A Global Strategic Analysis of Starbucks Corporation

TOPIC: A GLOBAL STRATEGIC ANALYSIS OF STARBUCKS CORPORATION
COURSE: STRATEGIC MARKETING
Table of Contents
CASE STUDY STARBUCKS CORPORATION......................................................................2
OBJECTIVES......................................................................................................................2
COMPANY PROFILE........................................................................................................2
History...............................................................................................................................2
Introduction......................................................................................................................2
Vision.................................................................................................................................2
Mission..............................................................................................................................2
BRIEF OVERVIEW............................................................................................................3
Current leadership...........................................................................................................3
STRENGTHS.......................................................................................................................4
1. Strong Market Position and Global Brand Recognition......................................4
Brand names & portfolio of companies.........................................................................4
2. Human Resource Management...............................................................................4
3. Environmental support efforts...............................................................................6
4. Customer loyalty......................................................................................................7
WEAKNESSES....................................................................................................................8
1. Pricing.......................................................................................................................8
2. Cultural differences.................................................................................................8
3. Ethics.........................................................................................................................9
4. Dependence...............................................................................................................9
5. Expansion problems.................................................................................................9
6. Consumer choices.....................................................................................................9
RECOMMENDATIONS...................................................................................................11
BIBLIOGRAPHY....................................................................................................................13

TOPIC: A GLOBAL STRATEGIC ANALYSIS OF STARBUCKS CORPORATION
COURSE: STRATEGIC MARKETING
CASE STUDY; STARBUCKS CORPORATION
OBJECTIVES
This report examines the strengths and weaknesses of Starbucks Corporation and provides
recommendations on changes that are important for the growth and survival of Starbucks.
COMPANY PROFILE
History
Starbucks opened in 1971, a single store in Seattle’s historic Pike Place Market. From just a
narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean
coffees.
In 1981, Howard Schultz (Starbucks chairman and chief executive officer) had first walked
into a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and
joined a year later.
In 1983, Howard traveled to Italy and became captivated with Italian coffee bars. He had a
vision to bring the Italian coffeehouse tradition back to the United States. A place for
conversation and a sense of community. A third place between work and home. He left
Starbucks for a short period of time to start his own coffeehouses and returned in August
1987 to purchase Starbucks with the help of local investors.
Introduction
A global coffee roaster, marketer, retailer and merchandiser of premium whole bean coffee,
teas, beverages, and fresh baked pastries.
Location
2401 Utah Avenue South Seattle, WA 98134 United States
Website
starbucks.com
Vision
Schult had a vision: To create a chain of coffeehouses that would become Americas third
place in between home and work places of Americans where they could relax or be
comfortable enough to make it in their own unique space.
From the beginning, Starbucks set out to be a different kind of company. One that not only
celebrated coffee and the rich tradition, but that also brought a feeling of connection.
Mission
To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a
time.

TOPIC: A GLOBAL STRATEGIC ANALYSIS OF STARBUCKS CORPORATION
COURSE: STRATEGIC MARKETING
BRIEF OVERVIEW
Current leadership
NAME TITLE COUNTRY
Kevin R Johnson President/CEO USA
Takafumi Minaguchi CEO JAPAN
Belinda Wong CEO CHINA
Rosalind G Brewer "Roz" Chief Operating Officer USA
Clifford Burrows "Cliff" President: Siren Retail USA
John Winchester Culver President: International & Channel Development USA
Tony Matta President: Global Channel Dev USA
Martin Brok President EUROPE
Leo Tsoi COO CHINA
Brady Brewer COO JAPAN
Patrick J Grismer "Pat" Executive VP USA
Scott Harlan Maw Executive VP/CFO USA
Gerri Martin-Flickinger Executive VP/CTO USA
Chris Carr Exec VP/Chief Procurement Office USA
Lucy Lee Helm Exec VP/Chief Partner Officer USA
Matthew Ryan "Matt" Exec VP/Chief Marketing Officer USA
Michael A Conway Exec VP CANADA
Rossann Williams Exec VP: Retail USA
Rachel A Gonzalez Exec VP/Secy/General Counsel USA
Kris Engskov Exec VP/Gen Manager:Business Integration USA
Vivek C Varma Exec VP:Public Affairs USA
Thomas D Shaw "Tom" VP/Investor Relations USA

TOPIC: A GLOBAL STRATEGIC ANALYSIS OF STARBUCKS CORPORATION
COURSE: STRATEGIC MARKETING
STRENGTHS
1. Strong Market Position and Global Brand Recognition
Leading coffee house chains in terms of 2015 sales
(International Trade; Brand value of the 10 most valuable fast food brands worldwide in
2018 (in million U.S. dollars) , 2011-2015)
Coffee House Chain Number of Stores
Starbucks 22,557
McCafe 5,044
Costa Coffee 3,036
Ediya Espresso 1,240
Doutor Coffee Shop 1,108
Coffee Bean & Tea Leaf 925
Caffe Nero 683
Gloria Jeans Coffees 666
Tully’s 605
Caribou Coffee 522
Brand names & portfolio of companies
The company is known for treating its management and employees well, including numerous
benefits and a higher pay rate than the competition offers.
The expanded food offering has provided a way to make Starbucks an attractive spot for
breakfast, lunch, and snacks.
Products of the Highest Quality
They give the highest importance to the quality of their products and avoid standardization of
their quality even for higher production output.
Location and Aesthetic appeal of its Stores
Starbucks has stores in some of the most prime and strategic location across the globe.
2. Human Resource Management
Starbucks is famous for its highly knowledgeable and qualified employees.
Employee reviews
How does management treat their employees?
 They treat us with respect and dignity.
Barista (Current Employee) - Cedar Rapids, IA
 Fair. If current position is not working out for any reasons, management will give you
plenty of chances to relocate within the organization.
Senior Consultant, PSP (Former Employee) - Seattle, WA