This website uses cookies to ensure you have the best experience. Learn more

Starbucks Essay

5903 words - 24 pages

Starbucks Corporation: An Extensive Analysis

By:
Muhammad Almuhanna
Andre Johnson-Payne
Jessica Pope
Natalie Schiefer
Jordan Sprague

Management 429 – Dr. Yu Liu
April 16, 2012

Table of Contents
Brief Introduction & Key Issues 3-4
External Analysis 4-5
Internal Analysis 5-7
Analysis of Business Level Strategy 7-8
Analysis of Corporate Level Strategy 9-11
Recommendations 11
References 12
Appendix 13

Brief Introduction & Key Issues
Starbucks opened their first location in Seattle, Washington in 1971. Since then, the company’s main focus has been to ethically source and roast the highest quality Arabica coffee beans in the world. The company’s mission ...view middle of the document...

Of the firm’s 17,000 current outlets, 12,500 are in the United States. (Starbucks franchise success)
Starbucks Corporation offers a wide range of products to meet the demands of their different markets. They offer a variety of fresh brewed to ready-made bottled beverages for those on the go. For those who enjoy their coffee at home, they sell the Starbucks brand in packages. For those who wish to come in and enjoy the Starbucks atmosphere they offer a limited food menu along with their full drink menu. Starbucks is most known for their ability to specialize their drinks to meet the demands of their many different markets.
“Aside from extraordinary coffee, Starbucks has made a business out of human connections, community involvement and the celebration of cultures. We're committed to upholding a culture where diversity is valued and respected. So it's only natural that as a guiding principle, diversity is integral to everything we do.” Starbucks defines their culture as one simple equation, Diversity = Inclusion + Equity + Accessibility. They focus their company-wide diversity strategy on four areas: partners, customers, communities, and suppliers. Starbucks applies their equation to each of these areas in hopes to create a successful and enjoyable partnership that is noticed by employees and patrons alike (Starbucks Corporation, Diversity, 2011).
Starbucks Corporation is focused on creating an environment that respects people from diverse backgrounds, while empowering their employees to perform their best. They believe that by using the promotion from within strategy and by providing employee recognition it will increase the employee morale, which gives them motivation to provide excellent customer service. The company provides training to all their employees, which stresses the importance of their brand image, making Starbucks welcoming to everyone no matter what their background (Starbucks Corporation, Diversity, 2011).
Although Starbucks has been very successful in the past, they still face external problems like every business. Starbucks’ key issues are increasing competition, market maturity and decline, and an unstable macro environment. Competition in the coffee industry is on the rise and is saturating the market. Although there are only a few major competitors in this industry, full service fast food restaurants offering coffee products are on the rise, thus increasing competition. For example, in the last few years McDonalds has added the McCafe products to their product line, offering low price alternatives. These have ‘stolen’ a portion of the market share from Starbucks Corporation, as they are substitute products. Second, the industry has matured and has become saturated. There are only a few major competitors, but there are many small local coffee shops. The third issue is the unstable macro environment. Prices are on the rise and due to the limited number of geographic regions coffee beans can grow in...

Other Papers Like Starbucks

Starbucks Essay

321 words - 2 pages When considering successful franchises it seems appropriate to look at Starbucks history. Not just a neighborhood coffee shop, Starbucks Coffee Company has become synomous with quality products and service. Whether you are Generation X or part of Generation Y, the working class and the technologically advanced youth has embraced what Starbucks has to offer - even if they have to stand a half an hour in line to get it. But once you are

Starbucks Essay

1162 words - 5 pages Starbucks is a public company. that operates a chain of stores that sells high-quality coffee. Its typical company-owned store has a pleasant, coffee-house atmosphere complete with couches and Wi-Fi and is known for being a place to meet and gather. Starbucks licenses its stores to other business, not to individuals. For example, in the US Starbucks licenses stores to Host International, Inc. an Autogrill group (my employer), is a concessions

Starbucks

1288 words - 6 pages I’m sure that when thinking of Starbucks, many automatically think of strong coffee; Starbucks is more than just coffee. This company offers an appealing atmosphere and friendly helpful staff to assist customers with various services. Not only does Starbucks offer exceptional customer service they also pride themselves in offering an excellent working environment and benefits to their employees. Starbucks’ mission statement states: “Establish

Starbucks - 2462 words

2462 words - 10 pages There are several barriers facing Starbucks as they try to “teach” people to change their consumption habits from tea to coffee. Firstly, tea is one of the common beverages in China. According to the history, China peoples start to drink tea before four thousand years ago. In China, tea has become a unique cultural phenomenon. The Chinese view tea to be both medicinal and beneficial whereas coffee does not have the same value to the Chinese

