Analysis Of The Starbucks Experience By Joseph Michelli

875 Words2 Pages
bulb-icon

Recommended: Starbucks strategic implementation

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. Nowadays, Starbucks has more than 11,500 non-franchised locations worldwide with annual sales more than $600 million and has been recognized as one of the best Fortune 500 companies to work for. The Starbucks former CEO and the current chairman, Howard Schultz, implemented the five core Starbucks principles for turning “ordinary into extraordinary”. By following these principles, Starbucks became extremely successful and since 1992 the Starbucks stock has grown a staggering 5,000 percent. The author discusses the five core principles that lead to Starbucks’ success such as: make it your own, everything matters, surprise and delight, …show more content…

For example, when Starbucks came up with a Frappuccino drink, they have realized that this drink is not going to be selling well in Japan, because people in Japan are accustomed to have their summer beverage with jelly cubes. Therefore, the local manager Hiromitsu in Japan came up with a Jelly Frappuccino that has been successfully selling only in Japan. Starbucks baristas brewed the coffee, cut the coffee jelly into cubes and added it to bottom of a Frappuccino blended beverage. This is also an excellent example of cultural literacy, when the management has a detailed understanding about culture and that in return enables business to work effectively within

Show More
Related

  • A Challenge to Starbucks

    615 Words  | 2 Pages

    In the article, it describes the benefits of Juan Valdez expanding in the United States. On the other hand, it shows how Starbucks will struggle in Colombia competing against an all Colombia company. Juan Valdez founding and operations are explain in the article. It also details how Starbucks uses new brands to keep customers going to the store. The article is a great example of international commerce in the world.

    Read More

  • Starbucks Strategy

    882 Words  | 2 Pages

    1) Starbucks used mostly a differentiation strategy, however it had also used a cost leadership strategy. Its differentiation strategy was exemplified by their stores providing an experience, offering interesting coffee-related drinks in a theatrical kind of atmosphere, their unique Coffee blending and roasting process which enabled them to create an extensive product variety, their employees received great deal of training to become very knowledgeable about coffee in order to provide an exceptional service to increasingly coffee-educated consumers, and their ability to find the perfect location for their stores enabled them to maximize market share in a given area of a city and build their regional reputation which then increased their image to a national level of high prestige and status. For all these reasons, consumers were willing to pay a premium. Their cost leadership strategy was exemplified by their supply chain operations where they received the best transportation rates, and were able to achieve economies of scale by eliminating redundancy and maximize efficiency. Starbucks was also a cost leader due to its good relationship with coffee exporters who were “very anxious to become Starbucks suppliers”, a fact that enabled the company to get better prices and reduce bean-sourcing costs. The activities that created superior value for Starbuck’s retail coffee-house business were: Procurement – purchased more high quality coffee than anyone else in the world. Technologi...

    Read More

  • Starbucks Case Analysis

    1693 Words  | 4 Pages

    In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.

    Read More

  • Starbucks versus McDonald’s Code of Business Ethics, an analysis

    983 Words  | 2 Pages

    Starbucks not only shapes a defined importance on its product, the coffee, but also the relationships on its partners, its customers and its shareholders to create diversity, “to create a place where each of us can be ourselves” (Starbucks Coffee), to treat all related partners with dignity and respect at the greatest corporate level. In this sense, Starbucks involves its customers, its neighbors and is shareholders to participate in the community to “be a force for positive action—bringing together [its] partners, customers, and the community to contribute every day (Starbucks Coffee).

    Read More

  • Strategic Renewal: Starbucks Coffee Company

    1257 Words  | 3 Pages

    Schultz, H. (2011). Onward: How Starbucks fought for its life without losing its soul. New York: Rodale.

    Read More

  • Marketing Research Plan: Starbucks in China

    1269 Words  | 3 Pages

    Harrison, J. S., Chang, E., Gauthier, C., Joerchel, T., Nevarez, J., & Wang, M. (2005). Exporting a north American concept to asia: Starbucks in china. Cornell Hotel and Restaurant Administration Quarterly, 46(2), 275-283. doi: 10.1177/0010880404273893

    Read More

  • Starbucks Case Analysis

    1309 Words  | 3 Pages

    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.

    Read More

  • Starbuck’s and the Environment

    952 Words  | 2 Pages

    Schultz, Howard, and Joanne Gordon. Onward: How Starbucks Fought for Its Life Without Losing Its Soul. New York: Rodale, 2011. N. pag. Print.

    Read More

  • Starbucks

    1328 Words  | 3 Pages

    Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.

    Read More

  • Starbucks Business Communication Practices

    1843 Words  | 4 Pages

    Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.

    Read More

  • What Is Starbucks Supply Chain Strategy

    1078 Words  | 3 Pages

    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).

    Read More

  • Starbucks Case Study

    1287 Words  | 3 Pages

    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.

    Read More

  • Starbucks Quality Management Strategy

    1776 Words  | 4 Pages

    By remaining true to core competency and a laser like focus effort towards quality; Starbucks has managed to analyze, adapt and create brand loyalty to their particular market and remained the top competitor throughout the coffee industry. Americans in general enjoy a good, hot cup of coffee to start their day. In any given business, seeing a torrid cup of coffee in a cup from Starbucks is not uncommon. Starbucks is one of the most popular coffee franchises in the world with locations in 62 countries. Starbucks has been around since the year 1971where they started off as a coffee bean roaster and retailer. This research paper will briefly explores, examine, and assess Starbucks quality marketing and management strategy. Additionally, this research

    Read More

  • Major Problems Facing Starbucks

    1881 Words  | 4 Pages

    One of the main problems that Starbucks is facing at the present time is the ability to maintain national competitive advantage (Monash South Africa, 2014). Due to their local demand conditions, Starbucks tries to satisfy all customers by trying “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Local demand conditons consist of a company trying satisfy needs of their closest customers and expanding their competitive advantage by upgrading their strategic management policies (Monash South Africa, 2014).

    Read More

  • Starbucks Reflection Paper

    786 Words  | 2 Pages

    When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.

    Read More

More about Analysis Of The Starbucks Experience By Joseph Michelli

Open Document