Comprehensive Analysis of Starbucks: Management and Marketing Mix

This report provides a detailed analysis of Starbucks, examining its management practices and marketing strategies. The report delves into the company's management structure, highlighting key functions such as planning, organizing, staffing, directing, and controlling. It also explores the various management practices employed by Starbucks, including engaging workers, rewarding efforts, staying committed, dividing work, ensuring unity of command, and promoting equity. Furthermore, the report investigates the marketing mix of Starbucks, focusing on the 7 Ps: product, price, promotion, place, packaging, positioning, and people. The report explains how Starbucks utilizes these elements to build its brand, attract customers, and achieve its business objectives, ultimately contributing to its success as a leading coffeehouse chain. The analysis also examines the characteristics of the marketing mix and its impact on the company's overall performance. This report is designed to provide a comprehensive overview of Starbucks' business strategies, making it a valuable resource for students studying business development and marketing.

Starbucks

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Management of Starbucks.......................................................................................................1
2. Marketing mix of “Starbucks”................................................................................................4
Conclusion ......................................................................................................................................7
REFERENCES................................................................................................................................9
Marketing mix. 2017[ONLINE] Available through:< https://economictimes.indiatimes.com ›
Definitions › Marketing>.................................................................................................................9

INTRODUCTION
Starbucks is an American Coffee hose chain and this company mainly sells the high
quality of whole coffee beans to the companies. The success of this organization is generally
depends on the management structure of the company. Proper application of various operation
management decisions have contributed towards the growth and sustainability of the firm. This
study will develop a complete understanding about the management strategies and various
operation methods of Starbucks. Also, the research will provide marketing mix elements of the
company that supports the firm into occupying the position as a leading coffeehouse chain in the
world (Adnyana and Darma, 2015).
1. Management of Starbucks.
Starbucks coffee company's business is success only through their proper and systematic
management because its creates highest level of effective and efficient practices in their
company and it also makes plan, coordinate and control the resources that they helps in
production and produce good services and goods. It main purpose is increase popularity of
Starbucks coffee's. Management department has different types of roles. Like planing,
organizing, staffing, directing and controlling in Starbucks coffee.
Management is the combination of different types of components of leadership of
Starbucks. Management of Starbucks always analysis of their employees work and then make
strategies about training and promotion because its helps in improve skills, efficiency,
performance of employees for increase quality and popularity of coffee. Its helps in increase
sales and profit. Management always evaluate of resources of organization and it makes strategy
for proper and optimum utilization of resources (Amanchukwu, Stanley and Ololube, 2015).
Functions of management:-
Planning – Starbucks management has main functions is planing. It means that
management make plan about future that its helps in make systematic and proper plan about
future work that how, when, what and where. Management of Starbucks make plan according to
present performance of organization its main purpose is increase sales and profit so it make
strategy that increase of quality and make better image of brand that beat competition. Because it
also evaluate while preparing plan that factors affect to organization internally and externally and
prevent and face to factors.
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Organizing – it is also a main function of management of Starbucks because they give
direction and flow to work for achieve predetermined goals of organization. It organize all thing
that include for production like raw material, labour, capital and tools. It also determine activities
that helps in achieve organizational goal. So for proper and effective organize of work in
organization they identifying task and give to group for coordinate them and give responsibility
so its also helps in reduce conflicts.
Staffing – management of Starbucks has also function of staffing it means that its hire
and recruit staff for meet objective so it main purpose is hire skilled and efficient staff that helps
in do work properly and effectively. It also includes training, developing, compensating and
evaluating of employees and then give reward and incentives for motivation of employees so all
these things helps in create confidence in employees and increase productivity and profitability
of Starbucks (Anderson, 2015).
Directing – it is majorly helps to Starbucks in develop and improve so that includes
leadership, communication and motivation to employees so management of Starbucks provide
direction to employees and working culture in very effective and efficient manner for achieve
goal of organization. Leadership means that provide instructions and guidance to employees,
communication must be openly flow in organization because its helps in share information easily
and motivation is necessary for employees these all things helps in increase sales and
productivity of Starbucks.
Controlling – management has also major function because its helps in work flow of
organization and it means that measure performance of employees and correct all things that
create obstacle in achieve organizational pre determined goals. These all above functions is inter
relate with each other.
Management practices is important for Starbucks because managers of organization use
different types of practices for improve and make effective system of work and prevent those
things that create obstacle in organization to meet objective. Management of Starbucks follow
