...Case Study: Starbucks’ Structure Barista: This job contributes to Starbucks success by ensuring our service and store standards are met. We do this by providing customers with prompt service, quality beverages and products. Starbucks and partners will experience a friendly, upbeat and clean atmosphere. Key Responsibilities: Develops enthusiastically satisfied customers all of the time. Welcomes and connects with every customer. Discover customer needs and appropriately suggests product with every customer to enhance service and meet sales goals. Offers customers demonstrations, and samples using brewing equipment. Howard Schultz became convinced that he could turn coffee drinking into a cultural experience. He had traveled to Italy and watched with interest as city dwellers would stop to begin the day at a coffee bar. Using the same type of model, Schultz purchased and opened his first location as Il Giornale. The company evolved into Starbucks, where multitudes of consumers began purchasing designer coffees, such as espresso, cappuccino, and coffee mocha. Store interiors encourage lounging and relaxing with a newspaper, magazine, laptop, or friends. Each cafe featured enticements such as jazz music in the background, additional merchandise to examine, and comfortable seating. (Reilly, Minnick, & Baack, 2011). Until the 2008 recession, Starbucks had continued to grow. Some of the units in larger cities experimented with selling additional products, including lunch service...
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...Starbucks’ Structure Starbucks is a well-known coffee, tea and food retailer that has become a household name and operates in numerous countries. They have grown strong through their ability to adapt with needs and wants of the consumers they serve. They have also been able to do so through key business strategies. To succeed, companies must portray a clear message and keep organized through clear job descriptions, the right departmentalization, clear plans to operate in financial difficulty and through the use of the proper organizational strategy. Starbucks message of outstanding customer service is shown through their job descriptions. Typically, they resemble the following: As a barista at Starbucks, you will be responsible for creating the world-class atmosphere our customers have come to expect and enjoy. By providing our customers with an inviting store with clean product displays and knowledge of our products, you will be able to fulfill their desires with a perfectly made beverage or food item while allowing them to escape to a place where everybody knows their name. To ensure this ambience is provided, you will be expected to act in accordance with all Starbucks’ guidelines and company models. In return, you will gain an enjoyable position in a strong, fast-paced company that is not only a great place to work, but also a great place just to be. A barista is more than just being a bartender for coffee; it is a way of life. The job specification, providing the...
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...Market structure refers to the physical characteristics of the market within which firms interact. It is determined by the number of firms in the market and the barriers to entry. The definition of monopolistic competition is “a market structure in which there are many firms selling differentiated products and few barriers to entry”. The market structure of Starbucks is a monopolistic competition. In the coffee industry, many producers and consumers exist, the goods and services are mixed, but firms are still able to differentiate their, products. Starbucks is a textbook example of a monopolistically competitive firm: many sellers, low barriers to entry, slight product differentiation. As an example of monopolistic competitive firm, Starbucks understands how that market structure works, thus giving them substantial profits in the past few years. Starbucks has managed to maintain its success even during unprofitable times with its other branches through customer loyalty, quality private goods, and knowing the labor market. Monopolistic competition also provides consumers with the greatest benefit of all: diversity in the world of coffee. Supply and demand analysis of Starbucks Price is a factor which affects Starbucks on both the demand and supply side. The price of coffee will determine how many individuals are willing to buy and will buy at a higher price. The company has to keep in mind the maximum price that the customer would be willing to pay or the reservation...
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...The business sector in today's society is increasing rapidly, and with this increase comes the need for more people to manage and lead the growing companies, but this growing need also raises some potential questions: Can anyone become a leader or a manager? Is there a difference between the two? Can people be trained to become leaders or a managers? Just like many other questions that might be asked in business; these questions have no one, definite answer. Let's begin first by acknowledging the definitions of the two root words; the word manage means to handle, where as the word lead means to go. Similarly as the two words have different definitions, they also have different purposes. To help individuals increase their potentials in business, an internationally recognized motivational speaker by the name of Marc Sanborn has developed certain "theories" that, much like in science or art, prove some things to be more true than others by providing supporting facts to prove the validity of certain ways of thinking. Many of Marc's theories validate the fact that in general, good managers tend to be good leaders, but good leaders are not always good managers. It is said, Any company that cannot imagine the future won't be around to enjoy it. Therefore before any manager or leader can affect changes in their business they have to do what Marc describes as visioning; they must mentally "look" into what they want to see as the potential outcome of any given situation. Managers are concerned...
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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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...Courtney Parker c.energizerbunny@gmail.com Courtney Parker 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...
