Question 4 (23%) – Offer Christine Day a clear recommendation on how to proceed with the $40 million proposal, and justify the reasoning behind your recommendation

SFSU HTM531 – Hospitality Service Operations Management Starbucks: Delivering Customer Service
Yang © Final Exam Questions
Page 1 of 2
FINAL EXAM PROMPT
Completed Report Due 05/19/20, Uploaded to iLearn by 1159pm
Assignment Description
The final exam is your opportunity to demonstrate that you understand and can apply the service design
analysis tools that we have used throughout the course this semester. It is also your chance to demonstrate
that you understand, can relate, and communicate how and why various hospitality companies have the
service designs that they have. Your final paper will be based on situation in Harvard Business School case
#9-504-016, Starbucks Delivering Customer Service.
Question 1 (20%) – Describe, compare, and then contrast the service offering (target market, values and
operationalizations) of the Starbucks of 1992 to the Starbucks of 2002.
Question 2 (42%) – Based only on the information provided in case, the argument can be made that
customer satisfaction scores with the service experience have declined. Using the Zeithaml, Berry &
Parasuraman GAPS model, choose one ‘gap’ that you believe best explains the primary reason for the
decline in customer satisfaction scores.
a. (1%) Which ‘gap’ did you choose?
b. (1%) What do you believe is the ‘primary reason’ for customer satisfaction decline?
c. (40%) Explain how this ‘gap’ caused the primary reason for customer satisfaction decline that
you’ve identified. Note – do not feel as if you’re constrained by the single ‘gap’ or ‘reason’ that
you’ve chosen. If you believe that your gap and/or reason impacts other gaps or creates secondary
or tertiary reasons, you are encouraged to state and explain their effects as well.
Question 3 (15%) – Examine Exhibit 9. In dollar amounts, how much more valuable is that a customer is
‘highly satisfied’ than for that customer to be simply:
a. A satisfied customer, or
b. An unsatisfied customer?
Conduct your calculations in Excel. Use formulas in your cell calculations wherever you can, and make
sure you clearly label the units on your calculation (eg, months, year, visits, dollars, etc.).
Question 4 (23%) – Offer Christine Day a clear recommendation on how to proceed with the $40 million
proposal, and justify the reasoning behind your recommendation.
a. (1%) Yes or No, should Starbucks make the $40 million investment in labor in its stores? If not,
how would you recommend Starbucks spend $40 million to improve customer satisfaction?
b. (2%) List two customer or employee management system objectives/goals for that $40 million.
And suggest a way to measure those objectives/goals.
c. (20%) Explain why you think the objectives/goals you’ve chosen can bridge the ‘gap’ or address
the ‘reason’ for customer satisfaction decline that you identified in Question 2.
BONUS (Up to +3%) – From the cases discussed this semester, choose two initiatives that you think
Starbucks could/should implement to help achieve the objectives/goals that you described in Question 4b.
Explain why you chose those two initiatives, and how it would be applicable to Starbucks’ customer
satisfaction dilemma.
SFSU HTM531 – Hospitality Service Operations Management Starbucks: Delivering Customer Service
Yang © Final Exam Questions
Page 2 of 2
Guidelines & Specification
Your writeup does not have a page minimum or maximum. Use your best judgment on whether you have
adequately addressed the requirements describe under “Assignment Description.” Business writing is
succinct. Do not be verbose – more words and more pages are not necessarily better than fewer words and
fewer pages. Utilize diagrams, tables, pictures…whatever you need to help explain and advocate for your
recommendation.
You will turn in two files to the drop box on iLearn:
1. A Word file with your response – this should include your responses to Questions 1 through 4c.
(Yes, including something written explaining Question 3.
2. An Excel file with your calculations for Question 3.
Other Logistics
There are shared/collaborative documents for the class to work on, including a discussion forum – all on
iLearn. I will occasionally monitor these resources and answer questions where appropriate. But realize,
that this is your work. You are free (and encouraged) to work with each other, but whatever you ultimately
submit, must be of your own efforts and in your own words. I take plagiarism, and violations of academic
integrity seriously – this is your only warning to submit your own work.
I will be available for Zoom office hours on Sunday the 17th and Monday the 18th from 5-7PM if you have
questions. Otherwise, please email me with any issues.
Good luck – I’ve really enjoyed having you all in class this semester, and I appreciate how you all were
able to tough it through during these trying times.