Starbucks - business-level strategy Essay

Starbucks is one of the largest known coffee distributors within the United States. Their mission statement is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. Their objective is to be one of the most well known and respected brands around the world. With 21,366 stores around the world, operating in 65 countries, they are a major company that has influence on the economy in the United States and around the world (Starbucks 2015).

* Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

Starbucks was bought out by current CEO Howard Schultz in 1987. Since then, Andrew Harrer (2012) reports the company has grown to operate over “17,244 stores worldwide” (para. 1). Fortune (n.d.) reports in its yearly 100 Best Companies to Work for that Starbucks employs “some 95,000 employees”. From only a handful of stores in 1987 to a billion dollar franchise today, the success of Starbucks is due in great deal to their corporate culture, specifically how employees, or as Starbucks calls them, partners are treated. Joseph Michelli (2007) echoes this sentiment, “A great cup of coffee is only part of the Starbucks success equation” (p. 767).

Hitt, M., Ireland, R., Hoskisson, R. (2013) Strategic Management: Competitiveness & Globalisation, 10th edition, Cengage Learning

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

Starbucks is a unique organization with a unique structure (Gallos, 2012), "Starbucks is an amazing success story. In the 1990’s, it was opening a new store almost every day and is now the world’s largest coffeehouse company with more than 18,800 stores in 55 countries and more than 10 billion U.S. dollars in annual revenues ” (1). Our company

Starbucks is an American coffee company which is widely known as the representative of coffee and other beverage distributors globally. Alongside many other coffee companies all around the world, Starbucks has been able to distinguish itself from others by application of many customer friendly factors such as quality, taste and as well as good customer experience. These factors have successfully been able to raise it recognition in many parts of the world as well as popularizing darkly roasted coffee.

The business has the runway for further growth opportunities and is breaking into new markets. Consumer tastes and lifestyles continue to shift towards more snacks and beverage options. With small modifications with the menus and implementation of healthier product offerings, they can increase revenue. Another option is for the company to pursue more juice products and possibility break into the alcohol market. By targeting these products, the potential to parallel their coffee products can garner success. Like Dunkin Donuts, Starbucks could strengthen shelf space and increase the efficiency in some of their distribution channels. There has been a wide fluctuation in the market with prices of high quality coffee beans and the price of coffee overseas. Starbucks could mitigate the problem by working with suppliers to lock in prices with long term contracts.

The following section of this deals with some of the main factors within the Starbucks companies’ micro environment. More specifically, the following headings will be explored:

I view Starbucks from a Heterodox perspective, they are innovative and are constantly creating the newest technology in the quick serve market in order to pull ahead of their competition. For example; Starbucks created a mobile ordering app in order to allow consumers the ability to order, purchase and select a time for their product to be ready for them to pick it up in store. This app is in conjunction with their loyalty program where you earn stars for every dollar you spend, leading you to rewards based on the amount of stars you collect. Although Starbucks started off as a partnership between Gordon Bowkey, Jerry Balwin and Zev Siegl, it quickly

Starbucks coffee is a well-known around100 years ago. in the 1970s , three Americans to turn it into a coffee shop signs to promote the spirit of America`s coffee, and since then, Starbucks coffee growing to recently the worldwide fascinating companries. Starbucks coffee using a unique way to make coffee, refresh resources, high quality coffee beans,environmental products and the different foods provided. As it able to keep a long-lasting, high value-added brands, strong culture backgroud, those all the facors to keep the companries enhance marketing position.

“To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.” –Starbucks mission statement

Beginning in 1971, Starbucks started as a roaster and dealer of whole bean and ground coffee along with tea and spice in Pike Place Market in Seattle. The company quickly grew and became what it is today. Currently, Starbucks serves millions of customers every day and has more than 24,000 stores in 70 countries (Starbucks Coffee Company, 2016). By now, Starbucks is a well-known company around the world. Beyond having a good core product, their marketing strategies are strong. As communication marketing strategies are increasing in importance, it is important to look toward companies such as Starbucks who employ incredible communication marketing strategies. Despite the fact that their competitors offer considerably lower prices, Starbucks is still able to market its products based on quality and customer experience. One of their major strategies that helps them stay ahead is consistent branding. At any Starbucks store around the world, customers will have a similar and familiar experience and recognize the same logo and branding. Additionally, they have successfully tapped into communicating with customers across several methods. E-mails, social media, and the mobile application all have a similar feel and are targeted at education and providing rewards rather than promoting a specific product. These marketing strategies keep customers coming back again and again.

Starbucks Coffee Company, which is commonly known as Starbucks or Starbucks Corporation, is the dominant world-leading roaster as well as retailer of specialty coffee in the 21st century. Until now, it has over 20,000 stores in the world, which shows a huge number difference between Starbucks and the following competitor - Dunkin’ Donuts, which has just around 10,000 stores (Statista, 2014). The annual revenue of Starbucks skyrocketed in comparison with the last past decades in 2014, reaching around 16.45 billion profits U.S. dollars (Statista, 2014). Starbucks roasts its specialty Arabica coffee beans and retails a selection of beverage products, consisting of fresh brewed coffees, hot and cold espresso beverages, non-coffee blended beverages. In addition, it sells food items such as sandwich or muffin, along with beverage-related equipment. Starbucks main strategies for publicizing business depend on a combination with company-owned and licensed stores as well as joint venture to expand across the globe with its local partners. For the most part, Starbucks applies the same basic collection of products and customizes few additional products depending on customer’s preferences from different countries.

Corporate Strategy fundamentally is concerned with the selection of businesses in which the company should compete and with the development and coordination of that portfolio of business.[1] In the case of Starbucks the corporate strategy they have implemented is unique to their industry which has allowed them to differentiate from their competitors and is summarized best by Howard Schultz CEO of Starbucks, “We’re in the people business serving coffee,[2]” high quality specialty coffee and related products in a European café environment. It is clear Starbucks is in a growth strategy utilizing three key techniques that support its Mission, “to inspire and nurture the human spirit – one person, one cup and