Essay Starbucks Strategy and Environment

In keeping with its mission, “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time,” Starbucks is known for gourmet blends, excellent customer service, and a warm, welcoming atmosphere. It is a trendy coffee house designed to attract and keep customers happy, whether it’s a student studying for an exam, meeting with a business associate or simply meeting up with friends for a quick coffee break.

External Environmental Analysis of Starbucks and the Coffee Industry Harold Brown Strategic Management March 3, 2011

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

According to one source during the 1970s, “Starbucks was a local, small-scale coffee bean roasting and sales operation in Seattle 's Pike Place fish market in Washington state. In the 90’s it had more than 700 outlets in North America, sales of $630 million and an ambition to reach 2,000 coffee shops worldwide by the

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

The observations that have been analyzed are that Starbucks is known for providing a relaxing experience which can rival those of fast food restaurants. Starbucks has been known to modify their stores to embrace the coffee experience to entice consumers from every walk of life in local communities and throughout the world.

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?

Having been through the great expansion and the economic depression, Starbucks has become one of the most valuable brands in the world by its ability to immediately distinguish consumers’ needs and fulfill those needs with extraordinary services. In other words, Howard Schultz has made Starbucks the solution to consumers’ unsatisfied need, which gives the brand a strong positioning that not only benefits the company, but also creates customer value. However, as the rapid expansion goes on and growth opportunities emerge, Starbucks also runs the risk of attenuating its brand equity as a result.

Starbucks’ opened its first store in 1971, at Pike Place Market in Seattle, by three partners Zev Siegel, Jerry Baldwin and Gordon Bowker. Starbucks opened with the intent of being a gourmet coffee bean retailer and coffee equipment seller. The Starbucks name and logo came from two influences; a character named Starbuck in the classic book, Moby Dick, and a mining camp on the base of Mt. Rainier called Starbo. These two influences were combined to create Starbucks.

It is very clear that Schultz’s vision has changed two times and the latter was different  from the one before. The difference comes from the change in the position of Starbucks in market place and its future direction. The current strategy for Starbucks no longer concerns adding simply a new service within their stores but revolves around increasing their sustainability, increasing corporate responsibility, being the undisputed coffee leader in the worldwide marketplace, expanding their global presence, and creating innovative growth platforms.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

For ideas approved thus far, Starbucks will first gradually launch these new products to a selected market. This test in an actual market is a step

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

What was once a small coffee shop opened by Gerald Baldwin, Gordon Bowker, and Ziev Siegl in 1971, Starbucks Coffee Company has grown into the number one specialty coffee retailer. With over 10,000 coffee shops in more than 30 countries, of which 4,200 are licensed and franchised and 6,000 are owned, the company’s main objective is to establish Starbucks as the “most recognized and respected brand in the world,” (Moon). Currently, Starbucks is relying on retail expansion, product innovation, and service innovation to achieve a long-term goal once set by current chairman Howard Schultz: “The idea was to create a chain of coffeehouses that

This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.