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...Starbuck’s Job Design Job Purpose is being a leader and role model by showing by example customer service and community involvement. Essential Functions: Set goals for team, recruit and hire team members and shift supervisors, generate reports, train team members safety standards and health standards, implement policies, lead your team by example, communicate and recognize any problems, act quickly for solution, get involved in the community, recruit patrons feedback, delegate task, hold group meetings, create employees work schedules, setting goals for the work group, developing organizational capability, and modeling how we work together, monitors and manages store staffing levels to ensure partner development and talent acquisition to achieve and maintain store operational requirements, utilizes existing tools to identify and prioritize communications and regularly uses discretion to filter communications to the store team, ensures adherence to applicable wage and hour laws for nonexempt partners and minors, solicits customer feedback to understand customer needs and the needs of the local community, uses all operational tools to plan for and achieve operational excellence in the store, tools include Automated Labor Scheduling, monthly status report, Quarterly Business Review, cash management, and inventory management, utilizes management information tools and analyzes financial reports to identify and address trends and issues in store performance, provide partners...
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...STARBUCKS AS AN INTERNATIONAL BUSINESS 3 Abstract The researcher examines a detailed synopsis of the specialty coffee industry and the role that Starbucks plays in it. Starbucks is in a growth market, and it has a good relative overall position. The researcher will examine the business structure of Starbucks and the future implications of its current business strategies. By examining the strategic imperatives such as how to expand abroad and understanding the international context, the researcher will determine strong and weak business strategies of the company. Starbucks has overcome organizational and managerial implications that will serve as a strong model for international businesses. The researcher will then give strategy and implementation recommendations on how Starbucks can grow as an international business. STARBUCKS AS AN INTERNATIONAL BUSINESS 4 An Analysis of Starbucks as a Company and an International Business Introduction Millions of people all over the world walk into Starbucks every day for their cup of coffee, but it is more than the overpriced coffee that brings people in day after day to the Starbucks stores across the world. Starbucks offers an upbeat environment and friendly and helpful staff to assist customers in any question or problem they might have with the coffee or service. People buy Starbucks for what it represents and the status symbol that comes along with it. Although various business...
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...Strategic Marketing Plan for the Starbucks Coffee Company Table of Contents Introduction and background 3 Company mission, company objectives 3 Market definition and product or brand background 4 Evaluation of results and conclusion about problem 5 Situational Analysis 5 Internal analysis 5 Customer analysis 7 Industry analysis 8 Competitor analysis 11 Distribution and supplier analysis 11 SWOT analysis – Confrontation Matrix 12 Choice of option 13 Marketing objectives/ expected results 13 Marketing strategy 13 Target audiences 14 Brand and product position 14 Decisions regarding marketing mix elements 15 Objectives for marketing mix elements 15 Strategies and tactics for marketing mix elements 15 Financial indicators and budges 16 Evaluation criteria 16 Sources 16 Introduction and background Company mission, company objectives The first Starbucks café was opened in 1971 in Seattle’s historic Pike Place Market. It was only a small café, but it offered some of the world’s finest fresh-roasted whole bean coffees. The company’s name derives from Moby Dick, the novel was written by the American author Herman Melville in 1851. Starbuck is the first mate on a whaling ship named ‘Pequod’, he is an intelligent Quaker (religious group) and he is from Nantucket. The name evoked the romance of the high seas and the seafaring tradition of the early coffee traders. Starbucks chairman, president and chief...
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...Starbuck’s Structure MGT330: Management of Organization July 07, 2014 Starbuck’s Structure The present day coffee marketplace is largely based on the diverse steps taken by Starbucks. In their forty years in the market, Starbucks has given customers unparalleled service and amazing coffee unlike any other competitor. This is a classic case of a brilliant idea conceived and executed well in reality. In 1982, Howard Schultz the new marketing head arrived at a plan that would go on to completely change the way coffee is perceived globally. It was the timeframe when the perception of coffee being bought only from a convenience store was phasing out and having coffee in groups for pleasure was becoming common. Much of Starbuck’s reputation today comes with it bringing about this coffee culture. It is however cannot be denied that execution is vital and a mere idea is not sufficient. The achievement of any company depends largely on the employee selection and management, the segmentation within the company, the power distribution in the hierarchy, and the organization structure or framework of the company. (Reilly, Minnick, & Baack, 2011). The customers coming to Starbucks do not just want to have a drink of coffee. They are in there for the experience and the company that they can share with their peers. Once I moved out from my small rural town when I joined the Air force, my visits to Starbucks have been for the same reason. The job profiling and employees at Starbucks...
