An Analysis of the Customer Service Issues at Starbucks Using Causal Loop Analysis

Module 2 Assignment: An Analysis of the Customer Service Issues at Starbucks
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WMBA 6040: Improving Business Performance
Executive Summary
This paper aims to recognize an improvement plan for Starbucks customer experience. It begins with a causal loop diagram that has helped analyze the firm's client satisfaction rate. The figure captures the fundamental behavior, causes, and outcomes of the customer services issue at Starbucks. It indicates how the company has no better consumer experience, which is crucial for revenue generation. Unfortunately, the firm has invested extensively in research and development, but only less improvement has been evident in that field. Besides, the level of client satisfaction is still low. This paper also analyzes the cause of poor client experience at Starbucks, as noted in the case and the causal loop diagram. It also explains why growth and underinvestment archetypes best fit the given scenarios. In addition, the paper applies the systems thinking concepts of mental models to the Starbucks case and concludes with recommendations on how the firm can improve customer experience.
Part 1: Tools for Improvement: Causal Loop Analysis
Causal loop diagram
1981200-4191000
4791075216534037909501974850 Exceptional customer services customer satisfaction
2209800279400
Improve customer service
95535751079500 and decrease time wastage
2638425247650064674751581150 Client perception and satisfaction
656272520066000 Invest $40million or hire more workers
33242252844800022669503365500 Revenue
33909005080000
246697517589500 Aggressive growth strategy and evolving customer base
Customer loyalty and
Providing an inviting atmosphere
The causal loop diagram above presents the customer satisfaction issue faced by Starbuck. The firm faces this challenge because its clients do not perceive the quality of experiences and items provided as good. The diagram indicates that Starbucks addresses customer satisfaction by investing in its core capabilities and competencies. It mainly uses research and development to ensure customers receive high-quality services. However, it seems like this approach is not working as expected because it is not being utilized to capacity.
Starbuck has been assuming that it offers the best customer service. The company uses several strategies, including providing high-quality tea and client inviting environment and creating customer intimacy to improve the experience. Market research shows that the firm's perception and satisfaction of itself differ from tha...