Case Study: Starbucks

3. What aspects of McDonald’s management ensure that it was able to deliver a consistent

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Starbucks was founded in 1971. Gerald Baldwin, Gordon Bowker and Ziev siegl start star bucks journey with a small coffee shop in Seattle. Starbucks has become a cultural phenomenon through expand thousands of coffee houses across the North America and around the world. According to the market research Star Bucks start losing grip on customer satisfaction. Also speed of service is specific problem. For this reason, Starbucks management is planning to invest 40 million companywide it will help to increase the number of employees in each store. But, Starbucks management is unclear about impact on revenues.

We leave in a consumer—oriented society. Starbucks and Zappos are the two companies that managed to achieve a worldwide success by focusing on quality customer service and staying true to their cultures. Their staffing policies, as well as, employee training and development helped them built employee and customer relations that last. Culture of the company is without a doubt one of the most important factors that will either guarantee a success or failure. Starbucks and Zappos, place a strong emphasis on connecting with their people, meaning both their employees and customers. For both companies culture is the number one priority, they focus on customer service and unity of their people.

It is approximately eleven o’clock in the morning on a warm Monday morning. Twenty-five to thirty people fill the area. Students and faculty continue to stream in, looking for their morning fix, whether that be a coffee with an extra shot of espresso or a Starbucks Refresher with lemonade instead of water. The line wraps around the corner of the counter and outside and to the right into the library hallway. Some folks look tired; possibly from a long weekend or maybe a late night studying the previous day. Some are wide awake and upbeat as though they received a good night’s rest and has a fairly easy weekend.

Starbucks is a major coffee company that we have in America as well as being expanded around the world. By using the SWOT analysis we noticed how Starbucks is falling apart and what can be used to make the company the way that it is set up. They wanted to continue to grow stores and by the companies wanting to continue to branch out globally by having continuous competition across the world. Another strength that this company has to offer is Starbucks is the leader of the coffee market. It is a strong brand to compete with. It is hard to go against them because they are always thinking outside of the box which is stated on page 211. Another strength that this business has to offer is on page 211 where Starbucks has always strived to be a good neighbor by providing a place for people to come together and by committing to supporting financially in where stores are located.

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

Starbuck Corporation establish in 1971, its located in America Seattle, WA. Starbuck are a premium roaster, marketer and retailer that specialty in coffee all around the world. Till year of 2015, Starbucks has over 182000 employees. There have 19767 operated &licensed companies over 62 countries. Their product includes a mix of handcrafted and roasted premium coffee, tea. a variety of fresh baked item and other beverages. Beside selling their variety product of coffee and tea, starbuck also license their trademark trough different channel to expand their business, for example licensed stores, grocery and national foodservice accounts. Starbuck also cooperate with other brands and mix their brand name within the

Question 2: diagnose existing complex influences of one external macro force, one external micro force, one internal strength and one internal weakness on any one of the following activities:

Trader Joe’s has achieve a great performance which they have been able to raise awareness about the difference cultures of the immigrants in America as they were a supermarket. They have also provide different cultures’ products on their shelves to widely welcome the immigrants and sells products that immigrants will prefer.Trader Joe’s is competitively advantage compare to other food stores because their selling point is very extraordinary from the usual markets. As a result, competitors will find it hard for them to compete with Trader Joe’s in terms of selling different culture items and the customer service.

Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to
pay for
your
drinks
and
earn
rewards
for
your purchase (Starbucks Coffee Company, 2011).
Furthermore, in‐store
promotions
accompanied
by
new
products and
amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).

The current economic situation has required that organizations rethink the way that they do business. With people losing jobs and salaries being cut, people are spending money on essentials and opting less and less to spend on the extras. Groceries, rent, housing, transportation, education are of value while grooming, meals out, movies and cups of coffee or considered frivolous expenses. One organization that banks on Americans need to feed their self focused desires is Starbucks Coffee. Starbucks. Starbuck’s leadership, well aware of the effect that the crisis could have on the company, outlined a plan that included “increased store and operating efficiencies, additional cost reductions and

After reviewing the case provided to us and conducting some research on your company, we have learned the following: Starbucks is an incredibly popular company that has successfully captured a large portion of the market. Starbucks has many strengths that have helped it become as successful as it is (Exhibit A). Starbucks’ biggest strength, according to our research, is its brand value (Exhibit A). According to our outside research, Starbucks currently has 39.3% of the market share in the coffee and snack shop industry here in the U.S. (1). Starbucks’ 39.3% of the market share in the coffee and snack shop industry is nearly double that of its closest competitor, Dunkin’ Brands Inc., the parent company of Dunkin’ Donuts and Baskin Robbins, which holds 21.7% market share (1). We see this as a major advantage of Starbucks and a big reason why the company has been so successful. Other strengths of the company, as seen in Exhibit A, also includes a large international presence, (23,043 stores in nearly 70 countries), and the baristas themselves, who are capable of customizing any drink ordered by a customer (Exhibit A) (2). The other side of the SWOT analysis in Exhibit A shows that Starbucks has some weaknesses. The weaknesses we identified were that Starbucks’ price point on its products was higher than that of its competitors, which has allowed its competitors to keep up with Starbucks. Also, the at-times confusing terminology when ordering drinks, has created some confusion.

Starbucks is one of the most recognized brands in the country. It specializes in coffee brewing, although it has diversified its products to include tea and milk based beverages. The company’s total reward management system includes both the traditional and the custom-made benefits. The company’s total rewarding system is called ‘Your Special Blend’. It includes several perks, assistance, and benefits. The company checks whether the partners are eligible twice every year. In order for partners to qualify, they must have worked a minimum of 520 hours. The system utilized by the company offers professional growth opportunities through the educational assistance program (Starbucks, 2012). The recognition offered acts as

The coffee company has partnered with development corporations like Abyssician Development Corporation to help provide social services and housing to construct schools and hospitals. It has also partnered with the Red Cross to help in disaster management response. Starbucks provides food, clothing and any other humanitarian aid through their partnership with this organisation. In addition through their partnership with other association, they have been able to empower youths and motivated them to pursue their dreams and exploit their potentials. They have achieved this through encouraging new innovations and inventions after offering them financial aid.