Module 1: Case Study
In this paper, I will discuss the background and beginnings of Starbucks, including areas such as their mission statement, stakeholders, and its vision. In the last 16 years, Starbucks coffee has become a familiar staple of American Life. Years ago, individuals would not have spent more than fifty cents for a cup of coffee, but everyday millions of people will pay anywhere from three to four dollars for a cup of specialty coffee. However, they had just completed a very difficult fiscal 2008, and after 16 years of continuous growth as a public
company, we were for the first time talking about slowing growth, store closures and ...view middle of the document...
Starbucks wants to create coffee houses in great locations that will be premier purveyor of the finest coffee while maintaining certain principals as they grow. However, with the economy the way that it is right now, Starbucks may want to rethink their strategies. People are not willing to pay for specialty coffee and are cutting back in all areas. Many stores are closing and employees are losing their jobs. If Starbucks want to stay in the coffee business, company will have to evaluate their strategies and look at possible changes in the company.
The mission of Starbucks is to establish themselves as the purveyor of the finest coffee in the world while maintaining their uncompromising principles while they grow. None of this success would have been possible without a set of goals that the company aimed to achieve and a set of principals that governed the decision making process. The principals of Starbucks are stated as : (1) provide a great work environment and treat each other with respect and dignity, (2) embrace diversity as an essential component in the way we do business, (3) apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee, (4) develop enthusiastically satisfied customers all of the time, (5) contribute positively to our communities and our environment and, (6) recognize that profitability is essential to our future success.
By utilizing the strengths and capitalizing on trends, as well as evaluating weaknesses and threats, Starbucks has become America’s most enjoyable meeting place for coffee. Executives at Starbucks realized the importance of planning. The progress involves making sound business decisions and goals for the company, specific division, stores, and individuals.
In March 2009 Starbucks announced its strategies to grow in the long term. Starbucks has focused its attention on increasing profits in existing stores by, (1) aligning the company’s cost structure to its current business strategy with a planned $500 million structural expense reduction in fiscal 2009; (2) improving operational efficiencies and making technology investments, (3) meeting customers’ needs for value and quality and, (4) Investing in the tools and training store managers need. The company is also making strategic investments in key initiatives by, (1) entering the $17 billion instant coffee market earlier this month with the launch of Starbucks VIA™ Ready Brew instant coffee, (2) growing its consumer products, licensed stores and foodservice channels and, (3) focusing on disciplined global store expansion in key markets.
Starbucks executives have defined their business with the mission statement to establish the company as the premier purveyor of the finest coffee in the world while maintaining their principals as they grow.
Starbucks opened operations in Seattle’s Pike place Markets in 1971 with the future of providing coffee to a number of...