Starbucks Case Assignment Essay

Starbucks is one of the largest known coffee distributors within the United States. Their mission statement is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. Their objective is to be one of the most well known and respected brands around the world. With 21,366 stores around the world, operating in 65 countries, they are a major company that has influence on the economy in the United States and around the world (Starbucks 2015).

As Starbucks moves into new markets all over the world, it continues to build its brand through the delivery of the Starbucks Experience. "Our success at every market that we have entered into reiterates our commitment to become a great, enduring company with the most recognized and respected brand in the world, known for inspiring and nurturing the human spirit. Our Mission: to be a global company, making a difference in peoples ' lives by leveraging our brand and the coffee experience to foster human connections." (www.starbucks.com)Starbucks ' development strategy adapts to different markets addressing local needs and requirements. Starbucks currently uses three business strategies: joint ventures, licenses, and company-owned operations.

It's clear that competing in a 21st century marketplace means that a business absolutely has to be operating at its highest level of performance and skill. Any company needs to compete with success and aggression and strategize its operations so that essentially the firm is like a lean animal of prey. Nadler and Tushman were indeed correct, that many firms today, ""¦fueled by an abundance of capital, companies have massively rearranged their portfolios, adding and discarding businesses to sharpen their strategic focus" (1999, p.45). There's no reason that Starbucks and the team of smart, driven people behind this fine company can't set its sights higher for the 21st century. Starbuck just needs to contemplate and then follow many of the suggestions made by Nadler and Tushman in the article, "Strategic Imperatives and Core Competencies for the 21st Century."

Starbucks is striving to build a better company by expanding our focus in three areas that can have a significant impact. These areas include working with farmers to develop a future, bringing green retail to a global scale, and building opportunities for the younger generation.

According to Nadler & Tushman, there are six strategic imperatives for future organizations: the need to focus the company's business portfolio; "abbreviate strategic life cycles; create 'go-to-market' flexibility; enhance competitive innovation; and manage intra-enterprise cannibalism" (Nadler & Tushman 1999). One company that is must restructure itself is the Starbucks Corporation, which has begun to eliminate unprofitable aspects of its empire and is trying to refocus its portfolio to emphasize high-growth markets. Starbucks must take an international focus, and reorganize its core competencies to suit the tastes of consumers living in high-growth markets. While Starbucks has acknowledged this need, over the next several weeks I will suggest additional methods for Starbucks to improve its financial performance and to better reframe the company's image for the international market.

The company, which ranks amongst the world’s top 100 global brands (Interbrand 2006)2, has an impressive record of sales and profit growth In FY2006 Starbucks achieved a sales turnover of $7.8bn, an increase of 22% on 2005, and operating margin of 11.4%.. Since 2002, incomes have dramatically multiplied, followed by rapid extension in the quantity of domestic and universal outlets.. The organization has driven arrangements for future development and throughout the following 4-5 years plans to twofold the extent of its business and open a further 10,000 stores. . Its long haul aspiration is to secure by most accounts 40,000 stores around the world

Overall, Starbucks’ performance has been mixed over the past six months. On April 13, 2012, its stock price reached a high of $61.67 per share and closed at $57.37 per share. Since April, the price of Starbucks’ stock fell on average in the following closing months of May and June before reaching a low of $43.16 in the opening days of August. The fall was correlated with the release of Starbucks’ third quarter annual report, which showed a less-than-expected performance for that quarter; the earnings per share were $0.43 compared to a market expectation of $0.45 (Baertlein). Since then, the price of Starbucks’ stock has gradually increased. Although market risk factors like decreased consumer spending may have impacted

The business has the runway for further growth opportunities and is breaking into new markets. Consumer tastes and lifestyles continue to shift towards more snacks and beverage options. With small modifications with the menus and implementation of healthier product offerings, they can increase revenue. Another option is for the company to pursue more juice products and possibility break into the alcohol market. By targeting these products, the potential to parallel their coffee products can garner success. Like Dunkin Donuts, Starbucks could strengthen shelf space and increase the efficiency in some of their distribution channels. There has been a wide fluctuation in the market with prices of high quality coffee beans and the price of coffee overseas. Starbucks could mitigate the problem by working with suppliers to lock in prices with long term contracts.

Summarize the overall strategy of Starbucks Management in its effort to create and develop a new concept and a rapidly expanding company.

Starbucks has very defined company objectives found on their website, but the most important is the following statements:

All business that is not willing to grow with their customers will eventually fail. And Starbucks clearly understands their strategic vision has to evolve with their customer’s overtime. Coming up with a new vision means that Schultz hadreached the previous and decided the new challenges to conquer. Therefore, each changed vision provided the solid background for the next that contributed to the reputation, the expansion and success of Starbucks. His strategic vision for Starbucks in 2011-2012 is not likely to

coffee business. It is the current market leader with over 17000 stores worldwide. It has no debt

Starbucks opportunities are; entry into the health and wellness space, growing presence in certain Asian markets, growing their mobile commerce market, and growing their office coffee marketplace. Their threats are extreme competition and compliance costs associated with government regulations (MarketLine 27)

For this assignment we were required to review the case study titled “Starbucks’ Structure” found in Chapter 3 of our The five functions of effective management text. We are required to write a paper that answers the four case questions of 1. Complete a job description and job specification for a Starbucks employee. 2. What form of departmentalization should Starbucks use? Should the form be changed in stores offering food products and lunch? Why or why not? 3. When the company began to experience financial problems, should the leadership try to centralize power and decision-making

Corporate Strategy fundamentally is concerned with the selection of businesses in which the company should compete and with the development and coordination of that portfolio of business.[1] In the case of Starbucks the corporate strategy they have implemented is unique to their industry which has allowed them to differentiate from their competitors and is summarized best by Howard Schultz CEO of Starbucks, “We’re in the people business serving coffee,[2]” high quality specialty coffee and related products in a European café environment. It is clear Starbucks is in a growth strategy utilizing three key techniques that support its Mission, “to inspire and nurture the human spirit – one person, one cup and