...| STARBUCK´S SUCCESS CONCEPT | Table of Content 1. Organization´s Historical Development 3 2. Introduction and Facts about Starbucks 4 3. Impact on Business Trade 7 4. Strategic Issue Analysis 8 5. SWOT Analysis 9 5.1 Strengths 9 5.2 Weaknesses 10 5.3 Opportunities 11 5.4 Threats 12 6. Conclusion & Future Trends 13 References 15 1. Organization´s Historical Development In 2011 the worldwide most well known coffeehouse company celebrated their 40th anniversary. Worldwide, approximately 35 million customers visit a Starbucks coffeehouse each week. Starbucks Coffee Company was founded in 1971 with its first store in Seattle´s Pike Place Market. (Starbucks Company Profile, 2012). The company was established by three partners: the english teacher Jerry Baldwin, the history teacher Zev Siegl, and the writer Gordon Bowker. The three coffee lovers were inspired by coffee roasting businessman Alfred H. Peet, whom they knew personally, to sell high-quality coffee beans and equipment. (Starbucks Company Profile, 2012). Alfred H. Peet was a Netherlands - United States businessman and the founder of Peet's Coffee & Tea in Berkeley, California, in the year 1966. Mr. Peet is most famous for introducing custom Coffee roasting to the United States (Marshall, 2007). The original name of the today well known company “Starbucks” was “Starbucks Coffee, Tea and Spices”, which was later changed...
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...Abstract Starbucks is one of the world’s most powerful and recognizable brands. Since its creation in 1987, Starbucks has managed to revolutionize the coffeehouse industry by marketing expensive, high quality coffee. However, while the company faced significant growth in the early 2000s, Starbucks has recently started experiencing difficulties, as some of its stores face saturation both in the domestic and in the international market. The purpose of this paper is to analyze the reasons that have led to these problems; to identify the key factors that distinguish the company as an international giant, as well as to explore different options that could be undertaken in order for the company to further establish its position as a leader in the coffee industry. Introduction Starbucks is a Seattle based company that has grown to an international leader, operating in over 50 countries with 17,651 stores worldwide (Starbucks, 2012). Starbucks has been able to gain such a large share of the market by catering specifically to a well-defined target audience and by offering unique experience. The history of Starbucks and its expansion is a model for other businesses to look up to. From only one store more than 30 years ago in Seattle to its still growing empire today with thousands of outlets in the United States and in foreign countries, the Starbucks Coffee Company is without a doubt a well-known success story all over the...
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...culture-specific case study in which a coffee brand (of your choice) in the US, Europe, or Asia has been successfully built. Coffee is big business. The world’s love for coffee has formed some of the most popular globe’s food and drink businesses . Starbucks is one of the most famous chain of coffee shops in the world, mainly making bussiness in selling special coffee beans and other various kinds of coffee or tea beverage. Through out several decades of development, Starbucks is now a global Starbucks logo brand and presents in 64 countries and territories, as of March 2015. Among those regions, Asia is one of the biggest markets that Starbucks has built up its coffee brand sucessfully. (Source: http://Wikipedia.com/Starbucks) One of the big questions is what are the factors that makes Starbucks become an successful global coffee leader. Well, there are a lot of factors. However, in my point of view, the most important thing that makes them to be successful is they are able to adapt and localize if it’s required. According to Hofstede’s national culture theory, Starbucks perfectly suits the cultural characteristics of the host country’s customer. The following paragraphs shall analyze how Starbucks succeeds in Asia, especially aiming to specific countries in that region. Firstly, China is one of two biggest countries having a massive polulation about 1.4 billion in Asia that has Hofstede’s cultural dimension scores such as high power distance, ...
