Starbucks Case Study Paper

Consider an organization you were/are currently involved with. After providing a short overview of your organization, reflect on the Seven Levels of an Ethical Organization, found in the Gebler article and slide deck, and write a paper answering the following questions (not more than three pages - format of your choosing):

Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks

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?

The internal environment of the Starbucks company is a representation of the general conditions, which affect their aptitude in executing a successful strategy. The internal elements are their growth of strategy (diversified portfolio), brand management, and human resources. The external environment of the Starbucks company are focused on competition, which are within the same business as them, legal and, political changes, opportunities such as environmental concern, and the demographic social issues such as income per household.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

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

I've chosen the Starbucks Corporation on which to do my case assignment for the session. I first became interested in Starbucks while working on a paper for a previous marketing class. I became intrigued at the entrepreneurial spirit that such a large corporation had managed to maintain throughout its massive expansion. Starbucks corporation, unlike many of its now-defunct rivals, has done an outstanding job since its meager beginnings in 1970 with the execution of its strategic process; resulting in it currently owning 40% of the specialty coffee market and boosting annual sales exceeding $7 billion according to Burt Helm. Historic successes and recent turmoil within the company, including a near 40% decline in 2007 in profits (Sullivan

business model may seem, there is plenty of hard work invested and financial risks taken to grow

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.

The threats to the Starbucks Corporation are associated with competitive rivalries in the coffee market, rise in price of raw materials, cultural and political factors related international business.

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.

Q1. What constitutes operation for your organization of which you are a member, or your place of business?

One thing that all managers do is plan. The planning they do may be extensive or it may be limited. It might be for the next week or month or it might be for the next couple of years. It might cover a work group or it might cover an entire division. No matter what type or extent of planning a manager does, the important thing is that planning takes place. Without planning, there would be nothing for managers to organize, lead, or control. Based on the numerous accomplishments that Starbucks has achieved through the efforts of its employees, managers, no doubt, have done their planning.

What is the product in this business and its value? What type of business is it and why?

Factors in the global environment provide both opportunities and strengths for Starbucks. Opportunities such as increased revenues, further expansions, and achieving their goal of becoming the most respected brand worldwide. Starbucks also faced threats. These threats include dealing with growing antiglobalization overseas and their huge risk of less return on each overseas store, this deriving from overseas operations being run by local partners instead of Starbucks