...Strategic Analysis of Starbucks Mission Statements Arleen Steevensz University of Redlands Strategy Capstone MGMT 697 Murad A. Zikri 1/18/2014 Introduction Starbucks is the worlds largest coffee shop chain company and continues its aggressive growth through international expansion and new product development. But at the beginning of this century affected by the economic downturn Starbucks financial growth of same-store sales and margins showed a 70% decline in net income and had experienced its first ever decline in quarterly sales (Grant, Robert Contemporary Strategy Analysis 2010). This paper will look at Starbucks’ mission statement and guiding principles to assess if their strategies during this downturn were still aligned with these principles and if these principles aided in its recovery. Starbucks Mission Statement and Principles Mission statements are always present based, talking about why a company or person exists and what they want to achieve in the here and now. (www.wisegeek.com). Starbucks mission statement from 1990 to October 2008 stated “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.” The six principles to help achieve their goals and governed their decision making process were 1. Provide a great work environment and treat each other with respect and dignity. 2. Embrace diversity as an essential component in the...
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...Mission statements are an essential element of a company’s organizational strategy and serve as foundational guides in the establishment of company objectives. They embody the philosophies, goals, and ambitions of a company and should offer insight into what company leader’s view as the primary purpose for being in business. A mission statement is quite possibly the most important issuance that a company has to offer to all of its customers or consumers. It can help focus the organization on what really matters to itself as well as its stakeholders. They act as the glue that binds organizations together through the guidance of strategic and day-to-day operational decisions. An effective mission statement indicates how a firm is unique in its scope of operations and its products or service offerings. In addition, it proclaims corporate purpose, what the organization tends to accomplish, the market in which the firm intends to operate, and the philosophical bounds that are to guide their actions. The coffee industry has boomed in recent years. While fast food chains are growing at a rate of 2% each year, coffee shop chains grow more than 10% annually. According to the National Coffee Association Annual Drinking Trends Survey, “Even though 75% of the cups of coffee brewed daily are consumed at home, 66% of Americans buy their coffee outside of their homes.” This creates a strong demand in the coffeehouse market. Statista defines coffeehouses as “small establishments selling prepared...
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...c.energizerbunny@gmail.com Abstract Case Analysis and Three year Plan for Starbucks Abstract Case Analysis and Three year Plan for Starbucks Module 7 Final project Case Analysis - Starbucks Module 7 Final project Case Analysis - Starbucks Courtney Parker Strategy Final Project Case Analysis – Starbucks For my case study I have chosen the corporation of Starbucks. The intention of this paper is to introduce the mission and vision statement of Starbucks along with a presentation and review of their code of ethics. These statements and the code of ethics will be compared to and evaluated with the second chapter recommendations and concepts within Strategic Management: Concepts and Cases by Fred R. David. Starbucks does not have a vision statement but rather a mission statement in conjunction with a value statement of sorts. Interestingly, Starbucks mission statement is fairly far removed from coffee, their main source of profit and business venture. It states: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks.com, 2013). While the statement is inspiring, as a mission statement it fails when held to the standards put forth by Fred David. Although the mission statement for Starbucks addresses some of these, it only lightly highlights some and completely misses others. According to Strategic Management Concepts and Cases, a mission statement must satisfy/address nine concepts (David, 2011): 1) Customers...
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.... Starbucks MKT 111b Marjorie Kaufman Over the last few decades Starbucks has reshaped how we shop for and enjoy coffee. What began as a small shop in Seattle, Washington; has become one of the world’s largest producers of coffee and coffee related products. Starbucks was started by three friends; Gordon Bowker, Jerry Baldwin and Zev Siegl; in Seattle, Washington. Good coffee seemed hard to come by and Bowker was traveling to Canada to buy coffee beans he felt made a good cup. The three decided they would start their own company using the coffee beans they preferred, dark roasted arabica. The name Starbucks came from the name of the first mate in the book Moby Dick, Starbuck. Bowker, while working for an ad agency, came across a town called Starbo on an old mining map of the area around Mount Rainer. This made him think of Starbuck from Moby Dick. The three friends agreed on the name and pluralized it (Bussing-Burks, 2009). The original business plan for the store was to sell gourmet coffee beans. All three owners learned how to roast coffee beans from an expert in California, Alfred Peet. Initially they purchased their beans from him. When demand became more than Peet could handle Starbucks began roasted their own beans. They purchase a used coffee bean roaster and started making their own blends. In the 1980’s Howard Schultz, the current CEO, came on board and eventually bought the company. Starbucks provides consumers with high quality coffee made from only...
