...brand is Starbucks, because of their ability to stand out in every aspect of branding. Effective branding can give a company the edge needed in a competitive market. Branding tells your customers what kind of company you are and what they can expect from your products and service. In my opinion Starbucks has the best tasting coffee drinks. I also appreciate the fact that Starbucks offers free Wi-Fi in a comfortable atmosphere where I can work on homework. Starbucks is also good to their employees by offering tuition reimbursement and fair wages. The Reasons I am Passionate about the Starbucks Brand I have been a Starbucks customer ever since I can remember. The first reason I am passionate about Starbucks is because of the quality of their products. I love the taste of their coffee, teas, and food products. They also have a large variety of drinks available so a person never gets tired of the same thing. The second reason I am passionate about Starbucks is because of their customer service. I always receive fast and friendly service at Starbucks. The final reason I am passionate about Starbucks is because of their rewards program. The Starbucks reward program is designed to reward loyal customers for their purchases. The rewards program is offered in different levels. Once a person reaches the Gold level they receive a free drink or food item after earning 12 stars. Loyal Customer Relationships across Different Groups I believe Starbucks is successful...
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...Starbucks’ Strategy Charlene McMickens Modern Management Dr. Christopher McGrath February 3, 2016 Introduction Organizational culture is the set of key values, beliefs, understandings, and norms shared by members of an organization (Daft, 2012). In this paper, I will examine the elements of Starbucks’ organizational culture that contributed to its success in a global economy and look into management’s role with creating and sustaining the organizational culture. I will next assess the effectiveness of the company’s management decisions in providing innovative offerings for its customers. Then I will look into determining one key management competency and indicate one way the competency is a good fit for the organizational culture. Lastly, I will evaluate Starbuck’s ability to achieve long-term sustainability as a global leader in the coffee industry without the organization’s CEO, Howard Schultz. Starbuck’s is a multinational company famously known for its coffee. Starbucks offers some of the world’s finest grown fresh roasted whole bean coffee. The company first opened in 1971, at the historic Pike Place Market in Seattle as one storefront. The Starbucks’ name is from the first mate in Moby Dick. In 1981, now CEO Howard Schultz first walked into a Starbucks store, his first cup of coffee had him intrigued and he joined it a year later. Starbucks maintains its great success by standing by its mission statement “to inspire and nurture the human spirit, - one person, one...
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...Company Overview Starbucks has grown from a single store in Seattle, Washington in 1971, to a corporation operating 19,767 stores in over sixty-three countries. CEO Howard Schultz is committed to continued expansion while retaining Starbucks’ reputation of having the best coffee in the world. In 1990 Starbuck’s senior executive team created their mission statement and principals, which would incorporate Schultz’s principles. In their mission their final statement proclaimed “people first and profits last” with the number one guiding principal of Starbucks was to “provide a great work environment and treat each other with respect and dignity.” (Ferrell, Fraedrich & Ferrell pg. 325, 2012) Starbucks Mission Statement is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (Starbucks.com) Positions In our Compensation System Proposal for Starbucks, we will analyze and define positions in the organization. These positions are Barista, Shift Supervisor, Assistant Store Manager, Store Manager, District Manager and Regional Director. We provide a general overview of these positions to the reader in order to facilitate a better grasp and idea of what these critical roles and job functions are in the Starbucks organization. The Barista is considered to be the face of Starbucks, and as such, they are an important part of the customer’s day. The Barista is an expert in handcrafting deliciously perfect beverages. Barista’s are the connection...
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...Zhang, Thai Tran, Hollyann Joyner I. Marketing Goals and Objectives A. Have largest market share in US coffee Industry * Objective 1: opening 3000+ net new stores in America by 2017 Starbucks will open more than 3000 stores in 48 states in US depends on population density. High population area like New York and Washington should open more than other states. And US is the largest market for Starbucks, and it’s brand name is well known, open more stores, and have an intensive distribution, so when consumer thirsty or tired, they can find a Starbucks next to them. * Objective 2: US market revenue grow by 12% in 2014. At least half of the new stores are expected to be in the strong, rapidly growing U.S. market, and in 2012, the new store revenue grew by 9 percent. Starbucks should focus on their loyalty program and advertising activities, so people could always see it in TV or internet. So sale will increase gradually. So Starbucks expect higher revenue 12 percent in 2014 is reasonable and possible. B. China on track become second-largest market in 2014 * Objective 1:opening 1000 new stores in different provinces of China by 2016 China had an 8 percent growth in 2013, almost the same as America, Starbucks has a really good brand name, currently there are more than 3,000 stores in China, and they all located in major big cities, so Starbucks should open more in second or third major cities in different provinces to make sure people could find it around...
