Factors Affecting Starbucks

Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.

Starbucks has expanded its product mix to keep up with the demand and satisfy more customer

2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.

Starbucks desire as the leader in the specialty coffee industry is to be acknowledged for its responsibility to coffee farmers and their families to improve their well-being. The corporation’s primary stakeholders are broad organizations such as, coffee trade associations, suppliers, and groups with interest in sustainable coffee production. Including non-profit groups focused on human rights, social justice, and environmental issues. Other stakeholders include governmental agencies such as, U. S. AID (Starbucks Corporation, 2010).

Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks

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

Java Culture, a coffee shop that serves the Oregon area of the United States, offers best tasting coffee beverages. The coffee shop makes use of high quality ingredients that are prepared under very strict guidelines. There are a number of business concepts that can be charted to be able to directly compete with the business; Java Culture. First, the business should offer premium quality coffee that is imported from the premium cocoa growing countries such as Brazil. The preparation process should follow the most pristine quality preparation guidelines thus ensuring that the products of firm are

Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.

Starbucks Corporation is a multinational coffee conglomerate that opened their first store in Seattle’s Pike Place Market in Seattle, Washington in 1971. Over the course of the next 40 years, Starbucks has grown in leaps and bounds in not only opening more stores domestically and internationally but also in selling a variety of some of the world’s best coffee and tea blends available. The selling of Starbucks products does not only happen in their stores, it also happens in grocery, convenient, and specialty stores across the world. With the growth of the Starbucks Corporation came the responsibility of ethical and financial compliance to their organization, their shareholders, and the multitude of government agencies they deal with

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.

Starbucks has developed a brand image that has revolutionized coffee drinking experience. It has created an ambiance that is designed to attract customers and keep them coming back to Starbucks stores. It offers wide varieties of services such as comfortable seating areas with unique music and free wireless Internet for their customers while sipping their favorite coffee. This distinctiveness sets Starbucks apart from most of its competitors and has allowed the company to successfully grow and profit while charging premium prices for their products.

On the other hand, as competitors can easily adopt specialty coffee equipment, so specialty coffee served as a temporary competitive advantage as well. Hence there are a lot of factors Starbucks should consider for sustainable development, for example Starbucks has been serving a wide variety of coffee blends at a reasonable price, so the customers can enjoy a wide range of options. While this could be better if complementary items can be added on the menu. Additionally, as Starbucks is famous for experiencing culture in the locations it operates, so the baristas are trained to speak several languages to deliver the different coffee blends names. Another example is the introduction and development of instant coffee, where the baristas were asked not to multitask, in this way; the baristas can not only serve drinks at the same time but also focus on offering a unique customer

Starbucks business level strategy has been to become and remain the world's premier coffee franchise that operates in a sustainable and principled manner. The company utilizes a comprehensive corporate social responsibility program that is integrated in every part of the company's operations from the way it treats its employees to the way it sources its coffee.

* Government Stability: the stability of the government, not only in the US but in all of the countries which the company imports from, is an important factor in Starbucks’ performance. The recent US Election may have an impact on Starbucks if the elected administration enforces new taxation and legislation.

Starbucks has a reputation for new product development and creativity. But new ideas can not come so often and even if they do they may not be on target. Moreover, almost the ¾ of their shops are located in the U.S. which means they are depended too much on one country. They need to spread into another group of countries in order to spread the business risk. Also organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.