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...Introduction When we talk about the largest coffeehouse company, the first thing that comes to your mind is Starbucks. Starbucks Corporation was launched in 1971, it corporation is based in Seattle, Washington and has more than 16,000 outlets all over the world. Starbucks always believe that serving the best coffee is there aim, there coffee beans are grown under highest quality standards and sourced using ethical practices. Starbucks s not only limited to selling coffee but also sells verity of products, viz. coffee (more than 30 blends and single origin premium coffees), handcrafted beverages (Frappuccino, smoothies, Tazo tea, fresh brewed coffee), Merchandise (coffee and tea brewing equipment, mugs and accessories, packaged goods, music, books and gifts), Fresh Food (Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups) and Consumer Products (coffee and tea, ready to drink products and ice-creams). They also carry other brands under their trademark Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulange and Torrefazione Italia Coffee (Starbucks, 2012). Impact of Globalization and Technology The corporation I researched was Starbucks. Starbucks is a worldwide corporation that operates in around 62 countries around the world. Just like every other corporation that has sprung up exponentially as a global entity, Starbucks has gone above and beyond to adapt its operations to the needs of the specific countries. Provision of local...
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...Starbucks Coffee Company LaKeisha Lewis Com 530 September 24, 2012 Mark Busby Organizational Culture Starbucks Coffee Company was founded with the idea of differentiating itself from other companies through its strong organizational culture and ethical beliefs. The company’s founders believed that it could do business responsibly with a feeling of connection to the community, customers, and partners (www.starbucks.com). Its mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time is achieved through its passion of providing a quality product with quality service (www.starbucks.com). Starbucks Coffee Company upholds a culture in which diversity is valued and respected. Starbucks refers to its employees are partners, because they are treated as equals. The company invests the time and resources to educating its partners at all levels. Recognizing that a happy employee reaps excellent customer service which in turns reaps a maximization of profits, Starbucks offers many benefits to its partners. Part time partners who work more than twenty hours per week are eligible for health care benefits, stock options, 401(k) matching, and tuition reimbursement (Marques, 2008). Starbucks understands the importance of providing great service to its customers. It believes in providing a welcoming experience to each customer at each visit. Each customer receives the Starbuck...
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...Behavior and Communication Starbucks, a place to receive the best coffee at a convenient location, while experiencing a unique interaction with individuals trained to provide the best customer service possible. This was the desire of three friends when Starbucks was established 43 years ago. The research in this paper will briefly describe Starbucks culture, and how the espouse values align with their enact values and the extent of their communication; the role communication plays in perception and culture when misalignment divides espouse value and enact value; and how conflict improves communication within the company. Culture of Starbucks Starbucks culture focuses on the environment and presenting the best quality product to their customers. Starbucks culture foundation was designed by creating the ultimate coffeehouse experience, and hiring a diverse and passionate workforce. Starbucks’ mission statement is as follows: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2014). Starbucks was in Fortune Magazine for being one of the best companies to work for. This company is famously known for providing a work environment that shows respect and dignity to all. Every organization is defined by how their people act and communicate. Starbucks commitment to social awareness has created a strong healthy organizational culture which aligns espouse values and enact values. For example, Starbucks is a leading purchaser and supporter...
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...Lentz, and Paul Breen Re: Roasted Delivery – A New Starbucks SBU Product Line INDUSTRY OVERVIEW The coffee industry is one of the fastest growing industries in the world with an annual growth rate of 7% (Griffin, 1999). As of 2011 Americans consumed approximately 400 million cups of coffee per day, which is equal to about 146 billion cup of coffee per year. When put into the perspective of caffeine coffee represents 75% of all the caffeine consumed in the United States. While there are several different species of different coffee plants the two main species of coffee that are cultivated today are Arabica and Robusta coffee beans. Coffea Arabica also known as Arabica coffee accounts for approx. 75-80% of the current world’s production coffee. Coffea canephora also know as Robusta coffee currently accounts for 20% of all production in the world (Coffee Statistics, 2011). The specific café that Roasted Delivery chooses around the coffee industry was Starbuck. MISSION AND STRATEGY OVERVIEW Starbucks was first opened in 1971 as a single store in the Seattle’s historic Pike Place Market. In 1981 Howard Schultz (Starbucks chairman, CEO) joined Starbucks after first tasting a cup of their coffee. Starbucks with their current mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time has now found themselves with 15,000 stores existing in over 50 countries (Starbucks, 2011). Starbucks strategy has been broken down in the following parts...
