Preview

Starbucks' Mission & Strategic Choices

Powerful Essays
Open Document
Open Document
5809 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks' Mission & Strategic Choices
Starbucks ' Mission and Strategic Choices: Are They in Alignment?

Executive Summary This paper examines strategic management, which encompasses business decisions and actions that: define the organization 's mission and objectives, determine the most effective utilization of organizational resources, select best courses of action to meet its mission, and seek to assure the effectiveness of the organization within the environment. This case study evaluates the strategic management process, and applies those concepts to a practical case study of Starbuck’s mission statement. This case study is presented in the format of a formal business report – prepared by a consultant and presented to the Starbucks ' Board of Directors and CEO – that provides an analysis of Starbucks ' mission and strategic choices, and a summary of the alignment of those strategies to its mission. This report is based on a critical review of the Starbuck mission statement, goals, and objectives, which is then compared against the strategic choices that Starbucks has made (e.g., product differentiation, research and development, operations) to determine how well Starbuck’s strategic choices are aligned to the company’s mission and vision. Finally, this study answers the question: Will the company continue its past success?

Randy Tanner, 2009
Starbucks ' Mission and Strategic Choices: Are They in Alignment?

Cover Sheet:
Starbucks Corp. 2401 Utah Avenue South Seattle, WA 98134 Phone: 206-447-1575 Fax: 206-682-7570 Web Site: http://www.starbucks.com
Business Plan presented to: Howard Schultz, Chairman of the Board, President, CEO Starbucks Board of Directors
Prepared by: Randy S. Tanner
Statement of Purpose: Analysis of Starbucks ' Mission and Strategic Choices: Are They in Alignment?

Table of Contents
Executive Summary 4
Background 4
Company



References: Adamy, J. & Wingfield, N. (2009). Starbucks brews new strategies to fight slump. Wall Street Journal (Europe), p. 4. Retrieved July 11, 2009, from ProQuest Newsstand. (Document ID: 1662578621). Analoui, F. and Karami, A. (2002). CEOs and development of the meaningful mission statement. Corporate Governance, 2(3), 13-20. Retrieved August 31, 2009, from ABI/INFORM Global database. (Document ID: 181714601). Bushman, M. (2007). The major elements of the strategic management process. Associated Content website. Business and Finance. Retrieved August 31, 2009 from http://www.associatedcontent.com/article/196677/the_major_elements_of_the_strategic.html. Business Wire (2006). Starbucks Coffee Company Outlines Core Strategies to Continue Delivering Long-Term Shareholder... Retrieved August 27, 2009 from http://www.allbusiness.com/services/business-services/3918047-1.html. Factsheet (2009). Starbucks website – About Us. Retrieved August 22, 2009 from http://www.starbucks.com/aboutus/Company_Factsheet.pdf. Germain, R. and Cooper, M. (1990). How a customer mission statement affects company performance. Industrial Marketing Management, 19(1), 47. Retrieved August 31, 2009, from ABI/INFORM Global. (Document ID: 1129254). Hattery, E. (2009). Wikinvest website. Starbucks Corporation. Retrieved September 1, 2009 from http://www.wikinvest.com/stock/Starbucks_(SBUX) Holmes, S., Bennett, D., Carlisle, K., and Dawson, C Marketing Teacher (2007). SWOT Analysis Starbucks. Retrieved September 24, 2009 from http://www.marketingteacher.com/SWOT/starbucks_swot.htm. Nimetz, J. (2009). The Five P 's of Marketing: Do they apply to SEM? Retrieved August 27, 2009 from http://www.searchengineguide.com/jody-nimetz/the-five-ps-of.php. Ogg, J. (2009). Starbucks Snags S&P Upgrade (SBUX). 24/7 Wall Street website. Retrieved September 1, 2009 from http://247wallst.com/2009/08/28/starbucks-snags-sp-upgrade-sbux/. Reuters (2009). Officers and Directors for Starbucks Corporation. Retrieved August 27, 2009 from http://www.reuters.com/finance/stocks/companyOfficers?symbol=SBUX.O. Starbucks Corporation (2009). Google Finance. Retrieved August 11, 2009 from http://www.google.com/finance?q=NASDAQ%3ASBUX. Starbucks Financial Releases (2009). Starbucks posts strong third quarter fiscal 2009 results. Starbucks website - About Us. Retrieved September 1, 2009 from http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-newsArticle&ID=1309655&highlight=. Starbucks Newsroom (2009). Starbucks details strategy for profitable growth. Retrieved August 27, 2009 from http://news.starbucks.com/article_display.cfm?article_id=184. The Company (2009). Corporate website – About Us. Retrieved August 22, 2009 from http://www.starbucks.com/aboutus/overview.asp. Vote For Us (n.d.). Starbucks marketing strategy unconventionally effective. Retrieved August 27, 2009 from http://www.voteforus.com/starbucksmarketingstrategy.html. Wikipedia (2009). Business Model. Retrieved August 28, 2009 from http://en.wikipedia.org/wiki/Business_model. ----------------------- [1] The shopkeeper model involves “setting up a store in a location where potential customers are likely to be and displaying a product or service.” (Wikipedia, 2009) [4] Burritt, C (2007). McDonald 's challenging Starbucks with cheaper coffee drinks. Available at http://www.seattlepi.com/business/331318_coffeechallenge12.html.

