Starbucks Coffee Company - Essay Example

Starbucks Coffee Company: A Term Paper As a specialty eatery, Starbucks Coffee has been known in the market as the leading coffeehouse that offers a good ambience and a variety of coffee products. 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 at selling brewed coffee, hot and cold drinks, snacks and other gift able items like mugs (Starbucks, 2010).

Its industry basically suits the segment where people are willing to spend much such as food and beverages. It has a stable growth and branched out to many countries focusing on its segment. The need of the customers for convenience is able to satisfy by the company and thus increased their loyal customers and built brand identity for a specialty eatery industry. The mission statement of Starbucks coffee caters on capitalizing market saturation, sell quality products, create a great work environment, satisfy customers, give a good ambience to customers and make profits.

The company aims at reaching $20, 000 levels of sales weekly as one of its financial objectives, as well as putting up new stores with less expenses particularly allotted to store-opening costs (Starbucks, 2010). The organizational structure of Starbucks consists of the divisional and functional structures. It is also in a monopolistic competition where there are many coffeehouses competing with each other selling different product lines. A lot of companies are trying to win over Starbucks by developing a good marketing strategy focusing on the product mix, location and primarily the ambience.

It is the strategy of the company to serve the customers with high quality products similar to its mission and lessen the expenses through highlighting the controllable expenses. Also, maintaining a good environment of the store is their strategy because it attracts loyal customers. The company focuses on high-margin items at the same time creating sales through additional items (Starbucks, 2010). The capital and costs structure of Starbucks falls into a low to average budget in every location and its major investments are into the property and most importantly the equipment used in the store.

The company yields its primary operating costs on labor or employment and cost sales. Thus, the budget of the company goes into its products and equipment mainly and no costs are allotted to advertise the company separately. Accordingly, the company is confident with its ongoing profitability most especially on doing international business. Other competitors such as McDonald’s, which is adding premium roast coffee on their product line, is not a threat to the company because Starbucks has established its brand to be the largest coffeehouse in the world and produces high- quality products.

It has the largest market share in the industry and doing has defined a better atmosphere compared to any other coffeehouses. However, the aggressive expansion of the company could direct to financial difficulties because of the operating costs and other related expenses. Its expenses are increasing and converse to its mission statement, cutting back on its staffs are centered more rather than increasing the satisfied customers. Thus, it is then recommended that the company develops a plan that could boost the sales in order to cope with the changing needs of the market and higher expenses.

References "Company, The." Starbucks. 2010 . 14 Feb. 2010 . “Starbucks Corporation." Student Resources. 2006. McGraw-Hill. 14 Feb. 2010.