1 Introduction
In order to determine their future plans, companies must first be able to understand not only their internal position, but also their external environment and how it affects their potential growth. This paper seeks to discuss the impacts that the external environment has on Starbucks, a world renowned coffeehouse chain, and provide holistic recommendations to take advantage of the presented opportunities and mitigate any serious threats to their core operations.
1.1 Starbucks
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.
1.2 Core operations
The core operations of Starbucks involve the sale of their beverages, retail and franchise operations, while also providing the Starbuck’s experience to its customers. As stated on Starbuck’s mission statement, “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time”. (http://www.starbucks.com.sg/mission-statement.html).This statement shows that Starbucks is not only creating a business based on its product and services, but also aiming to build a closer connection with their customers through a “people to people” approach. Through the Starbucks experience with the customers, it enables them to attract and retain its customer’s loyalty without extensive marketing, instead relying on their customers to bring in more customers. In order to achieve th...
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...ad further diversified its business to several other means in the area of consumer goods such as, Tazo Tea Company, evolution fresh which produce a range of fruit juices and smoothies and ethos water, bottled water. It should consider further diversifying their business in the hotel and air travel industry.
Tourism has been one of the fastest growing economic sectors, and is closely link with the development of new destinations. With the high demand of air travel, and increase in customer load on airline carriers and hotel, Starbucks can start an avenue of supplying premium coffee and other relevant products to airline for in-flight services onboard or hotels for their daily usage during meal services and other ad-hoc basis. They also have a research and development team to come up with coffee machine and products that specifically aim at the airlines and hotels.
Starbucks in today’s date is the world’s largest coffee chain. The brand which was founded in 1971 has established itself as the world’s leading specialty coffee brand with its more than 13000 outlets in 39 countries. The company has had an impressive record of sales and growth also. Something that differentiates Starbucks from others is its coffee as well as the special Starbucks experience. Starbucks serves more than just coffee. It is also known for the relaxing ambience where the customers can relax and sip with their friends. Starbucks is famous for its genuine service, inviting atmosphere and of course superb coffee. The company is committed to quality and it is due to its commitment to quality that its product pricing is also premium. However, despite the premium prices of its products the brand is loved around the world by the customers for the quality of products that it serves.
Presently this brings us to Starbucks, and how it has turned into a standout amongst the most unmistakable house-hold organizations on the planet basically through globalization. Starbucks began as standalone espresso joint in Pikes Place Market in Seattle, Washington in 1971. Today the establishment has 20,366 stores to its name. A...
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.
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.
Starbucks, a coffee bean sales company did not have much of a marketing plan in place at its inception. Based in Seattle Washington the company began to sell coffee beans to espresso bars and upscale restaurants back in 1982. It took 11 years to progress to that level of production, they originally were a local store vendor at Pike Place Market. The director of marketing brought back the espresso bar idea from his travels in Milan. (Company Profile, 2015) The Pacific Northwest was filled with working class men and women that were drawn to the coffeehouse tradition brought in from Italy.
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).
Starbucks is one of the most recognizable and successful coffee brands in the world. Starbucks believes in serving the best coffee possible. Starbucks’ international market that was expanded into China in 2002, still has only a tiny part of the Chinese beverage market (Harrison et al., 2005). The company President, Charles Shultz is ascertaining the possibility of establishing new coffee houses in China.
In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...
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.
“Starbucks was named after Starbuck, first mate of the whaleship Pequod in Herman Melville’s Moby Dick…Starbuck was pluralized for ease of use” (Burks, 2009, p. 1). Now President, Chairman, and Chief Executive Officer, Howard Schultz formed Starbucks Corporation in 1987 after purchasing the name Starbucks, six stores and a roasting plant from previous owners, Jerry Baldwin and Gordon Bowker (Burks, 2009). Starbucks operates under a successful value chain management strategy. Their value chain encompasses a systematic approach to the way business is done. Robbins and Coulter (2012) point out, “A good value chain involves a sequence of participants working together as a team, each adding some component of value” (p. 520). Starbucks continually reviews every aspect of their business; from the organizational culture to values and ethics to strategy, planning and operations, management control and finally human resources and performance management, searching for those items that don’t contribute to the “Starbucks experience” which is what makes the Starbucks Corporation a successful business model.
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).
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.
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...
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
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).