Introduction Starbucks is the world's premier coffee roaster and retailer. It runs a chain of stores in the United States and over 50 other countries around the world. Starbucks grew from a very modest beginning as a coffee outlet by a group of people who had a genuine passion and interest in coffee…
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Aside that, Starbucks is a major corporate entity that seeks to maintain a strong grip through vertical integration. Starbucks maintains a strong hold on the coffee-related products and goods in America and around the world. Starbucks has acquired several processing plants and manufacturing entities that supply other corporate bodies with coffee and snack products which helps to boost the brand image. Stakeholders are the major entities who affect and are affected by the activities of an organisation (Freeman, 2004). In the case of Starbucks, the main stakeholders are employees, customers, the community, coffee producers and shareholders. In the mission statement of Starbucks, it seeks to satisfy the needs and aspirations of all these groups of stakeholders. The mission of Starbucks promises to provide a great work environment for the employees of Starbucks where diversity and excellence are at the core of their vision. They also seek to provide absolute customer satisfaction through excellent products. Also, Starbucks seeks to give back to the community and provide good arrangements and agreements with the coffee producers in different parts of the world. On the side of the shareholders, Starbucks seeks to provide the highest possible profits year-in-year-out for them. Starbucks' core strategy is 'to build a company with a soul'. This means it desires to set up a socially responsive organisation that seeks to provide the best results for all classes of stakeholders. It focuses on common values, common purpose and respect of people as well as shared success to create a bond between employees, suppliers, shareholders and management. Starbucks has different types of outlets found in several forms and systems thorough which they serve world class premium coffee. The growth of the Starbucks brand is an important element of the strategy. So Starbucks continues to provide high quality services and create a conducive atmosphere for coffee lovers. It embarked on an expansion drive in the 1990s by selling in top restaurants and hotels. It also entered joint ventures and strategic alliances with food manufacturers and CD manufacturers to create a unique brand that could be used to sell products around the world. Starbucks also expanded into other markets through strategic acquisition drives. They continue to spread their coffee brands through licensing and international expansion. However, Starbucks is going through some strategic challenges. The focus on the US markets seem to be proving less profitable due to the recent financial crises. Starbucks is therefore focusing on expanding to other foreign markets. They also seek to diversify and continue the vertical integration drive which seeks to acquire different business concerns related to the coffee industry. External Analysis External analyses refers to the points or situations where an organisation's activities interacts with the elements in the wider society; naming governmental, international, macroeconomic and socio-cultural and technological trends relevant (Scott, 2009). Political The years 2007 – 2009 were tough times for the United States in general. The War in Iraq and the global financial crises created a strong impact on the nation as a whole. The US Congress passed 3 stimulus bills in the period (The New York Times, 2012). These bills were meant to provide recovery to the financial system. It provided tax cuts as well as an unemployment fund to support
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The researcher of the essay will analyze the nature of specific competitors in similar business and their survival and marketing plan. After that, this report will also give recommendations to Little Red Roaster (LRR) on some of the potentially viable strategies it can employ to expand both sales and profit margin.
The scope of this report is limited to the United States business segment of Starbucks which is one of the three reportable operating segments of the company apart from the International segment and Global Consumer Products Group segment (Starbucks Corporation, 2012).
The choice of both the nation as well as the organization assumes significance considering the fact that Starbuck’s is one of the largest chains of coffee shops around the world. The choice of the nation assumes even greater significance considering the economic might and the market potential of the nation.
Starbucks Coffee Company is a leading coffee retailer that deals with roasting and retailing of coffee beans, selling brewed coffee, coffee related equipment’s, Italian-style espresso beverages, other cold beverages and some food items.
This company can be found in about sixty-two countries and has more than 20,000 stores all over the world, and in fact, in most of the developed world, it is one of the most recognizable brands, which has made it extremely popular with the consumers in these countries.
The complete scenario related to their expansion process and the challenges faced during the course of internationalization have been determined. Conclusively, a few of the useful strategies have been recommended to the company which it could have implemented in their expansion process.
This essay will first of all analyze the characteristics of Starbucks and then the various activities that take place in the shop from the time that a customer enters the shop till he leaves. After that the criticisms against the service will be discussed and recommendations will be presented as to how the service can be improved.
Most of the shops are located in ten countries (mostly in the United States). Starbucks also owns and offers franchises the Seattle's best coffee through grocery stores and licenses its brand for other food and beverage products1. Per Abstract table below, the net income for the last 3 years are $494,467, for the year 2005, $390,559 for the year 2004 and $268,346 for the year 2003.
Starbucks has expanded to more than 16, 600 coffee shops in various countries. Each branch offers coffee variants, coffee accessories, roasted beans, teas and food items. Particularly, the store specializes in selling brewed coffee, hot and cold drinks, snacks and other giftable items like mugs.
Starbucks’ strategy pillars on its mission, to inspire and nature the human spirit. Howard Schultz (the CEO) initiated various plans of actions to ensure Starbucks achieves its goals and objectives efficiently and
5 Pages(1250 words)Case Study
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