Applied Strategic Management. Starbucks

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Brief of Company

Starbucks is the largest and most famous coffeehouse in the world. They just started from a small outlet in Seattle, Washington and then strategically expanded worldwide. It has become the world's most powerful and distinctive brands of high quality coffee that operating its business in such ways it brings about the environmental and social advantages for society.

Reasons for Selecting the Company

Starbucks has initially taken the strategic way of selling a variety of coffee with high-quality and trendsetting convenient coffeehouses which became the common meeting place for everyone. They are socially responsible and committed in reducing the environmental footprint by recycling, energy and water conservation.

Main Strategic Issues Facing the Company

• Starbucks has confronted its first ever labor strike in history by the union in Chile last July 2011 where employees demand for benefits and pay increases. This will affect the Starbucks’ good reputation as a socially responsible company.

• The price of coffee has spiked up in 2011 due to the increasing demand of world’s largest emerging economies as well as soaring up prices of commodities across the board which will influence the pricing of Starbucks to their coffee.

Company’s Contribution to National Economy

Starbucks perform an important role in the food and beverages sector which contributes about 1% of Singapore’s overall GDP because it has boosts the local economy of the country’s high street with the presence of its coffeehouses.

Company’s Contribution to Regional Economy

The coffee business of Starbucks has influenced the lives of farmers especially in Asia Pacific where they have employed approximately 65,000 people. It has take part in the global marketplace by its innovative idea of combining corporate social responsibility and business strategy that leads to a long-term economic and environmental sustainability with a small...
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