You May Also Find These Documents Helpful

  • Best Essays

    * Robert Gibson. (2007). Starbucks Corporation: How to Improve the Current Marketing Strategy. Available: www.plu.edu. Last accessed 29 September 2011.…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Satisfactory Essays

    In my opinion I don't believe that the resources that Starbucks uses to provide their funds have changed in the past 3 years. As I stated previously Starbucks uses both internal and external funding sources. With this particular organization I feel that the use of both external and internal forces is something that they heavily rely upon. The internal sources are something that can have a huge impact on the company as a whole is there was a shift. The state of the economy particularly consumer spending can pose a huge threat to Starbucks'…

    • 396 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    BA 440 Starbucks SWOT

    • 870 Words
    • 3 Pages

    Starbucks employs over 149,000 workers and brought in a profit of $1.38 billion in 2012 (www.strategicmanagementinsight.com). The company is a household name that has been featured in television and movies and a brand that is sought after by countless celebrities. Although the company is the top retailer of coffee in the United States, Starbucks has shown a trend in sales since early 2009 that allude to the fall of the “great coffeehouse empire”. Because of this troubling news, executives at Starbucks have began to look deeper into the strengths and weakness of the organization and have tried to build courses of action that will help propel the chain back to the top of their market.…

    • 870 Words
    • 3 Pages
    Good Essays
  • Better Essays

    For this segment of the analysis Team A will explain the strategic planning Starbucks has implemented to fulfill their initiative of expanding their “food portfolio” by expanding into the self-serve market, such as Keuring or K-Cup. To do this the team analyzed the financial records of Starbuck for the two previous years. This examination will help individuals new to finance understand how the strategically placement, handling, and discernments of finances provides the stability to move forward with this particular initiative.…

    • 1351 Words
    • 6 Pages
    Better Essays
  • Best Essays

    Apa References Examples

    • 682 Words
    • 3 Pages

    Larson, R.C. (2008, April 17). Starbucks a Strategic Analysis: Past Decisions and Future Options. Brown University Economics Department…

    • 682 Words
    • 3 Pages
    Best Essays
  • Powerful Essays

    Coffee War Analysis

    • 3934 Words
    • 16 Pages

    "Specialty Coffee Industry Analysis (is Starbucks Still the King?)." HubPages. N.p., n.d. Web. 20 Oct. 2012. <http://meangreen.hubpages.com/hub/Specialty-coffee-industry-analysis>.…

    • 3934 Words
    • 16 Pages
    Powerful Essays
  • Best Essays

    Tui Mkt 501 Module 1 Slp

    • 2251 Words
    • 10 Pages

    This Module 1 SLP will be the first part of an in-depth market analysis. The company I have chosen is Starbucks Coffee Company. The first Starbucks opened in 1971 at Pike Place market in Seattle, WA. Eleven years later, Howard Schultz was hired by the company to be the director of retail operations and marketing. The first Starbucks with the current coffee house look and feel was opened in 1984 in downtown Seattle. The Starbucks headquarters is still located in Seattle, WA. Currently, Starbucks is relying on retail expansion, product innovation, and service innovation to achieve this long-term goal once set by current chairman Howard Schultz: “The idea was to create a chain of coffeehouses that would become America’s “third place.” At the time, most Americans had two places in their lives – home and work. But I believed that people needed another place, a place where they could go to relax and enjoy others, or just be by themselves. I envisioned a place that would be separate from home or work, a place that would mean different things to different people.”…

