Essay PreviewMore ↓
Table of Contents
I. Executive Summary
II. Company Profile
III. Marketing Analysis
V. Company Product and Services
I. Executive Summary
In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants. In 1987, Howard Schultz bought Starbucks from its original owners for $4 million after expanding Starbucks by opening three coffee bars. These coffee bars were based on an idea that was originally proposed to the owner who recruited him into the corporation as manager of retail and marketing. Overall, Schultz strategy for Starbucks was to grow slow. Starbucks went on to suffer financial losses and overhead operating expenses rose as Starbucks continued its slow expansion process. Despite the initial financial troubles, Starbucks went on to expand to 870 stores by 1996. Sales increased 84%, which brought the corporation out of debt. With the growing success, Starbucks planned to open 2000 stores by year 2000.
II. Company Profile
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.
In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide.
III. Marketing Analysis
As we know, Starbucks has made a name for itself making and selling coffee and specialty coffee drinks. It has made its biggest impression by becoming the espresso expert and public educator of how to make the perfect espresso; "Roasters" of the company are trained for one year.
How to Cite this Page
"Starbucks Case Analysis." 123HelpMe.com. 27 Feb 2020
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Starbucks Case Analysis Background The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses. In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers.... [tags: Business Analysis Starbucks]
1693 words (4.8 pages)
- Starbucks Case Analysis Table of Contents I. Executive Summary II. Company Profile III. Marketing Analysis IV. Competition V. Company Product and Services VI. Recommendations/Conclusion I. Executive Summary In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants.... [tags: Business Analysis ]
1309 words (3.7 pages)
- 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.... [tags: Business Case Study]
1974 words (5.6 pages)
- Case Study #1 Starbucks The cause of this case study is to evaluate and recognize Starbucks growth in the past decades. Starbucks was established in 1971. The industry for coffee at the time was in decline for almost a decade. The consumption of coffee back then was mostly at home or “Away from home” either with a meal at dinner or restaurant. In larger cities like New York or San Francisco they have specialty coffee roasters for example Peet’s. The main goal of Schultz was aiming with that mentality to roast and vend great coffee (CRAIG, BUSSE, BROWN, “Aplia” Kellogg 1).... [tags: spping, taste, price]
1147 words (3.3 pages)
- Starbucks Business Ethics Case Analysis INTRO Ethical issues in business are a common placed every day occurrence that will never cease to exist. We will discuss an ethical issue that involves a large American corporation and its practices when dealing with suppliers of produce that is essential but not solely used by this business. We will present several point of views backed by literary findings that suggest ethical practices may or may not be at hand. BODY Mr. Donald states that one of the main goals of Starbucks is to expose the world to the coffee production/industry in Africa by showcasing African coffee name brands.... [tags: Business Ethics]
1448 words (4.1 pages)
- Preliminary Starbucks – one of the fastest growing companies in the US and in the world - had built its position on the market by connect with its customers, and create “third place” beside home and work, where people could relax and enjoy others or themselves. It was the motto of Starbucks’ owner Howard Schultz and mostly thanks to his philosophy; company has became the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there is shown some concerns, that company has lost the connection with customers and it must been taken some steps to help Starbucks to go back on the right path regarding customer satisfaction.... [tags: Starbucks Business Analysis Management Marketing]
1287 words (3.7 pages)
- Case Study: Gazing at Starbucks. 1. In this case study you can read the four reasons why gazing has become an important trend. Why is it important for companies like Starbucks to know the reasons behind this trend. In the case author states four reasons why gazing became an important trend: Fast pace life and time pressure leave no time to cook and leads people to eat on the go People spend much more time driving and eating in their cars Lack of family life leads to unstructured life of teens affecting their eating habits "Small households typically cook fewer meals" In the USA this number increased to 60 percent.... [tags: Business Strategy Analysis]
1029 words (2.9 pages)
- Complete Name: Unit 1 Student Name: Dover, Jason ********************************************************************************************************** 1. Unit 1: An Overview of Business Ethics Case Study: Starbucks ' Mission: Social Responsibility and Brand Strength (located at the end of Unit 1 READ) ********************************************************************************************************** 2. Case Summary: ********************************************************************************************************** 3.... [tags: Starbucks, Coffee, Strategic management]
1476 words (4.2 pages)
- 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.... [tags: Business Analysis, case study]
1482 words (4.2 pages)
- Starbucks Corporation is a multinational coffee and coffeehouse chain company based in the United States. Starbucks is the largest coffeehouse company in the world, with 8,505 company-owned and 6,506 licensed stores in 42 countries, making a total of 15,011 stores worldwide. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks and items such as mugs and coffee beans. Through its Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film.... [tags: Business Analysis Coffee Market]
1349 words (3.9 pages)
Currently, more and more consumers are growing more health conscious; people are cutting back on their consumption of caffeine intake. However, there has not been a noticeable rise in decaffeinated coffee consumption. Coffee beans prices are expected to rise due to the low supply. The end result, higher cost affects the markets and can heighten competition. However, Starbucks major competitors are regional coffee houses.
