By utilizing their strengths, and capitalizing on trends, as well as periodically evaluating weaknesses and threats, this little coffee joint has become America’s most enjoyable place to get coffee. Like many other organizations, executives at Starbucks realized the importance of planning. Planning involves making sound business decisions and goals for the company, specific divisions, a store, and for individuals (Bateman-Snell, 2004, p. 108). Starbucks’ executives have defined their business with the mission statement to “establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow” (Starbucks mission statement). Executives have found various ways of increasing their market by examining alternative paths to conduct their business.
Where do you get your coffee? There are so many different coffee places around town to choose from. Of course the most well know coffee shops in New England are Starbucks and Dunkin' Donuts. It’s even hard for the little local coffee shops to compete with those big-named companies. I chose to evaluate Starbucks because I wanted to find out if it really worth spending the extra dollar or two on a cup of coffee.
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.
Starbucks SWOT Analysis Executive Analysis Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries worldwide. The company operates primarily in the US. It is headquartered in Seattle, Washington and employs about 150,000 people. Starbucks mission is “To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time” (www.Starbucks.com).
Leadership, love, and authenticity: Howard Schultz and Starbucks. Retrieved from http://theleadershipprofessor.com/2012/01/leadership-love-and-authenticity-howard-schultz-and-starbucks Green Mountain Coffee Roasters. (2103) Purpose, mission, and values. Retrieved from http://www.gmcr.com/about Howard Schultz Starbucks First Mate. (2008, October).
It’s not unusual to see people coming to Starbucks to chat, meet up or even work” (Starbucks). In addition to coffee Starbucks locations keep a customer base by offering free Wi-Fi, music, and partnerships with Barnes and Nobles throughout the country. Starbucks is aware that competition is gaining ground since many fast-food chains have upgraded their coffee menus trying to mimic their style. Also coffee-houses/shops are opening who have adopted the idea of community and become just as popular and profitable. The company realized it reached a plateau and needed to develop new marketing and strategies to be competitive, retain, and gain customers.
Every quarter, Smith spends at least a couple of days behind the counter as part of their ‘Adopt a Store’ program for the senior executives. ... ... middle of paper ... ...for 30,000 stores total) (Flanigan C1). While some believe the company is growing too rapidly and repeat the mistake McDonald’s made by opening too many stores of offsetting its own profits, Starbucks still continues to remain strong. It has also been able to achieve growth in other ways by developing new products, such as the much-anticipated Starbucks Liqueur. The future of Starbucks now presides with new a CEO, James Donald.
Case Summary In 1971, three academics, Jerry Baldwin, Zev Sigler, and Gordon Bowker, opened Starbucks Coffee, Team, and Spice in Seattle, Washington. They were inspired by the success of Peet’s Coffee and Tea in Berkeley, California. However, they focused on selling high-quality whole beans and coffee products, making the store was consistently profitable. By 1980, Starbucks had four locations in the Seattle area. In 1981, Howard Schultz, vice president and general manager of U.S. operations for a Swedish maker of coffee and kitchen equipment, visited Starbucks and was immediately enamored by the business philosophy and opportunity.
I've chosen the Starbucks Corporation on which to do my case assignment for the session. I first became interested in Starbucks while working on a paper for a previous marketing class. I became intrigued at the entrepreneurial spirit that such a large corporation had managed to maintain throughout its massive expansion. Starbucks corporation, unlike many of its now-defunct rivals, has done an outstanding job since its meager beginnings in 1970 with the execution of its strategic process; resulting in it currently owning 40% of the specialty coffee market and boosting annual sales exceeding $7 billion according to Burt Helm. Historic successes and recent turmoil within the company, including a near 40% decline in 2007 in profits (Sullivan 1), has once again piqued my interest in this American company.
During the 2000s, the business erupted on the South American continent in Mexico, Peru, El Salvador, and Guatemala. All the while during the global expansion of this multi-billion dollar coffeehouse empire one constant has veraciously remained, the purchase and development of responsibly grown coffee products with respect to the people and places that produce it. According to the Starbucks website, “over the past decade, Conservation International has helped [Starbucks] develop buying guidelines that address [their] principles for ethical sourcing” (Starbucks, 2011). The corporation labeled the guidelines as Coffee and Farmer Equity (C.A.F.E.) 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.