Leading Innovation and Entrepreneurship

Leading Innovation and Entrepreneurship

According to Chand, innovation is leading UK’s   endeavor of entrepreneurship. This interview report – meet me at Starbucks: Building in United Kingdoms’ entrepreneurial environment – acmes the ascendancy of Starbucks in prominent UK’s commercial ‘system. It includes Social Media of Starbucks.  The interview report examines how entrepreneurs in the UK are sustained and the obstacles hindering them, as are the broader tendencies influencing the innovation environment of UK.


Background Analysis

Starbucks is among the countable business of coffee which, due to its status of a first-class trademark, relishes a fine loyalty from the customer and has with passing of time increased a remarkable advantage in competition on little known trademarks of other coffee business by their risk-taking method to professional focused on customer intimacy and innovation. Regardless of this ongoing success, it is essential for this coffee trade to endure in making sure that the desires  of customer are met and appreciate their morals by  new ideal business and also, to take advantage of current and possible prospects.

On doing core and minor examination on Starbuck business and its consumers, it was emphasized that though the organization appreciates a devoted consumer basis and well established prosperous ideal business, there are those extents where novel prospects can be followed. Subsequently talking to a Starbucks manager it became clear the business had problem amongst its consumers and staff in relation to the process of store ordering. Study has revealed that consumer visiting the joint experience their time spent on lining up, making an order and beverage waiting is interim in impairing what they have been experiencing with the business.

The report is inclusive of detailed interview with manager of Starbucks and analysis, and data excavated from 3,000 posts taken in 3 months and recognized to be from Starbucks hub, as the leading hub for conversing online on activities based on entrepreneurship.

In October last year, comprehensive report on the social media was produced – Innovation systems: Powering economies and authorizing entrepreneurs. That report claimed that universal economy  are on the point of a “1/3 revolution of industrial wave” where  young innovative entrepreneurs   have  a vital part, and states that the growth of “ small international business” – emergence  that function on cheap and expensive locations , providing  worldwide client basis— demonstrates the prospects accessible by internet,  digital communications and globalization.

Model Framework of the Business

In accordance to Allen, a business model framework is created so as to provide a clear definition of the crucial business model competency from the perspective of an entrepreneur, compromising of 6 main parts. This is put into practice in model of Starbuck business so as to make sure the perspective of entrepreneurship is considered in this business venture, while maintaining at present business perspective of Starbucks.

The above 6 constituents of Allen framework shall be put into practice in making sure creativity and innovation in Starbucks model of business are present,  while giving direction to sustaining this model.

Creation of Value

The first framework constituent of this framework is related with creation of value. This constitutes Starbucks new model of business that give more firm value. Starbucks will develop an exclusive value by creating a better experience of customer, expedited by a novel service of interaction. This novel service compromises of Starbucks application on the smartphone, improving the mobile application in existence at present in UK.

The novel application comprises of an exclusive and new process of ordering, letting customers to get the nearby Starbucks joint in a set area, see the menu at the joint through their smartphones, decide what hot drink to buy, purchase the drink via a secured method of payment and get a time to wait and get updates on order collection progress.

The purpose of this novel package is to improve the consumer feeling which Starbucks consumers presently experience might be enhanced by the eradication of times used in lining up. Through providing consumers the choices to buying drinks by this standard, with no necessity to get in the joint, it permits persons to expend their time that they devote to lining up, to carry on daily errands, for instance working, shopping and eradicates the necessity to wait and line up   in store. At the level of  Foundation, the novel package provided to consumers give them  chance to put the Starbucks application to their phones, allowing them to order food and  coffee using  their smartphones prior to getting into the nearest store and picking up the drink they had  ordered earlier.


Factors influencing the market

The next competency is apprehensive with the marketplace where there is creation of value. According to Allan, he gives a description of this component “emphasizing on the scope and nature of the market where the company has competition” From the level of foundation, the objective market for the novel mobile app will be a customer marketplace, expected to consist of the latest technology understanding recipients using services of Starbucks, having present technology of mobile apps and having this technology accessible at any time.

