Case Study 1 Starbucks
Business Strategy – MGMT 420
Case Study #1 - Starbucks Closing Case
Irine Ram – January 31, 2015
1. What functional strategies at Starbuck’s help the company to achieve superior financial performance?
Internal production strategy by selling the company its own premium roasted coffee, along with freshly brewed espresso style coffee beverages, a variety of coffee pastries, tea and other products in a coffeehouse setting.
Human Resources strategy by focusing on providing superior customer services in stores which involved teaching employees service oriented values of the company, motivating and developing hiring and training programs that were best in the restaurant industry. Providing employees including part-time works benefit / compensation packages that includes stock option grants and medical.
Sophisticated location strategy by analyzing demographics to identify the best locations for Starbuck’s stores. The company expanded rapidly to capture as many premium locations as possible before imitators, in some instance they even located stores on opposite corners of the same busy street so that it could capture traffic going both directions down the same street.
Value proposition strategy by focusing on a brand strategy that was comprised of three components. This strategy was best captured by the phrase “live coffee.” This phrase reflected the importance of keeping the national coffee culture alive. From a retail perspective, this meant creating an experience that people would want to incorporate into their everyday lives. First of the three components to the branding strategy was simply the coffee. Starbucks offered the highest-quality coffee in the world and controlled much of the supply chain as possible to help insure that. Starbucks worked directly with growers to purchase green coffee beans, it oversaw the custom-roasting process, and it controlled distribution to retail stores around the world. The second brand component was service, or what
Case Study #1 - Starbucks Closing Case
Irine Ram – January 31, 2015
1. What functional strategies at Starbuck’s help the company to achieve superior financial performance?
Internal production strategy by selling the company its own premium roasted coffee, along with freshly brewed espresso style coffee beverages, a variety of coffee pastries, tea and other products in a coffeehouse setting.
Human Resources strategy by focusing on providing superior customer services in stores which involved teaching employees service oriented values of the company, motivating and developing hiring and training programs that were best in the restaurant industry. Providing employees including part-time works benefit / compensation packages that includes stock option grants and medical.
Sophisticated location strategy by analyzing demographics to identify the best locations for Starbuck’s stores. The company expanded rapidly to capture as many premium locations as possible before imitators, in some instance they even located stores on opposite corners of the same busy street so that it could capture traffic going both directions down the same street.
Value proposition strategy by focusing on a brand strategy that was comprised of three components. This strategy was best captured by the phrase “live coffee.” This phrase reflected the importance of keeping the national coffee culture alive. From a retail perspective, this meant creating an experience that people would want to incorporate into their everyday lives. First of the three components to the branding strategy was simply the coffee. Starbucks offered the highest-quality coffee in the world and controlled much of the supply chain as possible to help insure that. Starbucks worked directly with growers to purchase green coffee beans, it oversaw the custom-roasting process, and it controlled distribution to retail stores around the world. The second brand component was service, or what