A Comprehensive Literature Review on Starbucks Coffee Company

This literature review examines the Starbucks coffee company, exploring its history, global expansion, and strategic practices. The review begins with an introduction to Starbucks, highlighting its brand recognition and evolution from a single store to a global presence. It then delves into the company's background, including its founding, the influence of Howard Schultz, and its expansion throughout the 1990s. The review analyzes Starbucks' current position, emphasizing its global expansion strategy, employee relations, and innovation in retail and technology. It also discusses the company's marketing and business strategies, including market segmentation, targeting, and customer-centric approaches. The document also explores the risks and challenges faced by Starbucks and how the company adapts to these challenges. The literature review concludes with a discussion of the marketing and business strategies that have contributed to Starbucks' success, providing insights into its market share and customer engagement.

Running head: STARBUCKS 1
Starbucks
Student’s Name
Institution

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Literature Review
Introduction
The Starbucks coffee company has developed one of the most eminent as well as most love
beverage stream in the world in any diligence. It had accurately moved beyond the ramparts of
its existing stores, agencies as well as sweltering and production plants. Increasingly more,
individuals all over the place derived into contact with, involvement or at least have heard of the
Starbucks brand. It has simply become the brand accomplishment story during the 1990s.
According to (Gallaugher, 2010 p43) the corporation had renewed pursuit for quality coffee by
posing fresh coffee that is dissimilar from the idea of conserved coffee like the General Foods,
Procter & Stake, Nestlé, and Jacobs. In accordance with the vital focus of this study also
strategic practices of Starbucks is discussed with aim of ensuring scholars have adequate
information about Starbucks. Starbucks opened the first store in Australia in the month of July year
2000 that was located in CBD of Sydney's. Currently, Starbucks coffee company has twenty seven coffee
shops in Sydney, Brisbane, Melbourne and the Gold coast.
In Australia, the head office is stiuated in Mount Waverley, which is at Victoria. In the year 2006, global
coffee icon Starbucks introduced its first major shop in South Australia. Its flagship shop is located in
Rundle Mall, that is in Adelaide CBD, other two stores are located in Glenelg and at Centro Colonnades.
The shop which is at Centro Colonnades was the foremost to open in South of Australia. However,
business in Australia did not flourish well due to some reason although Starbucks company is trying to
come up again in the country.
Background of the Company
In the study, it was found important to study about the company background, as it will educate
much about the overall operations of the company. In the year 1971, the first Starbucks shop

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came into existence/opened. The brand designation was from the definitive of Herman Melville,
Moby Dick that grabs about the whaling commerce during the 19th century. The motive the
owner selected the said appellation is due to the circumstance that the ocean-going name is
suitable for the store importing the world’s premium coffees for the taciturn as well as thirsty
individuals of Seattle (Mason et al. 2017). It was owned and managed by three associates named
Jerry Baldwin, Gordon Bowker and Zev Siegl who were sharing the same passion about coffee.
The said corporate started by selling fresh-roasted decadent coffee beans and infusing and
roasting accouterments.
In 1982, Howard Schultz had amalgamated in the Starbucks business and he later visited Milan
in the directive to observe to the diverse espresso bars and pragmatic it to the company. The said
philosophies of Schultz had facilitated the company to convert into one of the most well-known
coffee taverns in Seattle, driving them coffee-crazy (Starbucks History, 2010). Schultz had
smeared the idea of communal gathering places that is comparable the coffee lines in the Italy in
the US. In 1983, he reinvented the vision of the establishment by selling espresso by the teacup.
However, the owner of the company did not custom the idea of Schultz to the completest due to
budget restraints and lack of reliance to their creation that is why Schultz established and opened
his own coffee firm that was named after the major newspaper in Italy, The Daily. Later the store
became a big hit, serving more than 700 customers on daily services and selling about three
hundred percent level more than that of the Starbucks positions. Maybe it is actually Schulz
destiny to convert part of the Starbucks, since, in 1987, the Starbucks Coffee Company owners
had decided to sell their corporate, together with the appellation for about $3.7 million, and
ultimately, Schultz had fetched it with the help of his stakeholders. Overall, in the year 1990’s
the corporation expanded by going yonder Seattle and eventually through the United States.

