Starbuks Opening Mongolia

Topics: Coffee, Starbucks, Coffeehouse Pages: 12 (3495 words) Published: February 21, 2011
Starbucks is world brand. Starbucks story began in 1971. Back then we were a roaster and retailer of whole bean and ground coffee, tea and spices with single store in Seattle’s Pike Place Market. Today, Starbucks are privileged to welcome millions of customers through our doors every day, in more than 16000 locations in over 50 countries. Starbucks products are coffee, handcrafted beverages, merchandise, fresh food, consumer products and brand portfolio. Starbucks believed in serving the best coffee possible. It’s Starbucks goal for all of Starbucks coffee to be grown under the highest standards of high quality, using ethical trading and responsible growing practices. Starbucks coffee buyers personally travel to coffee farms in Latin America, Africa and Asia. Starbucks went public on June 26, 1992 at a price of $17 per share and closed trading that first day at $21.50 per share.

1. What are the reasons for the company to enter Mongolian market?

After the democratic revolution in 1990, the number of Mongolian people going abroad increased drastically. Many of them had transferred their citizenship status to many foreign countries. For instance, people who lived in USA lived an American life, coffee in the morning burger for lunch and etc. When they bring along cultural influence with them to their home country, Mongolia. It spread so quick that many people wanted to drink original high-class coffee. a. Mission of the Starbuck - To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. b. Vision of the Starbuck- To establishes Starbucks as the most recognized and respected brand in the Mongolia.

2. Describe the company from perspective of its business

a. Organizational structure

This is the organizational structure of the Starbucks. They use diversify structure. This structure is very popular on fast food restaurants.

b. Pro’s and Con’s for Organizational structure

-Employees are motivated with more incentive to perform
-Lower employee turnover rates
-Positive reinforcement, which leads to higher feelings of job satisfaction -Higher staffing levels benefit other employees
-Better customer service
-Improved customer focus could lead to higher sales

-Pay and benefit structure dictated by corporate HQ
-Cost of benefits would additional benefits lower site profitability -New reward system requires additional management
-Staffing is a cost that will decrease profitability
-Upper-level management perception of low employee productivity -Employees may get in each other’s way

c. Brand portfolio

Starbucks have many type of coffee brands. Those coffee brands are: -Tazo tea
-Ethos water
-Seattle’s Best Coffee
-Torrenfazione Italia Coffee
Starbucks has eight types of drinks.
1. Bottled drinks
2. Brewed coffee
3. Chocolate Beverages
4. Espresso Beverages
5. Frappuccino Blended Beverages
6. Kid’s Drinks & Others
7. Tazo Teas
8. Vivanno Smoothies
All this type of drinks has different pleasure. You can drink this many type of drinks. You can drink them any seasons. That drinks are very comfortable to drink in any seasons. -Bottled drinks: You can take them with you wherever you go. -Brewed coffee: Artfully fresh all day long, every day

-Chocolate Beverages: Luxurious hot chocolate for the sophisticated palate -Espresso Beverages: Lattes, cappuccinos macchiatos, mochas and much more -Frappuccino Blended Beverages: The icy-cold original

-Kid’s Drinks & Others: Some fun, flavorful alternatives for anyone to enjoy -Tazo Teas: Made from the world’s most delicious teas and botanicals -Vivanno Smoothies: Nourishing blends made with real fruit and other good stuff

d. Market dominate

Starbucks globally dominate in coffee markets. Starbucks Corporation is an international coffee and coffee house chain based in Seattle, Washington, USA. Starbucks is largest coffeehouse company in the world....
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