Management

Management

Strengths.
  * Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year.
  * It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries.
  * Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce.
  * The organization has strong ethical values and an ethical mission statement as follows, 'Starbucks is committed to a role of environmental leadership in all facets of our business.'
  * Starbucks owns the most recognizable brand in the specialty coffee business, and the Starbucks experience is an irreplaceable differentiating factor.
  * Howard Shultz, founder and chairman of Starbucks is the barista to the world. Shultz has practically invented specialized coffee as a mass product, his leadership and innovative vision are very valuable assets.
  * The company has a loyal customer base willing to pay premium prices for Starbucks products.
  * Store location is an important competitive factor, and Starbucks has secured its presence in many of the most desirable corners of the planet.
  * Starbucks is ahead of most competitors when it comes to financial strength and profitability.
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Weaknesses.
  * Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.
  * The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.
  * The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise....

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