Starbucks Corporation: Strategy and Sustainability
Added on 2020-02-19
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Running head: STARBUCKS 0InfluencingOrganisational Strategy
STARBUCKS1Table of ContentsIntroduction................................................................................................................................21. What is Starbuck’s Strategy?.................................................................................................3Marketing Strategy.................................................................................................................3Innovation..............................................................................................................................3Product Differentiation...........................................................................................................42. a. Starbuck’s Financial Performance......................................................................................5Ratio Analysis........................................................................................................................5Role of Strategy is Better Financial Performance..................................................................62. b. Effectiveness of Starbucks Strategy for Various Environments........................................73. Shareholders or Stakeholders Interest....................................................................................8Conclusion................................................................................................................................11References................................................................................................................................12Appendix..................................................................................................................................15List of Figures Figure 1: Starbucks Stores Growth..........................................................................................15Figure 2: Starbucks Compared to its Competitors...................................................................15Figure 3: Starbucks Financial Growth.....................................................................................16Figure 4: Starbucks CSR Policy...............................................................................................16
STARBUCKS2Introduction Starbucks is an American coffee corporation established in 1971. The company has more than 23,768 stores globally and each store serves an average of 500 customers per day. Starbucks has revenue of US$ 19.16 billion in 2015 financial year. Howard Schultz, who wasone of the founders, is the CEO of the organisation. The company has been significantly successful in the coffee market and they have created a unique status on social media sites. Starbucks forces on providing their customers a unique social environment rather than just serving good quality coffee. This report will analyse the strategy adopted by Starbucks and evaluate their financial performance. Further, the report will focus on ascertaining the link between Starbucks strategy and its internal and external environments.
STARBUCKS31. What is Starbuck’s Strategy?In order to analyse Starbucks strategy, it is important to understand the requirement of strategy in a corporation. According to Grant (2013), strategy assists an organisation to achieve their objectives and gain success in the market. It is essential for each organisation to evaluate and formulate proper strategy according to their corporation’s requirements. As per Grant (2013), there are four common factors that can be found in every strategy:1.A strategy is required to establish goals which are simple to understand, consistent and establish the long term objective of the company. 2.The strategy should be formed with a proper understanding of the competitive environment in the industry. The strategy and objectives of competitive companies should be evaluated before formulating a corporation’s strategy. 3.The strategy should be based on enhancing the internal strength of an organisation and protecting the areas which are weaker. 4.The strategy should completely and effectively implement over an organisation. Without effective implementation, a corporation cannot take full advantage of strategic objectives and cannot achieve its goals. Marketing StrategyAccording to Hill, Jones, and Schilling (2014), Starbuck’s strategy is based on a theory provided by German scientist Theodor W. Adorno. It is called ‘theory of standardisation’ which is based on providing customers sense of identity. Starbucks is focused on providing their customers a unique social experience while enhancing the shareholders’ value as well. In 2008, when the company was facing huge losses, Schultz’s decided to close 600 Starbucksstore from US markets, due to which more than 6000 employees lose their jobs. The company decided to change their strategy to the theory of standardisation by focusing on enhancing their social media approach to improve their customer’s intersection. The firm incorporated a social media marketing strategy to market their products on social sites such asFacebook and Twitter. As per Aiello and Dickinson (2014), the majority of Starbucks’s consumers comprise adult hip peoples and the company provides them positive social place which makes them feel valued in the corporation, which is the basis of the theory of standardisation.
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