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Starbucks Paper Analysis

In: Business and Management

Submitted By babynates
Words 4220
Pages 17
Overview In 1971, a single storefront coffee house, rich with both character and coffee aroma, opened its doors. Named after the chief mate from the novel, Moby Dick, and nestled in Seattle’s Pike Place Market, Starbucks welcomed customers in for some of the world’s most delicious fresh-roasted coffees. Current chairman, president, and CEO, Howard Schultz, enjoyed his first coffee at Starbucks so much that he joined the company in 1982. He soon envisioned incorporating the Italian Coffeehouse ambiance into the Starbucks experience. After leaving Starbucks for a brief time, Schultz returned and purchased the company in 1987. Bringing his vision to life, Schultz created a cozy atmosphere of social gathering and conversation. Schultz later retired in 2000, but after watching the company suffer financially, he returned in 2008 and restored the company to the industry leader it is today. Starbucks now serves its specialty coffees and food products at 23,187 stores in 64 countries.
This analysis offers insight into the fundamentals of the company by providing the necessary information to understand Starbucks’ current financial and strategic position in relation to its competitors as well as key issues requiring attention.

Key Problems and Issues

 Dissatisfaction among employees regarding current wages, work hours, and dress code
 Competition offering lower priced substitute products
 Competition offering free Wi-Fi in an attempt to create better social atmosphere
 Global competition i.e., Japan’s Mt. Rainier with Starbucks-like logo
 Ability to continue evolving strategy to stay ahead of the competition (now introducing alcoholic beverages to evening menu)
 Consumers disenfranchised by loyalty program
 Stores not strategically located, creating self-cannibalization
 Lack of growth in Europe, Africa, and Middle East (72…...

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