Starbucks Organization Structure and Departmentalization Form Analysis

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.

As Starbucks drove to achieve their goals, they developed their marketing strategy in response to these trends. The brand they would build as a result would then be leveraged to enable them to grow on a global scale. Starbucks Strategy In their quest for growth, Starbucks initial focus was on becoming the leading retailer of specialty coffee. Howard Schultz, Chairman and CEO of Starbucks, wanted to achieve this goal by creating the "Starbucks Experience". Specifically, the vision was to create more than just the store to purchase specialty coffee, the intention was to develop "a kind of ‘third place' where [people] can escape, reflect, read, chat or listen."

One important aspect of Starbucks is his supply chain strategy. “The ability of supply chains to provide the level of value desired by the customers begins, with the capacity of channel integrators to optimize their productive resources” (Frederick Ross, 2008). The main function of the company is its transaction activities which develop supply chain systems through which bind producer cooperatives in different countries. Besides that, the company with their strategies in the supply chain is trying to transform relations of production and trade. The trend of Starbucks’ marketing is murky for the distinction between its own system of supply chain and that of Fair Trade is the potential to ‘water down’ enablement results obtained at production places where they deviate from consumer purchases to corporate supply chains (Macdonald, 2007).

Many people start his or her day with a cup of coffee. Coffee franchisees are growing around the world with coffee being one of the most popular drinks. A Colombia franchisee Juan Valdez is a growing franchisee in the United States specializing in coffee. The article “Colombia’s Juan Valdez Cafes Poised to Challenge Starbucks” (Wyss, 2013) does a compare and contrast of Juan Valdez and Starbucks. It compares Starbucks expanding stores in Colombia and Juan Valdez expanding the United States.

Their focus in United States is to create a gathering place where people can chat, sit work much more just than a coffee place. Starbucks has a global presence over 17,000 stores all over the world. Starbucks entered India in 2012 as a joint 50:50 venture with Tata Group. This paper focuses on company’s strategy on entering the emerging market and how they have tackled the political, economic, social and cultural challenges of this growing market. BACKGROUND Coffee shops were nearing the saturation point in United States and Europe Starbucks decided to enter the lucrative emerging markets of India and China.

Starbucks is a front-runner in the coffee market of today. They are known for their delicious coffee drinks and teas, but they are also known for their high prices. Yet, Starbucks is still one of the top coffee distributors in America. According to USA TODAY, “some 30 million customers visit Starbucks nationwide each week, shelling out $3.50 – $4.00 per trip, on average”. They continue to explain how “Starbucks makes it seem so normal to pay this price for a cup of coffee”.

Coffee industry will grow at a fast rate and the company can accept the boundaries around the world will win the battle for market leadership among competitors. The most are obvious challenge that Starbucks is dealing with the current financial crisis in America. Many of the economic are crises on their own situation. Economic environment faced by the business Another challenge that Starbucks has faced in 2008 was the number of store closings. In July 2008, they announced to the public that they will be closing 600 stores in the United States.

Starbucks also markets under brands such as Tazo Teas, Italia Coffee, and Evolution Fresh. Starbucks has also expanded their coffee products into supermarkets and retail stores such as Jewel. Starbucks is no longer sticking to expand into grocery markets but they are also putting in the efforts to expand into Teavana a secondary company they purchased on 2012 purchased even though the tea stores make up only a small percentage of the Starbucks brand, Teavana is one of Starbucks fastest growing brand. The supermarkets and stores carry Starbucks coffee grounds,K-cups, and ice coffee. Expanding their products onto larger stores has its positives and negatives because although by providing their customers with their products at a convenience they also risk the security of being able to handle their products.

Starbucks strategically positions each store with hopes of matching the specific location, helping to create a unique atmosphere. Throughout this paper, I will analyze Starbucks’ current domestic and international marketing strategy through SWOT (strengths, weaknesses, opportunities and threats) analysis, to provide new ideas, leading to market segmentation. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006 (Starbucks Marketing Plan). The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. On average, Americans drink 3 cups of coffee per day, though it is hard to make an accurate guess because every customer has their own personal rate.

Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2005. It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries. Strategic planners have also proved the significance of their work force by providing benefits and implementing programs such as the ?Bea... ... middle of paper ... ...heir own locations and introduced their first co-located store in 1993. They introduced high-speed Internet access allowing customers to surf the web, conduct business or Instant Message their friends while enjoying their beverage and pastry.