Starbucks Strategy Analysis

The case opens with background material on BCC and its founder. It establishes the market conditions, consumption patterns, and competitive atmosphere of the specialty coffee business in

The cost of revenue, or goods sold, is 86.3% of the total expense distribution for Starbucks.

The authors elaborate on a second factor to blame for the coffee crisis which entailed the growing technical skills possessed by the five major roasters- Phillip Morris, Nestle, Sara Lee, Proctor and Gamble, and Tchibo. These companies accounted for 69 percent of the roasting and instant coffee manufacturing capacity.

We are chosen two company of coffee industries Starbucks and Second cup. The coffee industries are doing profitable business in the world. The demand of tea and coffee is increasing with the changing trend of the society. The consumption of coffee and tea is high then other beverages. The coffee industries are number of social, economic and environmental issues. In the following paragraph I will state the major social, economic and environmental issues.

Starbucks Coffee Company was founded in 1971, opening its first location in Seattle's Pike Place Market. Starbucks, named after the first mate in Herman Melville's Moby Dick, is the world's leading retailer, roaster and brand of specialty coffee with coffeehouses in North America, Europe, Middle East, Latin America and the Pacific Rim. Worldwide, approximately 33 million customers visit a Starbucks coffeehouse each week.

"External factors influence a firm 's choice of direction and action and, ultimately, its organizational structure and internal processes. These factors, which constitute the external environment, can be divided into three interrelated subcategories: factors in the remote environment, factors in the industry environment, and factors in the operating environment… In combination, these factors form the basis of the opportunities and threats that a firm faces in its competitive environment," (Pearce & Robinson, 2004, p. 78). To create an experience unlike its competitors, Starbucks must constantly evaluate all areas of their business while capitalizing on economies of scale and eliminating redundancies.

At each store, a store manager acts as the chief. Under this store manager are a collection of shift supervisors who act as managers on duty when the store manager is out. Below the shift supervisors are the rest of the employees, referred to as baristas.

Starbucks, what started in Seattle in 1971s by three friends: erry Baldwin, Zev Siegl, and Gordon Bowker. They opened a small shop and began selling fresh and cold coffee. Starbucks has always been a place where you can find world’s best coffee. In 1970s, Starbucks open its first coffee restaurant and

He has developed and promoted a strategic vision from the beginning: to make Starbucks "the most respected brand name in coffee and for the company to be admired for its corporate responsibility." Two key values that supported this vision were "to build a company with a soul" and to pursue "the perfect cup of coffee." Simple phrases, but they have given direction to a highly successful enterprise!

One company that has been particularly successful in creating an overall company image in my option has been Starbucks. They have been able to maintain a dominant position in today’s market. Where in the morning most of our society needs a good cup of coffee in order to start their day. At one point, we looked at Starbucks as a high-end marketer. A sort of club to belong to. However, things managed to change in the recent years where a 4.00 cup of coffee was becoming a luxury items. This became known as the Coffee Wars. Starbuck had to now face competition from the fast food world. Which was McDonald’s and Dunkin’ Donuts. They started to look at this market as an opening to gain more customers. They started to offer their

The competitors for Little Fork Cafe would be Starbucks, Chocolate Monkey, and Panera Bread. Starbucks located at 5555 Sunset Blvd, Lexington, SC 29072 is 2.4 miles away from Little Fork Cafe. Starbucks is a Seattle-based coffeehouse chain known for its signature roasts, light bites and WiFi availability. Some examples strengths with Starbucks is that the company itself is a world famous brand with a strong brand image. With a Starbucks store in almost every country, including airports, many people are constantly exposed to Starbucks. The company also has a brand image that offers consumers a relaxing and enjoyable experience, such as a place where there's wifi accessibility so people can meet up and do work. Another

Nowadays despite the high profits of this well recognized brand, the organization needs to understand the external environment in which it operates. This is a method of examining the different factors which influence success and failure. PESTEL analysis are used to understand the importance of external factors which impact the company to plan.

Starbucks have played various roles over the last years to become the global contributor that added value to the society. The Company implemented a strategy of expanding its stores. It developed a geographical expansion of a three year strategy that targeted the areas that had favorable demographic profiles with the company's operation infrastructure. Its selection of the targeted region which served as a hub supported the goal of opening more stores. The Company oversaw the expansion process by creating zones that directed development for each region to implant its culture by opening new stores. The store launched grew steadily and more successful and in 1995 there were about 17,000 stores that fully served his customers (McGraw-Hill Companies, 1999).

30 and 59 purchase more specialty coffee than those customers between 20 and 29. The

Producing coffee with high standards of quality and trading in a more ethical way by adhering to fair trade practices are two more important factors to do businesses effectively. Sourcing raw materials is one of the most important factors under analysis of political factors and Starbucks need to adhere to social and environmental laws and norms. Further Starbucks need to consider essential factors such as tax policies, employment laws and political awareness in developing countries to monitor business processes in US market since there is a high regulatory pressures within its local market in US.