Preview

Starbucks Strategy

Better Essays
Open Document
Open Document
940 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks Strategy
StaRunning head: Starbucks Strategy

Starbucks’ Strategy Stanley A. Orr
MGT 500
Professor Lewis
Strayer University

Starbucks opened in 1971 as a single store focusing on specialty coffee in Seattle, Washington. Their goal was to be a different kind of company that celebrates tradition as well as its coffee that also presented a sense of connection. Since then Starbucks has proven that combining innovation as well as tradition can be a true combination for success. Starbucks’ mission statement is to inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time. From its humble beginnings Starbucks has now grown to more than 18,000 stores in 62 countries.
Starbucks’ CEO Howard Shultz had a unique vision to bring the traditional coffee bars of Europe back to the United States after visiting Italy. This today has become a stable in American culture where Starbucks has become more than just a coffee shop but a meeting place for business professionals. Starbucks is even more a part of many individual’s daily routine as a neighborhood meeting place for friends and family to chat and enjoy an inviting atmosphere. This strategic business has embedded remarkable professional ingredients to achieve longevity in a competitive market and culture. Starbucks’ business strategies consist of key elements of organizational culture, innovative consumer relations, and strong effective management competencies to ensure its growth and longevity in its market. The key elements of Starbucks’ organizational culture that contributes to its success in a global economy are focusing on the development and introduction of new products and innovations. As Starbucks’ is famously known for its dark blend roast, but they have gone through great lengths to accommodate the other 40% of US coffee drinkers that prefer a lighter blend. Trademarked “Blonde” this lighter roast is an example of how Starbucks organization key elements to

You May Also Find These Documents Helpful

  • Powerful Essays

    Uop Mgt/598

    • 2158 Words
    • 9 Pages

    Starbucks mission is a visionary statement that outlines the company’s objectives as follows: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2013). The company’s values include quality, passion, fully engaging customers, humanity and enjoyment of life, setting the standard for being good neighbors, and accountability (Starbucks, 2013). Starbucks currently sets the standard in one market sector: whole bean coffee distribution within the United States. However, as Team A consultants identified, the company jeopardizes its frontrunner industry position by not expanding. Team A consultants discussed two primary expansion opportunities, specifically expansion of the company’s product portfolio and expansion of the company’s primary product, coffee, into foreign markets. Although both expansion options provide great competitive advantage for Starbucks, expansion into strategic foreign markets provides the most opportunity for competitive advantage and is most aligned with the company’s values as it enables the company to set standards in new industry sectors and broaden the neighborhoods in which it serves.…

    • 2158 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Disclosure Analysis Paper

    • 691 Words
    • 3 Pages

    Starbucks purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich brewed coffees through company operated retail stores. [ (Starbucks Investor Relations, 2009) ] Starbucks first opened in 1971 which was in Seattle. Starbucks mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time [ (Starbucks Investor Relations, 2009) ]. Today there are more than 15,000 stores in 50 countries.…

    • 691 Words
    • 3 Pages
    Better Essays
  • Good Essays

    * Starbucks’ is a leading high street coffee retailer established in Seattle in 1971 and now operating across over 40 countries. Its mission statement is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.”…

    • 577 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Starbucks Management

    • 1239 Words
    • 5 Pages

    Coffee is one of the most beloved beverages in the world. When you think of coffee, one company always spring to mind - Starbucks. There seems to be one on every block. Who is one of the geniuses in charge of this force to be reckoned with? Willard Dub Hay joined the Starbucks family in November 2002 as the senior vice president. His team handles the purchasing, blending, roasting, recipe development, and the education of Starbucks employees in coffee. He gained responsibility in 2005 by becoming responsible for all of their global coffee procurement. He travels to different regions which grow coffee all over the world, building relationships with generations of farmers (Promoting Sustainability in the Coffee Industry, 2012).…

    • 1239 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Starbucks, an international coffee store, began in Seattle in 1971 as a collaborative of three business partners. In the 1980’s Starbucks began to expand beyond Seattle and the chain began to go internationally. It is reported that as of August, 2012, Starbucks is now located in 58 countries making it an extremely viable force in the coffee industry. Starbucks mission, according to its website, is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”(Starbucks Website).…

    • 716 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Starbucks Strategic Plan

    • 5186 Words
    • 25 Pages

    Starbucks is the global market leader in the coffee market, with more than 16,850 coffee shops in more than 50 countries, (Hoovers 2011, Starbucks, 2011). However, despite the - $10.71B in sales and its annual growth rate of 9.4 percent, the company faces a number of challenges, which includes an increasing level of competition and economic climate. The paper will provide an overview of the issues and identify several different strategies that can be used by the company to address them. This paper will also distinguish between strategy and tactics, perform an environmental analysis, apply strategic choice to achieve long-term objectives, identify critical success factors for plan implementation, and grand strategies formulation and selection. Finally, this paper evaluates Starbucks organizational strengths and weaknesses for meeting long-term objectives in the next 5 years.…

