Starbucks Case Study Paper

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7. What are the goods or services produced by this organization? Which lines of business are the most profitable? The goods that are produced by this company are coffees, teas, expresso beverages, equipment, drinkware, and foods. Starbucks also produce goods that would fall under a miscellaneous group, such as: bottled drinks, Frappuccino blended beverages, smoothies, and packaged goods (MarketLine 23-25). Their line of business that’s most profitable are their beverages. During Starbucks 2015 fiscal year, 79% of their revenue was attained from their company-operated stores (United States Securities and Exchange Commission). Starbucks beverages include; a combination of more than 30 coffee-blends and single-origin premium coffees. In addition,…show more content…
What are the organization’s internal strengths and weaknesses? Starbucks internal strengths are; constructing adequate consumer relationships through value-added services, using to technology to generate different methods of distribution, and a healthy financial stand. Their internal weaknesses are; product recalls, tax evasion, and lawsuits (MarketLine 27). Works Cited MarketLine. Company profile: Starbucks Corporation. Business. London: MarketLine, 2015. Web. . 9. What opportunities and threats is the organization facing in the global economy? 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) Works Cited MarketLine. Company profile: Starbucks Corporation. Business. London: MarketLine, 2015. Web. . 10. Is the organization practicing good business ethics? Why or why not? Please provide details to support your…show more content…
How effective is the senior management team of this organization? How do you know? Please justify your answer. Starbucks senior management team is very effective. The company takes pride in the ‘Starbucks Way’, and strives to create an atmosphere of equality. According to “The Starbucks Way” article by Kristen B. Frasch, from Human Resource Executive Online, the company truly believes in valuing the ideas of all employees to create a partnership relationship between senior management and retail employees. The company’s Senior Vice President of Global Partner Resources—Marissa Andrada—stated that when she started with the company that she spent one week in the office, two weeks as a barista, and experienced retail management. In fact, the barista-customer relationship is so essential that all leaders in the company spend time behind the counter at your local Starbucks (Frasch). Furthermore, in January 2014 Starbucks put together a plan to strengthen the Senior Leadership Team, to innovate the future of the business. CEO, Howard Shultz states the following: ““Each of these experienced Starbucks leaders will be working closely with the entire senior leadership team, and me, to bring even greater financial and operational discipline to our business around the world. They will partner with me as I focus on Starbucks mission, growth initiatives and the convergence and integration of our retail and ecommerce, digital, card and mobile assets around the world. There has never
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