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Throughout the said decade, the establishment had become the first corporations to offer stock
possibilities to its part-time workforces and had become an in-public traded syndicate. Currently,
the company is painstaking as the America’s principal brand in terms of vending and roasting of
coffees. The enterprise had also converted the success icon during the 1990s and there have been
eight millions of people visiting Starbucks locations each week (Thompson & Arsel 2004 p765).
Mass publicizing and the establishment of brand designations and logos drive monopolistic ally
modest firms, like Starbucks. Starbucks atmosphere and products promotion are by the
preeminent, intellectual inferences. There are countless coffee shops on the marketplace that also
offer tasty fragrant coffees, but the advertising and atmosphere of the Starbucks sprees draw a
high number of customers. Individuals apply more on Starbucks beverages because of the logo
and status committed to them.
Starbucks positon
Presently Starbucks position is as the prominent coffee organization hinges highly around the
sphere expansion strategy. Enlargement of Starbucks around the globe is tranquil in the early
stages and it has the great prospect for future evolution. Starbucks foremost objective was
unveiling itself as the most prominent and respected trademark in the world. The main objective
was to the improvement of its outlets all over the ecosphere, to broaden its merchandising
business, develop new procedures, product and familiarize new distribution frequencies in order
to accomplish its goals.
The company additional aims were inaugurating its brand as a primary brand in the coffee
marketplace by selling high superiority products, providing improved services and construct a
relationship between clients and the Starbucks. Briefing the position of Starbucks that is "This
persuasion that Starbucks can triumph the unachievable helps explicate Schultz's dismissal of

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any apprehensions about the struggle to his company's ubiquity”. Starbucks identifies its
employees for much of its achievement. This owes mostly to the upkeep of a great and proven
work milieu for all employees. The business does not have an official organizational chart;
management badges sot employees to make verdicts without a management recommendation.
Moreover, administration trust and stances behind the verdict of the employees and it is this that
consents for employees to reflect for themselves as a fragment of the business, to make them a
sense as a true benefit and not as just another employee (Williams et al. 2017). In totaling to
being the best-known purveyor of the finest coffee and promising only the peak quality products,
Starbucks accentuates firm values, delivers guidelines to augment employee self-esteem. This is
to guarantee continued customer gratification. Moreover, assortment has become a precedence to
providing a pleasing environment to all shoppers. Starbucks endures abiding by a stringent, slow
growth strategy in which they fixed out to dominate a market afore moving on to enlarge, thus
history has revealed this approach to be efficacious for Starbucks, making them one the
profligate growing companies nationally. Customers and staffs as well receive an involvement
for Starbucks, in which the company constantly struggles to preference everyone around them.
The atmosphere is so inviting, comfortable, and probably hipper than most people’s living
apartment, and at the same period, quick strode if you need a coffee to-go. Starbucks has
established an environment where the affiliation between clients and employees sets the
corporation apart from other coffee sprees. Starbucks sets an altered type of tendency than any
other coffee house that appears to be contagious to consumers and even other companies.
Innovation
Starbucks endures breaking the ground in retail and tech while intensifying offerings for its
workforces. From teaching and development to enhanced digital payments.

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Research displays that more than 70m individuals worldwide enter Starbucks teashop. To brand
it all happen and to preserve their customers gratified workers blend, steam, and brew the
brand`s coffee in all the 21,000 stores about the globe.
Starbucks took expertise into an additional modest advantage by using peripatetic payments and
coffee conveyances. The company has been lately on an innovation slit by putting its properties
and money toward cloud-based coffee brewers and fine tea taverns. Howard is scheduling to
branch out extra with the tea fetters and opened another Teavana Fine Teas in Seattle`s
University Village in November year 2014. Meanwhile, Howard refurbished its food selections
by offering snacks from La Boulng, a San Francisco bakery hawser. Starbucks bank on a great
deal on information technology schemes in the maneuvers of its supply chain, point-of-sale
dispensation, and many other business dealings (Thompson & Arsel 2004, p71). The
management of these trades greatly affects the production, delivery, and sale of its yields. Any
technical disappointment within these systems can cause deferrals in sales thus lessening
efficiency. Starbucks exploited its Human Resources to its full volume. Employees are
obligatory to follow Starbucks all-inclusive store operating processes and attend training lessons.
Starbucks comprehends that its growth depends significantly on the knowledge, abilities, and
aptitudes of key officials and other employees and its capacity to recruit and hold those
employees. Government plan exists to manage entry into a business with licensing necessities
regulations. Opening a coffee works or restaurant will require procuring certain licenses, i.e.,
business licenses, and tax identifications, among other possible authorizations.
Current Starbucks strategies

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Nearly all performing companies all over the world functions under some set strategies by top
management that are employed there to enhance the work appropriately. Strategies in business
should always be followed to ensure that the operations are in line with the requirements of the
management. Starbucks Company, in this case, employs some strategies that assist in giving
quality products and services to their customers all over the world. Through subdivision, the
stores can create a market plan for the business to operate applicably. Starbucks fragments their
market contrarily all over the world in fifty countries. In these countries, Starbucks functions
according to the characteristics of the consumers in the area. Segmenting the market in this facet
will help in meeting diverse customer tastes and desires hence improving the general sales
recorded at the headquarters of the stores.
Targeting and position their merchandises in the market produces the strategy of the market
thriving. Starbuck aims the markets where there are clients of their products well than their
contestants’ products. In the situation, their market, they stance their market in spaces are
uniquely advantaged in peddling their products and outlining the map (positioning) to
comprehend how sections distinguish their products.
In monitoring and supervisory of the businesses, the management should always put in
considerations the predicted risks to occur and come up with conducts to minimize all these
jeopardizes. According to (Warren, 2015 p87) risk managing aspects brings about features
ensuring that indecision does not glance the exertion from the occupational objectives. Risks
come from diverse sources like threats from project catastrophes, accidents among others
foundations and the management should guarantee they are on toes to restraint these
uncertainties if they transpire.

