connect with customers by sharing its coffee
culture and building relationships. They'll host coffee tasting events where Baristas help
customers choose beans and snacks, creating a personal experience. This helps customers learn
about coffee while forming a bond with the Baristas. Starbucks will also tell stories about their
coffee and highlight ethical sourcing to sell their values. To keep things exciting, they'll offer
seasonal drinks in summer, winter, spring, and fall. These plans, including loyalty programs and

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ads, aim to make customers happy, boost the brand, and increase sales. Starbucks Malaysia
wants to create a warm and welcoming place for coffee lovers, ensuring success in Malaysia.

Figure 4 Marketing material

Starbucks Malaysia has a strong marketing plan to promote its products effectively. One
successful example is the "STARBUCKS X BLACKPINK" collaboration, where all merchandise
sold out on the first day, with customers lining up from 6:00 am. This partnership with the popular
K-pop group BLACKPINK, known for their fan base in Malaysia, was promoted heavily on social
media. During the launch, all baristas wore BLACKPINK-themed shirts, creating excitement for
the group's signature drinks and merchandise. This approach not only boosted sales but also
engaged customers, showing Starbucks' ability to connect with different audiences through
strategic collaborations. Additionally, the operation of Starbucks is based on the mall operating
hour which is from 10:00 a.m – 10:00 p.m. It also consist of 3 shift, which the opening shift start
from 9:30 a.m – 7:00 p.m, closing shift will start from 1:30 p.m – 11:00 p.m and then there will be
middle shift where normally it will start from 11:00am - 8:30 p.m. Every shift will run for 9 hour and
30 minutes which include 1 hour of break and each employee will have 2 days of day off in a
week.

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1.5 Financial Achievement

Starbucks has always been a place that people can come to relax while enjoying their
drinks after they have done their shopping or groceries at the mall. With sales raging from RM
2500 – RM 4000 per day and RM 80,000 – RM 100,000 monthly sales and a total of 94 to 223
receipt that are print per daily, I observe that the Starbucks IOI Mall team have done a fantastic
job with their marketing strategy Lastly, if they are consistent with what they are doing, more store
can be open in the district which can attract more people to come and enjoy their drinks.

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2.0 Company Analysis

2.1 SWOT Analysis

SWOT or strength, weakness, opportunities and threats) is a method that will be used to asses
the competitiveness of a business and create strategic business plan. This approaches will
evaluates the possibilities for the future as well as internal and external influences. Four of the
categories that follow will be included in each SWOT analysis:

SWOT Analysis
Strength Weakness
- Strategic location due to the store - High competition from another large
located at the entrance. chains and also local coffee shop that
- Strong coffee and coffeehouse brand are cheaper.
image - Lack of maintenance on the store due
- Loyalty program (Starbucks Rewards) to focusing more on expanding more
that attract customer to spend. stores
- Comfortable accommodation and - Shortage on staff
facilities such as sofa and WIFI that - Customer has to pay for parking at
allowed customer to spend their time the mall to grab a drink at the store.
at the store. - Not OKU or elderly friendly due to the
- Customer can custom their own high stairs to reach the first floor that
drinks based on their preferences. offer more seating.

Opportunity Threat
- Offer variety of food selection - Changed in customer preferences.
- Offer healthier options to attract more - Imitation from another brand.
health-conscious consumers - Economic downturns because
- More retail option such as serveware customer may choose other cheaper
- Partnership with another big brand or drinks.
local brand. - During rainy season it will disrupt
store operation due to flood
Figure 5 SWOT Analysis

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3.0 Finding & Discussion

3.1 Problem Faced

1. Shortage of staff

The service towards the customer will be affected due to lack of workers that are working during
the store operation. Customer may be unsatisfied with the long-time queuing and waiting for the
order to get ready, wrong order received and also being unattentively with the customer demand
and need especially during festive or promotion period. Additionally, the workers will be
unproductive burnout, stress and unhappy to come to work due to the high amount of workload
especially when some staff are taking their day off.

2. High competition with other coffeeshop inside the mall

Starbucks is having high competition with other coffee brand when the other merchants are
promoting the same products. If Starbucks worker doesn’t have a strong selling point or enough
knowledge on their product, customer may assume that the beverage that Starbucks are offering
is just the same with any other brand but they are selling with a higher price.

3.Not OKU and elderly friendly

Starbucks IOI Mall Puchong consists of two floors where the first floor can only fit up to 6 seating
and the second floor are more spacious and comfortable. However, in order to access the first
floor, a high flight of stairs is needed. Therefore, customer especially that are OKU or much older
will find it inconvenient for them and will find another place that are easier to access.

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4.0 Recommendation and Improvement

1.More seating on the lower floor

Increase more seating on the lower floor so that customer can have easy access to enjoy their
drinks and it will be more convenient for customer that don’t have the ability to take a long stair
just to enter the first floor. Beside that it will be more for regular customer to connect with the
workers if they are having any issue instead of going up and down. The worker also can easily
monitor the customer activity from inside the bar.

2.More variety of product.

Not only offering beverage, Starbucks can also come out with a good design of merchandise to
be able to stand out more from any other coffee brand. Furthermore, it will not only increase the
profit of the store but it also will bring different point of view about this brand that will attract
customer that are looking for something new and different.

3. More partnership or collaboration with other local brand

By having collaboration and partnership with more companies from different industries such as
music technology and fashion, Starbucks can gain access to new markets, customer segments
and resources. This allows the company to enhance its products offering, more unique
experiences and attract more customer to spend their money.

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5.0 Conclusion

To summarize, through this case study regarding the entrepreneur shows that the

significance of factors such as good performance, innovation, market research and strategic

planning in achieving success. I learn that It will give a valuable educational resource, enlighten

the challenges of starting a business and inspiring aspiring entrepreneur. Additionally, I also

manage to learn that it will give the idea that despite any challenges, entrepreneurs can still

success and make a stable mark on the market through determination, strategic decision making

and perseverance.

Hence, Starbucks Malaysia has set the company as prominent players in Malaysia coffee

market. Based on their strong brand presence, strategics business planned and innovative

offerings, I believe Starbucks Malaysia can have the chance to successfully captured the attention

of Malaysia consumers. The company’s commitment to quality, sustainability and customer

experience has contributed to its continued growth and success in Malaysia’s competitive coffee

industry.

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6.0 Appendices

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7.0 Reference

 Starbucks. 2023.About us

https://www.starbucksathome.com/my/story/about-us

 Bondarenko, P. and Petruzzello, M. (2024, March 30). Starbucks. Encyclopedia

Britannica.
https://www.britannica.com/money/Starbucks

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