Control Mechanism in Starbucks
Starbucks is an Eatery Industry company. Its sales are about $5.3 million a year. They are the first specialty coffee retailer in the world and got number 372 in Forbes 500 companies. Nowadays Starbucks has stores in 35 countries and have managed to build in their brand loyalty having customers that enjoy their products 18 times a month. Coffee is the second most traded product in the world and specifically specialty coffee is a $9 billion industry.
Main strategy of operating and controlling business in Starbucks is high quality of products and services. Therefore company doesn’t use franchising. It has total control over products’ quality not to fail customer’s expectation and avoid careless business operation of franchise buyers, who seldom can disconsider brand and deter consumers from buying this product. Investment to open new stores (which all are Starbucks’ property) it raised selling stocks to potential investors. Another step company does opening a new store is endeavoring employees in company to assist Starbucks success. Its workers can pay for a share of a firm they work for only 85% of its market value. Also employees are provided with medical care, products discount, paid vacation and a retirement savings plan.
Competing on international market, Starbucks uses the same management strategy and control mechanism. Setting its network in a new country it bases on the same principle, the same principle of development as it has in US. Nowadays Starbucks as it was said above has branches in 38 countries. The production process in organized so, that if your want to enjoy a cup of cappuccino in a country where you are on vacation (you are US citizen and you are fan of Starbucks) you won’t feel the difference between Starbucks store in USA and in Australia. It uses the same recipes, the same market strategy the same coffee-making equipment, which by the way it produces itself, and Starbucks took does its store...
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