On the hand, at the level of proprietary, the goal is to present this application on a nationwide range, permitting ease availability to UK customers. Through this, clients that got this application can make use of the service at any time for whichever UK Starbucks and thus does not estrange the extensive audience of Starbucks and permits service distribution in a wider market. On the level of rule, it is imposed that the innovative service was accessible to every UK person that wishes to utilize this app as well as be in a position to make use of this app in whichever Starbucks joint on a level six nationwide.

Core Competencies.

The subsequent component of the structure states the company’s interior competence source. Allen (2009) expounds that this “applied in capturing core proficiency or skills set enabling company to deliver a specific value to client”. This recommends that the component of framework be inclusive of any company process in the business that permits it to be efficient in working and providing these outcomes to the customer as a way of creating value source. The main capabilities of the innovative service are outlined as below:

  • Systems of production
  • System of operation.

At the level of propriety this innovative application is allowing the process of ordering to be more effective since orders are expected before the arrival of customer in the joint. Consequently, the beverage is usually ready at a particular time, cutting on time used in queuing and distributing a non-stressful atmosphere for employee and customer.  On the level of rules, the order beverage is usually ready by the agreed time, and in case there is no abiding to it, rule is imposed where the customer gets discounted on drinks they had ordered. It would be applied in case 1 worker considering size of  location and  branch  will be chosen to the product orders application.

Marketing and Selling

Promotions were made at the proprietary level where the mobile application is used in communication, permitting a valued consumer directed gateway of communications. Efforts of marketing were improved by this innovative application allowing creation of a comprehensive consumer database with acquisition of conduct as its key determinant. This in turn permitted more initialed communications and promotions with customers through distribution of marketing products like special offers and vouchers entirely by the use of particular application to the persons purchasing usage and behavior this way creating more craving to get the application.

At the level of rules, marketing things like offers or promotions was done an update and taken to one month of innovative service for the sake of customer and developing a close customer relation where they were not bombarded with the messages of marketing. On the level proprietary, as the pervious application of Starbuck   in existence in the United Kingdom, the application service improvement significantly improved on the technology that existed, clearly influencing experience of consumer and permitting more consumer experience and relationships via the readiness to adjust services to innovative technology.

The main improvements are the capacities to make beverage order before and collecting allegiance payments by subsequent acquisitions at whichever positioned Starbucks in UK.  On the level of rules, this application was revised on a consistently in order to make sure it was efficient and so rectified whichever problems gotten in application of this service promptly. Development and research done based on this application was to be done daily so as to ascertain any developments, application expansion or innovative tools able to be developed in alignment with   application technology enhancements.

Strategy of competition

The succeeding element of the ideal business involves the way in the business position itself in the marketplace while in competition. This component, thus, determined in what way the anticipated ideal business would allow the organization to separate itself from its indirect and direct contestants. Chand clarifies diversity comprises of creation of what is alleged to be really exceptional in the market.  The difficulty that organizations are faced in new services or products creation is the fact that novel undertakings are regularly adapted by contenders; thus there is emphasis on safeguarding and preservation of the ideal business in striving. A variation of diverse components would be in applied so as to place the planned application service.

At the level of foundation, the application service would show innovation of leadership by using new exceptional and current technology in facilities of ordering. Thus, allowing the business to manifest to clients and get modest superiority that the product is altering the facility contributions to maintain updated demanding customers lives by a common standard. The expedition of process of ordering by the novel process of service shows variation as it would permit customers to experience beverages ordering process in little time using yet effectual way, eradicating the component of lining up that customer’s sense impairs their experience as consumers.

In determining on organizing the business it ought to place itself, it is vital to contemplate that Starbucks has most times strived to build close consumer relations and thus, this ought to be accepted by adopting the novel ideal business. This focus and closeness on experience of consumer is apparent in this undertaking purposed to build a different consumer feeling facilitating ordering with ease and gaining drinks in a way that is modified to lifestyles of customer and pursues to eradicate components that might deter the feeling. This emphasis on building a novel consumer feeling showing an ideal business at the level of proprietary.