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...opportunities for Starbucks to be successful and effective. CHANGES IN THE LEADERSHIP TEAM Starbucks is now undoubtedly the leading coffee seller in the world. Its mission statement has transformed over time because the leaders of Starbucks recognize they have profound influence over communities and the world around them. In general, the company recognizes that leadership is not only about supporting a company’s growth, but also about helping communities and societies grow into better places. THEORIES CONTRIBUTING TO SCHULTZ’S SUCCESS Schultz’s management of Starbuck reflects his embodiment of many different theories. Through his intellectual stimulation and consideration, Schultz is responsible for providing a structure for employees to thrive and innovate. This transformational leadership creates an efficient, revolutionary, and inspiring culture that has formed Starbucks into the most successful coffee company in the world. FACTORS INFLUENCING STARBUCKS’ GROWTH There are many factors affecting Starbucks' initial success as a corporation: Schultz's first exposure to Starbucks as an isolated Seattle coffee business, his trip to Italy, and the entrepreneur's experience with venture capital. Schultz was able to stay focused on his goal and mission for Starbucks. By maintaining his focus, he was able to develop the competitive advantage that keeps Starbucks successful and innovative. PREDICTIONS FROM CHANGES IN CORPORATIONS Starbucks is praised for its...
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...China and Starbucks Starbucks is a globalized organization that began by selling coffee, tea, and spices. The first store opened in 1971 in Seattle, Washington’s Pikes Peak Plaza. Howard Schultz joined as a marketing director in 1983 and during a trip to Italy was impressed with the coffeehouse and wanted to try this concept in Seattle. The concept and business flourished, and by 1996 Starbucks opened the first international coffeehouse in Japan. Since 1983 Starbucks has expanded globally with 18,000 retail stores in 60 countries. The first Chinese Starbucks was built in China in 1999 and is currently operating in more than 500 locations in China and plans to expand to 1500 locations by 2015. Starbuck’s mission statement: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2013, p. 1). Starbucks not only sells premium coffee and teas, Starbucks sell a culture of excellence in customer service, and brand with the expertise of the partners (employees). Starbucks sells a lifestyle, an ambiance of the tranquil coffeehouse environment for the busy professional, student, or coffee connoisseur. So how has Starbucks, mainly known for the premium coffee sales by the cup been such a success in China where the more than one billion people drink and export tea? Starbucks success in China is a testimony to understanding the importance of globalized intercultural communication, marketing, and branding strategies. Starbucks’ corporate...
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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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...Head: STARBUCKS DELIVERY Starbucks Delivery Public Relations Campaign Anderson, J., McBride, T., Sandoval, M., & Waugh, J. University of Phoenix MKT/438 Public Relations Candice Steelman Starbucks Delivery Public Relations Campaign Introduction In such a competitive world it’s often crucial for a business to offer new services or products to keep the customer coming back. Starbucks is no different from any other business in the same industry. The need to to keep the market fresh is always there. Starbucks will introduce a new service of home or business deliver of there products. Before this product is introduced in the marketplace, areas such as business goals, public relations (PR) issues, use of SMART, identifying the targeted market, other publics that must be identified, ethical implications related to the PR issues, and a complete market research plan must be completed. With all these above areas identified and completed the chances of the new services success rate will go up. Business Goals After opening the first store in 1971, Starbucks Coffee Company has grown from a local Seattle market coffee and tea shop into an international phenomenon with more than 11,000 stores in all 50 of the United States and more than 4,400 in 43 other countries. Starbucks (2008) mission is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow” (Mission Statement, para. 3). Starbucks recently...
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...INTRODUCTION: Starbucks Corporation started its business in March, 1971. It was a single store that provided the best quality coffee made from the fresh roasted coffee beans. In 1981 Howard Schultz joined the company and he travelled to Italy and visited many Coffee Bars there and brought new ideas with him. He wanted to introduce the Italian coffee tradition in the America. The idea was to create a third place for the people other than the office and workplace where they can socialize with each other. With this vision, in August 1987 he purchased Starbuck with the help of a local investor and launched an outlet outside Seattle. (Starbuck, 2013). By the time, the store kept on growing and today it has more than 17,000 stores in 55 countries. It is the largest retail coffee retailer of the world that claims to work on the original vision of its Chairman Schultz. More than 100 million of American takes 3 to four cups of coffee daily on average basis and it is interesting to know that 25 million of the coffee drinker are the Starbucks customers. Starbucks Coffee price is significantly high than of its competitors but that does not affect the profitability of the company because customers are willing to pay that price as the brand provides them the best quality coffee. The company’s mission for being socially responsible has also earned a lot of respect and the positive image for the company. (Starbuck, 2013). The Starbucks Corporation has employed more than 100,000 employees...