    • 5186 Words
    • 25 Pages
    Powerful Essays
  • Better Essays

    Starbucks is one of the largest coffee retailing companies in the world. It is spread across 42 countries and has 15,000 stores. In North America alone the company has thousands of outlets. Apart from being in the coffee business the company is also sells bottled coffee drinks and a line of super premium ice creams. The company also has a brand portfolio that sells a variety of items. There is a line of premium teas called Tazo Tea. The company also sells compact discs under the name of ‘Hear Music’. The company’s logo is one of the most recognized in America. The company also operates in such a way that the community surrounding it benefits from its operation socially, environmentally and also economically (Starbucks, 2011).…

    • 1476 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Starbucks was created in 1971 by 3 coffee fanatics in Seattle, and was originally an Arabica beans store. It started expanding to a coffee shop and opened more stores throughout the country in the 1990’s and today, Starbucks owns more than 15,000 stores in 50 countries, and it had become the premier roaster and retailer of specialty coffee in the world. Starbucks’ mission statement is: “To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.”…

    • 2080 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Starbucks has evidently focused as most of all multinationals in both long term and short term strategies. Their long term strategies, which are the most important factor for this essay, are from my point a view a very important factor as they are a very well worldwide known company. As based on research, Starbucks was opened for the first time in Seattle, Washington in 1971 by three partners: English teacher Jerry Baldwin, History teacher Zev Siegel and writer Gordon Bowker. Their strategy had improved after an Entrepreneur Howard Schultz joined in 1982 after a trip to Milan, where he understood why and how coffee can be sold, however his idea was rejected. None of the less, after a few years Howard Schultz idea was implemented and made the business grow larger and larger despite the negativity received at the beginning.…

    • 650 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Coffee and Starbucks

    • 4568 Words
    • 19 Pages

    This project tells that the history of Starbucks what started in Seattle in 1971s by three friends: erry Baldwin, Zev Siegl, and Gordon Bowker. They opened a small shop and began selling fresh and cold coffee. To move in 1980s and 1990s, their Company did well, and Seattle became coffee-crazy, and beyond Seattle to go through rest of the United State, then the entire world. In 2000s, Starbucks became a public traded company. Starbucks trended to international that has more than 15,000 locations in over 40 countries. Starbucks never stopping on selling coffee, they initiated several other product and brand extensions. For instance, to distributed whole bean and sold coffee to supermarket. Nowadays, Starbucks is the leader in the coffer industry, and it is almost monopoly the while coffee marketing. Starbucks is like fashion and culture in the society, and it is good place to gather. In our project, they are seven topics what are vision, mission, strategies, and goals; structure including its use of teams; External environment; management of change; culture and ethical values and practices; management of training and workforce diversity and leadership styles. We are going to explain how successful Starbucks it is because it is almost prefect without any improvements.…

    • 4568 Words
    • 19 Pages
    Best Essays
  • Powerful Essays

    * Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco Corporation and US Food service started handling the distribution whole bean and ground coffees and other Starbucks products to hotels, restaurants, office coffee distributors, educational and health care institutions and other such enterprises…

    • 1483 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    New Media Research Project

    • 3908 Words
    • 16 Pages

    A global company, Starbucks was founded in Seattle, Washington in 1971. With 20,366 stores in 61 countries (13,123 being in the United States alone), Starbucks has become the largest coffeehouse company in the world. The company’s mission statement is dedicated to the…

    • 3908 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Starbucks Global Strategy

    • 3385 Words
    • 10 Pages

    Starbucks began in 1971 as a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. In 1996, Starbucks opened its first store outside of North American in Japan. Today they welcome millions of customers through their doors everyday and are currently operating in more than 50 countries. It is this move into the global market that we will be exploring; most notably its expansion in China and the Asian markets.…

    • 3385 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Starbucks Strategy

    • 451 Words
    • 2 Pages

    To support the rapid expansion that Starbucks was making in their retail stores, they also made operational changes so as to keep the costs down. One of these was to reduce the time taken and to serve each customer and cost of training the baristas by replacing the older espresso machine (Marzocco) with a push-button Verismo models. While earlier, using the older model, the barista would talk to the customers while preparing the coffee, the new model blocked the view and hence removed the theatrical quality about the experience of having coffee at Starbucks. Another change was to ship packets of ground coffee to stores. This was in contrast to the earlier process of centrally roasting the coffee beans and distributing the whole bean to the stores. The beans were then ground immediately before brewing to preserve the freshness and giving a superior taste to the coffee. Hence a trade-off was made for lesser time consumption of serving at the expense of the taste and quality of the coffee. As Starbucks was expanding vigorously, they found it difficult to keep up with the operational and supply chain management demands. Very frequently, the stores ran out of ingredients and did not carry consistent merchandise. To keep the sore-opening costs low, the formats of the stores were kept limited to four standard designs. This again would have provided limited experience to the customers while the earlier value proposition was to provide a ‘lifestyle product’ with aspirational value and the stores were meant to provide an ambience for the customers to relax. All these decisions led to significant trade-offs in terms of customer experience and customer’s perception of taste and quality of product and these deteriorations would have eventually led to reduction in customer satisfaction. At the same time, the expansion would have increased the market penetration and cost savings would have helped reduce operational costs. By reducing the time to serve each customer, an increased…

    • 451 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Starbucks' Strategy

    • 1538 Words
    • 7 Pages

    In this paper, I will discuss Starbucks Organizational Culture that has led to its phenomenal…

    • 1538 Words
    • 7 Pages
    Better Essays