An Analysis of Starbucks Coffee International

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Starbucks Coffee International refers to an American enterprise that involves itself in purchasing, roasting and selling coffee. Its foundation was in 1971 in Seattle, Washington (Starbucks). The company is the key archetype of the second wave coffee. At the start, it distinguished itself from other US restaurants serving coffee by its quality, taste and the client experience. The company offers a range of coffee beverages, hot and cold sandwiches, tea, baked goods, and smoothies. They also sell fresh juices and snacks like crackers and chips. Besides, they sell drinkware like tumblers and mugs. Most of these products are also available for sale in grocery stores.

When founded in 1971, the enterprise only sold roasted whole coffee beans and had not begun brewing coffee for sale. The little that they brew at this moment was meant for free samples. Gordon Bowler, Zev Siegl, and Jerry Baldwin were the three partners that came up with the idea to open the company due to their inspiration to sell coffee beans of high quality. They later traded the Starbucks chain to Howard Schultz, who embarked on an expansion that led to 46 stores by 1989, roasting approximately 2 million pounds of coffee. By 1992, the company had been already making revenue of $73.5 million from its 140 outlets (Starbucks). The introduction of mobile devices saw over 10% purchases occurs through mobile apps like the Starbucks apps. Currently, the company operates on revenue of 22.387 billion, employing over 238000 workers employed in the 27339 locations available in 75 countries (Starbucks).

Regarding the industry that Starbucks Coffee International is, the coffeehouse sector primarily deals with serving clients coffee, tea, and other beverages. Some of the involved cafes also serve other food categories like pastries, muffins, and light snacks. The industry includes large multinational companies to small businesses that are owner-operated. In the US, more than half of the Americans aged 18 years and over drink coffee on a daily basis, drinking averagely three and a half cups daily (NCA). Globally, people drink more than 500 billion cups of coffee annually. The report that coffee is the second most sought-after product globally after crude oil indicates that Starbucks is in a highly profitable and vital industry. The economic effect of the business in the US was $225.2 billion in 2015, while coffee-related activities made up to around 1.6% of the US GDP (NCA).

Evaluation of Starbucks’ Vision, Mission and Value Statement

Starbucks mission statement as evident on the company’s website is, “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time (Starbucks).” As indicated above, Starbucks, a company that sells coffee to its customers, does not include the word coffee or its ability to sell the best coffee anywhere in its mission statement. Rather, the company puts more emphasis on creating an impactful and evocative ideology. Ultimately, it has the effect of creating a friendlier company culture (Advergize). The enterprise succeeds in creating a friendly business by cultivating the human spirit amid its clients and workers. This mission statement makes an emphasis on the continuing building of strong relationships. It is an indication of the manner the institution aims to every staff member and client. Additionally, the statement entails the manner that the enterprise takes conscious steps to impact the society even if taking step by step actions. Considering the Starbucks’ mission statement, it is short, specific, realistic and considers longevity. These characteristics match the features of a good mission statement. It is critical to note that mission statements may be product or customer oriented. From the above, it is evident that Starbucks takes the latter aspect. If at all the enterprise were to change its mission statement, there is a need to include its target market, product, and market position to increase the visibility of its coffee (Pratap).

A vision statement needs to have a key emphasis on the manner in which the brand is likely to take in navigating the marketplace and accessing the customers. It is for this reason that enterprises can change their vision statements occasionally as they find new ways to access their customers. Starbucks has not presented its vision statement. However, its website reads, ”To establish Starbucks as the premier source of the finest coffee in the world while maintaining our uncompromising principles while we grow (Starbucks).” From this, the enterprise shows to aim towards becoming the finest makers of coffee globally while maintaining its adamant principles. Besides, the vision still aims to make the corporation grow. Just like other enterprises that are growing, Starbucks has ambitions to lead in the production of the finest coffee globally but within its ethical principles and company culture. There are various features of a good vision statement (Advergize). For instance, it has to be succinct, clear and future-focused. Considering these, Starbuck’s vision statement meets these requirements by providing a one-sentence statement, with simple terminology and aims to transform the institution in the future to become the leading maker of the world’s finest coffee. However, a good vision statement should be achievable. When Starbucks states that it aims to be the premier purveyor of the globe’s finest coffee, it is difficult to be the most recognized and respected institution (Pratap). Simply having the best strategy does not make an institution the best. 

