Management for the service sector Essay Example | Topics and Well Written Essays - 1500 words

Management for the service sector - Essay Example One of the best decisions recently made for the company, was its approach to do without franchisees and keep its stores company owned. The depth of management resources is what makes Starbucks different from small businesses. There are other similar companies that will spend up to approximately $300 million dollars per year, just in marketing, where as Starbucks will only spend 1 percent of its revenues (approximately $30 million) in both advertising and marketing. Starbucks utilizes their marketing and advertising dollars towards new products that are ready to come out or new coffee flavors and ideas. Starbucks has no doubt that their employees are one of their most important assets to the company. Their workforce is able to manage and maintain a competitive advantage. Pride in their workforce was produced through an empowering corporate culture; outstanding employee benefits and employee stock ownership programs. Being able to make decisions on their own without first having to report to management is empowering and motivating for the employees. They are encouraged to think for themselves as an entity of the business. Your mind unconsciously filters our most of what is going on around you. At some level of perception, your mind is aware of certain things. Perception is a persons mental image of the world. One of Starbucks biggest concerns is with customers perception. The customers perception of the way employees behave, greet them and even the way that handle their money has a lot to do with getting them to buy a $3.00 cup of coffee (Schultz & Dori 1997 p 14). One of the great challenges Starbucks faces is to create a perception of quality in order to get customers to pay the price they want charge. For many people, a brand is perception. People perceive Starbucks to be a great place to sit down in a comfortable, relaxing atmosphere. The perception, leading to the experience, provides customers with an unforgettable