Introduction
Currently, organizations are increasingly concerned about survival in an ever-competitive market. Globalization has opened up major markets to multinationals, which are fighting for a larger market share. Starbucks Corporation is one of the multinational companies with branches around the world. The company started in the United States, but it has expanded its operations around the world. It employs thousands of people around the world, and it has contributed to the growth of the economies in which it operates, particularly in the United States. Starbucks is generally considered the primary representative of second wave coffee, as it distinguishes itself from other coffee serving venues in the United States and around the world by taste, customer experience, and quality.
Company Products
Starbucks primarily targets quality minded coffee drinkers, focusing on hand-made coffee based on lighter roasts. Currently, the company has begun to use automated espresso machines to increase efficiency and safety in the stores. Starbuck locations generally serve hot and cold drinks, whole bean coffee, and micro-instant coffee called VIA. Starbucks joints also serve espresso, full and loose-leaf teas, such as Teavana tea products, and caffe latte. The company has also included fresh juices in the list of the products they offer. Some of the most popular fresh juices include the Evolution Fresh Juices. The company also serves Frapuccino beverages, La Boulange pastries, and snacks. While the company's main product is coffee, it has diversified its offerings to include other beverages, juices, pastries, and snacks.
Delegate your assignment to our experts and they will do the rest.
History of Starbucks
Starbucks was founded in 1971 in Seattle, Washington, United States. It is currently the leading roaster, retailer, and marketer of specialty coffee in the world. Gordon Bowker, Jerry Baldwin, and Zev Siegl came together to build the first-ever Starbucks store. Within the first decade, the company had opened stores in Capitol Hill, Bellevue, and University Way. By 1982, Starbucks had five stores, a roasting facility, along with a wholesale business that sold coffee mainly to local restaurants. During the same year, Starbucks hired Howard Schultz to manage their growing retail sales segment.
Various other changes took place at Starbucks. For instance, Siegl had decided to leave the company. Starbucks also changed the name of the wholesale division to Caravali, for fear of sullying the Starbucks name with less than absolute freshness, which it was committed to. The company also bought Peet’s Coffee, a company that had become a five-store operation itself.
Today, Starbucks has expanded its operations, with stores around the world. The company is legendary for treating its employees well, something that has translated to the excellent customer experience.
Strategy, Mission, and Organization Structure
Starbucks aims at becoming a global market leader in the coffee market. The company’s business strategy is based on four main pillars; offering third place experience, selling high-quality coffee, international market expansion, and integration of technology into business processes. The Starbucks stores are positioned as a third place away from home and work. Quality is also another critical focus, in addition to technological advancement.
The company’s vision is "To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow." The concept reflects Starbucks' commitment to ethical conduct and warm culture.
The mission of Starbucks is "To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time." Fundamentally, Starbucks inspires and nurtures the human spirit, beginning with its employees. The company maintains an organizational culture that promotes rapport and warmth.
Starbucks has a matrix organization structure. The structure is a hybrid mixture of the various basic types of organization structures. The company’s industry leadership is in part attributed to the appropriateness of the organizational structure.
Short Term and Long-Term Goals
One of Starbucks' short-term goals is to expand its food menu with products that customers have been looking for. Another short-term goal relates to integrating technology into some of its business processes.
The global business expansion is Starbucks' major long-term goal. The company aims at expanding its market share around the world, with the Starbucks experience being the significant value proposition.