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...RUNNING HEAD: STARBUCK’S STRUCTURE STARBUCK’S STRUCTURE [INSTRUCTOR’S NAME] [STUDENT’S NAME] [COURSE] [DATE] Introduction The structure of famous coffee seller Starbucks is not uncommon one. Executives of Starbucks oversee the company from Seattle, Washington, where its headquarters are located. District managers, around the city, oversee the regional grouping of stores. District managers of Starbucks report directly to Starbucks Corporation. Store manager, at each store acts as a chief. A collection of shift supervisors works under this store manager. These shift supervisors act as managers in absence of store manager. Rest of employees is under the shit supervisors who are named as baristas at Starbucks. Job Description: A key position in the company is the Barista. Starbucks’s have specific criteria in order to be qualifies for the job. A person should be extremely personable and outgoing in order to be qualified for the Barista. Barista set the tone for the store. People are of the primary focus for the Starbucks. This primary focus is also represented by the Starbuck’s relationships with its employees and this relationship then flow to their customers. A priority of Barista is to make the customer’s experience as pleasant as possible, from the welcome as customer enters into store to the serving of great cup of coffee. Job description of Barista at Starbucks includes but not limited to: ...
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...I have chosen to review the organizational structure of Starbucks Coffee, both for successful and unsuccessful organization behaviors and concepts that have been intertwined into the Starbucks business structure. At first glance I would have thought that Starbucks has made all of the right business moves along the way as they started in Seattle as a single neighborhood coffee house and have grown to be a globally recognized brand with stores in 50 countries worldwide. However, no organization is perfect and mistakes do get made. In this class I have learned that a good portion of what makes and organization successful is if they are able to take the learning’s from the mistakes made and implement positive changes that benefit the organization for years come. I have also learned that a company’s organizational structure needs to be adaptable. An organization may have a winning financial recipe but as the economy and customer desires change with time, the organization needs to be able to implement a change to the management structure and correct behaviors that are either no longer helping or negatively impacting the organizations stability and financial gain. Starbucks fosters a strong belief in promoting positive group behaviors and working together as a unified team on all levels of the organization. Each person has an accountability and responsibility in supporting the organizations goals and vision. Unity is important is this area as the organizations achievements are not...
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...the second line consists of the multipliers which strengthen the relationship between the stages. Generally there are four value stages and three multipliers in a brand value chain model but for explaining the case of Starbucks we have excluded the fourth stage and the subsequent multiplier. Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share * Expansion Success * Cost Structure * Profitability * Awareness * Attitude * Association * Attachment * Activity * Competitive Reactions * Channel Support * Customer Size & Profile Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share * Expansion Success * Cost Structure * Profitability * Awareness * Attitude * Association * Attachment * Activity * Competitive Reactions * Channel Support * Customer Size & Profile First Value Stage – Marketing...
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...Behavior and Communication Paper Starbucks has established itself as a worldwide powerhouse and is perhaps the most recognizable coffee company in existence. In order to achieve this status and maintain it as well as the company has it is no surprise that the emphasis from within is always on quality. Starbucks starts this commitment to quality with the raw materials of their products and the company also has well-outlined corporate governance materials to help form the structure on which the company is organized. It is impressive how orderly the structure at Starbucks, starting with its founders and board of directors. This structure and commitment seems to be communicated well within the Starbucks culture considering the company’s sustained dominance in its industry. One interesting detail of the Starbucks mission statement posted on their webpage is how brief and direct the message is in general. I feel this is a positive because the message from the core of the company is easy to understand and sounds very logical in principle which is appealing to potential employees and investors. A primary emphasis that is prevalent throughout the mission statement is unity and a family-like culture that Starbucks wants to generate. This family is not just to include the board of directors, suppliers, manufactures and other employees but is extended to the customers and communities of each location. The company even goes as far to call any stakeholder in the organization a “partner”...
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...Case: Starbucks and Conservation International Discuss the factors that make the Starbucks and Conservation International alliance work. - Framework o Value gained from Partnering: Trading relationship with Starbucks overall ▪ What does CI give? (coffee production and expertise) ▪ What does Starbucks give? (demand for coffee beans) ▪ What is the purpose of the alliance? ( Joint goal: Leadership initiative for all other coffee guys? o Key Drivers of Partnership Success ▪ Environment? (How well have SBUX & CI planned for potential changes in competitive, political, social, economic, and technological environment?) • Controllable/uncontrollable factors? • Predictable/unpredictable factors? • Scenario planning? • Exit strategy/plan? ( signing short term contracts, not long time commitments ▪ Strategy? (Is there a strategic fit and a flexibility partnering arrangement in case of strategic change?) • Partner’s motivation? ( similar mission statements, mutual goals o Not competitive, cooperative to maximize joint gains through trading o (Changing motivation? Emergence of Fair Trade as an alternative) • Comparable levels of commitment? ( Amount of money invested? ▪ Structure? ( Are incentives aligned and is the organizational structure appropriate?) • Very well-defined partnerships ▪ Behavior? ( Is there a cultural fit? How are processes managed and how is effectiveness tracked? ( performance...
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