Since inception, Starbucks has also been able to institute a new philosophy of paying higher prices for high quality coffee. The company believes that the high prices it pays for coffee will enable Starbucks to be "a potential force for positive reform in every part of the coffee supply chain." Orin Smith, Former President and CEO, Starbucks Corporation
This report would aim to analyse the Starbucks Case Study from the point of view of two modules, namely Business Strategy and Organisational Identity. Both of these modules will be discussed separately and then they will be integrated to give a complete picture and analysis of the Starbucks case.
This report will also discuss Starbucks' competitive advantage, its corporate social responsibility, and global growth. A further study of Starbucks value chain, and the company's supply chain and management will be analysed to show the organisation's strengths and its strategy.
In the second module of organisational identity, the Starbucks core identity will be identified and analysed, along with the society and the individuals involved with the organisation, and the targeted market. Furthermore, this paper will analyse Starbucks impressions management and its adaptive stability/instability, so as to discern the true picture behind the profitable organisation.
Starbucks was founded in 1971 by Gordon Bowker, Jerry Baldwin and Zev Siegel. The trio opened up a store in Seattle and named it Starbucks Coffee, Tea, and Spice, in honour of Starbuck, the coffee-loving first mate in Herman Melville's Moby Dick. The company's logo is a mermaid with two tails, with the store's name around it. The company began to be profitable every year, and by the early 1980s, there were four Starbucks stores in the Seattle area alone. However, the roles of the founders of the company went through some major changes, and Jerry Baldwin took over the daily management of the company, while Gordon Bowker remained involved as owner, though he devoted most of his time to other business ventures, and Zev Siegel left the company.
As stated on the company's website, the Starbucks' vision is to "establish Starbucks as the most recognized and respected brand in the world." (www.starbucks.com). Starbucks corporation offers products like pastries, specialty coffees, cold blended beverages, coffee beans, tea and coffee related products. Starbucks first opened a location in Seattle, in 1971, and three decades later, the company had more than 3,300 locations, and is still on the increase.
Starbucks' mission is to "establish Starbucks as the premier provider of the finest coffee in the world, while maintaining uncompromising principles as the company continues to grow." (www.starbucks.com) this mission statement, and the positive effects that the company has brought to bear in its operating communities has ensured continued customer loyalty for the company. In 1982, Howard Schultz was recruited into the company.