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Business strategy
The business strategy used by the business focuses on the upgrading of the company-customer
affairs. In this esteem, the company habits the customer-centered tactic as its key business
policy. The customer-centered slant allows the company to preserve its current situation of the
company in the marketplace. In practicality, the professional strategy of Starbucks emphases on
the improvement of its modest spot in the market. In datum, the company endeavors in
expanding its market portion and attract more clients through the expansion of newly established
business strategy. Starbucks retains using the same yields and services. In such a technique, the
company bids customers products and services of the high superiority. Consequently, the
enterprise keeps increasing its business and offers clients traditional products and facilities.
Customers escalate products obtainable at Starbucks and enjoy overwhelming them (Yu, 2013
p135). The conservation of traditional products permits the company to maintain attentiveness of
customers and seizure them from fast food cafeterias.
Marketing strategy
The marketing approach of Starbucks focuses on the development of its market share and
desirability of new consumers. At the same period, through the enlargement of the high
eminence of its products and amenities the company can improve the customer faithfulness. In
such a way, the firm uses traditional advertising strategy along with the enhancement of the
quality of its merchandises and services to upsurge the customer fulfillment and loyalty. Target
market means selecting one or more market section and invention position. Starbucks also
emphasis on consumer conducts and portioning its specialty of coffee with the purchasers. In the
culmination of the twentieth century, there are many vicissitudes in the market that assisted
Starbucks in becoming successful. The most vital change of the last twenty, thirty years is the

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variations of economic policies over the realm. Starbucks mark market was between 18-24 years
young expert because they are not yet remained loyal with coffee diligence (Mason, Cole &
Goza, 2017, p90). Starbucks approach comprises to discover its stores at meticulous places such
as the first floor of wedges of offices, underground main entry, and urban areas. Starbucks
auctions totally are contingent on company function retail stores and qualified retail operations,
Starbucks peddles coffee and tea merchandises through many others conduits like distribution
aiming restaurants, hotels, colleges and campuses and other work residences. Starbucks target
market was affluent, upper class and cultivated who agree to pay high fees of Starbucks due to its
high superiority and customer facility.
Conclusion and findings.
Starbucks is an enterprise comprises of various stores offering coffee and other beverages to the
people around. From the research, it will be inappropriate to view Starbucks as a restaurant as it
only offers coffee and other small beverages to their customers whereas a restraint is an entity
where a variety of meals served to the customers (Chua & Banerjee, 2013, p90). Starbucks is a
well-recognized part of the coffee household culture in the United States, well viewed for its
ethical tactic to obtaining and buying coffee beans. There are worldwide opportunities for the
business as well as forte markets within the US to the feat. Though not the number one firm in
the coffee house market (a position held by Costa Coffee) Starbucks has established a strong
following among the youth and student sections; whilst enduring to provide the indispensable
products for the occupied population in their eventful working day.
Having wind-swept the temporary tempest of bad publicity over the income tax fudging scandal,
Starbucks has functioned hard to advance its position in the eye of the shopper by emphasizing

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the moral and sustainable philosophies the firm has always preserved. Such communiqué and
relationship marketing are important to long term variety loyalty. Notwithstanding fears that
coffee may be deprived for healthiness there is also, proof to support drinking coffee in restraint
to have preventive cost against certain diseases.
Starbucks is finely placed to continue in occupation competitively in the US market,
predominantly as it continues to novelty and exploit new and pioneering ways to get their
merchandise out to the consumer in the system of driving in high footfall areas. According to
(Stinson, 2014, p312) there appears little sign of the trend and manner for coffee houses to
weaken anytime soon and it endures to be part of the United States culture just as it was above
300 years ago. Starbucks is a leading corporation around universally. Starbucks used the very
modest strategy, "relating links amid treating employees with self-esteem and respect and
generating good merchandise and services." That was the chief factors that distinguish Starbucks
from others and fetch the successful to Starbucks. Starbucks comprehended its business with the
aid of well-established policies of it positioned itself in the marketplace. Nevertheless, every
product has a lifecycle, when it grasps its maturity it will tend to deterioration, the position of
Starbucks is also not diverse. It is time to transfer their market and synchronize their approaches.

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References
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