Starbucks is an American coffee company and chain with over 16,700 stores worldwide. It offers various coffee drinks, teas, and snacks. Starbucks aims to build a company with a soul through customer satisfaction, contributing to society, and high quality products. A SWOT analysis found strengths in its global brand but weaknesses in high prices and coffee bean import reliance. Starbucks focuses on ethical sourcing, community programs, and environmental sustainability through initiatives like partnering with conservation groups and creating recycled cups.

1. CASE STUDY
STARBUCKS COFFEE

3. BACKGROUND
• An American coffee company and coffee house chain
• Founded in 1971 in Seattle
• Howard Schultz joined in 1982
• Has 16,700 stores worldwide, 142,00 employees
• $ 9.8 billion generated as revenues every year

4. PRODUCTS
Whole-bean coffee
Microground instant
coffee aka VIA
Espresso
Caffe latte
Teavana tea products
Evolution Fresh juices
Frappuccino beverages
Sandwich
Muffins
Brownie
Cookie
Roulade
Wraps
Salads
Croissant
Drinkware (mugs and
tumblers)
Raw coffee and tea
beans
StarBucks
accessories and
goodies

5. “to inspire and nurture the
human spirit – one person,
one cup and one
neighbourhood at a time.”
“We are passionate about
ethically sourcing the finest
coffee beans, roasting them
with great care and
improving the lives of
people who grow them.”
“We’re called partners, because it’s
not just a job, it’s our passion.
Together, we embrace diversity to
create a place where each of us can
be ourselves. We always treat each
other with respect and dignity.”
“When we are fully engaged, we
connect with, laugh with and uplift
the lives of our customers – even if
just for a few moments. Sure, it
starts with the promise of a
perfectly made beverage, but our
work goes far beyond that.”
PRINCIPLES

6. GOALS
Building a
company
with a
soul
Customer
Satisfaction
Contribute
back to
the society
Best
quality
products
and
service

7. SWOT ANALYSIS
STRENGTH
World leader in
coffee industry
Has outlets all
over the world
and has high brand
equity
Products are of
high quality and
unique

8. SWOT ANALYSIS
WEAKNESS
High priced
product than
competitors
Higher operating
cost as coffee
beans have to be
imported
Only famous of its
different coffee
products thus highly
dependent on it

9. SWOT ANALYSIS
OPPORTUNITY
Has huge potential
market in developing
countries like India
Higher operating cost
as coffee beans have
to be imported
Can join venture
with supermarkets to
sell its high quality
coffee beans

10. SWOT ANALYSIS
Threat
Faces huge competition
from cheaper and
famous brands
Local Cultural
and political
issues trouble the
establishment
Reports suggests usage
of contaminated beans
that health conscious
consumers are worried
of

11. FUN FACTS#1
“There are over 87,000 possible
drink combinations at Starbucks”

12. FUN FACTS#2
“At $300 million, Starbucks
spends more on healthcare
insurance for its employees
than on coffee beans
”

13. ETHICAL SOURCING
Starbucks has partnered with conservation
international.
This will ensure coffee it purchases is of
highest quality.
Moreover it ensure that the coffee has been
responsibly grown and ethically traded.

14. ENVIRONMENT
Starbucks has created world’s first recycled
beverage cups.
This will mean conserving 78,000 trees
every year
They also emphasise energy and water
conservation and building green, LEED-
certified building around the world.

15. Social responsibility
The Starbucks foundation supports literacy
programs in the US and Canada and has
donated millions of dollars to charities
The Starbucks foundation supports literacy
programs in the US and Canada and has
donated millions of dollars to charities
Starbucks’ employees volunteer community
service hours in events such as during any
disaster.
Starbucks’ employees volunteer community
service hours in events such as during any
disaster.
Starbucks is also a partner in
PRODUCT(RED) that helps to fight and stop
spread of HIV in Africa.
Starbucks is also a partner in
PRODUCT(RED) that helps to fight and stop
spread of HIV in Africa.

16. CASE REVIEW QUESTIONS TO PONDER UPON

17. Starbucks has worked hard to act ethically and responsibly. Has it
done a good job communicating its efforts to consumers? Do consumers
believe Starbucks is a responsible company? Why or why not?
Starbucks charges
a premium price for
coffee, and does it
so because it is
able to market to
consumers that this
good quality coffee,
has been ethically
sourced and served
by a responsible
company.
Starbucks employees
volunteer in
community service
and it partners
initiatives to
support literacy
programs and fight
and stop spread of
HIV in Africa.
Starbucks shares
its message
regarding ethics
and social
responsibility on its
corporate website.
Then there many
international
reports publishing
the social work
and ethical
practices
incorporated by
Starbucks.

18. Where does a company like Starbucks draw a line on supporting socially
responsible programs? for example, How much of its annual budget should go
towards these programs? How much time should employees focus on them?
Which program should it support?
The Starbucks
Foundation supports
literacy programs.
They even partner
with international
NGOs to foster
programs. It also
donates 5 cents
from every sale of
its Ethos bottled
water to improve
quality of water in
poor countries, $ 10
million dollar
pledge.
Starbucks employees
volunteer in
community service
and it spends a huge
sum on CSR. In my
opinion it should re
evaluate the
strategy and focus
to support concepts
that promote their
brand as well.
Starbucks must
support programs
for the upliftment
of poor farmers.
Moreover programs
like voluntary
community service by
employees send a
very good positive
image in everybody’s
minds.

19. How do you measure the results of starbucks’s socially responsible
programs?
Starbucks’s social
responsibility strategy
is based on three
pillars: Community, Ethi
cal Sourcing and
the Environment.
These programs are a
certain hit as they aim
to improve the lives
of people and quality
of products to the
consumer.
Starbucks
promotes its
social
responsibility
activities a lot on
online but on the
other hand fights
with the
government for
its moves such as
stricter pollution
standards
Still it has
supported NGOs,
funded literacy
programs,
organized
community service
whenever need
arises. These
certainly creates
a positive image
of its brand.

20. SUMMARY
• Background and products offered by starbucks
• Principles and goals
• SWOT ANALYSIS
• Three pillars: ethical sourcing, community and
environment
• Closer look at starbucks

21. DISCLAIMER
Created by SAURABH BOSE,VNIT Nagpur
during a marketing internship by
Prof. Sameer Mathur, IIM Lucknow