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...Shereice Brown SWOT Analysis Section one Starbucks has been around since 1971 when it first opened its doors in Seattle. It has since then came a long way with its customer loyalty and products. Starbucks used to only sell hot drinks and teas, it has now expanded its products with sandwiches and other treats. The Starbucks customer base gets bigger every day. You can usually find a Starbucks every few miles; it is a huge corporation and continues to grow. “To inspire and nurture the human spirit-one person, one cup and one neighborhood at a time” (Starbucks.com). Section two Starbucks is internationally known, has a strong valuable brand. The most well recognized coffee brand in the world, Starbucks has strong brand awareness. There is not one person that does not know what Starbucks is. Starbucks stands out in the coffee market; it is one of the leading food chains. Its brand says a lot about the company and how it is ran. Starbucks has the largest coffeehouse chain in the world. The company operates around 20,000 coffeehouses in 60 countries, making it the largest coffeehouse chain in the world (Garcia). People are usually pretty eager to have a Starbucks close to them. Starbucks is growing in different countries. They are having an aggressive growth overseas and china. Customer base loyalty is what gives Starbucks their success. Starbucks is known for their membership rewards program. This attracts a lot more customers because there are a lot of perks to being a member...
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...With the best position in the coffee shop industry in North America especial in America with 11,962 stores which kept increasing from 2011 (Statista , 2014). Starbucks is proving that it is a master of using model marketing, specifically in term of consumer behavior, and to establish their position in customer mind. Since the first coffee shop of Starbucks was settled down in Seattle, America in 1971 by English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. It had been 43 years which is a long time to create a brand loyalty, a brand awareness, brand image for Starbucks which becomes a national brand, “In fiscal 2013, Starbucks had more than 3 billion customer visits to our more than 19,000 stores in 62 countries” (Starbucks, 2013). The truth about Starbucks have paid a lot of money to do research on international consumer behavior are paid off with a thousand of franchise stores have been spread out the world. In business perspective, Starbucks can be called a master of Marketing, and why that term is made up for Starbucks. In this project, our group would like to figure out the best marketing strategy of Starbucks based on the consumer behavior aspect which are in store environment element, product line extension, image of company, customer service, staffs’ communication way, using customers’ ego such as environment friendly, and sponsorship for local community. Store Environment When consumer think about Starbucks, the first mage which comes...
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...Case abstract Starbucks was founded in Seattle in1971 as roaster and retailer of whole bean and ground coffee, tea and spices in a single store in Seattle’s Pike Place Market. It was named after the first mate in Herman Melville’s Moby Dick. It was incorporated under the law of the State of Washington in Olympia, Washington, on November 4,1985. It went public on June 26,1992 at a price of $17 per share and closed trading that first day at $21.50 per share. In 2011, Starbucks unveiled an alliance with India’s flagship conglomerate ,Tata Group. This alliance is to raise the profile and use of Indian premium Arabica beans in Starbucks stores elsewhere. Nowadays, Starbucks has become the largest coffee company in the world and its headquarter is located in Seattle, Washington. It has entered into a strategic partnership with the maker of Keurig brewers, Green Mountain Coffee Roasters in order to deliver coffee to the fast-growing single serve coffee market. Since the Starbucks VIA instant coffee are successful and popular among the coffee addicted customers, Starbucks now offer its VIA instant brew in its Chinese stores and other countries. Starbucks is opening more than 100 new stores in 2011 in Brazil, the second largest coffee-consuming country in the world. In early 2011, it has a total 16,635 stores in 50 countries, including 500 stores in Tokyo and 500 in London. Starbucks’s sales also had leap-frogged the company past Burger King and Wendy in early 2011. But , it was...