IV. Starbucks SWOTS Analysis
Starbucks has much strength, although it can't be said that they have a monopoly, they certainly lack competition on a national level and enjoy the lions share of the market. Regionally, they have experienced competition from coffeehouses such as Millstone Coffee, Caribou Coffee and recently Borders Coffee.
One of Starbucks key strengths is found in its Marketing strategy and the product and services that it offers. The coffeehouse in itself was not a novel concept in the United States; coffeehouses were always popular in college and university towns. Starbucks took the concept, refined and duplicated that concept and sold it to the masses.
Starbucks largely rely on countries located in remote areas of Asia for its products Ceylon, India, Sumatra etc. Countries in that region have been experiencing a wave of natural disasters over the past year, from Tsunamis to earthquakes and floods and it appears that there is no end in sight.
Such natural events are affecting production and price; this poses a problem for the bottom line. In addition, Starbucks does not seem to have suppliers in other regions; this is a major weakness that needs to be addressed immediately.
There are many opportunities for growth for Starbucks. The brand is a domestic behemoth, there exists partnership opportunities for growth in the international markets, especially in Europe where the populace spend a good deal of their time in coffeehouses.
Traditionally, Starbucks do not franchise, recently they established a partnership and licensing with Magic Johnson and his company and have experienced wild success. More opportunities lay ahead, if the Magic Johnson deal can be replicated.
Whenever and wherever there exist a number one, in the wings there is always a number two lurking, plotting and preparing to knock off number one. The rise in the popularity of the coffeehouse has helped regional coffeehouses build their brands.
There is health and fitness craze taking the country by storm. In an effort to become slim, fit and trim, Americans are decreasing their caffeine intake and that often times mean decreasing the intake of coffee.
V. Company Products and Services:
When a customer enters a Starbucks coffeehouse, the customer is not merely purchasing a cup of "Java"; the consumer is paying $3.60 for the ambience, the feel, the experience and the privilege of being a member of the elite coffee connoisseurs club. "Culture" is the transparent product in the more than fifteen-product line up that is on the menu and that realization is a strength that can't be easily identified or duplicated.
The Starbucks product line up range from, but are not limited to roasted coffee beans, ground coffee, prepackaged tea and most notably an extensive menu of freshly brewed coffees and teas.
The savvy coffee connoisseur has the ability to modify and manipulate his coffee to order. One can sit in the opulent atmosphere of living room style coffeehouse and enjoy a fine cup of tea or coffee based beverage served in fine ceramic and stoneware. For the hurried, a quality signature Starbucks beverage can be procured at the drive-though lane in a variety of small, grande or venti size.
Coffee and espresso-making equipment and accessories are also made available to its clientele at the Starbucks retails stores. For those who reside long distances away from a local Starbucks, Kraft Foods through a long term licensing deal has made Starbucks products available to you at your local grocery chains. The Pepsi-Cola Company has also made ready-brewed and bottled Starbucks drinks available to those want the convenience of Starbuck in the comforts of home.
VI. Conclusion and Recommendations:
Starbucks has been a very successful company, though innovative ideas and persistent slow-growth it has gained a competitive advantage. The challenge now is continue to grow and increase its market share. Expansion into the international market will especially prove challenging.
If Starbucks is to remain a stellar success, they need to implement a plan to explore alternate sources for product procurement and find solid partners in the international marketplace.