Starbucks Case Study - ORGANIZATIONAL STRATEGY

* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco

Starbucks has always had a strong history of demonstrating some of the strongest instinct of organizational design; that's no surprise as much of the success of the company has been built on this practice. However, Starbucks needs to continue to adapt with the changing times and environment and can do this more readily by applying the four lessons that Nadler and Tushman specify in regards to organization design. As Nadler and Tushman point out, "The environment drives the strategic architecture of the enterprise, either through

This Module 1 SLP will be the first part of an in-depth market analysis. The company I have chosen is Starbucks Coffee Company. The first Starbucks opened in 1971 at Pike Place market in Seattle, WA. Eleven years later, Howard Schultz was hired by the company to be the director of retail operations and marketing. The first Starbucks with the current coffee house look and feel was opened in 1984 in downtown Seattle. The Starbucks headquarters is still located in Seattle, WA. Currently, Starbucks is relying on retail expansion, product innovation, and service innovation to achieve this long-term goal once set by current chairman Howard Schultz: “The idea was to create a chain of coffeehouses

Starbucks can follow some strategies to differentiate their product even more that will lead to vary their menu prices. For example, Starbucks might create “saving menu” by selling some products at a lower prices to attract even more customers. Also, Starbucks might take into consideration the strategies of opening “Starbucks carts” that open in smaller express places that don’t fit for a whole store. Those “Starbucks carts” will attract even more customers because it is easier to get access to. “Starbucks carts” may provide the customers with low cost products to draw larger market base. To be a best cost provider in the market will allow Starbucks to be the most attractive company in the coffee market internationally. Thus, Starbucks will have a competitive advantage over its rivals by fulfilling the needs of a huge customer base in the market, by providing a high quality products and provide products with the best costs.

We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.

left with little to no price sensitivity or bargaining power. This has been key to

The major 21st century challenges Starbucks and other coffee sellers have faced are competitive advantage, diversity, globalization, information and technology. Starbucks has used competitive advantage to stay ahead of its rivals. This organization out performs its competitors by producing effective quality coffee to its customers and including diversity, “At Starbucks, we strive to create a culture that values and respect diversity and inclusion. We expect to be a leader in diversity and inclusion, from our partners in the field to our senior leadership teams,” (Starbucks Corporation, 2013). They are also expanding with other distributions, however, globalization has helped to establish Starbucks as an international company and globalization is vital to successful companies. Starbucks has made any adjustments that are necessary in order to succeed outside of America, they have taken their time to understand the differences within other countries. Starbucks has also managed information technology by having their own website full of information about their company and their coffee. You can make purchases online and they also offer free Wi-Fi at their local shop locations.

The corporate level strategy is roughly the same as the business level strategy since Starbucks only has one primary business. I believe that fact that Starbucks only focuses on one primary business makes the organization stronger. For example, there is no chance for conflict between the business level strategy and the corporate level strategy and the entire organization can focus on a single mission. Furthermore, this strategy has allowed them to reproduce their model all over the globe. As is the case with the Japanese, Chinese

Starbucks is the worlds leading specialty coffee retailer. The company produces a wide range of beverages as well as various confections and pastries. With over 17,000 stores world wide one would have to wonder why a successful company like this would need to form a strategic plan. In this world there are no guarantees of success for businesses. Each company must be able to form a successful marketing strategy and must be able implement their plan effectively. In this highly competitive global environment the overarching

* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco Corporation

Starbucks has successfully created a sense of brand loyalty with a consumer base even though there is inflation within their price structures. As an example of monopolistic competitive firm, Starbucks understands how that market structure works, thus giving them substantial profits in the past few years. Starbucks has managed to maintain its success even during unprofitable times with its other branches through customer loyalty, quality private goods, and knowing the labor market. Monopolistic competition also provides consumers with the greatest benefit of all: diversity in the world of coffee.

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

Corporate Strategy fundamentally is concerned with the selection of businesses in which the company should compete and with the development and coordination of that portfolio of business.[1] In the case of Starbucks the corporate strategy they have implemented is unique to their industry which has allowed them to differentiate from their competitors and is summarized best by Howard Schultz CEO of Starbucks, “We’re in the people business serving coffee,[2]” high quality specialty coffee and related products in a European café environment. It is clear Starbucks is in a growth strategy utilizing three key techniques that support its Mission, “to inspire and nurture the human spirit – one person, one cup and

Furthermore, Starbucks also provide express food to reduce time to be spent and increase healthy products which is high demand in the time being. Do research & development to sell products in every supermarket with low price and same quality.

Starbucks Coffee Company is known on a global level for its retails stores, specialty operations, packaged coffee and beverage brands. They are the largest coffeehouse business in the world that has made huge advancements in all the major markets. Starbucks Coffee chain is strong but it always facing major threats in various markets around the world. For Starbucks to keep up with a competitive advantage, which will be based on its strengths, a SWOT analyzation will be needed. This is very important for Starbucks future, for it will evaluate their business strengths, which will determine their ability to address their weaknesses, opportunities