As an alternative of the novel smartphone application service being at the center of this ideal business, the emphasis would be on the manner in which the provision permits the customer to get a better consumer feeling, expedited by the novel service which builds a better setting in the store. On the level of rules, the business would purpose to attain the best operative system of ordering in the business with the greatest satisfaction on the consumer side.

Factors of Economy

This element of ideal business would outline the way this coffee industry aims at making cash by the use of the novel package, considering influences like   profit margins, sales volumes and the revenue sources in the ideal business. On the level of Foundation, the company gets income from the present business plan by great volumes of sales and little gain margins. The application would undergo comparatively little leverage of operation, though, the little   inner proficiencies fixed costs will lead to more revenues.

On the level of Proprietary, the effective drink offers and additional enticements given to consumers making order by using application of Starbucks would lead to more revenue as faster orders produce additional practice as well as developing long-lasting consumer worth.  At the level of rule, the application would stand at original buying price that is fixed. The consumer would  get a fee  charge for  transacting  on ten unit price  of  every order that is at this  fixed price and turn to be  more income to one of the  drink order, however not so much that the customer senses  this  service is unworthy of the additional charge.


This report has emphasized the main elements forming the innovative ideal business for Starbucks from a viewpoint of an entrepreneur. Every element has been analyzed and assimilated in the 3 competency levels to make sure new features are adapted and to delineate the main strategies of making sure that all mechanisms are upheld and accomplished efficiently.

It is vital to note that while formulating ideal business like Starbucks nevertheless, though it offers a great basis to give an innovative project, it will not essentially result to the anticipated product. As an alternative the ideal business formulation might be a continuous progression where given components are modified and altered in the stage of execution. In its place, it should be able to grow and transform with the venture to create the combinations that create greatest effectiveness.

Appendix 1 – Summary of Media history of Starbucks

In the year 2001:  Starbucks Card is introduced, as customer innovation card with a value store for using and reloading at any one time.

In the year 2008: Starbucks first online community and My Starbucks Idea are launched at the same time.

In the year 2009:  Starbucks Card iPhone apps and My Starbucks are launched together with Starbucks Card Mobile payment “Starbucks VIA™” ready for brewing coffee. These are given a reward for being the busiest social media brand.


  • 100 people
  • 11 to 60 years of age
  • 125th Street

Target Audience

  • Appendix 2- Starbucks Current Application
  • Appendix 3- Starbucks New Application
  • Appendix 4 – Interview transcript

Howard Schultz, the selfless groundbreaker who is the CEO of Starbucks admits that hard decisions need every so often to be temporary to safeguard a prosperous future. The following transcript is extract from my interview with Starbuck Manager.

Interview transcript

  • Interviewer: Customer cum Student
  • Interviewee: Starbucks Manager

Interview Setting: The Interview is done in one of the Starbucks café on 125th street. This interview was done at 4:30 PM on Friday afternoon.

Affiliation with interviewee: The Starbucks manager has worked at this café for 6 years. I had talked to him in private in regards to their leading innovation and entrepreneurship.

Interviewer: Predominantly regarding innovation and meeting the target, what are the main Starbucks achievements?

Interviewee:  Meaning prior to me working with Starbucks?

Interviewer: Yes both

Interviewee: The Company has attained its goal of developing a company that conforms to given values and US bars experiencing the Italian espresso. This way the company is committed in creating a balance between benevolence and profitability.

Interviewer: What are the approaches applied in encouraging the Starbucks partners to get new great concepts?

Interviewee: First of all, the vital thing is to fuel their spirits and theatrically inspire them. A valued employee, who trusts Starbucks, will intuitively look for different means of adding value. It is motivation that matters as well as skills nurturing as they are owned. The company partners — and through this company – do not need anything other than creating an impression. This quest for impact, to a great influence, is the greatest motivation.

