With reference to Starbucks, evaluate how digitalization enables a company to improve its operational efficiency, sales, and customer experience? Please explain in detail Starbucks Case Study.p... XAll toolsEditConvertSign+ CreateFind text or tools Q |eΑΙ922-0003-1To increase its operational efficiency and enhance customer service, Howard Schultz,then CEO ofStarbucks, decided to adopt a technology-oriented strategy rather than focusing on changing thelayout or ambience of the stores. In 2008, the company launched the Starbucks Rewards program,which offered a card to users enrolling in the loyalty program, which they could use to pay for theirpurchases at the stores. For every purchase, users earned stars, which could later be redeemed for afree drink. This was followed by Starbucks launching its mobile app in 2009, which allowed theconsumers to pay for their purchases at Starbucks using their smartphones by scanning the matrixbarcode, the QR (Quick Response) code. While the loyalty program made the customers feelengaged with the company, the mobile app offered them a convenient way to pay at their stores.In 2015, Starbucks launched the Mobile Order & Pay feature, which enabled consumers to pre-orderand pay through their phones and pickup their items at Starbucks stores, thus saving on time. Themobile app collected huge amounts of data (with the consent of the consumers) which revealed theirtastes and preferences. Using this data, the coffee giant aimed to enhance the user experience. Thus,in 2017, the company started its Digital Flywheel initiative comprising four components – rewards,mobile ordering, payment, and personalization. Commenting on the initiative, Starbucks CTO GerriMartin-Flickinger said, Digital Flywheel would provide customers with “a user experience that's thesame everywhere,” through a cloud-based “unified commerce platform.6ووTaking its digital initiatives forward, in 2017, Starbucks in association with Microsoft, launchedDeep Brew, an Artificial Intelligence (AI) engine that offered customizable menu boards toconsumers across multiple channels such as digital menu boards and in-app ordering. The AI-driven platformmade recommendations based on the purchase history of consumers, time of day,weather, community preferences, popularity, store inventory, etc. The Deep Brew also automatedtime-consuming tasks such as inventory management. In addition to this, Starbucks utilized AI inits Mastrena espresso machines which had Internet of Things (IoT) sensors built into them. DeepBrew with its predictive analytics notified which espresso machines needed maintenance beforethey broke down. In April 2021, Starbucks was using Deep Brew to conduct predictive analysis tosee the progress of Covid-19 vaccination across its key markets worldwide and when customerswould return to its stores, according to Starbucks President and CEO Kevin Johnson (Johnson).Analysts appreciated Starbucks for implementing several digital initiatives as part of its companyphilosophy and said these initiatives had helped it improve sales and operational efficiency,enhance customer service, etc.Some critics pointed out that though the company's digital initiatives helped it survive thepandemic in its US stores and other global markets. Starbucks was facing declining sales in ChinaBOO1475APR18άtvAWДmeters. This PDF may not be reproduced, stored in a retrieval system, or uploaded to any LLM (e.g. ChatGPT).ht by Fanny Saruchera, from 16-Apr-2024 to 21-Apr-2024. Order ref F506515.or use on the Marketing for a Digital World, at University of the Witwatersrand (WITS).CanvaTNEWSign in√ ◉317C1:10 0Q Starbucks Case Study.p... X+ CreateAll toolsEditConvert SignSign inFind text or tools Q |Purchased for use on the Marketing for a Digital World,Taught by Fanny Saruchera, from 16-Apr-2024 toUsage permitted only within these parameters. This PDF may not be reproduced,eΑΙШ запиагу 2020"Everything we are doing in digital is about enhancing and strengthening thoseconnections [with our customers] in only the way that digital can and only theway that Starbucks can."3- Adam Brotman, Chief Digital Officer of Starbucks, in August 2017For the year ended October 3, 2021, American multinational coffee giant Starbucks Corporation(Starbucks) recorded revenues of US$29.06 billion, an increase of 24% compared to fiscal2020.* Commenting on the results, Starbucks COO John Culver said that the US stores wereexperiencing normalization with peak hours returning to pre-Covid-19 levels. Much of thecompany's success was attributed to the digital investments Starbucks had made that gave it anedge over its competitors.Ever since Starbucks was founded in Seattle in 1971, the coffee giant had been known for its club-like atmosphere and premium coffee. Consumers flocked to its stores to relax over a cup of coffee.To reach out to more consumers, Starbucks grew rapidly during the early 2000s. While thisexpansion garnered revenues for the company, customer service took a backseat. And customerswere quick to turn to its competitors who were offering better customer service at lower prices. Theglobal economic slowdownª only added to the company's troubles, leading to Starbucks' operatingincome experiencing a decline to US$504 million in 2008 from US$1 billion in 2007.5aThe global economic crisis began in July 2007 due to a loss in the value of securitized mortgages in theUS which resulted in a liquidity crisis. The reasons to which the downfall of the economy were attributedwere collapse of the US mortgage market that led to the bursting of the housing bubble in the US, soaringcommodity prices, and stock market volatility. In September 2008, the crisis deepened, as stock marketscrashed worldwide, large financial institutions collapsed, and several mortgage lenders and insurancecompanies went bankrupt.BOO14752APR18C1:1Q

