Starbuck’s Strategy
Segun Adeyemi MGT500
Modern Management Prof.Carolyn Green
1/21/2017
Introduction: Starbucks ' Organizational Culture & Key Leadership, Management Traits Starbucks distinctly stands out from other food or beverage chains in terms of the consistent quality of experience, that is symbolic of the company. A number of aspects have enabled the company to foster this consistency: a culture based on communication and centered around the customer, innovation in business practices, pioneering technology integration, an international appeal and steadfast commitment to its original ideals (for example, no franchising).
Starbucks ' Organizational
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It is this willingness to embrace criticism that has allowed for openness to foster in Starbucks (Simon, 2009).
As a company marketing premium products, the organizational culture is supersensitive to maintaining and preserving quality. Starbucks stores are not franchised, a unique aspect about the company, which allows for even better quality control. Company executives take it upon themselves to visit each store to ensure that the quality criteria are being met.
Effectiveness of Starbucks ' Management Decisions Innovative offerings have been extremely relevant at Starbucks, and the company has been highly effective in implementing them from time to time. For one, high ticket coffee is not a staple for the masses, and innovation is needed to capture the imagination of its customers. Secondly, Starbucks portrays itself as a happening place, where a heavily international clientele feels just about as comfortable as the young or the artsy. When Starbucks started to offer free Wi-Fi to their customers in all of its North America locations, they were pioneers in a way because none of the other food chains were even close (it would be years before McDonald 's would tie up with AT&T, emulating Starbucks ' Wi-Fi offering). This allowed them to target a clientele that could use the technology, with enough discretionary income to become a repeat customer.
Likewise, in offering an
Starbucks uses a variety of organizations and resources to help ensure that the company remains one of the world’s most popular companies. There are process that are put into place within and outside of the company that focus on what can help improve the already business savoy corporation.
At its most basic, corporate culture is the personality of an organization or simply how things are done around there. However, in a broader sense it refers to 'the moral, social and behavioral norms of an organization based on the beliefs, attitudes and priorities of its members.' It determines how employees think, act and feel. Every organization has a different concept about the kind of culture that it should have, therefore cultures across organizations may differ despite of having certain common elements1. However common to all organizations is the essential need of fostering a sense of family so that employees do not feel that their work is isolated from other parts of their lives. In fact the culture of an organization should be
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 opportunity actively researched is a “Coffee of the Month” Program offered at a special discounted price to draw in college students and other potential coffee patrons who often use Starbucks’ Wi-Fi services without making a real purchase. Offering a product at a discounted price ought to result in more coffee sales and larger revenue for Starbucks.
Starbucks has developed a brand image that has revolutionized coffee drinking experience. It has created an ambiance that is designed to attract customers and keep them coming back to Starbucks stores. It offers wide varieties of services such as comfortable seating areas with unique music and free wireless Internet for their customers while sipping their favorite coffee. This distinctiveness sets Starbucks apart from most of its competitors and has allowed the company to successfully grow and profit while charging premium prices for their products.
Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?
business model may seem, there is plenty of hard work invested and financial risks taken to grow
Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing
Starbucks customers are diverse, well educated, young business people looking for a quick and easy way to grab coffee on their way to work. Starbucks values a strong relationship with their customers so they are
Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positioned to offer the highest quality coffee, close customer intimacy, and warm atmosphere or ambience.
Our coffee has always been, and will always be, about quality. Our employees are called partners, because it is not just a job, it is our passion. We treat each other with dignity, and respect, and hold each other to the same high standards. We connect with our customers; we laugh with, and bring a smile to their life. Making the perfect cup of coffee is one part of our role, connecting with them on a personal level is the other part. In each community we serve, Starbucks takes pride in being a part of the
As the world has turned the pages into the 21st century, Starbucks and its leadership team has developed and leveraged the technological advances of this time period to further drive growth and expansion, in addition to providing the ultimate Starbucks Digital Experience to people. The use of digital space and use of technology across the board is what has been a wise and effective tool by management as a method for the company to have and maintain an innovative marketplace advantage. Always cutting edge, some of the innovations that have given Starbucks a marketplace advantage are the company’s ability to connect with customers via social media, mobile order and pay, providing free premium content and access to Wi-Fi for in-store
Starbucks smartly realizes that innovation will allow them to maintain the upper hand in the
Corporate culture is a key component to the success of Starbucks. When looking at the seven dimensions of corporate culture (fn textbook pg 338) Starbucks emphasizes Team and People Orientation along with Innovation and Risk-Taking and pose less emphasis on a competitive environment or an outcome oriented approach. (see appendix c) In order to ensure a strong corporate culture Starbucks utilizes innovative and simple ways to ensure the key values are deeply held and widely shared. (fn) By visiting up to 40 stores weekly by the CEO Richard Schultz, creation of Starbucks Broadcast News to convey company news, or administering an “attitude survey” every 18 months to all employees they ensure the company and its partners (employees) are connected. (fn textbook)
Furthermore, Starbucks always involves with its customers and the community, providing customers with everything they want, and being continuously loyal to the customers while providing products that are good quality. Moreover, Starbucks also makes sure that the provided products are good at the beginning, rather than provides low quality products and makes improvement in the future. In order to do this, Starbucks gets the best ingredients possible and trains its partners properly so that is can prevent any defects in the products. To ensure that all products are with good quality, Starbucks always listens to feedbacks from its partners and its customers in order to better the process in which the products are made and the end result itself (Sandhu, M., Singh, R., Ratra, R. et