Starbucks Is A Leader Of The Coffee House Industry

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.

Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).

I set out to find a place to begin my observations, not knowing what to fully expect, what I may find. So I decided to look around at what is close to my home that isn’t a place I frequent or have even visited at all. Then it came to me, the Starbucks that is only about a mile away is a perfect place for me to observe subjects that I would consider different from myself, seeing as how I consider such obscene prices for coffee ridiculous. Starbucks is a very popular chain of coffee vendors that describe their product as more about quality than what Americans are used to in typical coffee joints.

Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.

Hi Jill, I used Starbucks as one of the companies I wrote about in this week's written assignment. While it's nice to treat myself to go out and get coffee sometimes, I barely ever do because, aside from the price, I hate the waste that these places produce. Think about how many people Starbucks serves a day worldwide, and the majority of those cups are going to be thrown away. Now, they do have reusable cups that you can bring in to be filled, but many people, myself included, don't remember to do that. Or it's such a spontaneous trip to the coffee shop, that you can't always think ahead to have your reusable cup with you. So it was nice to read about how Starbucks is making their cups out of materials that are certified recyclable material in most

Is your cup half empty or half full when you think about all of the disposable Tim Horton cups you've put in the landfills? Yearly, Tim Hortons sells billions of disposable cups filled with coffee. The amount of coffee we drink out of paper cups, is quickly filling up our landfills and harming the earth. If we all put our minds together, we can come up with innovative ways to solve this problem. Although they may be convenient, the excessive use of disposable cups if harming our environment.

Today, people may use Starbucks cups, as a “to-go” cup, conveniently for our society's busy lives. The Starbucks cup is shaped like an open cylindrical container with a flat bottom and without handles. Starbucks provides lids for the paper and plastic cups with a hole in it for either sipping or to insert a straw for drinking. However, because they are made from paper and plastic they are easier to dispose of after use. The Starbucks cup is made up of mostly paper and it also contains a petro-chemical based polyethylene plastic, which makes it impossible to recycle. Starbucks has an optional sleeve for the cups to protect your hands from burning from the hot temperatures of the beverages. The sleeves are made out

Additionally, a disposable cup is often served with a styrene lid and a holder, both of which may be small but quickly add to a greater carbon footprint. (Borg) Buying a daily cup of coffee in a disposable cup creates 23 pounds of waste a year that could easily be avoided by having customers bring their own cup (Borg). Furthermore, disposable cups vary in environmental impact. According to the Environmental Protection agency, Styrofoam has no biodegradable properties and will never decompose. (Spitzer) This means a cup in the landfill will exist in 500 years much as it does today. Most paper cups are lined with a plastic resin to keep beverages warm, however this prevents the ability to recycle them. Although Starbucks’ cups are 10% recyclable, the FDA has strict guidelines around used material in conjunction with hot liquids resulting in most cups requiring virgin paper, (i.e. trees), for manufacturing, that are bleached and chemically treated. Based on research by the Environmental Defense Fund regarding the production and shipping of coffee cups, 7 trillion BTU’s of energy are used, that which could power 77 thousand homes, 6 billion gallons of water are used which could fill 9000 Olympic sized pools, and 4 billion pounds of C02 released into the

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

The acceptance of disposable paper coffee cups and their plastic lids as recycling marked a major milestone in these sustainability programs. Prior to this change, Western produced 12,000 disposable coffee cups on campus per day, with all 12,000 ending up in the landfill [3]. Following

Have you ever bought a cup of coffee and wondered what your cup is made out of? If you haven’t, well you should! Countless of cups are made out of non eco friendly materials which can end up damaging the environment. In an article called “Get The Facts” by Ashley Campbell, it states “ Americans throw away 25 billion styrofoam coffee cups every year.” this is a huge concern because majority of styrofoam cups aren’t recyclable and will end up on landfills for over 500 years.

- Kimpton’s environmental sustainability initiatives have proven successful and beneficial both in terms of its environmental and business benefits. Environmental improvement is one of the benefits of diverting waste. Some of the benefits are exemplified in their rollout phases, including: introducing non-disruptive and cost-reducing operational practices such as a recycling program, non-toxic cleaning products, promotional materials printed on recycled paper, complimentary coffee that was organically grown,

In other efforts to be environmentally conscience, PepsiCo has reduced the packaging weight of their products by more than three hundred fifty million pounds, which exceeded their goal by more than twenty percent. In addition, PepsiCo has recycled approximately ninety-one percent of the waste, allowing less than nine percent to be sent to landfills. In some of the company facilities around the world as little as one percent of waste is sent to the landfills. Recycling of packaging is another commitment of PepsiCo. This commitment is being accomplished by using materials that are compatible with readily accessible recycling systems. (Environmental Sustainability)

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.

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.