Starbuck’s Environmental Factors
Starbucks has wide range of business activity. These activities allow the company to use numerous channels of product distribution. With the company operating in many locations throughout the world, environmental factors play a major role in marketing decisions. Each distribution channel is affected differently and the company’s flexibility in the marketing plan allows the company to adjust their strategies to meet the needs of the environmental factors that face them. The focus of this paper will focus on the environmental factors that impact the organization’s marketing decisions. In addition, it will explain how technology impacts Starbuck’s marketing decisions and analyze the importance of social responsibility and ethics as they relate to Starbuck’s marketing.
Starbucks is a leading company of the finest coffee in the world. Starbuck uses high quality whole bean coffee, and sells a variety of pastries, other unique beverages, and coffee-related accessories and equipment. As a part of their mission, Starbucks strives to provide a work environment treating the customer, as well as employees, with respect and dignity. Furthermore, the company embraces diversity as a major component in the way Starbucks does business. In addition, Starbucks subscribes to the highest standards of excellence to the purchasing, roasting and fresh delivery of their coffee. Starbucks believes that the company should satisfy customers every time they serve a cup of coffee and contribute to the communities and the environment while recognizing that profitability is essential to their success (Starbucks.com, 2008).
Starbucks owns and operates its own facilities, warehouses, and retail stores
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... to people who can then receive a higher wage as a result (Transfairusa.org, n.d.).
Starbucks continues to grow in both the domestic market and overseas. With that
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growth, the company continues to explore new opportunities of providing customers with a product that the customer wants. Starbucks has successfully evaluated and addressed the environmental factors that affect their market and with a sound marketing plan the company will continue to grow.
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References
Starbucks.com. (2008). Retrieved on 02/18/2008 from http://www.starbucks.com/default.asp?cookie%5Ftest=1
Transfairusa.org. (n.d.). Retrieved on 02/18/2008 from http://www.transfairusa.org/content/certification/overview.php
Wall Street Journal. Retrieved on 02/18/2008 from https://services.wsj.com/Gryphon/jsp/retentionController.jsp?page=9902
There are several factors that were the framework for Starbucks successes. One major factor was that they brought back the trend of coffee drinking. With this vibe established that they were able to charge a premium for every cup of coffee - everyone wanted to go to Starbucks! Along with the trend that was created, they had great customer loyalty, with their best customers visiting up to 18 times in one month. This customer loyalty was no mistake, as one of their mantras was to create an experience and always say yes to the customer. They really were striving to be the Ritz Carlton of coffee.
“Coffee has become more than just a shot of caffeine. It 's a $30 billion-a-year national industry, a foodie fixation, an affordable luxury, a boost of disease-fighting antioxidants, a versatile ingredient, an intoxicating aroma and a beverage that brings people together.” Because of all these factors, Starbucks has a very diverse audience and numerous competitors in the industry. As of 2011, coffee shops have maintained an average growth rate of 7% a year, and Starbucks alone is the third most recognized restaurant chain in America. The specialty coffee industry will continue to grow because of the variety of drinks and the appeal of specialty coffee
Starbucks is one of the largest coffee franchises in the world. With over 26,000 stores in 64 countries, the company has the right to brag about this. One of the problems which Starbucks is currently being faced with is the brand being watered down by over expansion and a too diverse product mix. With McDonalds and Dunkin Donuts entering into the specialty coffee market, Starbucks needs to alter the path which it is going in order to remain competitive in this industry.
Starbucks portray a number of issues that may affect the company’s’ growth in the near future. To clearly understand these issues, they will be analysed in order to understand and create recommendations to assist in the growth of a successfully company.
Starbucks has evolved one of the fastest flourishing companies not only in the United States but throughout the world. Starting from 1992, the company's net revenue improved with annual growth rate of 20%, to
Starbucks coffee is a well-known around100 years ago. in the 1970s , three Americans to turn it into a coffee shop signs to promote the spirit of America`s coffee, and since then, Starbucks coffee growing to recently the worldwide fascinating companries. Starbucks coffee using a unique way to make coffee, refresh resources, high quality coffee beans,environmental products and the different foods provided. As it able to keep a long-lasting, high value-added brands, strong culture backgroud, those all the facors to keep the companries enhance marketing position.
Starbucks, the world premier roaster and retailer of coffee since its inception in 1987, operates a global chain of coffee stores today. Though hit hard during the 2008-2009 recession, with the help of the company’s powerful CEO, Howard Schultz, Starbucks endured great changes in their operations and overcome the hardship. The company’s sales accumulated to roughly $12 million dollars in fiscal year 2015 proving that the Starbucks brand and image a sustainable one. With great focus on values, customer service, and social and economic responsibility, Starbucks is excelling as the number 1 coffee retailer today.
The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Leadership sets up the mission “to establish Starbucks as the most recognized and respected brand in the world.” In doing so, they have created a set of industry-leading, comprehensive coffee-buying guidelines addressing coffee quality, financial transparency, social and environmental responsibility. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Corporation, 2007).
There are many topics that arise throughout the case with Starbucks Corporation. Starbucks Coffee is located worldwide and there are many different ways to look at this situation. The company offers a unique range of coffee, lattes, espressos, and café style drinks. The company intended to reach a specific target audience, but has ended up in many different markets and has been growing rapidly. Starbucks has greatly used the “youth appeal” strategy to gain entrance into new markets. However, such enthusiasm cannot be counted on indefinitely; other strategies are always in the works. Over time Starbucks has been able to acquire a solid brand reputation and has a world renowned company logo.
Starbucks did not escape the common practice of adapting and integrating the business to different geographic regions, but they did stick to their guns when it came to their standard product line-up and their no-smoking policy. Surprisingly, these conditions were met with wide acceptance. Analysts felt the real challenge would be in the European marketplace, what with coffeehouses on every corner to compete with. Again, the stores did very well, mainly because of the newer, cleaner environment they provided compared to the older locations of established houses.
“Starbucks was named after Starbuck, first mate of the whaleship Pequod in Herman Melville’s Moby Dick…Starbuck was pluralized for ease of use” (Burks, 2009, p. 1). Now President, Chairman, and Chief Executive Officer, Howard Schultz formed Starbucks Corporation in 1987 after purchasing the name Starbucks, six stores and a roasting plant from previous owners, Jerry Baldwin and Gordon Bowker (Burks, 2009). Starbucks operates under a successful value chain management strategy. Their value chain encompasses a systematic approach to the way business is done. Robbins and Coulter (2012) point out, “A good value chain involves a sequence of participants working together as a team, each adding some component of value” (p. 520). Starbucks continually reviews every aspect of their business; from the organizational culture to values and ethics to strategy, planning and operations, management control and finally human resources and performance management, searching for those items that don’t contribute to the “Starbucks experience” which is what makes the Starbucks Corporation a successful business model.
The first step towards an environmental scan is the assessment of the internal environment the scan of the internal environment helps in the identification of the strengths and the weakness that the organization faces. On the other hand, the external environment scan identifies factors outside the control of the company, but they are influential to the success of the business. There are various environmental factors that affect Starbucks. Some of the examples of the internal and the external factors include the competitors, the customers, financiers, suppliers, the laws and regulations, the political factors, economic, and the technological factors. Starbucks has various strengths that enable the company to compete favorably in the market (Lussier, 2009). The strengths of
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.
Opportunities available to Starbucks include growth of its supplier range, expansion to emerging economies, increased diversification of its product offerings and the growth of its retail operations; which are aimed at growing Starbucks’ profitability and market presence.
In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide.