Coffee House Chain: Starbucks Corporation - Essay Example
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Extract of sample Coffee House Chain: Starbucks Corporation
“Who” are the customers; “What” do the customers consider as value; “What” has been the organization’s results so far in catering to these needs and “What” are the future plan in meeting the consumer needs (Abell 1980). In order to achieve a competitive advantage, the firm should deploy its resource base including competencies, cultures, and attitudes to add value and exploit environmental opportunities while countering threats (Barney, 1995). The report analyses the strategic approach taken by the Seattle based specialty coffee house chain, Stars Buck Coffee in its global business and how successful these strategies have been in supporting and sustaining the company’s competitive edge within a dynamic business environment.
Founded in the year 1971 in Seattle as a single coffee house, Starbucks Corporation today is one of the most successful companies and the largest coffeehouse company in the world. With 8,179 self-operated and 10,009 licensed stores located across 45 countries, there are a total of 18,188 Starbucks cafes globally. 10,295 outlets from above are located in USA (Starbucks Fact Sheet 2007). With an annual turnover of US$ 7,786.9million for the fiscal year 2007, Starbucks ranks 338 in the Fortune 500 companies (Fortune 500 List, 2007). Its rapid expansion from a single outlet selling roasted coffee beans in whole and grounded form to an internationally renowned chain of coffee houses serving a wide variety of coffee beverages, snacks, and the overall Starbucks experience warrants an analysis of its business level strategies which have contributed to the success of the company.
The report “Coffee House Chain: Starbucks Corporation” analyses the strategic approach taken by the Seattle based specialty coffee house chain, Stars Buck Coffee in its global business and how successful these strategies have been. …
According to the research Starbucks has lot of strength and weaknesses. Huge brand value, immense resources, talented employees, smart top management team etc are some of the strengths whereas heavy pricing is the major weakness of Starbucks. Asian region offers huge opportunities for Starbucks, but competitors such as KFC, McDonalds, etc offer huge threats to Starbucks.
The choice of both the nation as well as the organization assumes significance considering the fact that Starbuck’s is one of the largest chains of coffee shops around the world. The choice of the nation assumes even greater significance considering the economic might and the market potential of the nation.
Howard Schultz joined Starbucks in 1982 as director of retail operations and marketing (Starbucks Coffee Company 1). It was during this time that Starbucks started providing restaurants and espresso bars with coffee. In 1984, Starbucks started the coffeehouse concept which eventually became the foundation of II Giomale, a company which Schultz started in 1985 (Starbucks Coffee Company 1).
Starbucks Coffee Company is a leading coffee retailer that deals with roasting and retailing of coffee beans, selling brewed coffee, coffee related equipment’s, Italian-style espresso beverages, other cold beverages and some food items.
This company can be found in about sixty-two countries and has more than 20,000 stores all over the world, and in fact, in most of the developed world, it is one of the most recognizable brands, which has made it extremely popular with the consumers in these countries.
This essay will first of all analyze the characteristics of Starbucks and then the various activities that take place in the shop from the time that a customer enters the shop till he leaves. After that the criticisms against the service will be discussed and recommendations will be presented as to how the service can be improved.
In response to these threats, Starbucks developed a corporate social responsibility strategy - its mantra, "do well and do good at the same time" - to promote environmental stewardship and reduce its carbon footprint while pursuing worldwide growth.
A 2004 in-house inventory showed that more than 80 percent of its emissions were due to the electricity usage in its stores and offices.
This has worked to evolve consumer behaviour patterns that have gone to the extent of even establishing lifestyles and segments based on Starbucks' products consumption patterns. This paper takes up the study of such evolving consumer behaviour through an in-depth literature review and analysis and by means of administering a questionnaire amongst the consumers of coffee products at Starbucks' coffee houses.
The author gives the information about the company and the literature review identified from the key issues that are relating to the server market. The picturization of the different marketing issues is been identified in the server market. The Starbucks Coffee Corporation is the international coffee chain in the United States.
The essay states that to underscore the magnitude of the problem which accosts Starbucks Corporation’s supply chain demand, it is important to appreciate underlying ethical and diversity issues. Among many ethical issues, it is quite a dilemma that Starbucks Corporation should seek to circumvent health concerns that are always associated with the consumption of coffee.
4 pages (1000 words)Term Paper
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