Starbucks Swot Analysys

1228 Words Apr 27th, 2011 5 Pages
Starbucks Case Study Starbucks has been a household name for over 20 years. It is the largest coffee house in the world with over 17,000 stores in 50 countries (Wikipedia Website, 2011). How can a giant like Starbucks stay on top of the coffee market yet retain its personal small coffee house feel? Starbucks continuous strive and strategic management plans have proven beneficial in keeping to the goals of the organization.
Strategic Management-Setting the Mission and Goals The first step in the strategic management process is to identify the current goals of the organization (Coulter & Robbins, 2009). Starbuck’s original mission statement, as reported in the Jerusalem Post, was to "Provide a great work environment and
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Starbucks decided that a better loyalty program through the Starbucks Card was necessary. This program gave frequent customers better incentives such as free refills or a free birthday coffee (Starbucks Website, 2011). One of Starbuck’s strengths was also a weakness. It was huge. The Starbuck’s growth surge had caused it to lose its corner coffee shop appeal. People were starting to view it as a huge conglomerate and not just a place to go have a great cup of coffee. Schultz decided to bring back the smaller espresso machines. Doing this enabled the Baristas to be able to look and talk to the customers and the customers could actually watch them making the drinks (Besharov, et al., 2008). It also provided a real coffee house look and not an industrial, assembly line as it did previously.
Evaluation of Starbuck’s Strategy I am impressed with Starbuck’s strategy. I feel that they are on the road to being one of the most successful corporations in America. I went to two local Starbucks and observed the employees and their interactions with the customers. I feel that the new mission is being adhered to and the partners are engaged and genuinely like working at Starbucks. The customers seem to love the product they are producing. I was particularly impressed with mystarbucksidea.com website. There was actual interaction between the customers and the partners. I feel that Starbucks will have to soon address the issue of

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