Organizational Strategy-Hrm 531

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Starbucks Company-Organizational Strategy
University of Phoenix
HRM 531
March 12, 2013

Starbucks Company Organizational Strategy Week 1
Starbucks Company founded in 1970 has achieved to become the largest coffee company in the world with more than 7,000 stores. After the 2008 recession in the United States, it created a challenging scenario for the company. In fact, the company closed multiple under-performing stores. Howard Schultz, Chief Executive Officer (CEO), created, delivered, and executed a new mentality for the company. The purpose was to re-discovery Starbucks mission of serving the best premium coffee by delivering the human connection between employees and customers. Howard emphasizes in improving the company way for delivering its legendary service. A unique approach that the company offers to its customers as Starbucks is categorized as the third place for many of its customers. The new Starbucks mentality is reflected in the company continuing to grow in the market for the last two years. For example, Starbucks fiscal target for 2013 is to open “approximately 1,300 net new stores globally, representing 22% growth over fiscal 2012” (Starbucks [SBUX], 2013, p. 1). The opening of new stores represents an opportunity for the company to continue dominating the coffee market. In addition, the company plans to open “approximately 100 net new stores in Europe, Middle East, Russia, and Africa, with licenses stores compromising more than two thirds of the new stores” (SBUX, 2013, p. 2). Starbucks anticipates increasing its revenue by 13% for multiple reasons such as the opening of new stores, new technology innovation called “Square`s mobile payment application” (SBUX, 2013, p. 3), and the purchase of Teavana Holdins Inc., which specializes in premium tea types that will be offered to Starbucks customers in 2013. In addition, Starbucks is now committed into health and wellness. “Starbucks will integrate a new line of fruit and vegetable juices and...
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