Starbucks opened in Seattle’s Pike Place Market in 1971 with hopes of creating a "third place" between home and work. Starbucks was created to produce premium coffee, while adhering to various core principles during economic growth. "The company has realized that people don’t only come for coffee; they come for the atmosphere," (Kembell). Customers are able to socialize, read, study or enjoy music while drinking coffee. Starbucks strategically positions each store with hopes of matching the specific location, helping to create a unique atmosphere.
The Rise and Success of Starbucks Millions of Americans these days depend on the glorious caffeine rich nectar provided to them daily by the local Starbucks chain store. With its humble roots firmly planted in Seattle, Washington, this little coffee shop has turned from a novel idea, into a veritable necessity for Americans on the go. The amazing success of Starbucks can be attributed, in part, to operational planning. Starbucks has become a well-known company for selling the highest quality coffee beans and best tasting coffee products. It was one of the first companies to realize that the real money to be made was in beverage retailing, not just coffee beans.
The Starbucks experience is an all encompassing culture that revolves not just around customers but also to employees, or “partners” and suppliers. Burks (2009) notes that the company cares about the footprint it leaves, no matter where it does business; “the company is dedicated to making positive contributions to the communities where it doe... ... middle of paper ... ...ies/100-best-companies-to-work-for/435-2011 Koehn, N.F., Besharov, M.A., & Miller, K. (2008). Starbucks Coffee Company in the 21st Century. [Case study]. Boston, MA: Harvard Business School Publishing.
When Schultz saw this company become a diluted version of what he dreamed it would be, he decided to step up again as CEO (Koehn et al., 2008). Starbucks successfully developed and implemented a strategic plan to recreate the intimate coffee shop feeling. At the company’s 2008 annual meeting Schultz unveiled new initiatives to “get back to the core” and reignite the passion for the true Starbucks experience (Koehn et al., 2008). They employed the strategic management process and began by looking at their current mission, goals, and strategies (Robbins & Coulter, 2009). Starbucks had a firm tradition in providing generous employee benefits, outstanding customer service and also valued the importance of being socially responsible.
Organizational Culture In the text, Organizational Behavior, Stephen P. Robbins defines organizational culture as, "a system of shared meaning held by members that distinguishes the organization from other organizations" (2005). Starbucks has a very strong organizational culture and strives to maintain it. Everything centers on the organizational culture within Starbucks. While being a customer service-based company and understanding that the customer satisfaction and loyalty are what will make the company profitable, Starbucks takes a different approach to customer service than other companies. By hiring employees that fit in the organizational culture (ICFAI, 2005) and treating their employees well (Lefevere, n.d.), Starbucks brings in and retains customers through their happy employees.
Starbucks’ beliefs in customer service, community solitude, and a strong business core stretch far behind just a belief in a quality caffeinated product. “We make sure everything we do honors that connection – from our commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly” (About Us, 2011, para. 4). Thus, this commitment is the motivation behind Marketing Team A’s proposed “Coffee of the Month” Program. With a down economy, the challenge for any business is to reach current and potential consumers.
Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed. The structure of Starbucks business communication is exceptional. Rather you are in their store buying a Caramel Frappuccino®, visiting their website or watching one of their advertisements on television; as the consumer, the message is loud and clear.
As a matter of customer education and acceptance of the product, Starbucks grew and expanded into the successful domestic market it is today. Much of this success can be attributed to a focus on the total customer experience and s... ... middle of paper ... .... Hoboken: John Wiley & Sons. Biederman, P. S. (2005). Commentary on exporting a north american concept to asia: Starbucks in china. Cornell Hotel and Restaurant Administration Quarterly, 46(2), 288-290. doi: 10.1177/0010880405275536 Harrison, J. S., Chang, E., Gauthier, C., Joerchel, T., Nevarez, J., & Wang, M. (2005).
Starbucks Coffee is showing product leadership by introducing novel merchandise in its coffee shops and now retail stores around the globe. The Company has partnered with the PepsiCo brand for Frappuccino drinks and selling... ... middle of paper ... ...delivery will further build and keep consumer loyalty. In 2013, Geereddy stated Starbucks should build up these products along the same line of their core coffee products. In 2013, Geeredy also found coffee beans are a significant input into a Starbucks value chain and there have been wide fluctuations in the market prices of high quality coffee beans. Conclusion The approach that Starbucks is using has demonstrated constant and sturdier.
practice, which ensure that farmers grow their coffee in a healthy tradition for both the customers and the planet by following standards of product quality, economic accountability, social responsibility, and environmental leadership. To elaborate further, all of the coffee must meet the corporation standards of premium quality, which ensures that only the most robust and healthy coffee beans are cultivated for their customers. Starbucks accomplishes this through transparent business transactions with evidence of payments submitted from the suppliers throughout the supply chain to accurately portray the prices paid by the corporation... ... middle of paper ... ...s an innovator necessarily but from a more conservative outlook as someone who preserves the tradition and the corporation’s future goals. Once those goals are established then research and development should focus profoundly on the corporation’s forum “my Starbucks idea” to extract and implement those ideas the customers demand. Works Cited Abrams, R. M., & Vallone, J.