Question

With reference to Starbucks, evaluate how digitalization enables a company to improve its operational efficiency, sales, and customer experience? Please explain in detail Starbucks Case Study.p... XAll toolsEditConvertSign+ CreateFind text or tools Q |eΑΙ922-0003-1To increase its operational efficiency and enhance customer service, Howard Schultz,then CEO ofStarbucks, decided to adopt a technology-oriented strategy rather than focusing on changing thelayout or ambience of the stores. In 2008, the company launched the Starbucks Rewards program,which offered a card to users enrolling in the loyalty program, which they could use to pay for theirpurchases at the stores. For every purchase, users earned stars, which could later be redeemed for afree drink. This was followed by Starbucks launching its mobile app in 2009, which allowed theconsumers to pay for their purchases at Starbucks using their smartphones by scanning the matrixbarcode, the QR (Quick Response) code. While the loyalty program made the customers feelengaged with the company, the mobile app offered them a convenient way to pay at their stores.In 2015, Starbucks launched the Mobile Order & Pay feature, which enabled consumers to pre-orderand pay through their phones and pickup their items at Starbucks stores, thus saving on time. Themobile app collected huge amounts of data (with the consent of the consumers) which revealed theirtastes and preferences. Using this data, the coffee giant aimed to enhance the user experience. Thus,in 2017, the company started its Digital Flywheel initiative comprising four components – rewards,mobile ordering, payment, and personalization. Commenting on the initiative, Starbucks CTO GerriMartin-Flickinger said, Digital Flywheel would provide customers with “a user experience that's thesame everywhere,” through a cloud-based “unified commerce platform.6ووTaking its digital initiatives forward, in 2017, Starbucks in association with Microsoft, launchedDeep Brew, an Artificial Intelligence (AI) engine that offered customizable menu boards toconsumers across multiple channels such as digital menu boards and in-app ordering. The AI-driven platformmade recommendations based on the purchase history of consumers, time of day,weather, community preferences, popularity, store inventory, etc. The Deep Brew also automatedtime-consuming tasks such as inventory management. In addition to this, Starbucks utilized AI inits Mastrena espresso machines which had Internet of Things (IoT) sensors built into them. DeepBrew with its predictive analytics notified which espresso machines needed maintenance beforethey broke down. In April 2021, Starbucks was using Deep Brew to conduct predictive analysis tosee the progress of Covid-19 vaccination across its key markets worldwide and when customerswould return to its stores, according to Starbucks President and CEO Kevin Johnson (Johnson).Analysts appreciated Starbucks for implementing several digital initiatives as part of its companyphilosophy and said these initiatives had helped it improve sales and operational efficiency,enhance customer service, etc.Some critics pointed out that though the company's digital initiatives helped it survive thepandemic in its US stores and other global markets. Starbucks was facing declining sales in ChinaBOO1475APR18άtvAWДmeters. This PDF may not be reproduced, stored in a retrieval system, or uploaded to any LLM (e.g. ChatGPT).ht by Fanny Saruchera, from 16-Apr-2024 to 21-Apr-2024. Order ref F506515.or use on the Marketing for a Digital World, at University of the Witwatersrand (WITS).CanvaTNEWSign in√ ◉317C1:10 0Q Starbucks Case Study.p... X+ CreateAll toolsEditConvert SignSign inFind text or tools Q |Purchased for use on the Marketing for a Digital World,Taught by Fanny Saruchera, from 16-Apr-2024 toUsage permitted only within these parameters. This PDF may not be reproduced,eΑΙШ запиагу 2020&#34;Everything we are doing in digital is about enhancing and strengthening thoseconnections [with our customers] in only the way that digital can and only theway that Starbucks can.&#34;3- Adam Brotman, Chief Digital Officer of Starbucks, in August 2017For the year ended October 3, 2021, American multinational coffee giant Starbucks Corporation(Starbucks) recorded revenues of US$29.06 billion, an increase of 24% compared to fiscal2020.* Commenting on the results, Starbucks COO John Culver said that the US stores wereexperiencing normalization with peak hours returning to pre-Covid-19 levels. Much of thecompany's success was attributed to the digital investments Starbucks had made that gave it anedge over its competitors.Ever since Starbucks was founded in Seattle in 1971, the coffee giant had been known for its club-like atmosphere and premium coffee. Consumers flocked to its stores to relax over a cup of coffee.To reach out to more consumers, Starbucks grew rapidly during the early 2000s. While thisexpansion garnered revenues for the company, customer service took a backseat. And customerswere quick to turn to its competitors who were offering better customer service at lower prices. Theglobal economic slowdownª only added to the company's troubles, leading to Starbucks' operatingincome experiencing a decline to US$504 million in 2008 from US$1 billion in 2007.5aThe global economic crisis began in July 2007 due to a loss in the value of securitized mortgages in theUS which resulted in a liquidity crisis. The reasons to which the downfall of the economy were attributedwere collapse of the US mortgage market that led to the bursting of the housing bubble in the US, soaringcommodity prices, and stock market volatility. In September 2008, the crisis deepened, as stock marketscrashed worldwide, large financial institutions collapsed, and several mortgage lenders and insurancecompanies went bankrupt.BOO14752APR18C1:1Q

Accepted Answer

Approach to solving the question: Detailed explanation:Digitalization has significantly transformed…