Starbucks began as a single store in 1971 in Seattle’s historic Pike PlaceMarket. The name inspired by the classic American novel “MOBY DICK”, Starbucks has since then offered some of the world’s finest fresh-roastedwhole bean coffees and strives to do business responsibly with its customers and communities. And today with more than 17000 stores in 57 countries,Starbucks is the largest coffeehousecompany in the world
Their coffeehouses have become a beacon for coffee lovers everywhere. They can count on genuine service, an inviting atmosphere and a superb cup of expertly roasted and richly brewed coffee every time.
The keystone value in the effort “to build aCompany with soul” was that the companywould never stop pursuing the perfect cupof coffee. If a customer wanted hazelnut-flavored coffee, Starbucks would provide it by adding hazelnut syrup to the drink rather than by adding hazelnut flavoring to the beans during roasting.
Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks mission to "inspire the human spirit," is a something that can be served in a cup with whipped cream.
To accomplish its mission, Starbucks has principles that guide all of its employees as they go about their daily business. They say: Their Coffee – It has always been, and will always be, about quality. Their Partners – They always treat each other with respect and dignity. And hold each other to that standard. Their Customers – When they are fully engaged, they connect with, laugh with, and uplift the lives of their customers – even if just for a few moments. Their Stores – It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity. Their Neighborhood – We can be a force for positive action – bringing together our partners, customers, and the community to contribute every day. Their Shareholders - They are fully accountable to get each of these elements right so that Starbucks – and everyone it touches – can endure and thrive
Starbucks vision was to become a national companywith values and guiding principles that employeescould be proud of.
They further defined their vision for enhancing customer experience through In-store digital network. The Starbucks digital network would give Starbucks customers’ free access to digital content.
Strategic goal Contribute 1 million volunteer hours each year to All their coffee their would be grown communities. using ethical trading and responsible 100% of their growing cups will be practices. recyclable By 2015
ORGANIZATIONAL CHART CEO CIO, executive CFO and Global vice president Supply chain Human International MARKETIN ADMINISTRATI Resource development and general ON operations president. Gmanager of digital ventures Development Coffee and and greater Partner China Global resources Senior vice procurement, se president, F (HR), U.S nior vice RETAIL Senior vice inance president president, gene International ral manager development Support development
HUMAN RESOURCE MANAGEMENT The theme was "just say yes" to customer requests. Employees were trained to go out of their way, taking heroic measures if necessary, to make sure customers were fully satisfied.Employees are encouraged to speak theirminds without fear of retributionfrom upper management—senior executiveswanted employees to be vocal.They wanted employees to contribute to theprocess of making Starbucks a bettercompany.
Employees are given good compensation and a comprehensive benefits package. Sharing the company’s success with the people who made it happen helped everyone think and act like an owner, build positive long- term relationships with customers, and do things efficiently. Howard Schultz’s rationale was that if you treat your employees well, they will treat your customers well.
1.Profitability 6.Starbucks’: Starbucks is 2.Global 4. Joint “leave no one coffee brand: 3.CSR behind” a very ventures and profitable Starbucks is a has built 5.Product partnerships diversificatio EAP(Employee business with global retailer valuable with different assistancetotal revenues for brand goodwill for the n: 1.The program) companies 2003 sales for 2011 specialty company. like: “Bean Stock”- showing a coffee with mix includes option to buy 1.Ethos Water 1.Dreyer’s 78%12% increase more than Starbucks stock 17018 retail 2.Product Red Grand Ice beverages, 1 at discount Global store stores in 50 goods cream 2% food “Future Roast” sales countries. items, 5% 401k retirement 3.Starbucks 2.Kraft increased by whole bean savings plan Their logo is Foundation Foods, Inc. 8% and coffee and Full health care EPS(earning easily 4.New Orleans 3.PepsiCo, Inc. benefits for all 5% coffee per share) identifiable reconstruction employees 4.Barnes and making increased by just like project Nobles equipment Low employee 33% McDonalds or turnover and 5.National 5.Hyatt Hotels and Coca-Cola. 85% employeeEconomies of Recycling Works Corp. And accessories. . Starbucks satisfaction scale award in US in others... according to a Experience 2005 survey ” .
Emerging internationalmarkets likeIndia, China, Brazil, Turkey,MalaysiaThe spread of democracyand democratic policiesaround the worldTechnologicaladvancementsStarbucks has theopportunity to partner withother companies toincrease sales, like it hasdone in the past
The world is still facing recessionso consumers are turning away fromluxury products like Starbucks tocheaper alternativesThe rise in the costs of coffee anddairy productsConsumers’ trend towards morehealthy caffeine free ways… Starbucks’ main competitors :Second Cup(Canadian franchiser)Caribou CoffeeMcDonalds McCafeCosta CoffeeLocal coffee shops
PORTERS 5 FORCES MODEL
There is intense competition in the coffee market amongst established coffee shops that are fighting to get customers. There are local coffee shops offering specials to lure potential customers in. Coffee shops are investing more money in research and development to create new flavors to maintain and attract new customers Other coffee chains. Examples include Coffee Bean & Tea Leaf, Gloria Jeans Coffee, Peet’s and San Francisco Coffee House Smaller privately owned coffee housesSecondary coffee providers. Examples include McDonalds, Burger King, Dunkin Donuts
Fair trades. It means the coffee farmers willbe paid fairly.Increasing number of specialty coffeebuyers.Supply and price can be affected by multiplefactors in the producing country, likeweather, political and economic conditions.There is more bargaining power for suppliersof technological inventions such as automatedcoffee machines, latte and espresso machinesbecause there are not as many suppliers forthese equipments.
In the past, buyers did not really have bargaining power when it came to premium coffee such as Starbucks. The sheer scale of Starbucks’ businessreduces the bargaining power of any single group of buyers. With newer entrants and competitors such as McDonalds who claim to offerpremium roast coffee of reasonable quality for lower price and also Dunkin Donutsbuyers now have slightly more bargaining power than they’ve had in the past.
The entry barrier for the coffee industry is relatively low,even for premium coffee like Starbucks.Any large and well-funded company wherecapital is not a problem could be potential entrants.Some of the more current and ongoing threats of new entrantsinclude fast food chains such as McDonalds,Burger King and Dunkin Donuts.
Substitutes(products) Other beverages apart from Starbucks coffee and tea – Examplesinclude soda, fruit juice, smoothies, water, beer , chewing gum and other drinks.Other “quick‐grab” foods apart from pastries, muffins, doughnuts, etcsold at Starbucks. Examples include burgers, burritos, tacos, sushi, snack foodSubstitutes (Environment/Ambience)Lower‐end or “less luxurious” coffee places Places that offer people a place to hang out, chat, relax or even work. Examples include tea houses, fast food places, ice‐cream parlors, side‐walk cafes, and bars and pubs .