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...Executive Summary 4 Vision Statement 5 Recommended Vision Statement 5 Mission Statement 6 Values Statement 7 Historical Marketing Eras 8 The Sales Era 10 The Marketing Department Era 11 Social Orientation /Digital Marketing Era 12 Consumer Health 13 Eco-Friendly Marketing 13 The main criteria for evaluating market segments2.3.1 20 2.3.2Market segmentation includes: 21 Adults 24 Young Adults 24 Kids and Teens 25 A Connected Customer Experience 26 Starbucks Rewards Card 27 The Finest Coffee Beans 27 Porter's Generic Strategies 27 Starbucks Pricing Strategy 28 Untapped Markets 36 Favorable Business Climate 37 Business Rejuvenation 37 Product Flexibility 37 Less Competition 37 Protection From National Trends and Events 38 Learning New Methods 38 Legal Issues 39 Language Issues 39 Cultural Barriers 39 Supervisory Oversight 40 Political Problems 40 References 42 Executive Summary Starbucks Coffee Company, Seattle, Washington, is in an enviable position – high growth, few competitors, strong financials, loyal customers, talented management and employees, and brand recognition – so why create a strategic plan? The company faces many threats and opportunities, and if Starbucks wants to continue its success story, a strategic plan will help them continue to achieve stellar results. Starbucks’ vision is to have coffeehouses in every neighborhood around the world...
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...STARBUCKS STARBUCKS, One of the most well known and leading coffee supplier around the world. Starbucks began its business in 1971. Before that they are a roaster and retail seller of whole bean and ground coffee, tea. They have only one store at that moment which is located in Seattle's pike place market. At present starbucks serves millions of customers walking into their stores every day. The stores are presently in 17,000 locations in 50 countries (STARBUCKS 2013). Starbucks has revolutionised after HOWARD SCHULTZ became the director of retail operations. (Strategic development of starbucks) MISSION STATEMENT: "TO INSPIRE AND NURTURE THE HUMAN SPIRIT- ONE PERSON, ONE CUP AND ONE NEIGHBOUR AT A TIME". (Our starbucks mission statement 2013) STARBUCKS mission statement clearly depicts that they are not only giving importance of coffee, also to bestow the customer with rich experience. To enact these principles, Starbucks does everything in order to accomplish their aims and objectives. Starbucks treats their employees in prominent manner and respects them in each and every aspect. Starbucks always believes that they serve the customer with the best coffee possible. Starbucks does everything in a perfect and particular genre like buying coffee beans. They buy coffee beans by travelling personally to coffee farms in Latin America, Africa and Asia. After careful consideration and selecting the beans, the beans are then transported...
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...Starbucks was founded in 1971 in Seattle, Washington by three partners who are English teacher Jerry Baldwin, history teacher Zec Siegl, and writer Gordon Bowker. Starbucks was as a roaster and retailer of whole bean and ground coffee, tea and spices with single store. Today, Starbucks Corporation is the famous global coffee company and coffeehouse chain with nearly 18,000 retail stores in 60 countries. The company has committed to providing highest quality coffee and "Starbucks Experience" while controlling business by providing the path of economic profitability, and social environment in the community where it conducts business. Almost Starbucks store serve hot and cold beverages, coffee bean, instant coffee, full-leaf teas, pastries, and snacks. The mission of Starbucks : “To inspire and nurture the human spirit-one person, one cup and one neighborhood at a time” to achieve its mission that the company must have a specialist business plan. So that the Starbucks coffee company was operated as the new way of business, to establish the own network pure coffee bean supply maintaining its characteristics. While both a company achieves the highest standards in the world for fresh hot coffee brand, Starbucks recognized that profitability is essential to its success in the future. Starbucks will aim to contribute positively to the local and global community communicate through its activities with a number of partners with expertise in areas such as development cultural social...