Starbucks - 1542 words

1542 words - 7 pages Starbucks Coffee Christina Law Principles of Marketing Professor Hartl Over 100 million people in the United States are considered daily coffee drinkers, making the coffee industry a multi-billion dollar industry (Coffee Drinking Statistics). Coffee has become a routine in most college students and working adult’s lives. There are the coffee drinkers that are considered addicts who are not able to function without their morning

Starbucks - 1506 words

1506 words - 7 pages Starbucks Corporation: Case Study in Motivation and Teamwork Because of rapid globalization over recent years, competition around the world becomes more intense, especially for the service industry with similar products. The most critical point for business to achieve success is not only the quality of products they supply, but the atmosphere of cooperating and the amount yielded from teamwork in retail sales. Therefore, it turns out to be

Starbucks - 1506 words

1506 words - 7 pages Starbucks Corporation: Case Study in Motivation and Teamwork Because of rapid globalization over recent years, competition around the world becomes more intense, especially for the service industry with similar products. The most critical point for business to achieve success is not only the quality of products they supply, but the atmosphere of cooperating and the amount yielded from teamwork in retail sales. Therefore, it turns out to be

Starbucks - 1491 words

1491 words - 6 pages Starbucks Corporation: Case Study in Motivation and Teamwork Because of rapid globalization over recent years, competition around the world becomes more intense, especially for the service industry with similar products. The most critical point for business to achieve success is not only the quality of products they supply, but the atmosphere of cooperating and the amount yielded from teamwork in retail sales. Therefore, it turns out to be

Starbucks - 1961 words

1961 words - 8 pages Starbucks Introduction and Operations 1 The first Starbucks opened in 1971 as a single store in Seattle’s historic Pike Place Market. It offered some of the world’s finest fresh-roasted whole bean coffees. The name Starbucks was inspired by Herman Melville2 Novel, Moby Dick, and evoked the seafaring tradition of the early coffee traders. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) first walked

Starbucks - 1024 words

1024 words - 5 pages Situation Analysis: Company Starbucks is a leading international coffeehouse that was founded in the year 1971 and acquired by Howard Schultz, the CEO of the company, in 1987. It has shaped the American culture by altering what we pay for coffee, what we eat, where we meet and how people spend their time socially. It rose from a single location in Seattle to a multibillion-dollar enterprise that operated in more than 17,000 retail stores in

Starbucks - 920 words

920 words - 4 pages . Starbucks MKT 111b Marjorie Kaufman Over the last few decades Starbucks has reshaped how we shop for and enjoy coffee. What began as a small shop in Seattle, Washington; has become one of the world’s largest producers of coffee and coffee related products. Starbucks was started by three friends; Gordon Bowker, Jerry Baldwin and Zev Siegl; in Seattle, Washington. Good coffee seemed hard to come by and Bowker was traveling to

Related Essays

Starbucks Essay 766 Words

766 words - 4 pages Executive Summary ACC/280 September 20, 2011 Sofoklis Hiotellis Starbucks is the leading seller and roaster of specialty coffee globally. Their goal is to become the leading brand of coffee in its targeted markets by selling the finest quality coffee and associated products and providing customers with a unique Starbucks Experience. The Starbucks mission is to encourage and cultivate the human spirit one person, one cup, and one

Starbucks Essay 1180 Words

1180 words - 5 pages Summary Millions of people all over the world walk into Starbucks every day for their cup of coffee, but it is more than the overpriced coffee that brings people in day after day to the Starbucks stores across the world. Starbucks offers an upbeat environment and friendly and helpful staff to assist customers in any question or problem they might have with the coffee or service. People buy Starbucks for what it represents and the status symbol

Starbucks Essay 880 Words

880 words - 4 pages Case Study: Starbucks and Conservational International Tutorial 104 Yifan Wang 20408850 1. Discuss the rationale for, as well as the benefits and risk of the collaboration between Starbucks and Conservation International (CI) from each party's perspective.  The collaboration between Starbucks and Conservation International is actually win-win strategy. They both would like to develop a partnership to leverage their expertise. The

Starbucks Essay 599 Words

599 words - 3 pages Within the Starbucks organization control mechanisms such as, bureaucratic control, market control and clan control are put to use daily. With any type of control mechanism there are positive and negative aspects to each. Let us look at the positive and negative reactions to control mechanisms within the Starbucks organization starting with bureaucratic control. The use of bureaucratic control for Starbucks is implemented and managed on the