Opportunities Of Starbucks

As the world’s number one specialty coffee retailer, Starbucks sells coffee drinks, food items, coffee beans, and coffee-related accessories and equipment. In addition, Starbucks sells whole-bean coffees through a specialty sales group and grocery stores. Starbucks has grown beyond coffee into related businesses such as coffee-flavoured ice cream and ready-to-drink coffee beverages. The purpose of this paper is to analyze Starbucks business strategy, customer value proposition, company’s operations and the risks to financial results and reporting in the short term.

* 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 has an advantage over its competitors because of their strong, distinctive competencies. According to the article on NASDAQ "Starbucks targets a more affluent demographic of coffee drinkers that typically exhibit strong brand loyalty (Trifis Team, 2014)." This distinctive competency derives from the company 's philosophy to have a "commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly (Starbucks, 2016)." The organization is committed to an excellent training program that reinforces staff competencies and engagement to the company culture. Starbucks CEO Howards Schultz, states in his book, Onward, "[Employees] are the true

Several key success factors exist for Starbucks, a leader in the coffee industry. They include

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Introduction .................................................................................................................................... 3 Background Analysis ....................................................................................................................... 3 Business Model Framework ............................................................................................................ 4 Value Creation................................................................................................................................. 5

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.

These values include respectful working environments, environmental awareness, humane treatment of workers, and benefits for workers. Starbuck's mission is to not only offer premium quality coffee and excellent customer service, but it is also devoted to providing quality service to its employees. Starbucks works hard to create an excellent work atmosphere, ensuring that employees treat one another with deference, and respect diversity. Starbucks also shows how much it cares about society by making over 30 million in charitable contributions and volunteering over 290,000 hours (Corporate social responsibility / fiscal 2006 annual report, 2007). There are thousands of people who work for this company as farmers and suppliers who are located all over the world. Starbucks makes certain to follow international child labor laws, provide humane and safe working conditions, and honors minimum wage requirements. Starbucks is also deeply focused on being environmentally vigilant. Starbucks practices energy and water conservation, uses renewable energy, and uses recyclable materials. Starbucks also provides excellent benefits. "The components may include competitive base pay, bonuses, comprehensive health coverage, income protection, vacation, stock options, a savings program, adoption benefits, tuition reimbursement and partner perks, including a discount on merchandise in our stores" (Corporate social responsibility / fiscal 2006 annual report , 2007, Abridged Report,

This proposal will open your eyes to the limitless possibilities there are for Starbucks. It

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

It is considered to be one of the world’s most ethical companies to work for (Ethisphere, 2013). As a company, Starbucks is a perfectionist in everything, it is famous for its freshly grounded

The company has also developed a structure and control system. With the realization that human capital holds a vital role in the development and sustainability of any institution, that of Starbucks included, it has taken to task to protect the same. To develop this, the company has an elaborate system that ensures the production levels of the company are met with pride. This like other leaders in the same has entailed ensuring they have an empowering corporate culture, topped by ensuring their employees enjoy competitive benefits.

The team sought out true customer needs through “My Starbucks Ideas”, which is a link on the Starbucks website for consumers to propose ideas to the corporation, from product involvement to experience ideas. We found an overwhelming amount of input for gluten free and healthier food options. The most important target customer factors that the team decided to take action on are people’s dietary restrictions and lifestyle choices. These two ideas directed our choices to present gluten-free options in the four most popular pastries and highly nourishing smoothie bowls, all of which are less than 300 calories.

According a research carried out by John Dudovskiy (2017), Starbucks business strategy is based on the following four pillars:

To be welcoming, knowledgeable, considerate, and involved are main components of its corporate culture, Starbucks is concentrate on make good work conditions and respect people, it enable employees to give superior work. It calls employees “partners” and presenting a dynamic work place in year 2010, 150000 people applied for a job responding to Starbucks branding. It views training and developing team. As said in “indicates that fewer than 50% of employees believe in their company’s brand idea, and even less are actually equipped to deliver to on it” John F. Marshall. Starbucks changes its perspective from starting from outside view on customers, they concentrating internally on the team by motivate and guiding them. it prepare different types of programs to develop its employee to teach them about the history of Starbucks and its corporate culture, Core 1 and 2 to learn the technical skills, Supervisor program for how have a leadership role, district manager training. Starbucks use six “differentiators” that made up a very directive internal playbook for change. Instead of external message and lead to significant and long-term efforts