The Rise and Success of Starbucks

Powerful Essays
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. Starbucks created a coffee for the coffee connoisseurs, and exhausted all resources to acquire only the highest quality of coffee beans. It was through operational planning that the management team behind Starbucks was able to be so wildly successful. By utilizing their strengths, and capitalizing on trends, as well as periodically evaluating weaknesses and threats, this little coffee house has become America?s most enjoyable place to get coffee.

To understand operational planning, a basic background in the planning process is required. Corporations today use a top down approach to map an organizations future.

Strategic planning or Top-Level management are the executives of a company and are responsible for the long-term goals and strategies. Tactical planning or the middle level managers take the long-term goals and classify them to smaller more specific goals. Finally, operational planning or the frontline managers are responsible for developing plans to accomplish short term objectives that in turn accomplish goals identified from upper management.

Operational Planning 2

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). 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...

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...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. Starbucks Operational Managers have proven their effectiveness on a global scale. Today Starbucks was ranked ?100 Most Valuable Global Brands" by Business Week magazine (Starbucks Awards & Accolades).

The popularity of Starbucks has been tremendous, and thanks to the operational planning abilities of the management team behind Starbucks, this little coffee house has become an overwhelming sensation. With careful planning, and dedication to its products Starbucks now leads the pack, and remains #1 to coffee consumer?s nation wide. By staying in touch with the public, and their changing tastes, the Management team at Starbucks was able to capitalize on trends. Pair this with the ability to recognize possible weaknesses, and work around them, Starbucks was able to avoid failure. Now caffeine-

seeking consumers no longer wonder where to go for that morning kick, but instead ponder, tall or Grande at the counter of their neighborhood Starbucks.
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