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Starbucks economic factors
Howard schultz and starbucks case study
Economic analysis for starbucks
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Starbucks started out as a small company that only sold coffee grounds. Not all of the different style of beverages that they do today. Starbucks has progressively become better and better. The reason for this is that Howard Schultz has constantly changed the company as the world has changed. For example on December 06, 2011 Starbucks released an app that customers could use on a mobile phone to pay for their drinks at starbucks. Technology in the world is constantly advancing and Starbucks knew that so they adapted to the new changes and made this app. Another example is the new line of drinks Starbucks has come out with, Starbuck 's refreshers beverages, that are not a roasted coffee like every other dark coffee, but it still has the caffeine and other natural qualities that comes from a coffee bean. By doing this it has opened up Starbucks to even more customers because some people hate the taste of …show more content…
Starbucks is a company that likes to see people be successful and they will help their employees or “partners” as they call them to be successful even if it 's not with Starbucks. They offer a college plan for their employees and will pay full tuition for them to get their bachelor 's degree. Starbucks calls their employees partners because they believe they are all partners in a shared success no matter how small an employee 's role is with the company. Starbucks has made having a career with them extremely appealing by giving so many opportunities for employees to be successful. One example is that every partner at any level is able to receive an annual grant of company stock through their bean program. Another example is that they have given employees the opportunity to be more themselves at work by widening the dress code so that they can wear certain clothes that are already in their closets at home. If I had the chance I would definitely want to work for Starbucks because they do make it so
My name is Ana Nicole Paz and I am a 16-year-old high school student. I read your memoir How Starbucks Saved My Life and can honestly say I thoroughly enjoyed the read. Even after losing your job, house, marriage, money, and learning you had a brain tumor, I loved the fact that you took an otherwise negative situation and turned it into a positive life experience that would make you the happiest man you could have ever dreamed to be by accepting a job at Starbucks. I also appreciated that you did not hide any of your thoughts in your memoir, but were rather very straightforward, even with the prejudices you held, and were quick to learn that they were unwarranted to move forward from such ignorance.
In 1982 the president and CEO Howard Schultz, joined the company. He had just returned from a trip to Italy in 1983, and invasion a new way to serve coffee in the United States. He wanted to bring the way of Italian coffeehouse here. Nevertheless, this was not until 1987 where he would come in with several local investors to purchase Starbucks and rebrand. Opening their doors here in Chicago. In 1991, Starbucks took off and was the first companies to offer full and part time employment with benefits. They also were able to take the lead in the coffee world by offering Frappuccino’s. Their success landed a partnership in 1995 Pepsi-Cola. This help them market to consumers a ready-to-drink Frappuccino that was available for purchased through local grocery stores or convenient stores. It was also in 1996 that Starbucks opened its first store outside of North America, which expanded a branch in Japan. In 1998, this offer Starbuck to acquired Tazo Tea Company. This lead to collaboration with Conservation International in 1999, to promote environmentally responsible methods for growing coffee. Starbucks has continued to grow over the years, launching its VIA™ Ready Brew coffee in 2009 (Starbucks Timeline, 2010). They have continued to work aggressively to serve the public as of today Starbucks has more than 15,000 stores in 50 countries, and have taken their name to be known as the world’s premier
Starbucks initially was a small structure, run by three partners in a small shop in Seattle. The company then was restricted to selling only whole bean and ground coffee. It was typically a top down structure were the three people in the top management were the decision makers. In 1984, when Schultz suggested the idea of selling coffee and expresso drinks, the directors of Starbucks rejected the idea, in spite of the fact that the move would have made more profit for the company. This displayed the rigidity of the management towards any changes in the business.
CEO of Starbucks, Howard Schultz, originally had the idea that Starbucks would have the community/traditional feel in their stores, and still serve high-quality coffee (“Our Heritage” 1). Adding an Italian vibe to the coffee shops, keeping its traditional logo, which is based on a mythical creature, and advertising some of its products in a more “traditional” style accomplished the first goal. For an example, Starbucks recently created a commercial about their Refreshers, which was about cooling someone down in the summer time, with the scenery of Tuscany in the background. Serving high-quality coffee was obtained by ordering coffee beans from where they naturally grow and giving it a perfect roast to give to a customer. It was a marketing strategy that helped Starbucks grow and transform its commodity chain to support gathering more raw materials for a cheaper and more efficient way.
