Starbucks' Business Strategies Essay

Starbucks' Business Strategies Essay

Length: 998 words (2.9 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Starbucks' Business Strategies

1.     What are the key elements of Starbucks? strategy as of 2004?

The key elements of Starbuck?s strategy were as follows:

a.     Grow the business by constantly adding more stores around the world: The Company has had tremendous success in opening stores around the world. It has applied its global strategy effectively and has enjoyed increase in sales from global operations.
b.     Store design, planning and construction are also part of the strategy. The company began to create its own in house architects and designers to design Starbucks locations. Locations are designed for customers to meet, relax or simply enjoy a peaceful interlude in their day. Each location was designed to signal ?best of class? and to reflect the personality of the community and the neighborhood.
c.     Product Line: The Company has a vast product line and is constantly engaging in efforts to develop new ideas, new products, and new experiences for their customers.
d.     Employee selection and training are also elements of the strategy. Starbucks employed diverse people which reflected the community. Starbucks trained each employee to perform to their best capabilities.
e.     Increasing sales by new means of selling: Starbucks indulged in mail order sales. It published a mail order catalog that was distributed 6 times a year. It also has an electronic store on the internet though which Starbucks sells its products.
f.     Joint ventures and Licensing: Starbucks entered in to joint ventures with PepsiCo and Dreyer?s Grand Ice Cream. It also has licensed agreements with Marriott Host International, Horizon Airlines, United Airlines, Nordstrom?s, Barnes & Noble book store and Wells Fargo Bank.

2.     What grade would you give Howard Schultz for the job he has done as CEO of Starbucks? Be prepared to support your answer based on how well (or not so well) he has performed the five tasks of strategic management discussed in Chapter 2.
I would give Howard Schultz a grade of A for the job he has done as the CEO of Starbucks. He has successfully performed all the 5 tasks of strategic management discussed in Chapter 2.
The strategic vision that Howard Schultz had for Starbucks was "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow". This s...

... middle of paper ...

...bove. This is the primary factor that would be a concern to the management of Starbucks.
6.     What recommendations would you make to Howard Schultz to sustain the company?s growth and support continued strong financial performance in the years ahead?
I would recommend the continual implementation of the current strategy. The strategy is working and there is no reason to deviate from it. The company has been very successful in expanding its operations in other countries. I would recommend that the company continue to do that. I would also recommend spending extra resources in the development of new products to keep a competitive advantage over other competitions. The competition is only going to rise because the market has not reached saturation yet. In order to stay ahead of the competition, the company needs to keep researching new products, and stay in sync with the ever changing technology.



Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Starbucks : Business Level Strategies Essay

- Starbucks has many business-level strategies, such as cost leadership strategy. Starbucks focused on increasing its profits and compete with other competitors (Starbucks,n.d). According to Starbucks (n.d), “a cost leadership business strategy focuses on gaining advantage by reducing its economic costs below all of its competitors. Although Starbucks targets product differentiation as their main business strategy, they have also implemented cost savings strategies in an effort to maximize profitability....   [tags: Starbucks, Coffee, Coffeehouse, Espresso]

Strong Essays
1507 words (4.3 pages)

Starbucks And Its Impact On Business Strategies Essay

- PEST is a technique used to identified external factors that may create threats or opportunities for a business. The analysis model can be used to determine the most important issues that Starbucks must address in its business strategies (Smithson, 2015). There are four different factors that contribute to the process. Political, Economic, Social, and Technical. Starbucks, as a maket leader, has many factors that contribute to its success as well as its set backs. Politcal A wide range of politcal factors can effect Starbuck sales....   [tags: Coffee, Starbucks, Coffee culture, Sociology]

Strong Essays
2287 words (6.5 pages)

Business Level Strategies For The Corporation Essay

- Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. Starbucks began their journey in 1971 with one store. They are a company that offers a variety of products specializing in coffee. Today they are one of the largest coffee establishment in the world with more than 24,000 stores spanning over 70 countries....   [tags: Starbucks, Coffee, Dunkin' Donuts, Competition]

Strong Essays
1252 words (3.6 pages)