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...Mini Case 4 Starbucks: Re-creating Its Uniqueness Background: The Starbucks Corporation is the biggest coffee company and coffeehouse chain in the world. It operates approximately 18,000 locations in more than 60 countries. Founded in 1971 in Seattle. Founded by three students, Gerald Baldwin, Gordon Bowker and Zev Siegl, the company was taken over in 1982 by Howard Schultz. He joined Starbucks and connected with the vision to bring the Italian coffeehouse tradition to the U.S. Starbucks offers a wide variety of items including premium coffee drinks in a unique coffee house environment. 1. How did Starbucks create its uniqueness in the first place? Starbucks has created its uniqueness by offering high quality of products at a fair price, which attracts many consumers of coffee. Starbucks was of the first in its market to offer to-go beverages. The staff can be described as exceptionally welcoming, authentic, thoughtful, and knowledgeable. They are undoubtedly committed to the highest standard of quality and customer service. Customers visit frequently, often times on a daily basis, because of the atmosphere and products. 2. Was Starbuck’s uniqueness a VRIO resource? Did it help Starbucks gain and sustain a competitive advantage? Why or why not? The elements that make up the Starbucks brand uniqueness can be seen in the VRIO below. Valuable: Having a strong global presence is an important asset for a company trying to increase their size, sales, and market share...
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...satisfaction level of Starbucks. 1. What is your age? * 13-16 * 17-20 * 21 and above 2. How many times in a month do you purchase from Starbucks? * None * 1-3 * 4-6 * 7 and above 3. Are you visiting Starbucks more or less often than you used to? * More * Less * The same 4. Why are you visiting more or less? ________________________________________________________ 5. From the options below, rank according to which is your preferred brand. With 1 being the most preferred and 4 being the least. Starbucks, Coffee Bean and Tea Leaf, Spinelli, Costa Coffee 1________ 2________ 3________ 4________ 6. Are you aware of the Starbucks membership card? * Yes * No 7. Do you find the privileges of being a Starbucks member attractive? * Yes * No 8. Are there any recommendations to improve on the existing Starbucks Membership programs? __________________________________________________ http://www.business-intelligence.co.uk/reports/crm_strat/summary.asp ( crm strategy) http://harveywallbanger.hubpages.com/hub/Starbucks-Customer-Retention-Strategies ( retention) Answers ( 50 respondents) (1) 10 ppl- 13- 16 yrs, 25 ppl– 17-20yrs, 15ppl - 21 and above (2) 30 ppl- 1-3x, 10 - 4-6x, 10- 7 and above (3) 30 ppl say – less, 10 say more, 10- the same (4) The reasons – On the whole, around 30 ppl say that Starbucks pricing is high compared...
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......STARBUCKS PLANNING 1 To understand the relationship between strategic and financial planning we first need to determine both of their meanings. The definition of strategic planning states that it is a “systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.” Strategic planning is a management tool that helps an organization focuses its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization’s direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson’s Strategic Planning in Public and Nonprofit Organizations) From these definitions and quotes we can understand that strategic planning allows a company to develop goals easily so that they can keep the company prospering. Financial planning is similar to strategic planning because both types of plans are used to help the company reach its overall goals. The definition of financial planning states that it is “a comprehensive evaluation of an investor’s current and future financial state by using currently known variable to predict future cash flows, asset values, and withdrawal plans.” This definition helps us to understand...
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...STARBUCKS CORPORATION: SERVING MORE THAN COFFEE Wake up and smell the coffee—Starbucks is everywhere! As the world’s No. 1 specialty coffee retailer, Starbucks serves more than 25 million customers in its stores every week. The concept of Starbucks goes far beyond being a coffeehouse or coffee brand. It represents the dream of its founder, Howard Schultz, who wanted to take the experience of an Italian—specifically, Milan— espresso bar to every corner of every city block in the world. So what is the Starbucks experience? According to the company: You get more than the finest coffee when you visit Starbucks. You get great people, first-rate music, a comfortable and upbeat meeting place, and sound advice on brewing excellent coffee at home. At home you’re part of a family. At work you’re part of a company. And somewhere in between there’s a place where you can sit back and be yourself. That’s what a Starbucks store is to many of its customers—a kind of “third place” where they can escape, reflect, read, chat, or listen. But there is more; Starbucks has embraced corporate social responsibility like few other companies. A recent Starbucks Corporate Social Responsibility Annual Report described the company’s views on social responsibility: Starbucks defines corporate social responsibility as conducting our business in ways that produce social, environmental, and economic benefits to the communities in which we operate. In the end, it means being responsible...
