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Starbucks business case study
Starbucks business strategy
The business model of Starbucks
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Thousands of Americans flock to Starbucks everyday to get their daily fix of Veranda Coffee but have you ever wonder what happens behind closed doors. Starbucks gets majority of their coffee beans from a region known as the "coffee belt". This list houses Latin American, Africa, Arabia, Indonesia, and Asia. Starbucks Veranda coffee is created from a bean known as Arabica coffee bean. According to Starbuck's website, Veranda Coffee is a mellow, lightly roasted bean from Latin America with subtle hints of cocoa and toasted nuts. The Arabica bean is grown in a cool, subtropical climate at high elevations.
Uniquely, Starbucks likes to ensure that they have the best quality in the coffee world by having Latin American farmers harvest the Veranda
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Sun cultivation is where coffee is grown in rows on a plantation without a canopy or any of the other components that a present in its natural environment. This is due to companies encouraging the native farmers to abandon their archaic farming methods for a more "efficient" approach. The increased consumer demand and new technique has resulted in deforestation in Latin America. Due to coffee plant discharge, aquatic plants and other organisms are being deprived of basic needs such as oxygen. This is a serious threat that not only impacts the wildlife in Latin America but also its …show more content…
This bean is grown in a subtropical climate at high elevations known as Arabica. Starbucks is one of the few companies that likes to ensure its farmers that they will not be subjected to forced/child labor and guaranteed fair wages. This is possible because of Starbuck's C.A.F.E.. However, Starbucks and other major coffee companies are impacting the environment. This is due to higher consumer demand and finding a "efficient" farming method known as sun cultivation. In spite of the environmental impact, the coffee trade has brought the countries that are apart of the coffee belt into the global economy and helped provide a source of income. Overall, Starbucks has made itself an American commodity and icon. That has brought millions together and has become a staple to our daily
For my report, I observed the customers at a Starbucks in downtown St. Petersburg. Each time I visited this establishment, there were consistent factors as well as unique ones during each observation. The morning crowd of people was vastly different than the evening crowd. I did however see many parallels with the morning and lunch time crowd. Each time I visited, There seemed to be an upbeat and fast paced environment.
Cuba is a country that has a cuisine filled with an abundance of flavors and influences of the origins of its citizens and people that came by the island over the centuries. Filled with fruit trees and the perfect land for raising animals and growing vegetables, Cuban cuisine is unique and vast. A staple in a Cuban’s diet is, of course, their coffee. Internationally known for the strength and flavor of Cuban coffee it has made its way into many people’s morning routines.
Starbucks Corporation engages in the purchase, roasting, and sale of whole bean coffees worldwide. It offers brewed coffees, Italian-style espresso beverages, cold blended beverages, various complementary food items, coffee-related accessories and equipment, a selection of premium teas, and a line of compact discs, through its retail stores.
The most important part of the cup of coffee, the coffee beans, is typically harvested from South America, mainly because of the fact that Starbucks uses Arabica beans (Weinberg 1), which is dependent on a temperate climate that exists on the majority of the continent. The country that provides the biggest market supply of coffee beans for Starbucks is Brazil ...
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.
When Starbucks started their target market were people who enjoyed coffee not just for the energy boost that they got from the caffeine, but people who enjoyed sitting down and drinking a well-prepared cup of coffee. Upon visiting Italy and falling in love with the coffee bars and the experience that they offered, Schultz envisioned a place between home and work where you could just sit and enjoy your coffee. Starbucks wanted to control their coffee from “raw green bean to the steaming cup” this meant that they had to talk with their farmers to make sure the quality was up to their standards. They
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.
Starbucks founder Howard Schultz made it a point that in order to create the best brew, the best coffee beans were required. Starbucks utilizes only the highest of quality beans for their coffee products, which requires them to carry out a rigorous quality control process. Coffee beans vary in complexity and taste depending on where they are grown. Essentially, the harsher the environment the coffee is grown the better the over all taste. “Robusta beans are popular among some cheaper coffee distributors because they are grown in a more stable and predictable environment resulting in a cheaper price and taste” (Onward 83). Robusta beans have been domesticated, meaning they are “deliberately planted, protected, cared for, and used by humans” (The Human Mosaic 267) Arabica coffee beans are grown on steep mountains in high climates or in dry lands with intense heat. This stress produces b...
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.
Starbucks did not escape the common practice of adapting and integrating the business to different geographic regions, but they did stick to their guns when it came to their standard product line-up and their no-smoking policy. Surprisingly, these conditions were met with wide acceptance. Analysts felt the real challenge would be in the European marketplace, what with coffeehouses on every corner to compete with. Again, the stores did very well, mainly because of the newer, cleaner environment they provided compared to the older locations of established houses.
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).
I have selected the Kicking Horse Coffee (KHC) brand since it is very rarely discussed in common literature. This is primarily because their business competitors (Starbucks and Tim Hortons), are more widely accepted and recognized across the globe since they have been around much longer then the KHC company. In brief, the KHC is a privately-held business that was Canada’s very first company to provide certified Fair-trade, organic, whole bean coffee. This Canadian firm was founded in 1996 by Elana Rosenfeld and her partner Leo Johnson in the Rocky Mountain town of Invermere, British Columbia. All KHC products are made from 100% Arabica beans, which in this company, had originated mainly in the shady areas of Ethiopia (and in some instances
An article in the Seattle Post, describes the alliance that Starbucks is making to ensure that a sustainable supply of high quality of coffee is produce in Latin America. "Starbucks President and CEO Orin Smith said the alliance is partly his company's effort to pass on the "high price" of a cup of coffee to farmers." (Lee, 2004). He states that the high price enables them to pay the highest price to the farmers. Though the high prices to suppliers can demonstrate that money get to farmers with being diverted. Starbucks overall goal with this alliance is to buy 60 percent of its coffee under the standards agreed upon by 2007. "The agreement reflects the growing power of the premium coffee market and efforts to exploit it for the benefit of small farmers" (Lee, 2004).
Plan of Study The plan for this study was to observe the patrons of Starbucks of Ocean Township. I have a history as a customer of Starbucks but had only patronized this particular Starbucks twice within the last 9 months. I had assumptions of who might be patronizing the store, how the baristas might behave, and that these considerations were factors that might affect the trustworthiness of my data analysis. I planned to situate myself in an unobtrusive location where I would be able to blend into the environment and observe individuals and groups while listening to their discourse.
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.