Essay about Vision, Mission, and Strategy at Starbucks
1491 Words6 Pages
Starbucks was bought out by current CEO Howard Schultz in 1987. Since then, Andrew Harrer (2012) reports the company has grown to operate over “17,244 stores worldwide” (para. 1). Fortune (n.d.) reports in its yearly 100 Best Companies to Work for that Starbucks employs “some 95,000 employees”. From only a handful of stores in 1987 to a billion dollar franchise today, the success of Starbucks is due in great deal to their corporate culture, specifically how employees, or as Starbucks calls them, partners are treated. Joseph Michelli (2007) echoes this sentiment, “A great cup of coffee is only part of the Starbucks success equation” (p. 767). The Starbucks corporate culture is not easily summed up because it is multidimensional. However,…show more content…
42). Training doesn’t stop there, however. Baristas can expose themselves to additional training if they desire to become Coffee Masters, Shift Supervisors, or Store Managers. In fact, Michelli (2007) reports, “Starbucks consistently spends more on training than it does on advertising” (p. 282). The Starbucks corporation feels that the Starbucks Experience starts with their employees. If their employees are happy, their employees create better experiences for their customers. This creative approach to the management of people shows. Michelli (2007) highlights that the turnover rate at Starbucks is much lower than at other similar establishments, “120 percent less than the industry average” (p. 282). He further goes on to mention that “employees have an 82% job-satisfaction rate” (p. 282). This deep desire to treat employees fairly stems from Schultz’s ideals. He himself mentions, “As a business leader, my quest has never been just about winning or making money; it has also been about building a great, enduring company, which has always meant trying to strike a balance between profit and social conscience” (Schultz, p. 107). Many believe his deep sense of empathy stems from his early childhood where his father was ill and could not hold a job. This is reflected today in his treatment of his employees. All
Starbucks Marketing Analysis Essay
3329 Words14 Pages
Starbucks Marketing Analysis
Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. The goal of Starbucks is to establish the company as the premier purveyor of the finest coffee in the world while maintaining the organization’s uncompromising principles. In addition, Starbucks wants to develop its brand beyond being the preferred outlet from which to purchase coffee to becoming the preferred consumer brand.
The coffee company has capitalized on the new found popularity of specialty coffee with its addition of coffee bars globally. Starbucks Common Stock increased from $3.31 per share in 1994 to $10.00 per share by the mid 1990’s. Despite the success of Starbucks, the company is…show more content…
Dependent upon equity & debt financing (p20).
5. Effectively leveraging its brand-name and size (p20).
1. Reinforcing its brand-image (p8).
2. Global expansion.
a. Higher coffee consumption in foreign markets than in the U.S.
b. Already has contact with foreign exporters.
3. Marketing in higher echelon restaurants and day-part chains (p16).
4. “Concretely defining its brand-image” (p20).
1. Adequate number of “A” sites in “A” markets nationally (p13).
2. Individual and small chain competitors overshadowing Starbucks’ brand in local markets.
Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?
A review of the estimated growth in retail sales of coffee over the next four years indicates that while sales of non-specialty coffee products are expected to decline, sales of ground specialty coffee products and whole bean coffee should rise. Further, sales of ready-to-drink products are projected to rise almost 50%.