Starbucks Global Quest

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Starbucks Financial analysis 2005 Douglas Lilly Strategic Management and Business Policy Professor Turk April 11, 2012 Over the past twenty five years, Starbucks has been leading the coffee revolution and turned a dying industry upside down by mainstreaming their stores and creating a public fascination. From the beginning of Starbucks stores through 2006, they have opened stores all over the U.S. and will be taking it overseas. Starbucks is leading the coffee revolution and has expanded their reach all over the world. With this much growth, it is easy for the company to lose their edge by forgetting the reasons they have become so large from the beginning. In this analysis, I am going to go over an economic assessment, marketing…show more content…
Everywhere you look you are bombarded with cups, coasters, spoons and anything else related to coffee. The customer service is dropping and this is ultimately bringing down their profits and is not due to the availability of growth. Starbucks is still only supplying less than 5 percent of the coffee market. With this low of a number there is still much more growth that can take place within the industry. This number allows for many more stores to be added to their list of future prospects. Weber states that competitiveness is related to company effectiveness, which is determined by whether the company satisfies the needs of stakeholders (groups affected by business practices). Important stakeholders include stockholders, who want a return on their investment; customers, who want a high-quality product or service; and employees, who desire interesting work and reasonable compensation for their services. The community, which wants the company to contribute to activities and projects and minimize pollution of the environment, is also an important stakeholder. Companies that do not meet stakeholders’ needs are unlikely to have a competitive advantage over other firms in their industry. The economy is still moving ahead strong and the possibility of their becoming a recession are starting to become a bit more possible. The finances of the company are very strong and one of the leaders within the industry in
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