different types of practices that help in motivate to employees and increase effective work in
organization. Practices includes like:-
Engage workers – management of Starbucks always find and plan about that how to
make employees care about organization goal and objective because existing employees not only
increase productivity of organization they also taking risk and responsibility for their
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performance and helps in adoption of new innovation and ideas for the company. So it focus on
existing workers of Starbucks (Bahadir, Bharadwaj and Srivastava, 2015).
Reward efforts – this practices is follows by management of Starbucks and it is also
helpful in motivate to employees and its feel valued. It main purpose is provide incentives and
reward according to their work in financial term and non financial term and its main objective
behind reward to employees is that they work hardly with their interest so it create quality of
coffee that improve sales of product and make profitability.
Stay committed – this practices helps in create and maintain stay committed. In means
that team's atmosphere make well and all employees works according to their management so its
helpful in prevent conflicts and disputes in organization and they clear to goals and objectives of
organization in mind of employees. So all do work according to their commit and its helpful in
achieve goals of Starbucks.
Division of work – management of Starbucks always focus on this practices and its main
purpose is that divide work to employees according to their ability and skills because every
worker has different types of skills and talent in different fields and work so management gives
work according to their ability so through this practice employees work with their interest and its
directly helpful in increase productivity and profitability.
Unity of command – management has main principle and employees of Starbucks get
one order from one manager and they also give answer to same manager. So its do work
efficiently if they receive task from more than one managers so create confusion and its create
conflicts between employees and through this principles responsibilities established more easily.
Equity - through this principle management treat to all employees as equal because if
equality is not present in Starbucks so its helps in motivate to employees and mangers has to also
guide and supervise to all employees as equal and employees feel belongingness with their
workplace and attract also.
Objective of management of Starbucks:-
Optimum utilization of resources – management of Starbucks has main objective is
optimum utilization of available resources and proper utilization of resources like human
resource, materials, machine and money and these all things helps in production and increase
sale and profit (Brooks, 2017).
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Growth and development of organization – management has also objective of growth
of Starbucks so for these things it makes proper planing and direction to employees for profitable
expansion of organizational business and its also create relationship between employers and
employees.
Discipline and morale – management of Starbucks maintain discipline in organization
because it helps in better work performance and also maintain better work culture. If discipline is
present in organization so worker only focus on goal and prevent conflicts.
Promotion and research – it also objective of management that research market time to
time about market condition, competition and customer taste and it also helpful in plan about
future uncertainties. Through this it also adopt latest technology that increase their productivity
according to their customer taste and provide product to customer for satisfied their needs.
Mobilising best talent – it has also aim of hire skilled and talented employees that they
do work efficiently and also make good environment that encourage people for join Starbucks.
For aquire best talent in organization management pay proper wages and future growth so people
attract and give benefit to organization.
2. Marketing mix of “Starbucks”
Marketing mix is a tools that use by marketers and its a set of actions that it useful in promote
their product and brand.
Overview: Starbucks use marketing mix elements for improve their all over productivity,
sales and profitability Starbucks uses its marketing mix as a way of developing the popularity
and brand image. This firm has created a strong image of the brand in the world which depicts
about its effective marketing mix strategies. This contributes towards successful growth and
development of this multinational business. However, this company generally changes its
strategies over time in order to respond about the strategic challenge in the market. Starbucks
corporation generally supports 7 P's in marketing mix which supports the firm as a leading
producer of coffee in the world. Managers of the company generally identifies the main
component of the marketing plan within the company. Such components are product, place,
promotion and price. It includes 7 P's in marketing mix like:-
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Product – Starbucks specially work for coffee and beverages. Its also provide different
types of product. Through this elements it focus on manufacture good product according to
customer choice and its taste and provide satisfaction and also focus on develop habit of coffee
and other beverage of Starbucks (Dadzie, 2017).
Price – price is also important elements because customer always prefer those product
that price is reasonable so Starbucks also focus on price of product if price is not reasonable and
fair of product so customer can replace their product from similar product with other brand. This
organization also raise their price when their profit receive not sufficient.
Promotion – its good elements that helps in increase sales of product and attract
customer. So through this elements they can improve their product and its sales. Starbucks use
many different types of promotion elements like advertising, promoting and selling. It helps that
if organization promote their product through attractive advertisement so customer knows about
product and then increase their sales.
Place – it is a forth P of marketing mix it is also very important that Starbucks sold their
product in those location where customer can meet with salesperson so its use mediator between
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Illustration 1: marketing mix
[Source : Marketing mix, 2017]

