Service Management Assessment 1

The effective use of physical environment

in a service environment- Starbucks

Name Vedant Kanwate

Matriculation no- 40339520
Module number- TSM09204
Turn it in ID-78728772
Submitted to- Edinburg Napier University
 CONTENT
• OVERVIEW
• THE PIKE PLACE STARBUCKS STORE
• SERVICE SCAPE
• PHYSICAL EVIDENCE
• FACILITIES EXTERIOR
• FACILITIES INTERIOR
• OTHER TANGIBLES
• MEHRABIAN MODEL
• APPLYING MEHRABIAN PLAN TO THE STARBUCKS
• EFFECT OF PHYSICAL EVIDENCE ON THE CUSTOMER
• EFFECT OF PHYSICAL EVIDENCE ON THE EMPLOYEE
• EFFECT ON SERVICE DELIVERY
• BEST PRACTICE IN THE ORGANISATION
• RECOMMENDATION
• REFERENCE
 OVERVIEW

“Starbucks represents something beyond a cup of coffee.”

- Schultz H (2010)

Starbucks is an American coffee company premier roaster, marketer and

retailer founded in 1971 in Seattle, Washington with more than 23,768
locations all over the world. (as of November 2016)

Starbucks can also be called as an affordable luxury with a mission

statement, “To inspire an nurture the human spirit –one person, one cup
and one neighborhood at a time.”
 THE PIKE PLACE STARBUCKS STORE
1. Located at 1912 pike place market Seattle Washington,
United States

2. Also called the Original Starbucks, it is the first

Starbucks store established ever in the world

3. This store has a separate Roast named ‘Pike place Image- 01

Roast’ which is a special blend created to enhance taste
and special rich flavor.

4. This is the only store in the world which still uses the very
first logo of the Starbucks.

5. It also has a separate Starbucks Reserve roasting and

tasting room the Roasting room is where the Starbucks Image-02
Reserve coffees worldwide will be roasted and packaged

6. The roasting room also has a separate library to meet

and learn, Peruse more than 200 titles on coffee, sit
down for a meeting or function

Image-03
 SERVICE SCAPE
The ability of a physical environment to influence behavior and to create an
image is particularly apparent for service business such as hotels , restaurants,
professional offices, banks, retail stores, and hospitals (Baker
1987;Bitner1986;Booms and Bitner 1982) cited by Bitner M (2001)

• Bitner M (2001) explains its really important to have a impact of physical

surrounding of an organization or hotel on its employees as well as the
customers because it creates a brand image or improves the brand quality and
name.
 PHYSICAL EVIDENCE
“Urban life is an interior affair” (Cormier, 2014,
p.22) Cited by Warakanyaka .A (2017)

Cormier (2014) states that urban life is more

defined or expressed by the interior of the
organization for example a coffee house with
posh exterior, modern furniture and décor Image-04
expresses urban culture and attracts more
consumers whereas a coffee house with dull
environment and usual décor will not be able
to do so.

Physical evidence constitutes of facilities

provided inside the organization as well as the
ambience and other decorations used
Image- 05
 FACILITIES EXTERIOR
1. It is Located in between Seattle’s Pike place market
2. It is very convenient and helpful for the customers to grab a coffee as
it is located within the market itself.
3. It also has its separate roasting room where the customers can watch
live roasting and tasting of the coffee.
4. The Starbucks Logo is a Topless Mermaid. The Mermaid of Starbucks
has taken from the Greek mythology, Starbucks calls her – ‘The
Siren’ it is located right in front of the store which attracts the
customers.

Image-06
 FACILITIES INTERIOR
1. The Starbucks store has round tables to make you feel at home and to make you feel less
lonely. It is also comfortable while communicating with other person. "Round tables are
more welcoming than those with square edges, “Blumenthal K (2007)
2. The store has a air conditioner, Wi-Fi and other necessary services
3. The store has number of charging slots for laptops, mobiles and other devices.
4. The store has different types of roast for a coffee like, dark roast, Italian roast etc as well
as special seasonal, handcrafted beverages.
5. It also has its own merchandise store where cups, coffee beans, mugs, etc are sold.
6. Starbucks has a specific music collection and décor which is different in different store and
it is also unique and rare at the same time

Image-07 Image-08
 OTHER TANGIBLES
1. Customers can make their own drinks on the Starbucks
app,order and pay ahead of the time so that they don’t have to
wait in line.

