Business Strategies of Starbucks

* The organization has strong ethical values and an ethical mission statement as follows, 'Starbucks is committed to a role of environmental leadership in all facets of our business.'

* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco

Two reasons Starbucks has been so concerned with social responsibility are the negative impact on the company if they aren’t and the financial and nonfinancial rewards because they are. According to our textbook, Starbucks has been engaged in responsible business practices almost from day one of operation.

Starbucks is a company where social responsibility and ethical practices is one of their major concerns. Their mission statement that has laid out the guiding principles states that their guidelines of keeping people first and profits last will be a part of their culture and they try to live by them every day. These guiding principles and their mission statement has been in order of the company primarily because of the visions of Starbucks chair and founder Howard Schultz. The basic concern of Starbucks of social responsibility in its overall corporate strategy has a lot to do with the visions and goals of Mr.Schutz. His main aim is to balance social consciousness and profitability. He is true believer that ethical companies do better in

The understanding of Starbucks is that ethical behavior and protocol is imperative to ensure a good working relationship within the company. This not only includes conducting oneself correctly with coworkers but also with all the clients they serve. Within the same Standards of Business and Conduct material is additional information for the partners, which include information that will enable them to make the right choices when faced with a difficult and possible ethical dilemma:

Starbucks and Wal-Mart are leaders in their respective industries. Their business models are different and these differences are in part responsible for their contrasting approaches towards sustainability. One of the best methods to understand the divergent approaches to sustainability and the triple bottom line adopted by Starbucks and Wal-Mart is by analyzing and comparing the differences in their mission statements, values, core competencies, and corporate social responsibility systems.

1.Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.

One company that has been particularly successful in creating an overall company image in my option has been Starbucks. They have been able to maintain a dominant position in today’s market. Where in the morning most of our society needs a good cup of coffee in order to start their day. At one point, we looked at Starbucks as a high-end marketer. A sort of club to belong to. However, things managed to change in the recent years where a 4.00 cup of coffee was becoming a luxury items. This became known as the Coffee Wars. Starbuck had to now face competition from the fast food world. Which was McDonald’s and Dunkin’ Donuts. They started to look at this market as an opening to gain more customers. They started to offer their

Starbucks is a global household name known for its quality and consistency. The company was established in 1971 and has since been thriving focusing its efforts on their community and their employees. Starbucks brand involves its commitment to ethics, sustainability, and most importantly “people first, profit last”(Ferrell p.399). One social responsibility that sets Starbucks above the rest is their care for their employees. Starbucks offer one of the best health care programs in the coffee shop industry. Unlike most companies they consider their employees as business partners and provide all partners that work at least 20 hours a week with a fulltime comprehensive benefit plan. The company spent more in its employee insurance health benefits than on the raw materials for brewing the coffee. This gave the employees a sense of security and satisfaction to their job. Starbucks strives to keep their employees enthusiastic and active. This is created by providing a great encouraging work environment. They treat each other with respect & dignity.

Figure 2: Competitive Position of Starbucks in UK based on Customer Loyalty (Source: Market Force Information (2015).

* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco Corporation

Millions of people all around the world wake up and drink a cup of coffee every morning before they go to work. One of the most popular places for coffee drinkers to attend is Starbucks. The company started in Seattle’s historic Pike Place Market, which was opened in

Starbucks is one of the top leading coffee sellers in the world. With more than 17,000 stores in more than 55 countries, Starbucks has created the ultimate brand and coffee shop (Ferrell, Fraedrich, & Ferrell, 2015). Building Starbuck’s name was a process performed by the founder Howard Shultz that focused on quality ethics and good coffee. One of the main aspects of Starbuck’s culture is its mission. Starbucks brand has been ranked number 16 in the Fortune’s one hundred companies to work for because of its honorable, ethical back-round (Lemus, von Feigenblatt, Orta, & Rivero, 2015). However, like all businesses, Starbucks has encountered some ethical issues along the way of their success.

I have been given this opportunity to explore and analyze a remarkable American company, Starbucks, and particularly how they produce and market their own brand of coffee worldwide. I have discovered and wish to convey to you some remarkable ways that Starbucks uses specific marketing strategies based upon the countries where Starbucks are located. Specifically, in this critique I want to explore how Starbucks changes their coffee product in terms of level of sweetness in various countries, how Starbucks packages the coffee product to maximizes the attractiveness of the brand offering, and how Starbucks brands the product differently in various countries based on the promotion medias most attractive to the population of that specific

Starbucks’ retail entry model in the United States does not have the same strategy as their international model. In the states Starbucks holds great control as a corporation, but in international territory, country partnerships, cultural, government laws and politics play a very important role in Starbucks’ entry strategy. Starbucks has set it sights globally since the coffee market has come close to saturation in the U.S. which will give them the opportunity to continue to expand without fierce competition. Starbucks has looked to countries like India and other emerging markets with great growth potential to set down new roots. Starbucks recognizes India as a great choice to expand business internationally but also recognizes the complexity in the same market after several attempts to enter without success.