Starbucks Corporation Case Study - DIT - Assingment

5696 words - 23 pages

Page 6
Starbucks Corporation: An Extensive Analysis
Muhammad Almuhanna
Andre Johnson-Payne
Jessica Pope
Natalie Schiefer
Jordan Sprague
Management 429 – Dr. Yu Liu
April 16, 2012
Table of Contents
Brief Introduction & Key Issues 3-4
External Analysis 4-5
Internal Analysis 5-7
Analysis of Business Level Strategy 7-8
Analysis of Corporate Level Strategy 9-11
Recommendations 11
References 12
Appendix 13
Brief Introduction & Key Issues
Starbucks opened their first location in Seattle, Washington in 1971. Since then, the company’s main focus has been to ethically source and roast the highest quality Arabica coffee beans in the world. The company’s mission is “to inspire and nurture the human spirit, one person, one cup and one neighborhood at a time.” They achieve this by having more than 17,000 locations around the globe and being the world’s largest premium specialty coffee retailer (Starbucks Corporation, 2012).
Starbucks was founded by three acquaintances: an English teacher, a history teacher, and a writer. The three were inspired by entrepreneur Alfred Peet, Dutch American entrepreneur and the founder of Peet's Coffee and Tea in Berkeley, California. The name Starbucks is taken from Moby Dick, after the name Pequod was rejected by one of the cofounders. Therefore, the company was named after the chief mate on the Pequod, Starbuck. Their logo is inspired by the sea featuring a twin tailed siren from Greek myths (Starbucks Corporation, 2012).
Today, Starbucks is the largest coffeehouse corporation in the world. From its start as a local coffee bean roaster and retailer, the business has flourished in just four decades. In the 1990s, Starbucks was opening at least one new store every business day, a growth rate that was sustained until the 2000s. Starbucks went global in 1996, opening their first store in Tokyo, Japan. Today, Starbucks’ international locations constitute for almost one third of their total stores. Of the firm’s 17,000 current outlets, 12,500 are in the United States. (Starbucks franchise success)
Starbucks Corporation offers a wide range of products to meet the demands of their different markets. They offer a variety of fresh brewed to ready-made bottled beverages for those on the go. For those who enjoy their coffee at home, they sell the Starbucks brand in packages. For those who wish to come in and enjoy the Starbucks atmosphere they offer a limited food menu along with their full drink menu. Starbucks is most known for their ability to specialize their drinks to meet the demands of their many different markets.
“Aside from extraordinary coffee, Starbucks has made a business out of human connections, community involvement and the celebration of cultures. We're committed to upholding a culture where diversity is valued and respected. So it's only natural that as a guiding principle, diversity is integral to everything we do.” Starbucks defines their culture as one simple equation, Diversity = Inclusion + Equit...

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