Case Study 1 Starbucks

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Business Strategy – MGMT 420 Case Study #1 - Starbucks Closing Case Irine Ram – January 31, 2015 1. What functional strategies at Starbuck’s help the company to achieve superior financial performance? Internal production strategy by selling the company its own premium roasted coffee, along with freshly brewed espresso style coffee beverages, a variety of coffee pastries, tea and other products in a coffeehouse setting. Human Resources strategy by focusing on providing superior customer services in stores which involved teaching employees service oriented values of the company, motivating and developing hiring and training programs that were best in the restaurant industry. Providing employees including part-time works…show more content…
This is quite important as in effect this is the only value addition which they do apart from competitors and are exactly the criteria for which people look for in a coffee outlet. Best place to work: In 2008, for the tenth time and for the seventh straight year, Starbucks was recognized as fortune 100’s Best Companies to work for. Also, for five years running Fortune has ranked the company among the ten most admired companies in the USA. The work culture and HR polices make this happen and the company has really come out with a winning formula in this regard. Strong financial growth: Starbucks has reported a steady increase in income and operating profits over the years. This has further helped the company as it increases the perception in the minds of consumers as a successful company that can be trusted. 3. How do Starbuck’s resources, capabilities and distinctive competences translate into superior financial performance? Starbucks success is achieved through a few factors; outstanding quality of the coffee brewed, excellent service provided at the stores, fast growth of new stores all around the world. These factors not only have increased the sales but also the reputation among the coffee lovers. Starbucks encounters aggressive competition in all areas of its business activity. The

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