    • 2251 Words
    • 10 Pages
    Best Essays
  • Good Essays

    In order for Starbucks to even understand growth, they will need to identify their weaknesses as well as implement different strategies to address the weaknesses that were identified. Starbucks needs to consider a value discipline, generic strategy, and grand strategy to remain competitive in today’s economy. The following paper will discuss strategies recommended as well as provide examples of how combining different strategies can increase their profitability and achieve growth.…

    • 855 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Starbuck's Strategy

    • 1931 Words
    • 8 Pages

    Ostdick, J. (2012). Rekindling the heart and soul of Starbucks. Success. Retrieved July 14, 2013…

    • 1931 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Starbucks Industry Case

    • 2421 Words
    • 10 Pages

    Besides these major competitors, Starbucks also faces the threat of consumer substitution for its products. Many coffee drinkers now use pods and home coffee makers for convenience reasons, which may hurt in-store purchase metrics. This poses a big issue because the company’s global growth relies heavily upon increasing in-store sales. Substitutes for Starbucks products also include teas, juices, and energy drinks, while bars and other local coffee shops may provide something similar to the “Starbucks Experience.”…

    • 2421 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Starbucks Strategy

    • 940 Words
    • 4 Pages

    Starbucks’ CEO Howard Shultz had a unique vision to bring the traditional coffee bars of Europe back to the United States after visiting Italy. This today has become a stable in American culture where Starbucks has become more than just a coffee shop but a meeting place for business professionals. Starbucks is even more a part of many individual’s daily routine as a neighborhood meeting place for friends and family to chat and enjoy an inviting atmosphere. This strategic business has embedded remarkable professional ingredients to achieve longevity in a competitive market and culture. Starbucks’ business strategies consist of key elements of organizational culture, innovative consumer relations, and strong effective management competencies to ensure its growth and longevity in its market.…

    • 940 Words
    • 4 Pages
    Better Essays
  • Better Essays

    During the past three years Starbucks has experienced yearly revenue growth approaching one billion. We have maintained a clear and concise mission, “to establish Starbucks as the most recognized and respected brand in the world” (SEC Annual Report, 2005). In addition, we have developed an aggressive strategy that leverages core competencies with a working business model and growth plan to accomplish our mission. However, in order to continue to maintain our growth indefinitely, we must continually evaluate our strengths, weaknesses, opportunities, and threats (SWOT) to ensure that our business model and strategies are robust and can sustain future growth in a constantly changing competitive environment.…

    • 2148 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    Starbucks is one of the largest most recognizable names in the coffee industry known worldwide. Starbucks has been able to hold onto their business making revenue in these current rough economic times. Even though they have had to shut down some stores it is nothing new than what any other company does when stores are not brining in the revenue that is expected to cover expenses of the business. To see what kind of impact the decisions that Starbucks has made and to see if they have helped the company at all, there will be several financial statements that will be looked over as well as policies to determine if Starbucks is doing good with their financials.…

    • 1595 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    STARBUCKS COFFEE CORPORATION: Introduction The aim of this report is to submit a structured analysis of the company using various analytical tools. The analysis will then provide the basis for formulating a conclusion and offering my recommendations.…

    • 2069 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Starbucks enjoyed positive results in 2013 and early 2014, based on strong momentum in the US and organic growth in major emerging markets. The company continues to explore diversification into new categories including tea, bakery goods, and even dairy products, on a path towards becoming a global consumer brand rather than solely a coffee purveyor. Moving forward, Starbucks is looking to new markets in Latin America, strengthening its position in Western Europe and renewing its focus on China.…

    • 8353 Words
    • 61 Pages
    Powerful Essays

Related Topics