Situational Analysis Of Starbucks

Starbucks Corporation purchases and roasts high-quality coffees, along with beverages and fresh food items, throughout all company-operated stores. The consolidated financial statements reflect the financial position and operating results of Starbucks Corporation. Ratio Analysis was used to analyze the performance of Starbucks using the financial ratios of liquidity, solvency, and profitability. Calculations and amounts were provided in the excel spreadsheet labeled “Financial Ratios”. All data provided were conducted from the balance sheet and income statement accounts over the fiscal years 2015 and 2014. Starbucks Corporations ' fiscal years’ end on the Sunday closest to September 30 (sec.gov).

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

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.

This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.

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.

Building a successful brand with multiple stores opening. Selling whole beans and premium priced coffee. They also new and understood their target market. Unlike many other coffee shops they sold the lifestyle around the coffee and made it an experience for their customers as apposed to it being just an addition to a donut in the morning. They made it a lifestyle choice and something to be desired as well as focusing very heavily on the customer service aspect of the industry. What was so compelling about Starbucks value proposition? What brand image did Starbucks develop during this period?

It’s hard to drive the street these days and not see a Starbuck’s coffee house sitting on a corner with cars lined up in the drive-thru or consumers gathering in their café to socialize. This has been the scene since the first Starbucks was opened in 1971. Since then, Howard Schultz, chairman and CEO, has embarked on a vision to bring Italian coffeehouse traditions back to the United States. Starbucks mission statement is simple, “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks, 2017, para. 7). Starbucks has built a global empire with a reported 22,519 stores spanning over 66 countries. The company’s diversity and purchase power of

Starbucks need to change marketing strategy by reducing price to compete with the competitors. Create new products with low price and good quality for customers and sell at supermarkets too.

The cause of this case study is to evaluate and recognize Starbucks growth in the past decades. Starbucks was established in 1971. The industry for coffee at the time was in decline for almost a decade. The consumption of coffee back then was mostly at home or “Away from home” either with a meal at dinner or restaurant. In larger cities like New York or San Francisco they have specialty coffee roasters for example Peet’s. The main goal of Schultz was aiming with that mentality to roast and vend great coffee (CRAIG, BUSSE, BROWN, “Aplia” Kellogg 1). By 1982 they had five retail outlets that served coffee beans and supplies for home but at the time they weren’t served prepared. As the growth of Starbucks is

Cognition gives the companies information on how consumers respond to different marketing stimuli they face for the products used. It has to do with customer’s thinking and how do they behave toward a particular product. To be more specific and also reading the book “cognition refers to the mental structures and processes involved in thinking, understanding, and interpreting stimuli and events.” (Peter & Olson, pg. 21)

Starbucks opportunities are; entry into the health and wellness space, growing presence in certain Asian markets, growing their mobile commerce market, and growing their office coffee marketplace. Their threats are extreme competition and compliance costs associated with government regulations (MarketLine 27)

Starbucks was always certain about one thing: they wanted to offer each customer the ‘Starbucks experience,’ or to sell the finest quality of coffee in a comfortable atmosphere. The local environment was studied to implement effective strategies to drive success for the business. Their entry strategies included marketing and sales events with a series of public relations to build brand awareness. They served free coffee and presented new drinks for tasting. While a range of competitors entered the business, Starbucks rose to the occasion. After analyzing the business tactics of their competitors, the company made the necessary approaches to ensure success. They began opening stores on the high-end popular streets, and then branching out even further. Starbucks constantly offers new products in their stores across the USA, Turkey and the dozens of other countries they reside in. Adapting their atmosphere and business strategies to the needs of the customers keeps both their revenue high and patrons satisfied.

The purpose of this research is to understand different elements of business in Starbucks the publicly traded company. We have analyzed and compared how social, economic and global environments affect Starbucks from a business perspective. We studied and summarized how marketing, finance, international business, accounting, and management function in Starbucks. We demonstrated an understanding of the vocabulary of business, building an understanding of business skills to succeed in the world of business. Through our research, we explain and show: the company 's mission statement and history of growth, beneficial and poor ethical decisions, and how the company markets and distributes its products internationally. We also gathered information about Starbucks operations how they were effected during the 2008 recession. We researched Starbucks financial statements as one final element of their success and growth as a publicly traded company. Through our analysis of Starbucks, we were able to comprehend the complex science that makes a business successful and what it takes to grow international levels.

Starbucks is a worldwide coffee industry that is making the world a little better one cup at a time. Established in 1971, the company was just a single store in Seattle’s Pike Place Market. Since then it has grown into a global industry and one of the most ethical businesses in the world. Starbucks is known for customers expecting more than just coffee. This is why they have such a wide customer base. Their customers range from children to older adults. The primary target is adults from ages 25 to 40. This age range alone makes up almost half of its total business. Starbucks grabs the attention of this age group through its contemporary design and constant advertising. Most of

The objective of this case study is to analyze why Starbucks was not meeting expectations in terms of customer satisfaction thereby losing customer loyalty. Whether or not to invest millions of dollars ($ 40 million) in each store to enhance the labor. How will it impact the sales and profitability if invested? Product mix and marketing approach will also be recommended in this paper.