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Starbucks Corporation case study
Business strategy of starbucks
Business strategy of starbucks
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Introduction When it comes to coffee, Starbucks has made its mark and is ranked high on the list of most popular international chains. Its worldwide operation consists of over 16000 stores in approximately 49 countries. This company’s primary focus is on having a solid marketing strategy, exceptional customer service and distinguished products which has allowed the company to set itself apart from their competitors. There is great emphasis placed on having a high quality of coffee bean for this reason the company purchase their beans from a variety of coffee manufacturing countries. Starbucks is famous for their coffee but they have also broadened their horizons by selling cold beverages in a variety of flavors, fresh creamed beverages, richly …show more content…
Indicate management’s role with creating and sustaining the organizational culture. Starbucks has established a strong focus on its organizational culture; it places great emphases on building a strong competitive atmosphere which concentrates on innovation and the development of the company. The ability to have this type of organizational culture has allowed the company to motivate their employees and push them to accomplish the targets and goals of the company; they foster imagination and innovation by implementing an open and fun environment. The practice of open communication has simplified in the progress of its transparent reputation for Starbuck operations and has assisted in curbing rumors. Data on the organization is accessible even on their website for all those interested. This has also served to increase public confidence in the business and hence maintain a good reputation (Simon, …show more content…
In a large international corporation or a small business, it’s critical to keep an open mind when it comes to innovative ways to satisfy your customers. Many customers are grateful to have free unlimited Wi-Fi services available in all the Starbucks stores, they also view Starbucks stores as an office way from the office or study place for others. This is also a great way attract those customers that only stay long enough to grab a cup of coffee and morning muffin, now they can slow down and take a minute to relax before they go to the office. This will allow Starbucks to maintain a competitive advantage.
Coffeehouses, and more specifically Starbucks, have increasingly become an essential part of many people’s daily life. So I was interested in how the culture within Starbucks is a reflection of natural human interaction. I chose to observe the environment and interaction of people within a suburban neighborhood Starbucks for one hour.
Starbucks is the largest coffee chain industry in the world. In 2014 alone, Starbucks processed 2 billion dollars in mobile payment transactions (Elizabeth, 2015). Starbucks mobile app allows customers to transfer balance from their bank accounts to their Starbucks accounts for future purchases. Several customers have had money stolen from their Starbucks mobile app by thieves using smart new attacks.
According to Harvard Business Review, written by Leinwand and Davidson (2016), “Starbucks culture is powerful because it is tightly linked to the company’s distinctive capabilities.” Aside from its delicious treats and fancy beverage combinations, Starbucks has also been known for its warm, welcoming ambiance that is constant in every store around the globe. This is evident in the kind of customer service that each employee provides. From warm greetings to delightful farewells, a customer can definitely feel the unique kind of experience that sets Starbucks apart from its competitors. This is because of the type of environment and culture that every employee is accustomed to.
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
This offers people the ability to connect and surf the web, not only does this service allow people to use the internet, but it innovates people to socialize in groups or even host meeting at each store. The atmosphere in the store also provides people to maintain a relax and calm area to enjoy. Many people like this service because you can focus on what you need to do or just enjoy the quietness that the store offers to its customers. In every Starbucks when you go up to the cash register you are greeted politely and well. Throughout many restaurant you can tell that the employees are either sometime a bit discourage or feeling tired of the work and sometime you don’t feel as if the customer service is good. While at Starbucks the service is always tried to be reached at a maximum for all customers. This form of service is called customer service and is largely presented through many organizations, but Starbucks has found a way to present customer satisfaction to the maximum by ensuring that the consumer is treated well and given the assistance they need to have a delightful experience in the store. This ensures that the customer returns again for a second trip, and while it benefits the company itself in profits. Another service that Starbucks offers to the customers is the mobile application that can be downloaded from your smartphone. The application is a service that is easily accessible to anyone. In this application the user can order their drink in a more efficient and convenient way that allows you to easily customize what you want in the beverage. Ordering online through the application saves you the hassle of having to enter into the store and waiting to order, instead you can walk inside the store and already have you beverage ready and prepared the way you enjoy. The application makes ordering more easily convenient, but it also offers the customer Starbucks Rewards, which allows you to earn free food, drinks, and free refills on
In addition to a hospitable coffee shop, Starbucks created a loyalty program by which you
There have been some distinguished controllable and uncontrollable elements Starbucks has encountered when entering global markets. The strategies of any company’s goals are vital to its success. This is one area Starbucks has excelled in, just as McDonald’s has in recent years. Starbucks has paralleled its branding with the actions found at any Starbucks across the world. They have an excellent company vision, which they stick to, which in turn assists their brand image. Starbucks’ image has been achieved not only through this and their massive global entrance, but through their ability to provide honest quality service.
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.
Coffee is a worldwide cash crop of which demand has exponentially increased over the years. “Coffee is (after oil) the world’s second most important traded commodity” (Cleaver 61). Competing coffee brewing companies wage war on offering the freshest, best tasting coffee the market has to offer. With such stiff competition there must be enough coffee beans deemed to be good enough in quality to supply the increasing demand. Starbucks can be considered one of today’s top competitors if not thee top coffee manufacturer presently in business. This successful company has had a huge impact on the coffee industry as well as the world. They have gone through great length to provide consumers with an excellent product as well as create a legacy that shows how to best go about running a massive corporation while keeping the environment clean and healthy.
...nal locations in the heaviest coffee drinking countries. This has to be done quickly as to get the jump on other that may also be considering this type of a move. At the same time they should be selling franchise right for the coffee carts. This will provide an increased cash flow as well. During all of this Starbucks should be looking at coffee producers who are in financial trouble or are looking at selling their farms. This has to be done discretely as not to cause unnecessary bad press. After they run a couple of these coffee producing farms for a few years they should be able to see how the whole operation works and determine its viability. Once it’s proven viable they should send out simultaneous offers to the biggest producers as to catch them and other coffee companies off guard. Starbucks also should be getting into the bottled Frappuccino as soon as possible. They should leave the introduction of the product up to Pepsi because of their past experience. They should leave their entry into the grocery store market until some of these other strategies are implemented. This will prove to be the best strategy for Starbucks being able to reach their long-term gaol.
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...
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).
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.
In the text, Organizational Behavior, Stephen P. Robbins defines organizational culture as, "a system of shared meaning held by members that distinguishes the organization from other organizations" (2005). Starbucks has a very strong organizational culture and strives to maintain it.
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).