Starbucks Contemporary Business
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[pic 1]LBU BA ACCOUNTING AND FINANCEModule Title: Contemporary in BusinessName : Nur Kartina Ozman Vicky Lee Wai KheyStudent ID : 1128433 1132452Class : Contemporary in BusinessModule Leader : Dr. AffendyAssignment Title : Starbucks CompanyAssignment Number : Group Assignment Submission date : 6th December 2016Words : 3,092 wordsBACKGROUND[pic 2]Story began 1971. Starbucks had s single store in Settle’s Pike Place Markets and they were a roaster and retailer at whole bean and ground coffee, tea and spicy. Starbucks had been providing some of the world’s finest fresh wasted whole bean coffee. The name was inspired by Moby Dick, evoked the romance of the high seas and enjoying traditions of the early coffee traders. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) have tried his coffee for the first time. Howard was interested and joined a year later. A year later, he had trained by Italian coffee bars and the romance of the coffee experience. Howard planned to bring Italy coffeehouse to United State to make the place full of conservations and a sense of community and love. Howard took a step back from Starbucks for a short time and built his own coffeehouse and return in August 1987 to purchase Starbucks with the help of local investors. In the first place, Starbucks is not only selling a cup of coffee for customer but they are actually made people to have connection to each other. Today, more than 17,600 stores in 60 countries. Starbucks is one of the focus store and retailers of specialty coffee in the world.OBJECTIVE Starbucks objective is to “maintain Starbucks is standing as one of the most recognized and respected brands in the world”. The plan is to achieve the respect and to be recognized through the use of ethnical and environment relationship. Therefore, the consumer would know that Starbucks is not one of the companies that only focus on profit but they also focusing on ethical and environment relationships. So, consumer will buy more with Starbucks. MISSIONSStarbucks mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.[pic 3]VISIONSStarbucks’s vision is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” This vision statement has the following components relevant to Starbucks:Premier purveyanceFinest coffee in the worldUncompromising principlesGrowthBeing premier purveyance means Starbucks Coffee wants to achieve one of the most important which is leadership in retailer of Coffee Beans. Starbucks is already one of the premier retailer and sourcing the finest coffee beans in the world. These visions are including an ethical and environment relationships, therefore it maintains the connection with customers. Also, it satisfies the growth, Starbucks keep on growth by open a lot of outlets in 60 countries. Now, they have 17,600 outlets in total.
PRODUCTS AND SERVICES[pic 4] [pic 5] [pic 6]Asian Dolcee Lattee Iced Caramel Macchiato Apple & Egg White Sandwich[pic 7] [pic 8] [pic 9]Caffee Americano Mississippi Mud Muffin[pic 10] [pic 11] [pic 12]Starbucks® Signature Hot Chocolate Multigrain Zest ToastSITUATIONS ANALYSIS OF ENVIRONMENT FACTORS[pic 13]Strengths One of the major strength in this company is the Starbucks brands itself and the environment of the shop. This will make the young people or teenager is attractive. Most of them are students, so they can do homework, an assignment while enjoying their coffee. More, Starbuck has a very modern website which is a very good for user and easy to navigate. It will attract people especially students to their work by using an internet for information about good and services. The loyalty card is also can be strength to Starbuck’s company. It is because to encourage consumer to purchase more through a loyalty card. The Starbuck’s loyalty card represent 2 point for RM1.00, free birthday reward, pay by phone, order ahead by using phone, free in store refills and member events and offer. Those advantages will make the consumer attract to apply their loyalty card. Therefore, it automatically represents a loyalty customer. Lastly, the fact that Starbucks beans are ethically produced is a very strong advantage to the company as the consumers are really concern about ethical and corporate environment. A large scale survey on social responsibility by Nielsen, 2014 showed that 50% of the customer will choose to buy socially responsibilities brands. Moreover, Starbucks has been producing Starbuck’s bottle so those consumer would use their bottle instead of plastic cup. Weakness First of all, Starbucks has been receiving financing difficulties in recent years, even they have recorded a losses by Wilkes Group, 2012. It is very dangerous issue because it will effect in term of capacity to in developing a new product or expending more outlets. Is might be a result of poor performance of stock values which also can be reduced investment. Starbucks had a issued with tax avoidance scandal for recent years, when Starbucks actually avoiding to pay a corporations tax in the UK Bergein, 2012. It cause temporarily dented the company reputations. However, in the long term it does not appear to have affected the popularity of the firm with consumers still purchasing the stores.