2. Starbucks rewards is basically a loyalty program, in which

customers can collect stars on every order they place. The
rewards are the awarded by complementary drinks or
beverages.
Image-09
3. Some store in Central London are offering Powermat wireless
charging in the form of Powermat Spots where you can place
your compatible phone and charge wirelessly.

4. This store also has The Starbucks Reserve Roastery and

Testing room nine blocks away from the store where you can
taste rare and exotic coffees called Starbucks Reserve.

5. Starbucks has also started selling the ember mug, which is the
worlds first temperature control mug it lets users adjust the
temperature of the liquid inside by the Starbucks’s Smartphone
Image-10
app.
 MEHRABIAN MODEL
To understand more about communication, professor Albert Mehrabian studied the
importance of non-verbal communication in the 1970s.which concluded following
points

1. only 7% of what we communicate consists of the exact content of the message.

2. The use of our volume, tone, way of expressing takes up 38% and as much as
55% of communication of body language. This 7 – 38 – 55 -model is called
Mehrabian model.
3. Intonation (Vocal) is How something is said for example loud or polite
4. Body language (Visual) is basically facial expressions and posture someone
uses.
5. Dominant is The non-verbal component which shows a person’s feelings and
opinions.
 APPLYING MEHRABIAN’S PLAN TO THE
STARBUCKS
1. Starbucks adopts these points from the Meharabian model
2. All the employees working in the organization go through a skill
developing program which teaches the employee about the organization,
culture, guest satisfaction etc therefore one will always find Starbucks’s
employees smiling and greeting the guests.
3. This helps to attract more customers as all the guests are treated
according to the Meharabian plan with proper voice tone, body language,
way of talking. Etc

Image-11
 EFFECT OF PHYSICAL EVIDENCE ON
CUSTOMER
1. Attracts more customers
2. Marketing of a brand, name and logo
3. It Provides customers a better environment to work, relax
4. Provides benefits such as drive through, free Wi-Fi etc
5. It helps to market other products such as Starbucks merchandise
6. Customers can enjoy live band, music on special occasions

Image-12
 EFFECT OF PHYSICAL EVIDENCE ON
EMPLOYEE
1. It helps in providing Motivation to the employees
2. It provides employees Job satisfaction
3. It gives Free and complementary services
4. It provides Better environment to work
5. it helps in improving knowledge and skills

Image-13
 EFFECT ON SERVICE DELIVERY

1. Atmosphere: Starbucks environment is very friendly it is a kind of

place where people can enjoy their social interactions, relax, or just
spent some time by themselves
2. Coffee quality: Sawbucks coffee quality has always been
phenomenal with the use of 100% Arabica beans, starbucks is the only
coffee company who promises to give there employees a magical
experience.
3. Customer Satisfaction: Starbucks concentrates on how to connect
with the customer, by establishing eye contact, smiling and greeting
them with their names therefore the employees are trained for this.
4. Starbucks employees: They are among the highest paid hourly
workers, they enjoy health benefits and many other benefits
 BEST PRACTICE WITHIN THE
ORGANISATION
“we built brand first with our people, not with customers. Because we
believed the best way to meet and exceed the expectations of our
customers was to hire and train great people, we invested in employees.”
Schultz H (2005)

1. Starbucks employees are called as partners, because Howard Schultz

believes it’s not just a job, it’s their passion
2. They always treat each other with respect and dignity and they hold
each other to that standard.
3. Every Starbucks partner also gets free medical services in case if
needed, free food and beverage and many complimentary services.
4. Therefore employees recruiting and managing is the best practice in this
organization
 RECOMMENDATION

