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The Current Position of Starbucks - Essay Example

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The purpose of the paper “The Current Position of Starbucks” is to evaluate the current strategic position of Starbucks stores. It is on a decline in every aspect of its original mission, vision and goal. Starbucks has failed to put focus on its customers needs…
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The Current Position of Starbucks
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"The Current Position of Starbucks"

Download file to see previous pages Though profit maximization, sales maximization makes the backbone of every company’s objective, Starbucks have over insisted on this and failed to maximize its quality management and customer needs. The replacement of comfy seats with stands, stylish coffee cups with general cups, stuffy environments and supply of sandwiches whose smell overpowered the sweet scent of brewed coffee is also another strategy that led to the drastic decline of the company’s sales. This shows a complete diversion of the company’s mission and goal. Waitresses and waiters have also been overburdened; they no longer appreciate their work. They feel that the goal they were working hard to achieve and sustain has suddenly changed (Mulcaster, 2009). Brewing of coffee was the major idea behind Starbucks formation. However this idea has changed to automatic making of coffee that customers complain about. The quality of coffee is not felt anymore and so is the social effect of the stores. The employees’ attachment with the customers has reduced due to the tall coffee making machines that destruct the customers view when coffee is made (Mintzberg et al., 2003). ...
ategy to help them cope up with the food crisis problems, such as decreasing its prices, or even changing the type of cups to small ones that were affordable just like its competitors deed. Nonetheless, this company did not take into concern efforts made by its competitors. Many stores came up with new strategies to combat Starbuck’s increased sales. The strategy then employed by this company was to open even more stores in the US. However they failed to carry along their distinctive character with them, such as brewing coffee, presence of comfy seats, and ensuring that the sweet aroma of coffee was still intact. As a result the decline of its shares in the stock exchange was inevitable. This is because there is no one who would like to be associated with a declining firm which translates to low dividends due to the low profits and sales realized. Though Starbucks Company still has the capabilities and resources that can help it to still lead in the coffee world, the environment in which it is running its business is too tight. First the economy has changed. Food prices have hiked, meaning that the disposable income of the consumers is low. They will therefore not opt to take expensive coffee. In addition, its competitors are doing all they can to make sure that they also increase their sales and also penetrate the market just as Starbucks is doing. They are thus growing at the same level. The company’s employees are also getting tired of the introduction of new products. Not that it is wrong, but because their opinion is not taken into concern. They feel that they are not part of the company anymore. However, Starbuck Company can be able to reinstate itself once more and be on the lead in coffee roasting and retailing. ...Download file to see next pagesRead More
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molly58 added comment 3 months ago
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Excellent paper! Used it to finish an assignment for a business course. It was easy as ABC, for the first time in my life.
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