Many people prefer taking coffee in a relaxing atmosphere where they can join friends and hold business meetings. This paper will discuss whether Starbucks should consider setting operations in Africa. This concept started in US and has spread to other parts of the world. …
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Traditional cafes did not understand the changes in consumer needs hence this gave room for Starbucks to expand quickly by opening more stores. Starbucks Corporation has opened stores and coffee outlets in North America, Europe and Asia. The objective of Starbucks opening coffee outlets in Africa is to meet its business strategy of global expansion. The increase in profitability can be attributed mainly to its aggressive expansion strategy. For the long term objective to be achieved, more than half of the stores will have to be located outside the United States. Starbucks has achieved market leadership by ensuring high quality products and services together with excellent customer service. The company can increase market share by expanding to Africa. The company will have to maintain its global business strategy of differentiation and added services.Introduction
Starbuck is the largest coffeehouse in the world with operations in all the continents. The company operates more than twenty thousand coffee stores in more than one hundred countries in the world. From a single coffee store which was opened in 1971, the company has achieved a market leader position in the beverage industry by establishing operations in the US and beyond (Hill and Jones 165). Starbucks licenses and franchises operate more than seven thousand coffee outlets worldwide with many of the operations being based in shopping centers and global airports. The company has diversified product portfolio offering which include coffee, tea, soda, juices and pastries (Boone and Kurtz 56). The company has also venture inn entertainment segment where it markets music, videos and books. The company products are localized to the specific market (Ungson and Wong 145). The company has also maintained its original culture which has not being diluted by the global culture hence the common goal of the company is to offer distinctive experience to its customers (Boone and Kurtz 69). The company has been able to provide great working environment to its employees by embracing diversity and treating all the employees with dignity and respect (Ungson and Wong 160). The operations of the company are centered on excellence in purchasing inputs, roasting and delivery of the final coffee product to the customer. The company business strategy is to maximize sales by creating relaxing and attractive atmosphere with guarantees excellent customer service (Hill and Jones 177). The company also uses both retail and online music sales to widen the target market share. The company also maximizes market penetration partnering with global
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The brand name “Starbucks” has become symbol of quality within last few years. Starbucks has changed the age old concept of coffee store into an exquisite experience. Every day millions of people walk inside the store of Starbucks to experience sublime customer service and quality of coffee.
Howard Schultz joined Starbucks in 1982 as director of retail operations and marketing (Starbucks Coffee Company 1). It was during this time that Starbucks started providing restaurants and espresso bars with coffee. In 1984, Starbucks started the coffeehouse concept which eventually became the foundation of II Giomale, a company which Schultz started in 1985 (Starbucks Coffee Company 1).
In such context, Roby (2011) stated that technically, Starbucks should never be able to attract customers for day after day with its overpriced coffee but in practical situation, millions of people across different parts of the world visit Starbucks to enjoy the holistic experience despite paying high price.
It has numerous coffee stores in most of the developed countries including the United States, Japan, China and Germany among others. The World Cocoa Foundation also recognizes Starbucks as its active member. The cooperation is considered to be the most successful coffee company for decades; this is as a result of using their well schemed development strategies to steer its competition.
The success of the Frappuccino, a cold coffee drink ideal for hot weather, was the result of Schultz’s reinvention. A cold drink was not part of the Starbucks vision, but customers loved it, so Schultz allowed it. It was a hit! Starbucks entered the music business as customers loved the music playing in the stores.
d at Starbucks is the automation of supply chain systems and applications, in order to improve overall control over those operations.(Rubenstein, 1997).
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Starbucks Coffee Company was founded in 1971, opening its first store in Seattle’s Pike Place
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