consumer and manufacturer like salesperson and telemarketing so salesperson visit all location
and place and interact with people for product and telemarketing includes mail and catalogs. And
Starbucks evaluate place then it promote their sales.
Packaging – its a fifth elements of marketing mix. Through this Starbucks sales their
product and large number and also attract customer in large number because it has good and
attractive packaging of their products. Because consumer first notice dress and groom of product
then they buy products so its very important for increase sales and profit o f organization
(Gómez, Martín‐Consuegra and Molina, 2015).
Positioning – it is necessary that position of product of Starbucks how to make positions
in customer heart and also evaluate that people thinking about product and what talking about
product. If Positioning of Starbucks better in markets so its helps in increase sales and profit of
organization.
People – it is last P of marketing mix and it means that develop habits of thinking about
products and its purpose that making strategy about pay attention to all people so its also helps in
attract people and met objectives as well as increase sale.
Therefore, these all elements helps in build customer base and Starbucks has loyal
customers so it helps in increase sales and profit of organization.
Characteristics of marketing mix :-
Marketing mix is crux of market – it is very important for take decision so its impact is
good when proper weightage on each element and its all elements work proper and effectively
when all combine together.
Make changes in the mix – marketing mix always helps in adopt changes in Starbucks
because customer is variable factor that fluctuate very frequently. So its helps in evaluation of
market time to time about customer taste, choice and market condition etc so it analyze market
and keep changes in their product to fulfill their needs and provide satisfaction to customers.
Concentrate on customers – all elements of marketing mix helps in concentrate to all
customers and evaluate all things that helps in changes in product of Starbucks and provide
maximum satisfaction to customers.
Importance of marketing mix :-
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Marketing mix is a technique that create right strategy of marketing and implement their
product and its also helps in improve product, manage price and provide product according to
needs of customer and satisfied their needs. Marketing is very important function of Starbucks
and all development is based on this function.
Exchange of goods – marketing is important for exchange, transaction and progress of
goods. Product are available to customers by intermediaries like wholesaler and retailer so
Starbucks has marketing department for supply their product because its positioning of coffee
product is very expand.
Increase in standard of living -through marketing, standard of living of people
increasing because marketing of Starbucks provide product to consumer continuously at
reasonable price so people use products with quality and increase their standard of living. In
modern time maximum people take tea and in present time people mostly use coffee so
Starbucks provide product according to wealthy, middle and poor so its helps in increase
standard of living (Monczka, 2015).
Increase employment – marketing is only function that consume more peoples. Because
its main work buying, selling and transporting. So it has also a lots of function that has needs of
large numbers of peoples so its helps in increasing employment.
Increase income and revenue – marketing is important in increase income and revenue
because its includes selling, transportation and buying of products and goods. So all these
activities helps in generate income and revenue.
Support for decision making – marketer face many difficulties during creation and
distribution of goods so it has knowledge about many thing and it also knows that how to handle
queries and take decision. It is very difficult process and direct link between manufacturer and
customer and it also do research of marketing so its can easily take decision.
Opening of new ideas – through marketing it has all type of knowledge and information
that it helps in develop new ideas because marketing research market and it evaluates about
customer choice and taste and then create new ideas and also give idea about new innovation that
helps in improve Starbucks product and increase sales (Voigt and Gould, 2016).
Conclusion
From above study it has been summarized that management is important for every
organization because it maintains and manage whole organization and make plan about future
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and it makes according to present working condition. Management also control, direct and
coordinate in organization. Its manage for establish good relationship between all employees of
organization and its main purpose is increase profit and productivity in organization. It also
covers that marketing mix elements and its helps in increase popularity and promotion of
product. Through this organization make strategy and proper supply of goods. Through all these
standardb of living increase of people and its also increase employment.
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REFERENCES
Books and Journals
Adnyana, R. and Darma, G.S. 2015. Strategi Marketing Mix, Yield Management, Customer
Satisfaction and Occupancy Rate. Jurnal Manajemen dan Bisnis. 12(1). pp.98-121.
Amanchukwu, R.N., Stanley, G.J. and Ololube, N.P. 2015. A review of leadership theories,
principles and styles and their relevance to educational management. Management.
5(1). pp.6-14.
Anderson, D.R. et.al., 2015. An introduction to management science: quantitative approaches to
decision making. Cengage learning.
Bahadir, S.C., Bharadwaj, S.G. and Srivastava, R.K. 2015. Marketing mix and brand sales in
global markets: Examining the contingent role of country-market
characteristics. Journal of International Business Studies. 46(5). pp.596-619.
Brooks, S. et.al., 2017. An introduction to privacy engineering and risk management in federal
systems. US Department of Commerce, National Institute of Standards and Technology.
Dadzie, K.Q. et.al., 2017. How firms implement marketing strategies in emerging markets: An
empirical assessment of the 4a marketing mix framework. Journal of Marketing Theory
and Practice. 25(3). pp.234-256.
Gómez, M., Martín‐Consuegra, D. and Molina, A. 2015. The importance of packaging in
purchase and usage behaviour. International Journal of Consumer Studies. 39(3).
pp.203-211.
Monczka, R.M. et.al., 2015. Purchasing and supply chain management. Cengage Learning.
Voigt, A.W. and Gould, H.J. 2016. Chronic daily headache: mechanisms and principles of
management. Current pain and headache reports. 20(2). p.10.
Online
Marketing mix. 2017[ONLINE] Available through:< https://economictimes.indiatimes.com ›
Definitions › Marketing>
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