            Every institution has its values. With resilient values, the organization’s culture becomes strong, ultimately allowing the growth of the corporation, the employees, and the community. The leading values for Starbucks include creating a warm culture and a sense of belonging that welcomes everybody (Starbucks). Additionally, the company has a principle of being present and ensuring that it connects with its clients through respect, dignity, and transparency. Another value is to deliver the best services while being accountable for the outcomes. Another key value of Starbucks is to act courageously while presenting a challenge to the status quo. Lastly, it is an institution that is performance-driven and concerning humanity. From these values of the company, Starbucks shows to extend its warmth to diverse types of communities. Consequently, this makes it open to conduct business with everyone. It is for this reason that makes the enterprise’s cafes often have a cozy and warm feeling (Pratap).

Strategic Objectives of Starbucks

Organizational strategic objectives denote the highest goals that it aims to attain. Such goals are vital in strategic management. Besides, such goals have to link to the vision and mission of the enterprise. It is also crucial to note that strategic goals might not necessarily meet the SMART requirements and further get subdivided into specific goals. Starbucks Coffee has outlined some strategic objectives. For instance, it aims to advance its global digital flywheel. The company’s chief technology officer revealed the enterprise has an aim of growing digital associations with over 60 million available clients in the US monthly who still are not among the Starbucks Rewards associates (Starbucks). As a foundation for this, the enterprise has already opened an app with Mobile-Order-and-Pay ability. Additionally, it will use campaigns inside and outside their cafes that will aim to construct digital interactions with clients. Regarding this strategic objective, it is crucial to note that it is one that will help the organization to stick to its value of being present and transparently connecting with their clients. The strategy will also support the mission by ensuring that the company serves every client individually at a time.

Another strategic objective of Starbucks is opening more stores, especially in China. For instance, the Chinese Starbucks stores have grown to 3200 from 800 within five years (Starbucks). It equals an opening of averagely a new store for every fifteen hours. Clients and the Chinese partners continue to interact unprecedentedly in the Starbucks cafes and during Corporate Social Responsibility (CSR) activities. This objective will ensure that the enterprise a market leader in making fine coffee in China as a requirement of its values. Through participation in locally pertinent coffee innovation, the company shall have ease in implementing the value that compels it to challenge the status quo through finding new measures of growth (Geereddy 18). The vision of becoming the premier global

source of the finest coffee will only be attainable through innovation that this objective will encourage through making the local coffee (Starbucks ). Furthermore, the increase in coffee production in China will enhance the mission of providing one person one cup without deficiencies.

The other strategic objective of Starbucks is to build strong, purpose-driven pipeline of talents (Starbucks). A year ago, the institution committed hiring over a hundred thousand youths, which would translate to one out of every eight American youths between aged 16 – 24 years who are unemployed. So far, it has conducted over 50000 recruitments, which is an indication of its progress towards reaching this aim by 2020 (Starbucks). Reports indicate that the partners in the Opportunity Youth program averagely stay with the institution for long and get promotions. This strategic objective of building talents will support the company’s value of doing their best to ensure they are accountable for the outcomes while equally supporting the mission of nurturing the human spirit.

Conclusion

Starbucks is an American coffee corporation that purchases, roasts and sells coffee. It also sells other products like tea, snacks, and pasties. Currently, it has branches globally in 75 nations. The company has a clear mission, a vision, and values that guide its activities and operations. It is crucial to note that its mission is more customer focused. Among the strategic objectives, it has included its expansion in China, building talents and enhancing its digital presence, all of which support the attainment of its mission and vision while maintaining its principles.

Works Cited

”Starbucks Mission Statement, Vision Statement & Values.” Advergize, 2018, https://advergize.com/marketing/starbucks-mission-statement-vision-statement-values/. Assessed 31 July 2018.

Geereddy, Nithin. ”Strategic Analysis of Starbucks Corporation.” Harvard, 2012, http://scholar. harvard.edu/files/nithingeereddy/files/starbucks_ case_analysis.pdf. Assessed 31 July 2018.

”The Economic Impact of the Coffee Industry”. NCA, 2018, http://www.ncausa.org/Industry-Resources/Economic-Impact. Assessed 31 July 2018.

Pratap, Abhijeet. ”Starbucks Mission, Vision and Values analysis”. Cheshnotes

, 03 January 2017, https://www.cheshnotes.com/2017/01/starbucks-mission-vision-and-values-analysis/. Assessed 31 July 2018.

”Starbucks CEO Kevin Johnson Unveils Innovative Growth Strategy at 2018 Annual Meeting. ”Starbucks, 21 March 2018, https://news.starbucks.com/press-releases/starbucks-unveils-innovative-growth-strategy-at-2018-annual-meeting. Assessed 31 July 2018.

”Our Company.” Starbucks, 2018, https://www.starbucks.com/about-us/company-information/mission-statement. Assessed 31 July 2018.

January 19, 2024
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