The Business Strategy of Starbucks

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 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

2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.

Starbucks, the leader of the Beverage Industry is known by its franchises around the world. Therefore it has known as a global company in Beverage Industry. This part of essay will indicate company’s external environment via PESTEL analysis. To understand how political, economical, social, technological, environmental and legal issues can affect company’s external environment.

We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.

In all companies, there are many strengths, weaknesses, opportunities, and threats. Starbucks is one of the world’s leading coffeehouse chain. The beginning of Starbucks was in 1971, the first store ever to open in Seattle’s Pike Place Market. Thanks to Howard Schultz the founder of Starbucks the beginning was far from the end. Schultz was bright and new that Starbucks would have a future. In 1987, seventeen stores open in Chicago and Vancouver. 1988, thirty-three stores were open, Starbucks committed to giving their employees full/part time jobs with full health benefits. In 1991, Starbucks first store in an airport, having 116 stores open at the time. 1994, 425 stores opened, first drive-thru was established. In 1995, they began selling the world’s most popular and favorite drink the Frappuccino, with 677 stores opened. 1996, the first store opened outside of North America in Japan and Singapore, having 1,015 stores. In 1998, Starbucks partnership with Magic Johnson, opened stores in underserved neighborhoods, with 1,886 stores. In 2002, the best thing any store can have is Wi-Fi, Starbucks launches free Wi-Fi in stores, over 5,800 stores. In 2006, Starbucks launches the industry’s first paper beverage cup containing post-consumer recycled fiber, with 12,440 stores opened. In 2008, Starbucks adopted a new mission statement, “To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.” With 16,680 stores open. In 2011, launch first annual

"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.

“Starbucks began in 1971 in the Seattle’s pike place market as a retailer that roasted whole and ground coffee beans” (Starbucks, 2011). They later became the best known coffee shop in the world. According to "Starbucks" (2011), the organization has a total of 17,003 locations in 55 different countries. “Starbucks mission is to inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time” (Starbucks, 2011). Team C will first decide what Starbucks competitive advantages are, and what strategies could be used to improve innovation and sustainability in a global market. Next team C will explain why starbucks chose these strategies and how the choices will affect sustainability and

1.Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.

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

Starbucks has a strong market position and brand awareness, affecting the organization in the expansion of the importance of the general market, an increase of residential and external business sector development.

As the number one specialty coffee retailer, Starbucks offers hot and iced drinks, breakfast and pastry items, as well as boxed meals and sandwiches to customers in over 18,000 coffee shops in 60 countries. Also known as the premier roaster, Starbucks has created a high level of brand reputation because of its top quality services they prove to their customers. Starbucks wants to create top quality for their customers as well as create unique customer experience for each individual customer. They use premium coffee beans that they roast with great care to ensure a great, bold taste in their coffee. Starbucks also makes sure that each store is more of a community feeling, rather than a store establishment, and

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.

Today, Starbucks has proved to be a leading innovator and an example of success in an

In this report we will understand the operations process of Starbucks, find the main problem areas and provide suitable suggestions that will help them maximize their profits. Starbucks is one of the world’s leading coffeehouses located all over the world with 17,000 plus stores, with 6 roasting plants and over 70,000 deliveries per week. As s global business, Starbucks showcases their organizational culture through maximizing quality of service. Their most significant operations decisions include; Quality Management where the coffee beans are carefully sourced from the coffee farmers that meet the Starbucks Standards; Process and Capacity Design where the organization carefully utilizes capacity in a way that it meets fluctuating demand (ability to increase personnel to cater to increasing demand at peak hours) and aims to maintain cost effectiveness by efficient workflows and processes. The Location Strategy of Starbucks is that they are located in populated urban cities across the globe that have a significant number of middle to upper class members of the society that can