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Starbucks Case Analysis - Essay Example

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This paper presents brief report on the management strategy of Starbucks and gives detailed analysis of both the internal as well as external environments. In order to analyze the business environments, various business analysis tools such as SWOT and Porter’s Five Force analysis will be included in the paper. …
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Starbucks Case Analysis
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Download file to see previous pages The object of analysis for the purpose of this assignment is Starbucks, a vibrant international organization that offers a variety of products in the market, with its core business being the production and sale of coffee-based products. The company’s products are quite varied and include Frappuccino, double shot products, chilled cup coffees, canned and bottled coffees, coffee ice creams, fresh brewed coffee, customer CDs, and books. The company has an international market and features in countries including China, USA, UK, Europe and Canada. The company’s initial mission was to be the World’s premier purveyor of finest coffee without compromising its core principles. Currently, the company’s mission is to inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time. The company’s vision is to open 300 net new stores locally and internationally. The company strategically intends to position itself as the undisputed coffee authority with a global presence. Like every other organization, Starbucks has its strengths and weaknesses. The strengths of any organization propel it toward greater success while its weaknesses pose a challenge to its continued success and existence. Yet again, every business organization exists in an environment what impacts its activities either positively or negatively. A strengths, weaknesses, opportunities and threats (SWOT) analysis will be applied in analyzing the position of Starbucks relative to its competitors and success. Strengths Starbucks as a company has a long history having been founded in 1971(Shah and Thompson, nd). The company has undergone significant growth over the years establishing itself as a preferred band across geographical and territorial borders. Having been in operation with a history of success and a good reputation, the company is bound to achieve more success as it can easily capture a greater market share. The company’s success history has been overseen by a dedicated management team. Under the leadership of Howard Schultz, the management team has seen the company achieve significant growth in various lines of business. Orin Smith, Jim Donald and other directors of the company had a wealth of experience in their various specialties their weaknesses not withstanding. Currently, Howard Schultz remains the CEO of the company, his dedication and brilliant management and leadership skills bound to make the company retain its success path. Starbucks endevours to be a great place to work(Shah and Thompson, nd). In this respect, it has taken several measures to ensure employee motivation, satisfaction, and dedication. The company’s employees are knowledgeable about the company’s products and services and are free to communicate their ideas and feelings to management without the fear of facing reprisals. Some of the benefits that the company’s employees enjoy include healthcare coverage, opportunity to own stock, and good work environments. Furthermore, the employees are trained on various aspects in respect of the company’s products and services. Their contributions to the company are well recognized as the company has a recognition program. The situation that the company is in as a result of these measures is healthy considering that motivated and satisfied employees are never easy to lose. The company’s turnover rate is significantly low which means that it benefits a lot in terms of high reputation as a good employer, provides high quality service due to its highly experienced workforce and suffers low hiring and training costs. The company has a strong and loyal customer base across different countries. The company is bound to glide in success with such a level of trust from its huge customer base. The company has instituted a number of measures to ensure that its customers are served wherever they are by opening several stores in various locations and through its franchises. Starbucks has a strong mission and is guided by principles that are ...Download file to see next pagesRead More
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