Essay Preview: Starbucks Analysis
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II. Starbucks Mission Statement
Establish Starbucks as the premier purveyor of the finest coffee in the
world while maintaining our uncompromising principles as we grow. The
following six guiding principles will help us measure the
appropriateness of our decisions. Provide a great work environment and
treat each other with respect and dignity. Embrace diversity as an
essential component in the way we do business. Apply the highest
standards of excellence to the purchasing, roasting, and fresh delivery
of our coffee. Develop enthusiastically satisfied customers all of the
time. Contribute positively to our communities and our environment.
Recognize that profitability is essential to our future success.
III. Company’s goals and objectives
Starbucks had some very good and professional goals for their company
in the future. Not all goals were about dominating the market, but some
were to earn the respect of customers and stockholders. Shultz wanted
the company to become the most respected brand name in coffee and for
the company to be admired for its corporate responsibility. He spoke of
having a keystone value in the effort “to build a company with soul”.
That keystone value was that the company would never stop pursuing the
perfect cup of coffee. Shultz wanted Starbucks to be known as the best
place to buy specialty coffee that did not add any artificial flavoring
polluting their product. Along with earning the respect of customers,
Shultz also wanted to keep the respect and treat his employees with
care. He wanted to offer Health benefits and stock options to all
employees who worked 20 or more hours per week. Starbucks wanted to
become a national company with values and guiding principles that
employees could be proud of.
Earning the respect of customers and employees were not the only goals
of Starbucks, but like any other company, growth was also on the mind.
One of the first goals and dreams of Shultz was to setup Espresso bars
in all the stores like he had experienced in Italy. He felt that the
friendly and pleasurable environment would help the company grow and
make customers feel that coming to a Starbucks was a good time. Shultz
also had a plan to open 125 new stores outside the Pacific Northwest
and outside the United States in the next five years. He wanted to open
15 stores the first year and five more each additional year. To keep
the quality of coffee that Starbucks sold, Shultz felt that the store
should only be company-owned and not franchised out.
IV. Situation Analysis
-Strengths and weakness, opportunities and threats
Starbucks, like many other companies had some strengths and weaknesses.
One of the best strengths that a company can have is a CEO who is not
afraid to take a chance and try knew things. Before Shultz came over to
Starbucks the company did not have any plans of major growth or product
expansion. Companies should always have knowledge of what they are
selling and that is what Starbucks did. They knew everything that there
was to know about coffee and if they didn’t they would find out.
Starbucks always prepared all of their managers and employees by
sending them to training seminars and classes to learn how to roast the
perfect bean, brew the perfect cup and how to serve each customer
correctly. Starbucks believed in quality of its products and the
character and location of its stores.
Companies all have strengths, but they also have weaknesses to.
Weaknesses were very easy to see when the company was first put
together. Baldwin and Bowker were very narrow-minded and had no desire
to expand the company very far. The two were also afraid to try knew
things such as starting an Espresso bar and a sit in area where people
can sit around, talk and make new friends. Though after Shultz took
over the company, it seemed as though the weaknesses started to
dissolve and the opportunities began to grow. Shultz took advantage of
the opportunity to expand the company into new areas and markets.
Entering new markets brought forward the idea of creating new product
lines. They started by selling bakery goods
at the espresso bars and along with selling their beans, they began to
sell their Starbucks Barista home espresso machine. Opening the
Espresso bar also enabled them to sell the CD’s that the company played
while customers sat and drank. Partnering with Dreyer’s and Pepsi
enabled Starbucks to put their name on ice cream products