Case Study : Starbucks And Second Cup

Coffee has not only impacted the world socially, but it provides financial means for many countries who export their coffee beans.

People around the world consume numerous goods every day. There are several things that determine what quantities and how frequently they are consumed and those influences can either work in tandem or act individually to influence a person. It is these foundations that set an average for what consumers will purchase and the volume of goods to be created by agriculturalists and industrialists. This is known as economic consumption patterns, and these patterns are carefully studied by economists. With the data that they glean from this assessment economists can then use that information to provide the economy with data

Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.

1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from competitors?

Coffee has played a major role in the lives of many people around the world. “Yet, poetic as its taste may be, coffee’s history is rife with controversy and politics…[becoming a] creator of revolutionary sedition in Arab countries and in Europe” (Pendergrast xvi). After reading Uncommon Grounds, it is apparent that the history of coffee is intertwined with the aspects of the globalization process, the role of Multi-National Corporations, and global economic issues.

This assignment is based on the Starbucks case study; Trouble Brews at Starbucks written by Lauranne Buchanan and Carolyn Simmons (2009). The aim of this paper will be to discuss the the changing consumer experience, competitive landscape and external circumstances affecting marketing opportunities for Starbucks, while determining how Howard Schultz can provide Starbuck’s customers a greater long-term value.

Poverty, child labour, low wages, long working hours, no employments benefits and illiteracy caused by coffee industries in coffee growing communities due to increased demand of coffee farmer’s children are involved to do work hard with their parents to earn more and also remain illiterate.

Imaging if there was no more coffee in this world, how would you feel? Nowadays, coffee becomes an important part of people’s life. People who often work overtime, they drink coffee because caffeine can make you awake; people who have to wake up early in the morning, they drink coffee because instead of making breakfast, coffee is more convenient; people drink coffee during the free time, because it also tastes good.

Coffee was the top source of income for 25 million farmers in Latin America, Africa and Asia. Due to the lack of appropriate compensation for their harvest, communities in coffee- producing countries around the world are suffering. Coffee is a chief export for many developing nations and their entire economies are collapsing with the market. In 2004 the governments of coffee producing countries were adamant in finding the answer to the dramatic decline in coffee prices.

The Coffee industry is worth about $20 billion dollar, which is largely imported and consumed by industrialized nations and is mostly exported by developing 3rd world nations. However people of all backgrounds throughout the world drink more than 500 billion cups of coffee yearly. Coffee naturally grows in warm temperatures and is grown in over 50 countries in Africa, Asia, Central America, South America and the Caribbean Islands. Coffee farms give over 25 million farmers the financial livelihood in their nation. An amazing 67% of the world 's coffee is grown in Central and South America. 90% of the world 's coffee production happens in developing nations meanwhile most of coffee’s consumption takes place in industrialized nations.

Coffee is one of the most popular beverages in the world and therefore is a popular commodity. More than 2.25 billion cups of coffee are consumed every day. Over 90% of coffee is produced in developing countries, and millions of small producers’ income comes from growing coffee. Coffee is produced and exported mostly from South American countries, while mainly industrialized countries are the ones importing the most coffee. Worldwide, 25 million small producers rely on coffee for a living, and in Brazil, over 5 million people are employed by the commodity. Brazil is the top country in exporting coffee and is where almost a third of the whole world’s production of coffee is. Coffee is a more labor-intensive work culture than other commodities like sugar cane or cattle because it is not automated work and requires attention.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

Examining the historical, sociological and anthropological aspects of changing the structure of marketing and consumption of coffee, he probes a broader range of implications in the social change. He focuses on the new patterns of consumption as retailors shrink the trade from mass to niche marketing, and that how these new patterns, which are formed by the power structure, has affected the labor and so the consumers. With an emphasis on political economy

Starbuck’s strategy focused on three components; high-quality coffee, intimate service, and ambient atmosphere. Starbucks worked closely with growers in Africa, South and Central America, and Asia-Pacific regions to insure the quality of its product. Starbucks called all employees' "partners" and worked hard to train them with the skills necessary to best serve the customer. The atmosphere at Starbucks was crafted after the European-style espresso bar. The company goal was to create ambience through the Starbucks "experience" and by making the area comfortable, yet upscale.

With the development of economic globalization, “fast food” becomes a more and more substantial industry in the business world, which adapts to the pace of people’s life. Each organization spares every effort to stand forward the competition due to the fierce competition. In this article, we focus on the “Starbucks”, a prevailing coffee manufacturer in recent years.