Analysis of Starbucks Mission Statement

Good Essays
Strategic Analysis of
Starbucks Mission Statements

University of Redlands

Strategy Capstone

MGMT 697

Murad A. Zikri



Starbucks is the worlds largest coffee shop chain company and continues its aggressive growth through international expansion and new product development.
But at the beginning of this century affected by the economic downturn Starbucks financial growth of same-store sales and margins showed a 70% decline in net income and had experienced its first ever decline in quarterly sales (Grant, Robert Contemporary Strategy Analysis 2010). This paper will look at Starbucks’ mission statement and guiding principles
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Why the Change The enhancement to Starbucks Mission Statement was reflection of the economic down turn and the reappointment of its founder Howard Schultz as CEO to aid in Starbucks’ refocus on the customer and the core product coffee. Before Schultz’s appointment, he had sent a memo to the current CEO Jim Donald about his concern of ‘The Commoditization of the Starbucks Experience’ ( In this memo Schultz describes how the atmosphere of the stores no longer have the soul of the past and reflect a chain of stores versus the warm feeling of a neighborhood store and that some people even call our store sterile, cookie cutter, no longer reflecting the passion our partners feel about our coffee. Starbucks vision as stated in its website is to become the most recognized and respected brand in the world, but at what cost? The commoditization of Starbucks began when the coffee company lost its appeal to its customers “the early adopters who valued the club-like atmosphere of relaxing over a quality cup of coffee found themselves in a minority. To grow, Starbucks increasingly appealed to grab and go customers for whom service meant speed of order delivery rather than recognition by and conversation with a barista. Starbucks introduced new store formats like Express to try to cater to this second segment without undermining the first. But many Starbucks veterans have now switched to Peets, Caribou, and other more exclusive brands”
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