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Organizational Analysis/ on Starbucks coffee Company - Essay Example

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Strategic Analysis of Starbucks Coffee Company Date: 3 February 2012 Strategic Analysis of Starbucks Coffee Company Description and Size of Organization As coffee started to be introduced in European world, it was known for both its taste and its sociability…
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Organizational Analysis/ on Starbucks coffee Company

Download file to see previous pages... Howard Schultz, CEO of Starbucks, saw a world of opportunities and therefore came up with a distinct coffee brand and named it as Starbucks. In 1986, Schultz founded Starbucks in Seattle, Washington. The ambition plan of Schultz experienced tremendous success. He had this vision, which was quickly materialized. Schultz believed that many entrepreneurs have failed because of not having proper systems and planning to ensure the basis of implementing their entrepreneurial visions. The company met with its turning point in 1990s when a large number of customers in Chicago, Los Angeles and San Francisco started drinking coffee of Starbucks regularly. In this way, Starbucks began to experience long awaited benefits of word of mouth and traditional marketing campaigns. Employees played an important role in affecting the sentiments of the consumers. Consequently, Starbucks began to put more emphasis on satisfaction levels and employee morale. Since 1993, Starbucks began to continue aggressive expansion and due to such expansion, the company now operates more than 15,800 outlets internationally, which involves contribution and participation of around 140,000 employees. The annual revenue of the company grosses $9.4 billion. Starbucks competes with number of rivals. They come from both, within the specialty market of coffee retailers as well as outside the coffee specialty market. Some major competitors include Peet’s Coffee, Tully’s coffee, Caribou Coffee, Seattle’s Best Coffee and some small chains. Outside coffee specialty market, include Dunkin and Donuts, Folgers, Proctor and Gamble, McDonalds etc. Starbucks leverages its premium quality coffee, customer loyalty, employee retention and homely environment of its stores, which fend off the rivals. Starbucks’ Mission Statement Mission statement is a concise and brief statement, which determines the mission of the company or in other words, what the company values. Nowadays, every organization, big or small, formulates a mission statement, which translates the purpose of existence of the company. The mission statement of Starbucks states that; “Our mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” According to Lao (2001), a good mission statement has 9 major components. They include: i. Product ii. Customers iii. Concern for employee iv. Philosophy v. Concern for survival vi. Self concept vii. Concern of public image viii. Location ix. Technology (Lao, 2010, p. 79) The company mentions how it lives its mission statements. It is highly concerned to delivering premium coffee. In addition to that, it values its partners, which are not only its legal partners but are all of its employees. Moreover, it values its customers by providing them first class customer experience. A mission statement is set to be a ‘complete’ mission statement if it shows concern for all the above-mentioned elements. The mission statement of Starbucks is somewhat precise and does not incorporate all the above-mentioned components. The HR of the company has profoundly emphasized the importance of customers (human spirit) but other stakeholders have been neglected. Even if it does not incorporate other secondary elements such as location, self-concept, philosophy and technology, yet HR department must show their concern for the survival, employees and public image of the company, which are integral components of a mission statemen ...Download file to see next pagesRead More
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