Starbucks Analysis

Starbucks Analysis

With a mission to: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” 1, Starbucks is the world’s largest specialty coffee retailer.   The company has more than 17,000 coffee shops in 50 countries 1, and offers a diverse product mix of premium coffee, handcrafted beverages, merchandise and fresh food.
To achieve its market leader position, Starbucks has instituted the following strategies:
Operations
In 2012, Starbucks invested $25 million in mobile payments company Square and granted the company the exclusive rights to process credit and debit transactions at its retail locations. 2 This investment allowed Starbucks to reduce the fees charged for mobile network transactions.2
Starbucks has been expanding into other product areas through its acquisition of Evolution fresh juices, Refreshers energy drinks and the La Boulange bakery brand. 4
Of the more than 17,000 locations, Starbucks operates over 9,000 in approximately 10 countries, while licensing and franchising the balance worldwide.2   Most corporate owned stores are located in the United States. 2
Starbucks recently established regional presidents for the Americas, Asia, Europe, the Middle East, and Africa, effectively transitioning the company from a functional to a regional structure.3   With each regional president empowered to act as CEO of their respective region 3, the structure allows for the management of heterogeneous markets locally by a team with knowledge of the market.
Starbucks has made efforts to increase engagement among staff.   At a cost of $30 million USD, the company brought 10,000 store managers to New Orleans for a meeting in 2008, and has plans for a similar conference in 2012. 7 Additionally, the company , on one recent occasion, had closed all stores in the United States for three hours to retrain staff. 7
Expanding on a relationship with Target Corporation (Target) in the United States, Starbucks announced plans to open locations in...

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