Starbucks Case Analysis - Essay Example

Comments (1) Cite this document
Summary
This paper presents brief report on the management strategy of Starbucks and gives detailed analysis of both the internal as well as external environments. The paper presents challenges Starbucks is facing and some internal capabilities of the company that make its operations smooth…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
Starbucks Case Analysis
Read TextPreview

Extract of sample "Starbucks Case Analysis"

Download file to see previous pages The firm that is analyzed in the paper is Starbucks coffee company that ventured into the market in 1971 because of three business people who had love for coffee and tea. They felt it was important for the people of Seattle, Washington to have access to their coffee. They organized themselves, and ten years later this company had four retail stores and a roasting plant selling genuine bean coffee within Seattle only. As time went by, this company expanded to other cities like Vancouver, Portland, and Chicago, and by 1991 Starbucks had more openings within airports. It had also expanded into the mail-order catalogue, then further to the state of California. Having grown this far, the company initiated distribution of successful products and brand extensions that included offering coffee to passengers on United Airlines flights. This boosted their potential that later witnessed them start offering people the option to purchase the company’s products at the comfort of their homes through Starbucks’ online services. Currently, Starbucks strategic position is to provide premier purveyor of the finest coffee around the world while at the same time maintaining its uncompromising principles as the company continues to grow. Its efforts generated by sound decision-making are helping the company attain the best quality of the products. Their main product, which is coffee, has always been of the best quality and above all made by employees who are passionate about coffee. They maintain ethical standards as they source for the finest coffee beans that are they then roast it with great care2. Regarding their market, this company has a great strategic position when dealing with their clients as they promise a perfectly made beverage that they deliver at a human connection level. Starbucks treats its stakeholders with respect and dignity hence creates a profitable place for each other. External Analysis Starbucks is facing challenges just like any other company. The most of all challenges that this company is battling now is the current financial crisis that is affecting America. Due to funds turmoil that the current state of economy is posing to companies, Starbucks has not only reduced its total expenditure, but also forced to close most of its stores. In 2008, the company announced that it was going to close six hundred stores in different parts of United States of America3. Financial based reasons like income tax, risks related to third party finalization agreements, and benefits associated with the closure of stores within the anticipated period as well as cost of saving expected led to this fatal draw to the company’s expansion plans. Additional challenges facing Starbucks comprise of dealing with competitors. Currently, there are numerous coffee shops within major cities across around the globe and are posing total threats to Starbucks, as they are all competing for the same customers. 2. Flamholtz, E. & Randle, Y. Corporate Culture: The Ultimate Strategic Asset, (California:Stanford University Press), 20. 3. Thompson, J., et. al., Strategic Management 6th. (California:Cengage Learning EMEA, 2010), 382. Some of these competitors include: Nestle, McDonalds, and Dunkin Donuts. Standing out to generate customers is important yet a hard task to perform. Therefore, in order for Starbucks to alleviate competition wisely, it is of great importance for this company to identify their competitors and know what they are currently doing and how they can be at the top of the game despite stiff competition. Internal Analysis Starbucks has internal capabilities that make its operations smooth. For instance, due to Howard Schultz’s efforts to make Starbucks a better working place, Starbucks now has knowledgeable employees who are conversant with the company’s products, prepare the company’s espresso drinks without missing any detail, motivated, skilled, deliver consistent and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Starbucks Case Analysis Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved from https://studentshare.org/business/1395679-starbucks
(Starbucks Case Analysis Essay Example | Topics and Well Written Essays - 2000 Words)
https://studentshare.org/business/1395679-starbucks.
“Starbucks Case Analysis Essay Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/business/1395679-starbucks.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
sy
sydnisipes added comment 4 months ago
Student rated this paper as
I never thought 2000 words essay could be written in such a free manner. I loved the content of this essay. Will definitely use it for my own work!

CHECK THESE SAMPLES OF Starbucks Case Analysis

Starbucks Case Analysis

...?Starbucks Case Analysis PART Introduction Starbucks is 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...
10 Pages(2500 words)Essay

Best Practices in OPS Management : Starbucks Corp:Clouds in your Coffee Case Analysis

...?Executive summary This paper analyses the case study “Starbucks Corp Clouds in Your Coffee”. It begins with a summary of the case’s background that informs us of the dilemma facing Starbucks’ CEO, Howard Shultz. The dilemma is herein presented as the problem statement. The paper then goes ahead to analyze the options available for Starbucks to undertake. The paper’s arguments are centered on Starbucks’ five forces industry analysis, core competencies and the blue ocean strategy that eventually lead to the recommendations made. Table of Contents Table of Contents 1 2.0.Problem statement 3 3.0.Analysis 3 4.0.Conclusion and recommendations 5 References 6 1.0. Background The vision for Starbucks was largely based on Howard Shultz’s... ; however,...
4 Pages(1000 words)Essay

