Beanz Versus Starbucks: Personality in a Cup!

Case Solution

Edward Gamble, Peter Moroz, Stewart Thornhill, Haley Beer
Ivey Publishing ()

The Beanz Espresso Bar is located in downtown Charlottetown on Prince Edward Island, Canada. It operates in a highly competitive market (11 other coffee companies in two blocks). The economy on Prince Edward Island in recent years has seen various diners, restaurants and cafes close their doors while attracting large corporations like Starbucks and Running Room. Beanz has weathered major environmental changes thus far and has managed to keep its customers and owners, Lori and Doug, in the moment by selling Beanz and leaving the industry or capitalizing on its competitive advantages to grow and gain more market share. Beanz specializes in high quality coffee specialties and fully baked dishes. The cafe is known for its artsy vibe, warm atmosphere, and eccentric staff. After operating Beanz for 16 years, the couple made some changes to the decor, menu, and settings. Internally, the company faces several problems related to management control systems, marketing and strategic direction. Lori and Doug have to choose between five different directions for Beanz’s future.

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