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...CONTENTS 1.0 Methodology Section 1 2.0 Introduction 2.1 Company History and Background 2.2 Mission and Principle 3.0 Stakeholder Analysis 3.1 Ethical theory Section 2 4.0 Dilemmas 4.1 Starbucks Cup Recycling 4.2 Starbucks Coffee Bean 4.3 The Dorosin Issue 4.4 Breastfeeding in Starbucks 4.5 Financial Loss 4.6 Starbucks Water Waste Section 3 5.0 Best practice 5.1 Official Website / information 5.2 Stakeholders 5.3 Environment 5.4 CSR – Corporate Social Responsibility Section 4 6.0 Recommendations 1.0 Methodology In this report will show that the ethical issues facing by Starbucks and the solution which can help Starbucks overcome the issues of Starbucks facing. Except researched the official website of Starbucks, but also viewing external agencies and individuals, journals and text books. Based on these sources, so author will be able provide an overview with objectivity of Starbucks organization. Besides, author appoints a stakeholder analysis, appropriate theory for state the better ways for Starbucks organization. In the beginning, it will show the company history, background and principles of the Starbucks organization. Based on these information can be enhance reader more understanding the Starbucks organization and find out what has been done or done in future and why Starbucks make these decisions. 2.0 Introduction Business Ethics can be define as the examination of the variety of problems that can arise from the business...
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...OD Implemented in Starbucks 1 ORGANIZATION DEVELOPMENT IMPLEMENTED IN STARBUCKS INDIRAN MBS141104 LEE YEW HOONG MBS141102 CHONG KUEN SOON MBS1133 CHIA WI PEAW MBS141106 MOHD FAIZAL MBS141114 SEM I 2015/2016 UBSE1123 – Session 01 International Business School, UTM Lecturer Name: Dr Harcharanjit Singh Submission Date: 05th Dec 2015 OD Implemented in Starbucks 2 Table of Contents 1.0 Introduction ............................................................................................................................... 3 1.1 Problem Statement ............................................................................................................... 3 1.2 Challenges ............................................................................................................................ 4 1.3 Opportunities ........................................................................................................................ 5 2.0 Industry Background ................................................................................................................. 5 2.1 Relevant to Issue .................................................................................................................. 6 3.0 Organization Background ......................................................................................................... 7 3.1 Historical Background .............................................................................
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...as coffee shops found in major towns all over the world. Starbucks was established in 1971 in Seattle Washington by three scholars who consisted of Gordon Bowker, Jerry Baldwin and Zev Siegel. Schultz who happens to be the current chief executive office (CEO) of Starbucks joined the company in 1981 and was put in charge of marketing of the company. In 1983, after visiting Italy, Schultz realized the potential of a coffee bar and embarked on establishing a coffee bar that was named II Giornalle. Schultz’s new coffee bar concept proved successful and as a result, he was able to afford to purchase Starbucks in 1987. Consequently, all II Giornalle coffee bars that Schultz had earlier established were rebranded to Starbucks as he believed that the Starbucks brand was much bigger. Thereafter, Schultz adapted expansion strategy whose main aim was to open numerous Starbuck outlets within the US. The company’s current mission statement reads that Starbucks mission is ‘’to inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time’’ (Thompson & Shah, unknown, p.358). A closer review of Starbucks financial performance indicated that even though the company has experienced increased revenues over the years, the profits earned by the company are not very good due to various factors which among others includes increased competition (Thomson, Shah & Thomas, 2006; Starbucks, 2012). The aim of this report is to conduct an economic and...
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...Head: STARBUCKS DELIVERY Starbucks Delivery Public Relations Campaign Anderson, J., McBride, T., Sandoval, M., & Waugh, J. University of Phoenix MKT/438 Public Relations Candice Steelman Starbucks Delivery Public Relations Campaign Introduction In such a competitive world it’s often crucial for a business to offer new services or products to keep the customer coming back. Starbucks is no different from any other business in the same industry. The need to to keep the market fresh is always there. Starbucks will introduce a new service of home or business deliver of there products. Before this product is introduced in the marketplace, areas such as business goals, public relations (PR) issues, use of SMART, identifying the targeted market, other publics that must be identified, ethical implications related to the PR issues, and a complete market research plan must be completed. With all these above areas identified and completed the chances of the new services success rate will go up. Business Goals After opening the first store in 1971, Starbucks Coffee Company has grown from a local Seattle market coffee and tea shop into an international phenomenon with more than 11,000 stores in all 50 of the United States and more than 4,400 in 43 other countries. Starbucks (2008) mission is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow” (Mission Statement, para. 3). Starbucks recently...
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