Starbucks: An Analysis with Focus on the Financial Function Essay example

- External Environment Starbucks primarily operates in the retail coffee shop market. The UK coffee shop market alone is estimated at over 16,000 outlets and showed a strong growth of 6.4% in sales during 2013 (FDIN, 2014). The branded coffee chain segment recorded a turnover of £2.6 billion, delivering a higher than market sales growth of 9.3% (FDIN, 2014). The coffee shop sector has seen a considerable growth in the past 15 years and Allegra Strategies (as cited in FDIN, 2014) forecasts that UK’s branded coffee shop market will grow at 10% compound over the next five years....   [tags: business analysis and strategies]

Strong Essays
1903 words (5.4 pages)

The Starbucks Experience By Joseph Michelli Essay

- This paper will summarize the book “ The Starbucks Experience” written by Joseph Michelli in an effort to explain the company’s runway success. In addition, the paper will provide a personal insight on how this book is related to international business and to the concepts that has been learned in the International Business course. In “ The Starbucks Experience” author discusses essential business strategies that allowed Starbucks from its establishment in Seattle in 1971 as a single-location coffee shop to go worldwide....   [tags: Starbucks, Coffee, Howard Schultz, Coffeehouse]

Strong Essays
875 words (2.5 pages)

Segmentation And Target Market : Starbucks Essay

- Segmentation and Target Market Starbucks is a company with a recognizable presence nationally and internationally. Starbuck reputations and on a multinational level is consistent of high quality items With more than 18,000 retail locations in 60 countries, the coffeehouse is the picture of success (Schoultz, 2014). In this paper I will discuss the demographic, psychographic, geographic, and behavioral characteristics of the major company. Also I will discuss the positioning statement needed for considering new markets and business strategies....   [tags: Dunkin' Donuts, Starbucks, Coffee, Target market]

Strong Essays
1371 words (3.9 pages)

Market Analysis : Starbucks 's Brand Strategy Essay

- Market Analysis: Starbucks’s Brand Strategy in China Introduction The company’s brand is a name, term, symbol, design or combination that identified a product and distinguishes it from other products (Ferrell et al., 2014). The brand is a significant element to operate business marketing because it could add extra value to the product with keeps the high-quality level by meeting the consumers’ emotional demands. An American coffee brand-Starbucks Corporation expanded their products entered in the international Chinese market since from1999 start the first store in Beijing....   [tags: Coffee, Starbucks, Brand, China]

Strong Essays
1231 words (3.5 pages)

The Operational Management Strategy Of The Starbucks Coffee Shop Essays

- Assignment-II Nampally Srikanth University of Central Missouri Production and Operations Management Ms. Cynthia Horta An article on the operational management strategy of the Starbucks coffee shop Executive summary: This article shows about the strategic and operation management of business issues of Starbucks coffee shop. Introduction: Starbucks coffee shop is an American company founded in 1971 and now became one of the famous franchise with coffeehouse all over the world....   [tags: Coffee, Espresso, Starbucks, Coffeehouse]

Strong Essays
1189 words (3.4 pages)

Starbucks Corporation Essay

- Starbucks Corporation Starbucks History: Starbucks’ opened its first store in 1971, at Pike Place Market in Seattle, by three partners Zev Siegel, Jerry Baldwin and Gordon Bowker. Starbucks opened with the intent of being a gourmet coffee bean retailer and coffee equipment seller. The Starbucks name and logo came from two influences; a character named Starbuck in the classic book, Moby Dick, and a mining camp on the base of Mt. Rainier called Starbo. These two influences were combined to create Starbucks....   [tags: Business Analysis Starbucks Management Strategy]

Strong Essays
1999 words (5.7 pages)

Starbucks Essay examples

- "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow." Starbucks began with Jerry Baldwin, Zev Siegel, and Gordon Bowker in Seattle, Washington in 1971. At that time they called it Starbucks Coffee, Tea, and Spice. Their respective love for coffee and tea from around the world inspired them to venture out of their respective disciplines. With the success of a similar establishment in the San Francisco Bay Area, Bowker, Baldwin and Siegel figured they could also build such success in Seattle....   [tags: Business Coffee]

Free Essays
1010 words (2.9 pages)