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Starbucks, the Global Coffeemaker - Assignment Example

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This paper will provide a strategic analysis on the popular brand Starbucks within the business environment of the United States. The focus is the U.S. and International segments which are responsible for company-operated and licensed stores. …
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Starbucks, the Global Coffeemaker
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"Starbucks, the Global Coffeemaker"

Download file to see previous pages 15 List of Tables Critical Success Facgtors 1. Introduction This paper will provide a strategic analysis on the popular brand Starbucks within the business environment of the United States. The focus is the U.S. and International segments which are responsible for company-operated and licensed stores. Also included in the classification of International segment are food service accounts stationed in Canada and the U.K. When Starbucks started its humble beginning, Starbucks founder Howard Shultz said that they wanted to change how people lived their lives. The company has transformed gourmet coffee into a primary food product along with a new American coffee shop (Thompson and Arsel, 2004, p. 631). This innovative company manufactures and directly sells coffee and tea, but its specialties are beverages from roasted whole bean coffee and tea. It operates owned- and leased-stores in many parts of the United States, the United Kingdom and Europe, and the whole world. (MarketWatch, 2012) Starbucks’ model of cafe is unique but it has tapped the coffee lovers’ segment, which is not actually a segment per se since everyone loves coffee. The company has penetrated major developed markets (Canada, China, Japan, Britain, and continental Europe, and even countries in South East Asia). It has conquered coffee lovers and Rome. Starbucks suffered some setbacks when the founder and CEO Howard Shultz stepped down in 2000 to act as chairman. Shares went down and the company was about to collapse had it not for the comeback of Shultz who had to start the company all over again, in Schultz’s words “own the mistakes” (Harvard Business Review, 2004) and...
This paper approves that the management and choice of location of the various coffee houses and stores of Starbucks were distinct and unique for Starbucks. They have an almost excellent choice of location and management is customer-focus. Retail locations are also management properly and are of strategic location. The most important is the supply chain – every product and service is readily available and reaches the various branches within and outside the United States on time.
This report makes a conclusion that supply chain management is handled by expert managers and Starbucks’ handling of supply chain operations is superior to its competitors. Their delivery trucks and other means of transportation to transport their products reach their destinations on time, whether this be inside the United States or to various branches worldwide. This makes its strength surpassed its weakness. It values its own people and the people it serves – including the community. This was displayed when Howard Shultz revived the company to enhance the integrity of their assets, which are the company values, culture and guiding principles, gaining once again the trust and confidence of the people and its stakeholders.
Manufacturing and distribution are major components of the supply chain, and this Starbucks is good at. Their perfect handling of these processes allow them to have a strong inventory and a strong plus over their rivals McDonald’s or Dunkin Donuts. Although these two have food as additional products to entice customers, Starbucks has perfected the coffee business. It may take a long time before competitors will be able to take hold of Starbucks’ advantage. ...Download file to see next pagesRead More
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