Company Analysis: Starbacks Coffee - Essay Example

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Company Analysis: Starbucks Coffee Instructor Institution Date Company Analysis: Starbuck Coffee Introduction Starbuck Coffee is a multinational beverage company whose presence in the market is felt across the world. This is due to its appropriate organizational structure, models, corporate strategies and ability to use the opportunities in the market to have competitive advantages over its main competitors…
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Download file to see previous pages Recommendations are given at the tail of the paper as a suggestion of appropriate strategies which could ensure continued growth of the company both in the local and international market. The Situation of the Organization Starbucks Coffee is a multinational coffee chain whose headquarters are in Washington. The company is rated as the largest coffee corporation in the world. Starbucks Coffee has internationalized into more than 55 countries across the world with over 18 thousand subsidiaries (Lockyer, 2009, p.9). Most of its branches are within the US, Canada and the UK. Starbucks deals in coffee, sandwiches, salads, snacks, other cold and hot drinks and pastries. The company began in 1971 as a local retailer of roasted coffee in Seattle and it has grown rapidly ever since. It was in the mid 1990s that the company expanded into the international market. This started the opening of many stores outside the US which is attributed to the company’s appropriate organizational theory, structure, culture and corporate strategic plans (Marcial, 2005, p. 109). Currently Starbucks Coffee is the most competitive coffee company in the world coffee market. The company has its own buildings across the world with some branches distributed in various institutions such as schools, airports and malls in different countries. This makes the company the largest coffee chain in the world and this is due to its strategic goals and objectives. The core objective of Starbucks coffee is to be recognized and respected as the best coffee brand and other specialty beverages. Hence the company continues to expand and grow as the main strategy of meeting its goal. The company also embarks in retaining its customers through producing high quality coffee and diversifying into new coffee brands (MarketWatch, 2010, p. 29). The growth of Starbucks in the international market is also due to its ability to make meaningful use of the opportunities in the market through capitalization and investment into new markets outside the US. Motivational theories demonstrate that a company must value its staff because of the basic role they play in the success of attaining goals and objectives. This is through proper compensation, staffing, training and development of the human capital (Jargon, 2010). The ever growing success of Starbucks Coffee is majorly promoted by its staff that is treated very well by the company management. The happy employees of the company all of whom are paid above the minimum wage are also motivated by good working condition and various benefits. As a result the employees act to retain the customers of the various branches of the company. The human resource group of Starbucks employs students in its branches within institutions of learning and hence providing opportunities for all. The relationship of the company with surrounding communities is desirable through its social corporate responsibility which has ensured preservation of the environment with the use of recyclable packaging (Thompson & Arsel, 2004, p. 641). Apart from normal business activities, Starbuck Coffee contributes to charitable organizations. The charity work of the company focuses on charities such as those involved with the homeless, environmental conservation and HIV/AIDS research. This demonstrates how Starbucks acts as an influential force both for the ...Download file to see next pagesRead More
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