Starbucks's strategy analysis and key factors for its success

Résumé du document

Coffee has lived through centuries often with a counter-culture connotation. Brews were known to sustain artists, politicians, radicals and people that liked profound debates. Starbucks disrupted the scene by providing a more accessible site, a cozy and attractive place to appreciate coffee. However the company's aggressive expansionist ambition resulted in another giant company, a multinational; some people call it fast-food.
I will often refer to many of Starbucks's achievements and implementations in the past, because the initial values and visions, though they remained in Mr. Schultz's mind, are not present anymore in the current Starbucks outlets people go to. This change is due to the burgeoning number of stores, thus the limited control. Mr. Schultz is conscious of the veering direction Starbucks has taken; he is actually trying to make Starbucks return to its roots. But steps for the initial plan have not yet been achieved.

Extraits

[...] Style: Starbucks focuses on individuals. The customers are given a lot of attention; they should be experiencing an exclusive moment by coming into the store. The individuals are also the employees which are given responsibilities and space for initiative. Thinking about the individual as whole means thinking about its community. Managers had the responsibility to serve the community by creating spaces and ambiance that made them comfortable. Instead of imposing a building (the way McDonalds does), Starbucks adapts to the environment, “reuses spaces within the cities”[4] This Style worked favorably with what the external context was about: giving attention to the person and not to a system. [...]

[...] Coffee consumption chart: Coffee consumption trends per Kg/person from 1985-1988. World Coffee Consumption: statistics and trends, http://www.coffeeresearch.org/market/consumption.htm, accessed on 9th of November 2010. M. Esposito, Final Paper Assignment, In-class material, PDF Human resource Management, ISM. R. Furfaro Supermarket Coffee vs. Specialty Store Coffee : are they really so different?”, Sally's Place J. Hartford (2007), Heavyweight Challenger QSR magazine A. Thompson, J. Gamble (1997), “Starbucks Corporation”, The McGraw Hill companies M. Esposito, Final Paper Assignment, In-class material, PDF Human resource Management, ISM. [...]

[...] Empowerment as well as respect and positive work feedback is known to make people feel good about their company so they stay longer with the company. Being knowledgeable before starting the job makes a very big difference in how the employee will approach the work he will be performing. Though they are knowledgeable, they need to remain motivated, so they have health benefits, above-average salaries, rewards for good work and stock option plans. The health care benefit is indeed very attractive, with 75% of coverage of the costs for health care, also available for part time employees. Mr. [...]

[...] Did Starbucks grow too fast and built too many stores thinking they would be successful anywhere? Starbucks is appreciated and known for its good services and innovative concepts, but with the globalization of the brand, some key values were not respected anymore. Indeed a big company has to watch out for costs by finding efficient solutions (baristas use automated machines). The training is not offered to employees working outside of the USA for example and the notoriety for being a neighborhood coffeehouse” has not been maintained. [...]

[...] The end of the cold war meant less insecurity and fear so looking for an interesting, new experience was more common. Strategy: Starbucks wants to be the unconditional brand for coffee all around the world. To implement this strategy, Starbucks defined three principles: hospitality, production and education[7]. It is part of the strategy to create standards guided by those principles, standards to impose and always surpass. Because United States was in a very prosperous era in the 90's, there was time and money to concentrate on service, education and production. [...]