Starbucks Final Case Study

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Final Case Study and Strategic Plan: Starbucks’ Global Quest BUS 402 Strategic Management & Business Policy

Executive Summary
Here at Starbucks, we have had a very rewarding year thus far, and have been very successful since the beginning of our journey. As a matter of fact when you mention the name, Starbucks, people quickly think about that wonderful aroma and taste that is associated with the Starbucks’ name. This is truly what we are trying to create, a partnership with our customers, employees, and shareholders. One article suggests that “Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. In addition to its retail locations in North America, Europe, the Middle East and the Pacific Rim, Starbucks sells coffee and tea products through its specialty operations, including its online store at Starbucks.com” (Editors, 2002). What once began as a very small business for three men, Jerry Baldwin, Gordon Bowker, and Zev Siegel has now blossomed into a giant in the industry. Starbucks has also grown globally and is considered the king of coffee products. This company has proven over and over to be the leading coffee retailer in the market. It is my pleasure as an executive of Starbucks to present you with our new three -year strategic management proposal plan for the years 2012-2014. While moving forward, I feel that it is also necessary to recognize what progress we have made over the past few years. The purpose of this report was to examine whether or not the best is yet to come for Starbucks. This report covers an economic assessment, marketing assessment plan including a market analysis and a marketing plan, a financial plan, and an organizational structure recommendation. The most important findings in this report indicate that while we are doing well financially, we have to continue to strive for excellence in an effort to improve and have a competitive advantage over our competitors. Additionally, I have provided financial statements and graphs to display the company’s future growth over the next three years. To so eloquently answer the question from the case study, Starbucks’ Global Quest 2006: Is the Best Yet to Come, I would have to say yes, we have a great future ahead of us. Company Description

Starbuck’s entered the retail market in the seventies, as they opened their doors in 1971 in Seattle’s historic Pike Place Market. The company’s name was derived from Herman Melville’s Moby Dick, a classic American novel about the 19th century whaling industry (http://me.starbucks.com/en-US/_About+Starbucks/History+of+Starbucks.htm). In the beginning, the Starbucks’ company could only be found in Seattle which basically meant that it started off as what we call a Simple structure. By the early 1980’s, there were a total of four stores that were opened and operated, but they were pretty much still stationed in one geographic location which was Seattle. In 1982, Howard Schultz joined the company, and he was able to add new products to their selection based on ideas that he had gotten from one of his business trips to Italy. Upon visiting Milan’s, a famous espresso bar, he decided that what Starbucks’ needed was to be revamped. He also understood that in order to see growth in this company, there would have to be a mutual respect between management and their employees. Finally, in the 90’s, Starbucks expanded way beyond Seattle, and you could find plenty of Starbucks throughout the United States. Ultimately in 1999, Starbucks were even found in Middle East, and now in the 2000’s Starbucks stores are everywhere. Currently, there are approximately 17,000 locations in 55 countries, and the stores are now offering more products than just a cup of coffee. Recruitment and training has always been an important key factor for Starbucks. “We want passionate people who love coffee…We’re looking for a diverse workforce, which reflects our...
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