Strengths Of Starbucks

Starbucks is rated as the number one World’s leading coffee distributor. Customers satisfactions are always be in the center of their business and the company works consistently to maintain it as customer look forward to a unique experience when visiting one of Starbuck stores. With over 12,000 stores worldwide, Starbucks has always aimed at achieving and maintaining competition in the industry.  Starbucks success reside in many factors :  the company is admire and respected worldwide,employees are recognized and respected for what they contribute to the success of the company. Open communication

Starbucks celebrates 40 years with 17,000 stores in more than 50 countries (Goals & Progress, 2010). Starbucks thrive on their values as a company to improve the lives of people who grow their coffee, neighborhoods where the company does business, and they care for the environment (Goals & Progress, 2010). Starbucks strives to incorporate good business practices and ethics across the globe not only for the enhancement of the company but also for the enhancement of the stakeholders and the communities the company impacts. Starbuck’s mission statement is “to inspire and nurture the human spirit. As said by Howard Schultz, Chairman, President and Chief Executive Officer, in the 2010

　　Starbuck offers high quality product to acquire and attract new customer around the world. The coffee beans they planted are able to provide customers with delicious coffee. Starbucks

Starbuck’s began their journey in the coffee market with the grand opening of a small cafe, back in 19711. The name for this company is quite unique and there is a clear back story behind this. The original owners were inspired by the story of Moby Dick and its thought to “evoke the romance of the high seas and the seafaring tradition of the early coffee traders.” Since the first Starbucks store, the company was famous for its community development and its active participation within society. Starbucks began to witness great change within their company once their management changed, in 1987 Harvard Shultz was appointed the Chief executive officer. Inspired by the traditional Italian design, Schultz adapted this design and integrated it within the lighting, layout and music choice played in the cafe’s. As a

Similarly, companies such as Starbucks was affected by changes in leadership and competing with other companies that also saturated the market. Starbuck was a very successful company because they was able to provide a relaxed atmosphere that allowed people to converse with family and friends, have meeting, read, and use internet access all while drinking a cup of coffee. Starbucks customer flow was beginning to decline because the customer were growing tired of spending $4 for a cup of coffee when they can get similar coffee at the competitor i.e. McDonalds, Dunkin Donuts, or Seattle’s Best. In 2008, Starbucks listened to the customer and began revitalizing and going back to the basics. They removed distracting items from countertops such as books, CDs, breakfast sandwiches and began to focus on the product itself which was coffee. In making these changes, Starbucks was able to slowly start growing again and was able to continue to make strive to internationalize.

The first "Starbucks Coffee, Tea and Spice" store was opened in 1971 in Pikes Place Market in Seattle by three academics; History teacher, English teacher and writer Zev Siegel, Jerry Baldwin and Gordon Bowker respectively. Apparently the name Starbucks came from Moby Dick, an American classic novel about the whaling industry in the nineteenth century, by Herman Melville. Instead of selling the drink that they are famous for today, Sarbucks initially only sold coffee making equipment and coffee beans. The rather brilliant idea and decision to sell drinks rather than just machines and beans was brought up by Howard Schultz who was then the Director of Retail Operations for the company after 10 years of operation. However, his idea wasn't in favour of the company entrepreneur as he wasn't successful in convincing them about the "crazy" idea. Hence in 1986, he started a chain of coffee bars which he called II Giornale as he went his own way. Just over a year after that, Siegel and the other two sold Starbucks to Howard Schultz who then renamed his coffee bar chain to Starbucks and swiftly started expanding. The Coffeehouse chain started spreading across the United States of America after conqueting Seattle and then internationally. Tokyo, Japan was the first destination outside North America that Starbucks had ventured internationally (Coffee.org, 2014).

Starbucks main strengths includes their financial performance and establishment of a brand that draws in a large group of loyal consumers. High financial performance has allowed Starbucks to have the leverage and funds available to expand globally as well as invest in premium products. In addition, Starbucks has been able to use their financial leverage to create their brand of a premium coffee business that treats employees and the environment with respect. Thus, creating a desirable place for quality employees as well as a desirable place for consumers to spend their money.

I believe Starbucks is dealing with problems such as raising competition from fast food chains. Also, Starbucks is falling behind in terms of breakfast menu to their competitors such as McDonalds and Dunkin’ Donuts. Many of these fast food chains do product bundling, meaning they create set menus that allow consumers to purchase a meal with drink. Not only this method is cheaper for producers, but also as fast food chains are known as low-priced competitors, Starbucks seem to have hard time in competing price wise.

