Starbucks Business Model and Growth Strategies Analysis

This presentation provides a detailed analysis of Starbucks' business development and strategic operations. It covers the company's adherence to lean sigma processes, financial compliance, supplier management, and the central role of human resource management in aligning employee goal...Read More

Slide 2
Starbucks was founded in the year 1971 and has grown manifolds since then. Currently it is the third
largest food chain globally with the revenue of $22.39 billion. The company employees over 200000
people across the world via its 23000 stores spread across different countries.
The company was founded by Howard Schultz who is a world renowned for his entrepreneurial skills
as well as management capacity.
Starbucks outlets offer hot and cold beverages. Though the brand is predominantly known for its
coffee, it also serves fresh food and flavors of different ice creams.
There are three brands under the same umbrella. These include Starbucks coffee, Seattle best coffee
and Tazo Tea.
Slide 3
Starbucks follows a lean sigma process throughout its operations and the brand ensures to follow
the same process in all its stores. The company has a detailed supplier management process and
follows SLA as well as timelines through the entire process.
Financially, the company complies with the financial regulators across the globe. There is a central
body that facilitates transfer of funds through all its stores as per the business requirements. The
body also makes sure that the financial transactions are conducted effortlessly. One of the important
duties of the body is the communicate the results and the financial statements of the company to
the board of directors.
Slide 4
Human resource management plays an important role in every organization. Starbucks hires
employees who possess strong cultural value and competent communication skills. The company
keeps conducting activities and ensures that its employees stay motivated. There is immense
opportunity for growth in the company and the HR managers are trained to align employee’s
personal goals with those of the organization.
Starbucks consistently keeps itself aware about the current as well as upcoming competition in the
industry. They keep conducting surveys and collect data about the changing needs and preferences
of their target consumers.

Slide 5
The sales of the company are generated through the sale of their products- coffee food,
merchandise, ice cream etc. The customers are starbucks are loyal and hence there are tremendous
repeat purchases. Starbucks promotes its products through digital marketing, social media
marketing and various word of mouth promotions.
Slide 6
● Starbucks is a renowned brand across the world. There are various practices that are unique
to the brand and largely enables them to maintain the brand position that exists today.
● Employees at starbucks are all partners and hence depict a larger sense of ownership. No
matter which country, Starbucks operates in, the brand ensures that they are able to
preserve the area’s culture and local tastes. The employees are rewarded for their efforts.
● The idea of starbucks is to create a third space between office and home. The ambience and
the experience of enjoying a coffee at starbucks is unique and largely cherished.
● They give personalized cups to all their customers and the store practices, look and feel as
well as employee behaviour is similar across the globe.
Slide 7
● Business processes at starbucks are efficient and move on the foundation of a strong
product and service offering.
● Tangible services are provided by customized cups with the customer’s name and the
company’s logo on it.
● Word of mouth promotions of starbucks are highly strong and have led to immense number
of sales by the company.
● The level of uniformity maintained is also very high and enable the brand to be easily
recognized across the globe.
Slide 8
● The biggest issue faced by the customers is the high number of dirty plates kept on the table
during their peak season.

● It is often difficult to satisfy customers who are unable to relate between the promoted
pictures of the company as well as its reality.
● The product is premium priced and hence mnay are unable to afford the products.
Slide 9
● The previously mentioned problems can be fixed by educating the customers the
importance of cleanliness in their infomercials and other advertisements. Staff could also
request the customers to throw their leftovers in the trash.
● The company could take actual photos of products to be used in their promotional material.
● Few low priced products can also be introduced
Slide 10
● Starbucks promotes a very strong culture and is a largely differentiated brand. Their HR
policies are highly efficient and lead to effective performance by them.
● Online reputation of the company is paid special attention and hence is largely respected
across the world.
● Environment sustainability is also kept in mind and the brand uses reusable and recyclable
products.
● These efforts have led the brand reaching the great heights that it has attained today. With
supreme quality products and effective branding strategies dopted by the brand, Starbucks
is likely to grow and develop further into yet untapped markets of the world