Interviewer: How substantial is the trend spotting topic to this coffee business?

Interviewee: I would say it is vital to get to know what is on the trend, and to establish the aim of creating competition, nonetheless the crucial thing is that capturing the imagination of customer is not all about being different and new. Receiving the attention of customer is operational on condition the expectations are exceedingly and constantly attained and surpass the anticipations set. I wish to get a sensible method amongst top testing and practices of novel approaches. Contemporary research is in listening, talking, interacting, and field watching to customers in actual life situation.

Interviewer: Kindly give me the secret ingredients used in making an innovation culture?
Interviewee: Starbucks is a topnotch, state-of-the-art company. There is a spirit of entrepreneurship in its gene. The culture character begins from up going all the way down the all-inclusive company. There is estimated space for change in this company which, board members are entailed in. We as committed company staff have taken own work ownership. There is a set of collective setting here, and even though it might be hard to split the hierarchy at popular company like this, it is imperative listen, engage and note ideas in enacting them as you get in engagement with staff at each point. In my opinion, Starbucks has and is doing a good job in regards to this. You are not sure of the source of   any big idea. If this company business proves a readiness to examine new concepts and uphold adjustment, the groups will embrace natural innovation, hoping to expect a big tangible impression.

Interviewer: Finally, in what way would you say Starbucks is actively investing in innovation, or are you satisfied?

Interviewee: Starbucks being a first-class company, one will not be content with it at any given time. Expectations of customer are varying always, and our quest is to be able to attain and surpass those prospects. We are in constant search for opportunities of white space. For this case, we are in constant tests—for example packaging, marketing, operational, operational testing. There are absurd changes that occur here so that we are able to give a response to and put to play what is in line with our consumers. With the establishment of team by the name Tazo tea team precisely, we are closely looking at the United Kingdom tea industry specialty. In this way, we are being acquainted with many things concerning tea customers and our opponents. We are implementing new concepts and receiving instantaneous client response about what they are searching in experience of consuming tea, and what we get to know from this is one supply can have requests all more than the future set Starbucks stores. There is a remarkable chance in the market of tea, and we lay focus on innovating in this as was the case with coffee.

Appendix 5 – Survey design and Rationale

The detailed survey was intended in a way that it would report both potential and existing consumers of Starbuck. Through the use of a quantitative and qualitative design (the open questions and 2 close queries permitting for additional detailed individual data to get inscribed), it was pursued that as ample facts would be drew from those responding to these queries.

Question 1:  What is your gender – Female or Male?

Question 2: What is your age?

Question 3: Are you at present having a Smartphone (HTC, Blackberry, or iPhone)

Question 4:  Are you currently having a dynamic option of Internet on your mobile phone?

Question 5:  In the past have you visited any coffee shop of Starbucks?

Question 6: If the answer to the last question is Yes  then kindly tell if you are in agreement  with this  statement that follows: “The amount of time spent  lining up at any coffee shop is vital to me ” Somehow Not at all Slightly not  vital Rather Precise at every insignificant  but not insignificant vital significant

Question 7:  Why would you choose the answer you have given up?

Question 8: (a) Is it possible that you would approve to take the little additional fee for time on waiting for you as you get to coffee shop of Starbucks rather than having to line up for it?

(b) Are you comfortable and would you accept the chance to order by the use of phone application?

Question 9: Do you agree with the following statement: “Starbucks shop is an experience as well as being a shop for coffee –  Somehow Not at all Slightly not  vital Rather Precise at every insignificant  but not insignificant vital significant

Question 10: (a) How significant is availability of unlimited Wi-Fi in consideration of shop of coffee? Somehow Not at all slightly not vital Rather Precise at every insignificant but not insignificant vital significant

(b) If Starbucks has Wi- Fi would you choose in accessing its service and why would you choose it? If not give the reasons?


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