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...(14PGP062) Choudhari Amit Prakash (14PGP012) Ronit Kumar Jena (14PGP111) Sanjeet Sahu (14PGP112) SO Project Starbucks : Delivering Customer Service | 1. What factors accounted for the extraordinary success of Starbucks during the 1990s? Starbucks success can be determined by the fact that Starbucks enjoyed 11 consecutive years of 5 % or higher comparable sales growth. Starbucks was adding 3 stores each day leading to 5886 stores at the end of FY2002. Sales had increased at the rate of 40% and net income has risen to 50% without investing much in marketing. There are various reasons behind the huge success of Starbucks. Some of them are as follows: * Vision of Starbucks, “third place” helped the company in creating a better relationship between employees and customers. Employees tried to provide experience so that customer feels connected with Starbucks and treat stores as a third place after home or work, a place that mean different things to different people. * Starbucks value proposition was aligned with the need of the targeted customers. Starbucks brand strategy, captured by “live coffee” mantra perfectly reflected national coffee culture. Value proposition had three components, which enhanced overall experience of coffee consumption. * Premium Coffee: Quality of Coffee was the main component of Starbucks success. They believed in offering the highest quality coffee.It sourced coffee from the Africa, Central and South America, and Asia-Pacific...
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...only operates in the UK and only provides its services to those living in the UK. It only operates in the tertiary sector as they provide a service for the public but do not manufacture, sell or harvest raw materials. Because it is a public business it doesn’t make a profit instead it uses it’s funding to help with the financial burden of medical procedures. There are down sides to this for example the NHS don’t always have the most up to date equipment. Because the service is maintained and paid for by the government they are the ones that will be held liable for any problems with the way the NHS runs or if it overspends. The NHS is limited by their annual budget for the year 2015 their budget was £115 Billion. Organisation 2 - Starbucks Starbucks Coffee is a privately owned American global coffee company and coffeehouse chain. Public limited companies become a legal entity whose assets and liability are separate from their owners. Advantages of this ownership type include limited liability meaning the owner can only lose as much as they have invested so if the company fails they don’t end up losing everything as they aren’t connected to corporation. Public limited companies can also easily raise their capital by selling shares, often on a stock market, alternatively they can get access to money via a bank loan...
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...ANALYSIS OF STARBUCKS CASE Laurent Werro, Nikola Volchkov, Yuki Toyoshima, Jérôme Jayet Starbucks is a company that was founded in 1971 in Seattle by Gerald Baldwin, Gordon Bowker and Ziev Siegl. It is a specialized coffee roaster and distributor. The Company now operates in four areas: Americas which includes the US, Canada, and Latin America; Europe, Middle East, and Africa (EMEA); China/Asia Pacific (CAP). (1) GROWTH AND SUCCESS FACTORS Starbucks pays attention to product quality and shop atmosphere. They brought back the trend of coffee drinking and they also created a social trend. People come to Starbucks for different reasons but most important for high quality coffee. The comfortable atmosphere while drinking a high quality coffee created a gathered spot for customers where they enjoyed meeting a friend, read a book or work. All these factors created a unique "Starbucks experience". By doing so they earned the customers loyalty, some of them were visiting bars up to 18 times a month (2). They also created a partnership with the coffee growers and worked directly with them to ensure the highest quality of their products. Starbucks international rapid expansion is due to joint ventures with local partners and licensing agreements. Starbucks decided to set some criteria to their partners in order to keep the Starbucks experience across the globe. “Starbucks brand is built on passion and you can easily feel the passion of our partners in any of our international stores”...
