Crises Management, Exercise 1: Starbucks Crusader

What did Starbucks do well in the management of this issue?

I don’t think Starbucks actually did anything right in the successful management of this issue.

What did Starbucks do poorly in relation to managing this issue?

Starbucks obviously thought that this issue was yet another customer complaint. They offered compensation to the client much too late in the process and did not effectively plan ahead. The company also did not monitor this issue effectively. Treated the case a generic complaint as opposed to personalising the issue and tailoring their communication to that individual client. Even after some compensation was offered, Starbucks adopted a closed minded attitude to resolve the issue and those of other disgruntled customers. Starbucks was very dismissive of the client’s requests without exploring the options further.

If you were the PR manager at Starbucks corporate headquarters, how would you have handled the situation? Would you have done anything differently?

I would have offered a refund or exchange along with a letter of apology earlier on in the process with the hope that this would have nipped the issue in the bud. Failing to reach a favourable outcome for both the organisation and the client, I would make sure that all communication avenues were left open by both parties. By gaining an understanding of what the consumer’s demands were earlier in the process would have saved the organisation time, money and resources. Not to mention major embarrassment and negative media coverage. I would have conducted a risk assessment after the first negative media advert the client placed and determined how much of a threat the client was to the organisation. Based on my research I would have done some more thinking around what steps to take next as opposed to letting it escalate further and further.