Starbucks: An In-Depth Analysis

This presentation provides an in-depth analysis of Starbucks, covering its strategic plan, organization summary, mission and vision statement, SWOT analysis, goals, possible barriers, and recommendations.

STARBUCKS
-AN IN DEPTH ANALYSIS
Timothy Rotich

Introduction
 The strategic plan is considered to be a recognised
description of the strategies of the organizations,
decision making related to the strategies along with
the allocation of the resources for the effective
implementation of the strategies of the organizations
(Bouhali et al., 2015).
 The increasing competition in the modern business
world is significant in forcing the business
organizations towards the application of strong focus
on documenting the strategies that are much needed
in the development of the organization
(Macchiavello & Morjaria, 2017).

ORGANIZATION SUMMARY
 Starbucks has emerged as one of the market leader of the
coffee shop industry and is capable of continuing their growth
due the creation of the significantly effective strategic plan.
 The organization was established in the month of march of
1971 in Washington (Starbucks.Com, 2019).
 The company was founded by Gordon Bowker, Jerry Baldwin
and Zev Siegl and the current headquarter of the organization
is situated in Utah avenue of Washington (Starbucks.Com,
2019).

ORGANIZATION
SUMMARY
 The organization is currently managed by the Myron E. Ullman, the chairman of the
organization, Mellody Hobson, the vice chairman of the organization along with
Kevin Johnson, the president and chief executive officer of the organization
(Starbucks.Com, 2019).
 The number of employees operating across 6500 number of outlets of the mentioned
organization in the year 2017, is observed to be 238000 (Starbucks.Com, 2019).
 The excellent leadership and the improved skills and the competencies of the
employees are significant in the profitable business of the organization and are prime
reason responsible for the generation of a revenue of 22.387 billion US dollars and
an operating income of 4.135 billion US dollars (Starbucks.Com, 2019).

MISSION AND VISION STATEMENT OF THE
MENTIONED ORGANIZATION:
Mission statement of the organization:
The corporate mission of Starbucks is to inspire and nurture the human spirits and
along with that, to follow the one person, one cup and one neighbourhood method (Wu, 2017).
Vision statement of the organization:
The corporate vision of the organization is to establish the organization as the
premier purveyor of the finest coffee in the world while making sure that they conduct their
business operations in accordance to their principles (Wu, 2017).

SWOT ANALYSIS
Strengths:
The significantly strong brand name and the brand visibility of the organization is considered to be one
of the major strengths of the organization.
The product chain of the organization with the inclusion of the products such as coffee, beverages,
smoothies, tea, backed goods and sandwiches is significant in enabling the organization to achieve larger
number of customers.
Weakness:
The organization follows premium pricing policy which makes their products expensive for the
customers and proves to be a concern for their targeted segment of the customers in purchasing.

SWOT ANALYSIS
Opportunities:
The introduction of the cheaper version of the products of
mentioned organization is much needed as it has the potential to
attract the customers of the low income groups.
Threats:
The significantly competitive business environment and the
increasing competition from the part of the competitors like Café
Coffee day, Costa Coffee, Mochas and the Dunkin’ Donuts is a major
concern for he chosen organization.

GOALS
Goals Objectives Required Resources Timeline
Attracting customers of low
income groups.
To sell the products at cheaper
rates.
Resources related to the
manufacturing of the products
and the consent of the
shareholders of the organization
2 years
Customers satisfaction Improvement in the quality of the
services of the employees
(Susanty & Kenny, 2015).
Resources related to the training
and the developmental activities
of the employees.
6 months
Improved Brand Recognition. Increment in the number of the
promotional and the marketing
campaigns.
The resources related to the
marketing events and the
promotional launch events and
the access to the social media
platforms.
12 months

POSSIBLE BARRIERS
• Disagreement on approval.
• Costing associated with the promotional
events.
• Quality concerns.
• Rewarding and recognition.

RECOMMENDATIONS
Effective communication
regarding the introduction of
the production at cheaper
rates.
Efficient management of the
concerns if the shareholders
regarding the creation of the
rewarding policy.

REFERENCES
BOUHALI, R., MEKDAD, Y., LEBSIR, H., & FERKHA, L. (2015). LEADER ROLES FOR INNOVATION: STRATEGIC THINKING
AND PLANNING. PROCEDIA-SOCIAL AND BEHAVIORAL SCIENCES, 181, 72-78.
MACCHIAVELLO, R., & MORJARIA, A. (2017). COMPETITION AND RELATIONAL CONTRACTS: EVIDENCE FROM RWANDA'S
COFFEE MILLS.
STARBUCKS.COM (2019). STARBUCKS – THE BEST COFFEE AND ESPRESSO DRINKS. RETRIEVED FROM
HTTPS://WWW.STARBUCKS.COM/
SUSANTY, A., & KENNY, E. (2015). THE RELATIONSHIP BETWEEN BRAND EQUITY, CUSTOMER SATISFACTION, AND
BRAND LOYALTY ON COFFEE SHOP: STUDY OF EXCELSO AND STARBUCKS. ASEAN MARKETING JOURNAL, 14-27.
WILSON, A. P., & WILSON, N. L. (2014). THE ECONOMICS OF QUALITY IN THE SPECIALTY COFFEE INDUSTRY: INSIGHTS
FROM THE CUP OF EXCELLENCE AUCTION PROGRAMS. AGRICULTURAL ECONOMICS, 45(S1), 91-105.
WU, H. C. (2017). WHAT DRIVES EXPERIENTIAL LOYALTY? A CASE STUDY OF STARBUCKS COFFEE CHAIN IN TAIWAN.
BRITISH FOOD JOURNAL, 119(3), 468-496.