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...SUMMARY ABOUT STARBUCKS Starbucks Corporation is an international coffee and coffeehouse chain. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also sold at grocery stores. Starbucks establish as the premier purveyor of the finest coffee in the world while maintaining their uncompromising principles as they grow. The following six guiding principles are the main company mission. First of all they provide a great work environment and treat each other with respect and dignity. Secondly they embrace diversity as an essential component in the way we do business. Moreover they apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Also they develop enthusiastically satisfied customers all of the time. Furthermore they contribute positively to our communities and our environment. And finally they recognize that profitability is essential to our future success. The company’s environmental mission statement is that Starbucks committed to a role of environmental leadership in all facets of our business. QUESTION...
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...Who are the people? For Starbucks, the term’ people’ encompasses all of their customers, employees, farmers, shareholders and the founder of the company himself. ‘Onwards’ is basically a book about the return of Howard Schultz as the ceo of Starbucks on January, 2008. Howard Schultz returned to his former post in a very difficult time. The company’s overall performance was deteriorating in addition to the ongoing financial crisis of the economy. In spite of all the difficulties, he turned the wheel of the company towards success. So, how did this success come? Was it all about the people or about some other factors? Moreover, what was the reason behind Starbucks’ initial success? In ‘Onwards’ Howard Schultz said, ‘’ we succeed by creating an experience that comes to life, in large part, because of how we treat our people, how we treat our farmers , our customers and how we give back to communities.(chapter-4, page27)’’ and I completely agree with him. Before 2008, Starbucks all focus was limited to company’s growth and store expansion and in the meanwhile they started to overlook their people doing what Wallstreet want them to do. This gradually caused Starbuck to fall from their once secured financial condition. Where to Wallstreet people success in business is high turnover rate, there to Howard Schultz, it was all about peoples satisfaction, how were their experience, feelings etc. His mission was to bring back the magic of “the Starbucks experience’’. And once he ensured...
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...Analysis ----The Secret of Starbucks’ Success in China The current event article I found tells about the successful marketing strategies that the Starbucks Corporation takes to enter into the market of China, and simultaneously the problems and difficulties it has in the process of market expanding. The Starbucks Corporation is the global leader in specialty coffee consumption. Arising almost overnight from a market in Seattle, Washington, the company today provides quality premium coffees with a superior level of customer service and at a premium price, around the globe. Starbucks is an excellent example of a company that has successfully embraced a differentiation focus strategy tailored to providing a high quality, focused product, of which, for the company customers, price is in essence, no object (Isidro, 2004). Based on the stateside success, Starbucks begins to expand its international market. Additionally, the current coffee consumption of China is much lower than the average level in the world, therefore a huge commercial space existing there. Starbucks realizes this great development potential, hence it hopes to make China becomes the largest international market except U.S. in the future. However, this is a big challenge for Starbucks Corporation, and therefore the article analyzes the SWOT and 4Ps strategies of Starbucks by taking this entering into China’s market as an example. Besides, the article also summarizes the major problems that Starbucks may meet during the market...
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...STARBUCKS CASE ANALYSIS QUESTIONS Please answer all the following questions as they relate to the case. Please utilize as much outside resources as you deem necessary to reinforce your answers—especially the last question. Remember that this case is over 10 years old and Starbucks has changed since then. 1. In the early 1980’s, how did Howard Schultz view the possibilities for the fledgling specialty coffee market? What were the most important factors in shaping his perspective and its success? 2. By 1987, Schultz bought Starbucks from its original founders. It has grown from six stores to over 3300 locations. What were the critical drivers of Starbucks success? 3. Why did Schultz think he successfully import the Italian coffee bar concept to the U.S.? 4. Why do YOU think Starbucks grew so quickly? Did they have to control so many aspects of the value chain in order to lead the market? 5. How do Starbucks stores function as brand creators and validators? 6. It is 2013 and you are on a panel regarding the past troubles of Starbucks. Please state some of the problems they have had over the last couple of years and how they are trying to recover from these setbacks to their business and their brand. Do you believe they are now on the right track to get solid traction in the worldwide marketplace? Do research and show me how they have changed their business model and what are there major areas of growth in the future? What are their roadblocks to success...
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