Starbucks Corporate-Level Strategies: Evaluation and Recommendations

This report provides a comprehensive analysis of Starbucks' corporate-level strategies. It begins with an overview of the company, its global presence, and its commitment to corporate social responsibility. The report then delves into Starbucks' strategies for employee contribution, consumer satisfaction, global market expansion, and technological advancements. It evaluates the effectiveness of these strategies, particularly in market penetration and market development in China. Finally, the report offers recommendations for strategic initiatives, including market penetration and market development, to enhance Starbucks' effectiveness and competitive advantage. The analysis is based on the provided assignment brief, which requires an evaluation of Starbucks' current corporate strategies and recommendations for improvement, considering the Australian market context.

Starbucks- Corporate-Level Strategies
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ABSTRACT
The current assignment aims at providing a clear understanding of corporate level strategy and
the purpose of corporate level strategy. The report predominantly focuses on Starbucks, a leading
company in coffee industry. The report highlights brief analysis of Starbucks and justified
recommendation has been provided to the study.

Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Overview of the Company...........................................................................................................4
Starbucks enhancing Corporate Social Responsibility................................................................5
Starbucks Contribution towards their Employees.......................................................................5
Starbucks- Consumer Satisfaction Strategy.................................................................................6
Expansion in the Global market..................................................................................................6
Technological Expansion within Starbucks.................................................................................7
Product Portfolio Diversification Strategy..................................................................................7
Recommendations............................................................................................................................7
Market-Penetration Strategy........................................................................................................7
Market Development strategy in China.......................................................................................8
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

Introduction
In the ever-increasing business world companies strive for gaining competitive advantage
and therefore, adopt business strategies. A corporate level strategy is a strategic approach that a
business takes in order to gain competitive edge. This is assessed by managing and choosing a
group of different business that are competing within different product market. The report aims
at analyzing the corporate level strategies of Starbucks and provides justified recommendation
for the company. Thee paper seeks a clear understanding of the purpose of corporate and level
strategies and the ways in which Starbucks has taken the company at its optimum level.
Discussion
Overview of the Company
The Starbucks begin a global beverage and café service provider has formed a separate
department which is known by the name of global responsibility. The Starbucks was formed in
the year 1951, and from that point of time it has catered to billions of consumers each day with
quality products.
The company has always been motivated to deliver quality and best products to its
consumers Starbucks has approximately around 22,187 stores around the globe and has its
business operation in almost all the countries of the world. The major products delivered by

Starbucks Frappuccino coffee, fresh brued coffee, various kind of espresso beverages and more
than 50 blends of premium products. It also provide smoothies, salads, fruits and many other
breakfast delicacies. Starbucks is a well-established company and this is due to its business
strategies.
Starbucks enhancing Corporate Social Responsibility
Transnational strategy is a strategy in which a firm seeks to achieve response from the
local citizens and efficiency of its business at the global level. Thus, this strategy is followed by
Starbucks corporate, however, since different countries have different culture the company has
difficulty in accommodating and implementing this strategy. The company has a different
department known as global social responsibility which looks after the various stakeholders of
the company (Taecharungroj, 2017). The company is extremely cautious for the betterment of
the entire community. The focus points for betterment are mainly the environment, the
community and equal opportunities to everyone.
The preservation of environment is an important goal of Starbucks for which it has
renovated it stores around the globe to be lead certified stores. The lead certified stores
contribute in adapting to the changes in the climatic condition and preservation of energy and
water. The Starbucks give its efforts to cater to its consumers in an eco-friendly manner from the
year 1992 (Dai Qin & Ma, 2019). Starbucks has formed a website to inform its stakeholders
about the preservation of the environment. Starbucks introduced disposable cups which are
biodegradable and sold those cups for 30 uses at $1 each (Martin, 2018).
Starbucks Contribution towards their Employees
The Starbucks Company treats its employees not as employees but s family, the
company’s motto “People first and profit last”. The meaning of its motto is that the employees

should get the best possible and a safe environment for work and all other recreation and
facilities to enhance the work culture. This has been the policy of the company from the day of
its initiation, this policy of the company had helped it to gain the rank 73rd out of the top 100
companies. It has also gained the title of “World’s most ethical company”. (Percy, 2016). Apart
from safe and extremely friendly work culture the company provides rewards in the form of
stock options and employee vacation program and various health benefits to the employees who
work for the company and family.
Starbucks- Consumer Satisfaction Strategy
Starbucks employs one of the most innovative and consumer friendly strategy at its stores
around the globe. Consumers are welcome to stay in stores as long as they want and can even
work from there (Venkatesan, 2017). Thus this small strategy indirectly encourages the
consumers to purchase more and sit there for longer time do visit their store for another time.
One of the key factor for a successful business is consumer satisfaction. The success
behind Starbucks is the satisfaction of the consumers even though consumer pay exorbitant
prices. The utility derived even after paying such high prizes is high for the consumers and this
being one of the most successful corporate level strategy of Starbucks.
Expansion in the Global market
Starbucks formed in the yaer1971, started regional expansion in the United States of
America. During the start of new millennium Starbucks had expanded its business operations to
all the major developed economies of the world. The initial popularity of Starbucks was a bit
reduced and it was greatly impacted by the recession or the 2007-2008 credit crisis (Gupta,
Nagpal & Malik, 2018). The sales of Starbucks were plummeted downwards during the crisis
and lot of employees were laid off. The strategic implemented in the business recovered by

developing strategy at the corporate level to expand its operations to emerging market economies
in Asia and Africa.
As a matter of fact around 2720 stores were opened till date during the last two years.
Technological Expansion within Starbucks
With ever-increasing global world, the technological advances are taking over the
companies and brining immense advantages to the companies. Starbucks is quiet adamant when
it comes to using technology as it not only uses technology for its website purpose but also for
inbuilt integrations (Atwal & Williams, 2017). For example: It take technological advances in
developing new products, for communication of marketing messages and completing sale and as
well as monitoring the level of customer satisfaction. The most renowned value creation through
technology integration by Starbucks includes the lunch of Pay Feature and Mobile Order through
mobile applications. This advances allows the customers to buy from Starbucks without getting
into queue.
Product Portfolio Diversification Strategy
Starbucks in order to leverage its sales and to move forward against possible obstacles
Starbucks is expanding its product portfolio. The company is offering variety of products still it
is also observed that its competitors are not less than Starbucks therefore, Starbucks is in
continuous process of product development. The company is aiming at diversifying its product
portfolio in order to upgrade the customer experience.

Recommendations
Market-Penetration Strategy
This strategy indicates that the business should opt for aggressive expansion in the emerging
markets. When compared to other beverage companies Starbucks has not been established in
many countries and trying to compete with this challenge since long. The aggressive strategic
choice can be justified as Starbucks has strong competitive position which can be utilized in the
growing market.
Market Development strategy in China
Starbucks has already underpinned its business in China, but it is quite difficult to
influence the China consumer and market. In China, it is important to develop strategies which
can grab the attention of the consumers it is due to their culture and preferences (Qian & Xing,
2016). Therefore, in order to overcome this particular challenge Starbucks need to consolidate
partnership with Chin market. It is the best way to seek attention in the market and gain trust of
their consumer.
Conclusion
It is concluded from the above study that Starbucks being the leading player in coffee
industry has adapted and gained immense recognition through its strategies. Starbucks strategies
has built such corporate-level strategies which has taken the company among the top level of
beverage industry. Therefore, it shows how important it is for the companies to plan and
implement appropriate strategies in order to sustain in the market and gain growth and
productivity.

Reference
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