Costa Coffee Harvard Case Solution & Analysis

Costa Coffee Case Study Help

Costa Coffee significantly demonstrates wide-ranging partnerships in the area of logistics which ranges from the international organizationswhich primarily include DHL, HAVI, or Kuehne+Nagel in terms of specializing freight forwarders which served as a key success factor proving the organizationdynamic growth. Considering the initial international expansion of the business, such relationship development provided Costa with significant freighting services as an improved understanding associated with the customer centricity and approach to effective collaboration serving as the key two notions in the international supply chain of Costa Coffee.

Value Generation:

With the aim of Costa Coffee to make the coffee-making experience art and provide the customers with an improved experience based on the maintenance of the standards of excellence to make them feel lively. Costa Coffee values its customers and considers their views and feedbacks in order to improve its services at an extensive level. It significantly believes in continuous improvement i.e. the reduction inqueue waiting time, fast and efficient services and high-quality products to drive the positive experience of customers.

Continuously for about the past ten years, Costa Coffee has been awarded as the Nation’s Favourite Coffee shop. The store services are mainly appreciated due to the high-quality services provided at the store. A large number of customers have demonstrated high satisfaction levels and a friendly staffing environment at the store. The additional services available for the customers at the store mainly included fast service, convenient store location, relaxing atmosphere, free Wi-Fi facility, loyalty card, and local and expert Baristas.

Such services are aimed to improve the experience of the customers at the shop, spend quality and relaxing time. The availability of different products other than coffee is to provide the customers to have a happy meal with a delicious and tasty coffee at the store. Due to the high product prices, the store mainly targetsthe high-end consumer market through different promotional events.

Despite the success factors that greatly influenced the sales and profitable growth at the store, the management of Costa Coffee was acclaimed by its employees regarding the non-ethical behavior with the employees at the store. They complained about the lack of empathy and consideration of their feelings. Such management practices influence the morale and productivity of employees at work. Decreased morale and inefficient performance tend to badly affect organizational performance. (Yusuf, 2019)

Thus, in order to manage the organizational operations in an effective manner, Costa Coffee requires tobring changes in the strategic approach regarding productivity and increased motivation of the employees. Poor services and unattractive environment of the store might tend to be a core factor resulting in the declined sales of the organization influencing the brand reputation leading to negative feedbacks by the potential customer base.


Considering the products and services offered by Costa Coffee, due to the acquisition of Costa by Coca-Cola, it gained a competitive advantage in the food and beverage industry i.e. the provision of access to Costa to expand its services in about 200 countries. On the other hand, the key strategic issue faced by Costa regarding the supply chain strategy mainly included the dissatisfaction of the employees influenced by the poor management and weak organizational culture.

Despite the issues, the organization has been successful in expanding its services. But, there seems a requirement to be focused to bring significant improvement in the organizational culture which might tend to harm the brand reputation and decline sales and profit. Therefore, the employees of the organization should be provided with training without charging any additional amount. As the training of the employees is known to bring improvement in the behavioral response of the employees and allow them to develop new skills and improve their existing skills.

The metrics that can be used to measure and monitor the performance of the organizational operations in the United Kingdom and international level mainly include the increase in sales, increased productive outcomes, efficient performance, provision of good customer services and most importantly increased satisfaction and motivation of employees to offer their services at the store.................................


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