Why Is Starbucks So Successful - Case Study Example

The increase in profitability is driven by several factors. One of the factors is that Starbucks strives to give high-quality services to its customers. The company gets a lot of clients based on its conducive environment. In other words, seats are always available in all coffee shops and there is free Wi-Fi. Other factors that have made this company successful include attention to minutiae, it has a wide range of products, and it opens up its outlets in areas with a high population. There was increased revenue in 2012 by eight percent, and the taxation level was lowered in 2011. This led to increased revenue hence the $1.1B dividends to shareholders (Schultz, 2012).

Through expanding its businesses to other countries such as China, and India, as well as other parts of the world, Starbucks has been able to achieve access to better and superior markets. Another advantage of expanding to places like China and India is easier access to cheap labor and raw materials. In addition, going global has enabled Starbucks to build up and widen its innovative capabilities. On the other hand, going global has had its disadvantages. Some of these include extra expenditures in business operations as a result of operating in new surroundings. In some regions such as Europe, Starbucks has been struggling due to the country's wide-ranging financial problems. Starbucks was opening up new outlets at a very fast rate in 2008 and the supply chain had to keep up with the rapid expansion (Schultz, 2012). Since coffee must be gotten from all over the world, this hinders expansion as it may take time to distribute the coffee in all outlets.

Schultz left Starbucks in the year 2000 and went back as the CEO in 2008. The main reason for his return was the fact that Starbucks was struggling hence his discontentment. He advocates for striking a balance between profitability and corporate social conscience. He attributes this to the fact that reliable and morally upright companies ultimately perform well as compared to companies whose main aim is to create instantaneous revenue. Schultz is credited for initiating "Create Jobs for the USA". He initiated this initiative due to the inability of the government to create jobs for millions of jobless Americans. He believes that if Starbucks' customers joined hands and donated their loose change after buying coffee, then this can generate an incentive that can lead to the creation of jobs (Schultz, 2012).

According to Schultz (2012), Starbucks coffee outlets are designed in such a way that clients can settle down, unwind, and mingle. Structures for effective communication have been established and implemented. The company's organizational culture is also appealing to both employees and customers. This is what makes the work environment so satisfying. Starbucks has made careers more appealing through the provision of benefits especially health benefits to its employees, and avoiding prejudice and biases when hiring. Starbucks employees are regarded as partners based on the fact that every employee is rewarded with the company's shares according to the years or hours they have worked for the company. This implies that employees own a certain percentage of the company hence they are motivated to make their company better.

One of the things I like best at Starbucks is the customer service. All employees are friendly to the customers. Based on my experience, what I liked the least is their main services revolve around coffee. I envy a restaurant with a wide variety of products. I do have an emotional connection with Starbucks' products because they always present or offer products that I yearn for and have a craving for. The social science that drives my loyalty to the Starbucks brand is how it brings people together and strives to bring a change in people's lives.