Starbucks And Its Impact On 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.

For Starbucks corporations, this presents an opportunity to grow in the domestic market when currently there are 50% of Americans that drink coffee as well. This percentage also correlates to a 225.2 billion dollar impact in the U.S. Along with growth in coffee shops; the coffee industry had managed to be 1.6% of total gross domestic product in the United States. This opportunity received a weight of .10 in this External Factor Evaluation. This second rating was given a 2 for average.

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

The employees of Starbucks--Howard Schultz refers to them as the most important asset--are trained to open a new world of coffee for customers. Howard Schultz wants customers to perceive Starbucks as a friendly environment. He treats his employees exceptionally well too. Starbucks offers full health benefits and stock options to its workforce (Bollier 167). The employees are treated with great appreciation; they have no other reason why they shouldn’t treat the customers with respect in a Starbucks restaurant.

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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

Starbucks Coffee Company is the leading retailer, roaster, and brand of specialty coffee in the world, with more than 7,500 retail locations in North America, Latin America, Europe, the Middle East, and the Pacific Rim. It has long prided itself on offering an enriched customer experience as much as on great-tasting, high quality coffees. I chose to do my report on Starbucks because besides being a Starbucks addict, like many others I know, I am also interested in how the company might be able to maximize the value of its shares but first let me briefly explain how the business world works.

Did you know last year Starbucks made 10.7 billion dollars? Who here has ever been to Starbucks? Well I have, they have delightful hot and cold drinks and scrumptious desserts. But did you know Starbucks also owns Teavana. Today I’m going to talk to you about one of the world’s most well-known coffee shops in the world; Starbucks.

The purpose of this report is to inform the reader whether or not investing in Starbucks Corporation will prove a lucrative endeavor. A company is a system of interconnected parts and therefore cannot be analyzed by a single component, but through an integrated approach. The report will analyze the company’s health through integrating both qualitative and quantitative factors in order to formulate a decision based on the multidimensional nature of a company.

“Brewing Innovation,” an article by Shezray Husain, Feroz Khan, and Waqas Mirza in 2014 for London Business School, focuses on the history and outlook of a popular chain coffee shop, Starbucks. By discussing a brief history of the café brand and its rise and fall through the economic crisis of 2008, it was clear that the company managed so proficiently due to strategic moves made by leadership. The article explored how the company centered it focus on its consumers and building itself a priority spot in the community by utilizing customer opinions and social media. In fact, by doing so, the corporation not only survive the 2008 economic downfall, but thrived to become of the innovative leaders of the 21st century (Lemus, Feingenblatt, Orta, Rivero, 2015.)

* High revenues and profits The financial performance of company has positive aspects. The revenues of Starbucks in 2004 were $5.3 billion, growing at about 30 percent. Moreover, in 2004 there was a sharp growth in profit, at 44 percent (Investor relationships, 2005). The exponential growth in revenue and profit creates the strong financial statement and reliability to

Starbucks is a multinational coffee and coffee house chain company founded in 1971 and based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 15,011 stores in 42 countries. Starbucks sells drip brewed coffee, espresso-based hot drinks, snacks and items such as mugs, and of course their well renowned coffee beans. This analysis will provide an overview of Starbucks and its industry; examine the current market and future market conditions and suggestions for maximizing the organization’s future profits and growth. Starbucks has expanded rapidly over the years, opening a new store every workday during the 1990’s. The first Starbucks location outside of North America opened in Tokyo in 1996. In 2003, Starbucks completed the purchase of Seattle’s Best Coffee. Currently there are over 172,000 employees of Starbucks, and the company’s 2007 revenue exceeded $9.4 billion. During this year Starbucks will purchase more than 300 million pounds of beans from Latin America, Asia, and Africa (Laidlaw, 2007). Starbucks has become a success by believing and following their corporate Mission Statement, which reads as follows: “To provide a great working environment and treat each other with respect and dignity. Embrace diversity as an essential component in the way we do business. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. Contribute

“Starbucks Corporation” http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html). From the very beginning, Starbucks wanted to be different from other firms; we wanted to create a friendly atmosphere, one where we felt closeness with our customers. “Our mission is to inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time” (http://www.starbucks.com/about-us/our-heritage). There are numerous strengths present which are highly responsible for the upward direction that Starbucks is moving toward. Starbucks is the leading retailer of specialty coffee with a strong brand name image that is associated with high quality and customer loyalty. Not only can Starbucks be found all over the United States, but we have now globalized and are welcome in most countries. Our sales and services have made us land on the Fortune 500 list several times. We are truly committed to their customers and recognize their employees as partners which have made Starbucks a great place to work.

Safe for this, Starbucks has engaged in a rare system of employee stock ownership program, a program

The factors for the extraordinary success of Starbucks is all due to the vision of Howard Schultz. Schultz wanted to change the coffee drinking experience by establishing benefits to create value in the coffee drinking experience. One of his vision was to recreate the coffee culture in Italy where people can come to relax and socialize. Schultz’s idea changed the American people’s perspective and experience of drinking coffee in an inviting environment. Starbuck’s main strategy was to be known as a company owned shop which allowed Starbucks to have a full control of the coffee quality. They work with their suppliers to control the supply chain and enforce their coffee standards to keep the quality high. This strategy resulted in establishing their high brand image for Starbucks. Employees of Starbucks were trained to make the customer service pleasant for customers and that created a welcoming experience which made the customers feel special. Schultz believed that happy employees would result in higher customer satisfaction so Starbucks employees are very well paid along with stock options and healthcare benefits. Employee turnover rates are low due to Schultz’s strategy. What was so compelling about the Starbucks value proposition is that customer service and customer