Great quality products, customized, served in clean, convenient placed stores for everyday coffee, friendly and fast serving, everything in a pleasant atmosphere - these were just few factors that lead to the great success of Starbucks during the nineties. Their USP was a place where every American could escape from home or work, for a coffee drinking ritual; high quality coffee, according to each customer's taste, served in a special, intimate ambience. Their image was supposed to appeal to anyone, being based on the idea of community, "exploiting" the need of people to interact with each other, in a "third place", away from home or work.
Starbucks Coffee (2014) mission statement is “Our mission: to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time.” Starbucks values go beyond serving a cup of coffee to customers. Starbucks values go to the lengths of providing the highest quality of coffee; improving the lives of people who walk through the door; treating employees as partners; making sure shareholders receive incentives; providing a place for customer to escape the stress of life and enjoy a day with family and friends, and to be the most recognized and largest coffee retailers worldwide. According to Starbucks Coffee (2014), “Starbucks is fully accountable to get each of these elements right so that Starbucks-and everyone it touches-can endure and thrive.”
Starbucks Corporation provides their Partners, or employees, with benefits such as health insurance, adoption assistance, a retirement plan,
In today’s retail business market, Starbucks is one of the largest coffee companies in the world. In the early 70s, Starbucks opened their first store in Seattle. Over 30 years later, their company has massively expanded opening over 7,000 stores in the United States and internationally. Starbucks is definitely a favorite in today’s coffee market due to their popularity and success. They view themselves as a business that has premium coffee in the world while striving to maintain consistent success as they grow into the future. Starbucks has also expanded their business by expanding their products through Breyer’s ice cream and having their very own card, which customers can purchase and pre-load.
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.
The ad never mentions the price of the products, the place where Starbucks stores are usually located or the promotions to attract consumers. The existence of competition pushs marketers to make changes and be more creative (Jobber, 2013, p742). It is necessary for a business to survive with competitive advantage (Dibb& Simkin& Pride& Ferrell, 2012, p57). Michael Porter (quoted in Kotler& Wong& Saunders& Armstrong, 2005, p504) came up with three competitive strategies. Maybe Starbucks just applies two of the three strategies. One of the competitive strategies that Starbucks coffee applies is differentiation. Differentiation is the approach that the business uses to make its own products or services attractive, distinctive and different from its rivals (Dibb& Simkin& Pride& Ferrell, 2012, p57). Starbucks is a very creative company, because as the advertisement shows, an artisan roast is roasting coffee beans very carefully. The speaker says consumers’ favourite beverage signature espresso roast is developed uniquely by Starbucks. In fact Starbucks also creatively develops some other popular coffee like Frappuccino and Cappuccino. The other competitive strategy is focus. Focus means that a business targets at a certain group of market segments instead of facing the whole market (Kotler& Wong& Saunders& Armstrong, 2005,
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.
Comparing my own life to Michael in the book How Starbucks Saved My Life has some direct comparisons to what I read. A brief summary of Michaels life: Michael Gates Gill, in his fifties that had it all. Loving family, outstanding job with a six-figure salary, and a nice house in the suburbs. What more can you ask for? Well starting out the book it talks about his wonderful life but then getting around his sixties, he lost everything he had other then his Ivy League education and the though of his entitlement.
Some people cannot get their day stated without a cup in the morning. This makes a lot of competition for Starbucks in their specific market. What separates Starbucks from the rest is their innovativeness and customer experience. When Howard Schultz rejoined Starbucks in 1982 a couple years later he went to Italy to get some inspiration for the coffeehouse concept and wanted the Starbucks atmosphere to mirror that. People not only come to Starbucks to start their day but they go to have some peace and quiet, do homework, have a meeting or just to meet people a socialize. Starbucks’s the total package and that’s what separates them from other in their same market. All of the barriers that coffee shops have set Starbucks has broken down and make their own market for others to follow and try to keep up
Starbucks started its humble beginning at a small shop front down by Pike place market in Seattle,(http://www.starbucks.com.sg/our-heritage.html).The company prided itself for roasting high quality whole-bean coffee, and producing one of the best coffees in the neighbourhood. Today, more than forty years later, Starbucks had become one of the leading coffeehouse chains in the world with more than 18,000 storewide in 62 countries.
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.