1. Starbucks has great growth opportunities in Tea and Fresh Juice products mix.
They should build up these products as their main products besides selling
only coffee
2. More health friendly options should be used
3. Starbucks should try to get market from the rural as well as other small
countries in the world.
4. Home delivery should be started in United states and the UK
5. Starbucks also earns a lot by packed products, these products shall be re
launched and made in a different and innovative way
6. Starbuck rewards shall introduce new and better reward for regular customers
.
7. Starbucks biggest strength is its global market, they should also try to enter in
upcoming markets as well as new markets.
 REFERENCE
Book Reference-
• Micheeli J(2007) The Starbucks Experience, 5 Principles for turning ordinary into extra ordinary,
pg no 9,10,11 ISBN- 978-0-070170978-1, online at- http://www.donsindulgences.com/wp-
content/uploads/2016/03/The-Starbucks-Experience-5-Principles-for-Turning-Ordinary-Into-
Extraordinary.pdf

Journal reference-
• Bitner J (1992) Service Scapes: Impact on Physical Surrounding on Customers and Employees,
Journal of Marketing,Vol 56,pg no- 56,57.
• Daft, R(2017). Essential Organization Theory and Design,9 th edition, pg no-55, online at
http://abiturient.bgu.ru/mag/files/inter/Richard_Daft_Management_Text_Book.pdf
• Gadbow. B et al (2010) Starbucks Design, pg no 1,2,13, online at-
http://sva.isotope221.com/images/strategy/Starbucks-primo.pdf
• Geereddy N, Strategic Analysis of Starbucks Corporation pg no, 17-18, online at-
https://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf
• Higbee Z(2007) The future of Starbucks, pg no 4,5, online at-
http://www.mcafee.cc/Classes/BEM106/Papers/2008/Starbucks.pdf
Magazine Reference-
• Fiscal (2008) Annual Report, Starbucks Corporation, online at
https://s22.q4cdn.com/869488222/files/doc_financials/annual/2008/SBUX2008ARv5_2008.pdf
• Julie J (2017) Restaurants tackle mobile-ordering problems, The Wall Street Journal.
 Web Reference-

Capitol hill seattle

http://www.capitolhillseattle.com/2014/12/starbucks-reserve-roastery-and-tasting-room-opens-at-the-
base-of-capitol-hill/starbucks-reserve-roastery-and-tasting-room_espresso-macchiato/
Starbucks UK
https://www.starbucks.co.uk/coffeehouse/powermat
https://www.starbucks.co.uk/responsibility/environment/greenerstores

Starbucks USA
https://www.starbucks.com/about-us/company-information

Starbucks India
http://www.starbucks.in/about-us/company-information/mission-statement

Starbucks culture
https://www.rd.com/culture/starbucks-tables-round/
YouTube Reference

Citation Reference
Starbucks Coffee Starbucks Coffee (2016, September 26) One year of 1912 Pike,
Retrieved from-
https://www.youtube.com/watch?v=zfl5SyUFp3w

Starbucks Coffee Starbucks Coffee(2014, December 4) The Starbucks Reserve

Roastery and Tasting room, Retrieved from-
https://www.youtube.com/watch?v=pBatO5_-h08
Starbucks Coffee Starbucks Coffee(2016, April 12) How to: Pay at Starbucks with
the app, Retrieved from-
https://www.youtube.com/watch?v=8UTyusMA2Pk
 Picture Reference

• Image 01- https://www.starbucks.com/

• Image 02- https://www.starbucks.co.uk/
• Image 03 - https://www.starbucks.com/
• Image 04 - http://www.starbucks.in/
• Image 05- https://www.starbucks.co.uk/
• Image 06 - https://www.starbucks.com/
• Image 07- http://www.starbucks.co.th/
• Image 08- http://www.starbucks.co.th/
• Image 09- https://www.starbucks.co.uk/
• Image 10- http://www.starbucks.in/
• Image 11- https://www.starbucks.com/
• Image 12- https://www.starbucks.com/
• Image 13- https://www.starbucks.co.uk/