Starbucks Strategy and Environment Introduction With the development of economic globalization, “fast food” becomes a more and more substantial industry in the business world, which adapts to the pace of people’s life. Each organization spares every effort to stand forward the competition due to the fierce competition. In this article, we focus on the “Starbucks”, a prevailing coffee manufacturer in recent years. In 1971, a coffee bean retailing store named Starbucks was opened by Jerry Baldwin, Zev Siegl and Gordon Bowker in order to sell specialty whole-bean coffee in Seattle. And the name "Starbucks" was from mate Starbuck in the novel Moby Dick. In the decade, Starbucks had five stores and a small roasting facility in Seattle till 1981. In 1982, Schultz joined Starbucks as marketing manager. In 2001, Interbrand (a brand management consultancy) had named Starbucks as one of the 75 global brands of the 21st century. In 2002, Starbucks had 5689 outlets in 28 countries. By early 2006, Starbucks had more 11,000 stores around the world. Starbucks had turned coffee from a commodity into an experience to savor. (Business Management Updates and Resources [online]) Starbucks has been struggling amidst a faltering economy, its own rapid growth (international expansion and growing presence in 43 countries) and increased competition from cheaper rivals. Starbucks wants to turnaround its business by providing customers with the distinctive Starbucks Experience and building on Starbucks legacy of innovation. (Business Management Updates and Resources [online]) Strategic Issues To the drinking industry, the soul of keeping the brand forever is the “experience”, rather than the “flavor”, which means a lot to every corporation. “The... ... middle of paper ... ... strategies and environmental analysis, there always been a long distance for Starbucks to go. Reference Business Management Updates and Resources, 2008. Will restructuring help Starbucks Turnaround? Available at: http://industryweek.blogspot.com/ (Accessed:1st March 2008) Ball, DA, McCulloch, WH, Frantz, PL, Geringer, JM & Minor, MS (2001) International business: The challenge of global competition, 8th Edition, McGraw-Hill/Irwin De la Torre, J, Doz, Y & Devinney, T (2000) Managing the Global Corporation, 2nd Edition, New York: McGraw-Hill Johnson, G & Scholes, K (2002) Exploring Corporate Strategy Text and Cases, 6th Edition Starbucks Coffee Company, 2007. Starbucks Launches New Warm Food Offerings in New York Metro Area. Available at: http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-02-2006/0004443111&EDATE=(Accessed:1st March 2008)
Hill, C.W.L (2005). International Business: Competing in the Global Marketplace (5th ed.). McGraw-Hill/Irwin. New York, NY
These are but a few of the many strengths, weakness, opportunities and threats that the Starbucks company may face. This is why a marketing team along with data and analytics is essential to comprising a new product. It requires research, innovation, hard work, and a little luck, the Starbucks Brand is more than just coffee. It’s a simple yet detailed product tailored to meet the consumers need at home, at work, and in between. (Starbucks Corporation,
Shah, A. J., Hawk, T. F., & A, T. A. (2011). Starbucks' Global Quest in 2006: Is the Best Yet to Come. In A. A. Marcus, Management Strategy: Achieving Sustained Competitive Advantage (pp. c468-c495). New York: McGraw-Hill.
An in-depth analysis of Starbucks’ process for strategic renewal serves an excellent reference for studying the essential elements of successful change. Relative to the learning objectives articulated in the portfolio rubrics (“Course Documents” n.d.), three important reasons emerge from preliminary study for analyzing the Starbucks process for change. First, although the change process that guided Starbucks’ recovery toward a more sustainable business model closely parallels Lewin’s three-stage model of planned change (Schein, 1996), Schultz’s passion for his company added one important dimension – a visionary context for change (Schultz, 2011). The embedding of Schultz’s new vision into the change process created ...
Schultz, Howard, and Joanne Gordon. Onward: How Starbucks Fought for Its Life Without Losing Its Soul. New York: Rodale, 2011. N. pag. Print.
In 2003, Starbucks was listed as one of the Fortune 500. Despite the ongoing recession, the company had managed a 31% increase in net revenues for the year. This was reasonable, considering they only spent about 1% of total sales on marketing. All of this, coupled with the fact that they were popular with customers and employees, was a sure recipe for success.
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
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.
... middle of paper ... ... Strategic planning kit for dummies, 2nd edition. Retrieved from http://www.dummies.com/how-to/content/strategic-planning-diversification.html “Starbucks”.
Hill, C 2007, International Business: Competing in the Global Marketplace, 6th Edition, McGraw Hill International Edition, New York, NY
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
Starbucks coffee shop is an American company founded in 1971 and now became one of the famous franchise with coffeehouse all over the world. Starbucks has 19,767 stores operated and got licensed stores in 62 countries. The total annual revenue of the Starbucks coffee shop is about 14.89billion dollars as of sep 29th 2013. (Geereddy, n.d.)
In 1971, Starbucks opened its doors to society to become one of the most well known coffee chains. The first store is located in Seattle as part of the Pike’s Place Market and a huge tourist attraction. I have personally been there several times when I was stated in Washington State from 2011-2013. “In 1981, Howard Schultz (Starbucks chairman, president, and chief executive officer) had first walked into a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a year later 2014).” Forty-two years later you can still go into this chain and get a pleasant ye expensive cup of coffee, but I believe in you get what you paid for. “Toda, with more than 18,000 stores in 62 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world (2014).”
Stonehouse, G. Campbell, D. Hamill, J & Purdie, T (2004): Global and transnational Business: Strategy and Management: John Wiley & Sons Ltd, England. 2nd Edition
Hill, C.W.L. (2004). International Business: Competing in the Global Marketplace (5th Ed.). New York: McGraw-Hill.