Starbucks’ Strategy And Internal Initiatives To Return To Profitable Growth.docx 6v2w6l

STARBUCKS CORPORATION Starbucks Corporation is an international coffeehouse chain that started in Seattle, Washington, United States, and is not the largest coffeehouse company in the world with a total of approximately 17,000 branches in 49 countries, including 11,000 in the United States, 1,000 in Canada and more than 800 in Japan. Starbucks’ sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. . Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks’ Italian style coffee, espresso beverages, teas, pastries and confections had made Starbucks one of the greatest retailing stories of recent history and world’s biggest specialty coffee chain. PRE-SCHULTZ ERA Starbucks Coffee started in 1971 when three academic-inclined, coffee aficionados opened Starbucks Coffee Tea and Spice in Seattle. These said aficionados were motivated to sell coffee beans and coffee-making equipment of the highest quality. What Starbucks offered at that time was coffee beans that have yet to be brewed; different from the Starbucks we know today which serves already prepared coffee beverages. However, from time to time they would offer tasting samples. Howard Schultz, the vice president of U.S. operations for Swedish Maker of stylish kitchen equipment and coffeemakers decided to give Starbucks a try, which made him hooked to Starbucks’ coffee, enticing him to subsequently want to the company. SCHULTZ-ERA Schultz, being an official employee of the Starbucks corporation, while being sent to an international house ware show, was able to discover numerous espresso bars which he brought to Starbucks founders as an idea. Said idea was turned down but after about a year of convincing the founders, they finally allowed it. . In April 1984, the first espresso bar was opened and it was a successful too. Yet

Baldwin felt something is wrong. After Schultz failed to convince Baldwin for the expansion of business, he left Starbucks in 1985. Schultz started the “Il Giornale” coffee bar chain in 1985 and the coffeehouse was very successful. In 1987 Starbucks owner Jerry Baldwin and Bowker decide to sell the whole Starbucks chain to Schultz's Il Giornale, which rebranded the Il Giornale outlets as Starbucks and quickly began to expand. Starbucks opened it’s first locations outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois, that same year.

Vision Statement “To establish Starbucks as the most recognized and respected brand in the world and become a national company with values and guiding principles that employee could be proud of.“ Clearly describes the dream or the future of the company that is to be the worlds most well known coffeehouse and also to be the most appreciated and positively graded brand by all levels of people around the world. The company also focuses its vision to employee satisfactions, so that the employees will be happy. Objectives of Starbucks 1. To grow by making employees feel valued a. Starbucks approach the employee with good compensation and comprehensive benefits package. The company beliefs that sharing the company’s success with the people who made happen will help them think and acts like an owner of the company. 2. To Recognize that every dollar earned es through employees’ hands

a. Starbucks will always appreciate the employee as the revenue which is increasing every year is by the efficient and hardworking employees. This drastic increase in profit is not recognized without the of the employees who attracts the customers to a long term relationships with the coffeehouse. 3. Use the pays, benefits and opportunities for personal development to help gain employee loyalty and become difficult to imitate. a. Paying scale and fringe benefit package allowed it to attract motivated people with above average skills and good work habits and also to make the employee to be loyal with Starbucks.

Mission Statement “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” The six principles are: 1. Provide a great work environment and treat each other with respect and dignity. 2. Embrace diversity as an essential component in the way we do business. 3. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. 4. Develop enthusiastically satisfied customers all of the time 5. Contribute positively to our communities and our environment 6. Recognize that profitability is essential to our future success Analyzing the Mission Statement Component Starbucks mission statement is needed to be analyzed to see the total number of mission component it has.

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COMPONENT

YES/NO

1.

Customers

Yes

2.

Products or services

Yes

3.

Markets

Yes

4.

Technology

No

5.

Concern for survival, profitability and growth

Yes

6.

Philosophy

Yes

7.

Self-Concept

Yes

8.

Concern for public image

Yes

9.

Concern for employees

No

This is a good mission statement. This mission statement lacks of 2 components: Technology and Concern for employees. The company must evaluate whether it is technologically advanced and even though the company’s vision is concern to employee, it still have to add it in mission statement.