Starbucks' Mission & Strategic Choices

Topics: Starbucks, Coffee, Strategic management Pages: 18 (5809 words) Published: October 8, 2009
Starbucks' Mission and Strategic Choices: Are They in Alignment?

Executive Summary
This paper examines strategic management, which encompasses business decisions and actions that: define the organization's mission and objectives, determine the most effective utilization of organizational resources, select best courses of action to meet its mission, and seek to assure the effectiveness of the organization within the environment. This case study evaluates the strategic management process, and applies those concepts to a practical case study of Starbuck’s mission statement. This case study is presented in the format of a formal business report – prepared by a consultant and presented to the Starbucks' Board of Directors and CEO – that provides an analysis of Starbucks' mission and strategic choices, and a summary of the alignment of those strategies to its mission. This report is based on a critical review of the Starbuck mission statement, goals, and objectives, which is then compared against the strategic choices that Starbucks has made (e.g., product differentiation, research and development, operations) to determine how well Starbuck’s strategic choices are aligned to the company’s mission and vision. Finally, this study answers the question: Will the company continue its past success?

Randy Tanner, 2009
Starbucks' Mission and Strategic Choices: Are They in Alignment?

Cover Sheet:
Starbucks Corp.
2401 Utah Avenue South
Seattle, WA 98134
Phone: 206-447-1575
Fax: 206-682-7570
Web Site: http://www.starbucks.com
Business Plan presented to:Howard Schultz, Chairman of the Board, President, CEO
Starbucks Board of Directors
Prepared by:Randy S. Tanner
Statement of Purpose:Analysis of Starbucks' Mission and Strategic Choices: Are They in Alignment?

Table of Contents
Executive Summary4
Background4
Company Description4
Starbucks' Mission, Vision, Goals and Objectives.4
Strategies.5
Management Team.6
Business Model.6
Infrastructure7
Offering.7
Revenue Model.7
Pricing.8
Customers.8
Competitors.8
Stakeholders.8
Marketing Strategy.9
Financials.9
Analysis10
Company Analysis.10
Current Marketing Mix Strategies (Product, Price, People, and Promotion).10 Current Target Markets10
Market Analysis.10
Competition & SWOT Analysis.11
Competitive advantage.12
Financial Analysis.12
Conclusion13
Are Starbucks' mission and strategic choices in alignment?13 Will the company continue its past success?13

Executive Summary

Are Starbucks' mission and strategic choices in alignment? Yes. The strategies of innovation, product differentiation, and customer experience are directly aligned with Starbucks published mission “to establish Starbucks as the premier purveyor of the finest coffee in the world,” while “inspiring and nurturing” the spirit of their customers. Starbucks continues to apply strategies to expand its product offering in both breadth and depth. Coupled with this strategy is the expansion of alternate distribution channels to multiply the potential in increased revenues. Each offering in the product portfolio reinforces the brand name and quality experience described in the company’s vision statement. The recent focus on increasing profits in existing stores is not a shift of business strategy, but more of a symptom of business maturity – less waste equals more profit. The corporation has tempered its original goal of market dominance by saturation – slowing its growth in new stores – to market dominance with more efficient and more profitable stores with its strategy of disciplined expansion in key markets. The strategy of using the Seattle’s Best segment, vice Starbucks to expand the base of corporate customers also supports...

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[1] The shopkeeper model involves “setting up a store in a location where potential customers are likely to be and displaying a product or service.” (Wikipedia, 2009)
[4] Burritt, C (2007). McDonald 's challenging Starbucks with cheaper coffee drinks. Available at http://www.seattlepi.com/business/331318_coffeechallenge12.html.
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