Starbucks Case Analysis

...? Starbucks Case Analysis Introduction Starbucks Corporation is an American global coffee company specially known for providing a wide variety of coffee products to choose from. Established in the year 1971 in Seattle, United States, today the business is considered to be the world’s largest coffee house company operating in almost 50 countries globally along with providing employment opportunities to almost 149,000 employees. It is worth mentioning that the company operates almost 5500 coffeehouses that provide great coffee and genuine service to its customer (Starbucks Corporation, 2013). However, it has been viewed that with the increasing competitors and the growth for supplementary products are establishing new challenges... to the...
5 Pages(1250 words)Case Study

Starbucks Case Analysis

...Running Head: A Case Study on Starbucks A Case Study on Starbucks: Delivering Service Submitted I. What are the Facts? Starbucks has stimulated the remarkable growth of coffee shops all over the world. Its rising coffee domain spans Boston to Seattle, with stable expansion success. Competitive strategies based on product differentiation demand a creative and innovative framework of marketing. Moreover, differentiation demands speed and resiliency since competitors which are also good imitators are mushrooming and effortlessly flock to a success. The swift expansion of Starbuck’s Coffee chain has forced its competitors to follow its pace...
4 Pages(1000 words)Essay

Starbucks Case

...Starbucks Case With the increasing demand for coffee consumption, Starbucks has been developing a phenomenal growth in their production. Starbucks was a private company since its commencement in 1971, until its first public offering in 1992. From the history we find that the Starbucks’ strategy was one of the important factors of its development and growth. Their performance has portrayed all dimensions of a growth strategy, such as entering into global market and internationalizing its mode of operation. Throughout the years, Starbucks has been noted for being creative while depending on its advanced ability of producing high quality...
2 Pages(500 words)Essay

Case Study Analysis- Planet Starbucks

...Case Study Analysis- Planet Starbucks Answer Brand Identity of Starbucks In marketing management a strong brand is regarded as the collection of symbols and experiences that is associated with the project, service or organization. The brand of the company is usually referred to the organization’s principle, concepts, ethics and values. The company was formed as a result of an initiative from a group of three friends-Gordon Bowker, Jerry Baldwin and Zev. Initially, the store was named as ‘Starbucks coffee, Tea and Spices’ and the brand logo depicted a chocolate brown colored two tailed mermaid. Later, the name of the store was changed to...
6 Pages(1500 words)Essay

Starbucks case

...In the highly competitive business environment, diversification strategy of Starbucks would greatly facilitate it in maintaining its niche market position. The falling revenues of Starbucks during the financial crisis of 2008 had witnessed tremendous comeback. Howard Shultz, the founder CEO had been brought back for spectacular turnaround of the company. The company was not able to face the stiff competition and lacked leadership initiative to introduce new ideas and format that would meet the challenges of the times. Shultz’s turnaround strategy was fundamentally based on meeting changing demands of the people through customization and improving customer service. Both the issues have emerged as vital...
1 Pages(250 words)Essay

Case Analysis of Starbucks

... Marketing Case Analysis of Starbucks Introduction Starbucks is one of the international coffee and Spice Company that has survived the business market during a period of harsh market dynamics. The Starbucks case study outlines the historical journey that the company has sailed through to gain its current position. The company started from a humble beginning back in 1987 in US under the leadership of Baldwin, Bowker and Siegel, and now is one of the top international companies that supplies coffee products (Gamble & Thompson, 2013). The company has faced numerous challenges both from internal and external business environment, which have threatened the development of the company. The company’s management acted promptly, under... conditions...
7 Pages(1750 words)Research Paper

Case Study: Critical Analysis- Starbucks Coffee

...Case Study: Critical Analysis- Starbucks Coffee Response Starbucks’ expansion strategy for foreign opportunities began in 1995. Unlike in North America, the company adopted a franchising strategy in foreign countries like Japan by licensing its format. The company sought to gain initial licensing fees and royalties on store revenues The Company established a joint venture with a local retailer to ensure that the foreign licensees adopted the company’s successful formula (The New York Times 1). The licensed venture bore the mandate of growing company’s presence in foreign countries. Employees and managers at the new stores had to attend training classes and adhered to the...
2 Pages(500 words)Case Study

Starbucks case analysis

...Task Starbuck Corporation The American global corporation doing business as Starbucks Coffee is based in Seattle, Washington. Founded in March 30, 1971, it is a renowned worldwide coffee company with coffeehouses all over the globe. The company’s main mission is to inspire and nurture the human spirit. The aim is to ensure that everyone who is included in the company’s line of business; shareholders, customers and partners all endure and thrive (Schultz and Gordon 57). In every neighborhood that the company sets up a store, the managers make sure that they bring positive action by bringing the organization’s partners, customers and the community together in making the neighborhood a better place. They...
1 Pages(250 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Starbucks Case Analysis for FREE!

Contact Us