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...service has changed in recent years. This change in customer perceptions is due in part to the fact that their customer base has shifted to a younger, less educated clientele that hold different attitudes toward Starbucks than the previous customer base. The lack of marketing organization within Starbucks is surprising. They currently have no chief marketing officer and their marketing department functions as 3 different groups: analytical marketing research group, new product development group, and a promotional development marketing group. This has created a major problem for Starbucks because, as stated in the case, “We tend to be great at measuring things, at collecting market data, but we are not very disciplined when it comes to using this data to drive decision making.” This is a problem because although they have a vast amount of data about their customers, they don’t know how to turn it into money. One of the most obvious problems that I see with Starbucks is the amount of market left untouched. There are currently eight states, and 150 of the nearly 300 metropolitan areas in America left open for grabs. As competition is on a steep rise, occupying these markets is more vital now than ever before. Dunkin Donuts is one of the biggest competitors to Starbucks. As they gain brand awareness, the market share they hold steadily grows, taking away from the...
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...The Future of Starbucks An Analysis by Team Macchiato: Zack Higbee Chen Yee Liaw Calvin Ting Kevin Tjho Michelle Ton 1 Executive Summary Starbucks Corporation has arguably been the most successful coffee chain in the past few decades, using their aggressive expansion strategies to push out much of its competition. Through its expansion, Starbucks has focused on creating a dense network of stores all around America, while also opening up new locations all around the world. By leading the retail coffee market, Starbucks is able to sell its coffee for a premium price and increase their profitability. Its success can be seen in the gradual rise of its stock prices from 1992 – 2007, reaching almost 6000% of their initial public offering 1 . Yet, in the recent year, the market has shown Starbucks to be in constant decline, as their stock has dropped about $15/share, a value they have been above since 2004. Also, looking at Starbucks’ SEC filings, we can see that its comparable store sales have decreased significantly in US markets since 2004. This has prompted Team Macchiato to evaluate Starbucks’ current strategies in addition to the retail coffee market as a whole. To evaluate the problem, one of the biggest questions to consider is to what extent is the “designer coffee” market just a fad. In other words, will the allure of gourmet Starbucks coffee be maintained or will more appealing options threaten the success of Starbucks’ primary product...
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...The Global Rise of STARBUCKS from casual coffee drink to a Gourmet Beverage Andrew W. Knowles DeVry University Professor: Michelle Lawson Management 303 SWOT Analysis Abstract As we trace the halls of “father time” there we come across a company that may not have the rich history of serving North America and the rest of the world for over 100 years. Or cannot be traced back to the establishment of our constitution, providing a strong wake up call to our founding fathers as they crafted the declaration of independence during the 1800’s. But what we find in history is a company that took its humble beginnings at Pike’s Place and crafted a casual drink into the world’s most recognizable brand. Whose customer base are loyal to the brand, and whose logo stands apart from all others. It has weathered the storms of a down economy, poor management, competition, weaknesses and threats to define its own brand and category. CEO Howard Schultz said “Starbucks is committed to evolving and enhancing our customer experience with innovative and wholesome food offerings”. Starbucks History Starbucks opened its first store in 1971 in Seattle’s Pike’s Place Market. At its inception it was a retailer of whole bean, ground coffee, tea and spices. Today that one store has blossomed to over 20,000 stores in 65 countries brewing the best coffee arguably by many of its loyal customers. Starbucks got its name from the first mate in the Herman Melville’s Moby Dick story, and its logo from...
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...Running Head: STARBUCKS REWARDS AND PERFORMANCE The purpose of my research is to evaluate the effectiveness of rewards on performance of Starbucks Corporation; it contains the evaluation of two main sides of motivation strategy: Extrinsic rewards and intrinsic satisfaction. Motivation is one of the main causes for industry in the process of making their production. In order to find the ways that Starbucks used to motivate their staff, research has to be done during investigation. I have collected several types of data, which are Primary data and secondary data. Normally, I will get the articles from the hunt library and Internet. In the process of analyzing the information, some essential methods will be used, such as Motivation Strategy analysis, Equity Strategy analysis and Goal-setting Strategy analysis. The issue is to investigate and to analyze the rewards and performance structure of Starbucks Corporation. Starbucks Corporation, one of the most famous retail coffee shops chain in the world, specialize in grinding, roasting, and selling special coffee beans and a variety of coffee or tea drinks. Starbuck publicize they are the “third place” between home and company, where you can get together with families and friends, or just take pleasure in a quiet moment alone with fresh coffee, book and music. Starbucks always meet its customer’s requirements; they achieve a good motivation staff which will be beneficial on its internal and external customers. Its internal customers...
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