Inbound Logistics: The logistic activity starts by choosing the best coffee beans by the corporation selected buyers from coffee producers within Africa, America and Asia. In Starbuck’s case, the green bean is handpicked by the Starbucks buyers [2]. Afterwards, the unroasted beans are delivered to Starbucks six district centers varying from 200,000 to 300,000 square feet in size [7]. The coffees are roasted and wrapped up and transported to dozens of distribution centers across the world [8]. In addition the

After reviewing the case provided to us and conducting some research on your company, we have learned the following: Starbucks is an incredibly popular company that has successfully captured a large portion of the market. Starbucks has many strengths that have helped it become as successful as it is (Exhibit A). Starbucks’ biggest strength, according to our research, is its brand value (Exhibit A). According to our outside research, Starbucks currently has 39.3% of the market share in the coffee and snack shop industry here in the U.S. (1). Starbucks’ 39.3% of the market share in the coffee and snack shop industry is nearly double that of its closest competitor, Dunkin’ Brands Inc., the parent company of Dunkin’ Donuts and Baskin Robbins, which holds 21.7% market share (1). We see this as a major advantage of Starbucks and a big reason why the company has been so successful. Other strengths of the company, as seen in Exhibit A, also includes a large international presence, (23,043 stores in nearly 70 countries), and the baristas themselves, who are capable of customizing any drink ordered by a customer (Exhibit A) (2). The other side of the SWOT analysis in Exhibit A shows that Starbucks has some weaknesses. The weaknesses we identified were that Starbucks’ price point on its products was higher than that of its competitors, which has allowed its competitors to keep up with Starbucks. Also, the at-times confusing terminology when ordering drinks, has created some confusion.

Each company has what sets it apart from other companies in the same industry. This ideology excludes not Starbuck. Starbuck has a history and right from its inception, the founders wanted something that would offer fine coffee to the society that settled in Seattle. This has all along been the case. To accentuate this phenomenon, there was a time Howard Schultz had to travel to Italy to explore more of the Italian coffee tastes offered in Italy coffee bars and come back to customize the same in America. Unfortunately, upon his return he resigned from Starbuck and formed his own company. However, a few years after he formed his company, Starbuck went on sale and this led Howard Schultz and other investors to mobilize

Starbucks was established in 1971 in Seattle, Washington. The company’s culture is focused on the image that it builds for the customers, i.e. friendly, earthy and warm and a very welcoming place to be. Secondly the focus is on the customers and their needs. Starbuck’s mission statement and vision statement show the emphasis on being leader of the coffeehouse industry. The mission statement shows what the core business of the company is and the vision statement shows what the company wants to achieve in the future. The company’s mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2016). This shows what needs to be done to keep the business running. The key part of this statement is to inspire and nurture the human spirit. They start this concept with the employees. The company culture is one of warmth that it extends to its employees and customers. The part of the mission statement that states one person, one cup and one neighbor shows that they have a meaningful impact on employees and customers. They plan to gradually grow the business, one neighborhood at a time. The company’s vision statement is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow” (Starbucks, 2016). This vision statement shows the

Starbucks is the largest coffeehouse in the world today, with more than 24,000 stores in 70 countries (Starbucks, 2016) around the world. Despite being a coffeehouse, Starbucks sells more than just coffee. Their selection of coffee, tea, snacks and pastries are ethically sourced to avoid exploitation of their farming communities. They are also active in conservation of the environment through their green initiatives such as reducing wastage and recycling.

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.

Starbuck 's is one of the biggest coffee shops on the planet. There were 17800 stores in 40 nations and 800 in the United Kingdom, 1000 in Canada as per (Starbucks organization outline, 2009). Starbucks got to be well known café everywhere throughout the world. It has turned into a prominent coffeehouse as a result of the taste as well as the administration from the staff. Therefore, staff motivation is a standout amongst the most critical elements for a fruitful organization. It likewise have the pleasant shop floor environment and making unwind for buyers on the grounds that they can get to internet for web customer and it is a decent place for short gathering and who need to make talking with companions or associates. "Income developed 30%from $4.1 billion in fiscal 2003 to $ 5.3 billion for financial 2004, which figured in October.