Starbuck strategy is based on several

RUNNING HEAD: STARBUCKS 0
Starbuck
Corporation
STUDENT’S DETAILS-
2020

STARBUCKS 1
Question 1
Starbucks strategy can be seen from the ‘Starbucks Experience’ which explains the third-place
experience that the company provides to its customers. Moreover, business strategy is regarded
as the set of activities that the company undertakes in order to earn sustainable competitive
advantage over the competitors. Similarly, Starbuck’s strategy is based on several elements in
which the company provides the shared experience to the customers where customers can come
and engage socially. Further, the company’s strategy also consists of the facilitation of high-
quality coffee through the careful management of chain for which the customers are ready to get
at the premium prices. Also, employees have a major role in the facilitation of the ‘Starbucks
Experience’ so that employees can make the engagements with the customers through providing
a good ambience. For this, the company has focused upon the human resource practices through
taking care of needs of company’s relationship with the employees. Also, the design and layout
of the stores of the company was based on the broadening of the Starbucks experience through
the unique designs of the stores.
Question 2 (a)
In terms of financial performance, Starbuck’s strategy was to make the growth in revenue and
earnings. The company has made prediction for the net revenue growth in terms of earning per
share of 12 percent or more than that in the coming year. The company aims to get the higher
revenue through focusing on the large competitors and attempts to sell higher quality coffee for
getting a substantial market share in the international markets. Also, the company was getting the
market share in the American segments due to the increase in the operating cash flows in this
country. The company has focused on improving the financial performance through increasing
the efficiency. For this, the company has been adopting for the diversification strategy.
Moreover, diversification is made by entering into the new product lines and also offering those
to newer market segment. The company has therefore widened the scope of food products and
beverages which can be helpful for the company to get market share and earn profits.

STARBUCKS 2
Question 2 (B)
Starbucks has made the strategy in making the due adherence with the internal and external
environment in which the company operates. With coherency with the internal environment, the
company has made defined core competency of the company which is the high-quality products
and the service that the company provides to the customers through the maintenance of store
environment. The strategy of the company is to make the customers satisfied which fits the
internal environment of the company. Also, the company’s strengths, weakness, opportunity and
threats can be the ways to make a competitive advantage and can affect the strategy of the
company. Besides, strategy for Starbucks is to expand the business internationally through the
diversification strategy which fits to the international environment. Moreover, the company’s
expansions in Asia Pacific and China can get affected due to the political and legal uncertainties.
Also, the company faces challenges in adapting the various culture which is the social factor of
the external environment. Also, the changes into the economic factors are an important part of
the external environment in which the company operates. This can affect the strategy of the
company.
Question 3
Yes, Starbucks operates the interests of the shareholders and also the stakeholders. The company
undertakes several initiatives for protecting the interests of the shareholders through creating
values towards them and also bringing transparency which can lead to the higher profits for the
company. With the application of the stakeholder’s theory, this can be determined that it is
important for the organization to serve the needs of the stakeholders which are employees,
customers, suppliers, investors and the government. The company operates the interests of the
stakeholders through the maintenance of good relations with them. The company ensure their
duty towards the customers through the facilitation of the quality products which are coffee and
related beverages. The company provides the quality of the store experience to the customers and
also provides the warm and friendly environment with the customers and providing services for
the facilitation of tailored needs of the customers. The company protects the interests of the
investors through the getting dominance in the coffee industry and making global expansion
which can lead to the higher performance of the company and thereby protects the interests of
investors.