Starbucks
BADM 482 – Business Policy and Strategy STARBUCKS
Name: Chad Hodges
1. Which one of the 5 generic business strategies best matches Starbuck’s strategy? Why?
I believe that of the generic strategies the best match to Starbuck’s strategy is that of the rivalry within the industry. This is the best match because there are a lot of different types of specialty coffee shops out their in the industry so the rivalry amongst all the competitors is very fierce. Of the other coffee shops it will tough for them to match the price and popularity that Starbucks has on the rest of the competition. Other companies may be able to sell their coffee at a higher price but then the number of sales that they receive is going to be lower than that of Starbucks. The rivalry in the coffee shop market is very competitive but Starbucks has an advantage over the competition in the fact that it can charge a higher price then its competitors and still have more customers then the rest of the market.
2. Evaluate Starbuck’s social responsibility strategy. Is it sincere or just something to help with image?
I believe that the social responsibility of Starbucks is sincere and not just something to help promote their image. They want to make sure that the prices that they have paid for the coffee beans is high enough that the small farmers were able to cover all their productions cost as well as provide for their families. Starbucks also wants to work directly with small coffee growers, local coffee-growing cooperatives, and other types of coffee suppliers to promote coffee cultivation methods that protected biodiversity and were environmentally sustainable. Lastly Starbucks made purchasing arrangements that limited the exposure to sudden price jumps due to weather, economic, and political conditions in the growing countries where they were getting their coffee beans.
3. What major issues face the company in mid 2010?
In the mid 2010 people were not
Name: Chad Hodges
1. Which one of the 5 generic business strategies best matches Starbuck’s strategy? Why?
I believe that of the generic strategies the best match to Starbuck’s strategy is that of the rivalry within the industry. This is the best match because there are a lot of different types of specialty coffee shops out their in the industry so the rivalry amongst all the competitors is very fierce. Of the other coffee shops it will tough for them to match the price and popularity that Starbucks has on the rest of the competition. Other companies may be able to sell their coffee at a higher price but then the number of sales that they receive is going to be lower than that of Starbucks. The rivalry in the coffee shop market is very competitive but Starbucks has an advantage over the competition in the fact that it can charge a higher price then its competitors and still have more customers then the rest of the market.
2. Evaluate Starbuck’s social responsibility strategy. Is it sincere or just something to help with image?
I believe that the social responsibility of Starbucks is sincere and not just something to help promote their image. They want to make sure that the prices that they have paid for the coffee beans is high enough that the small farmers were able to cover all their productions cost as well as provide for their families. Starbucks also wants to work directly with small coffee growers, local coffee-growing cooperatives, and other types of coffee suppliers to promote coffee cultivation methods that protected biodiversity and were environmentally sustainable. Lastly Starbucks made purchasing arrangements that limited the exposure to sudden price jumps due to weather, economic, and political conditions in the growing countries where they were getting their coffee beans.
3. What major issues face the company in mid 2010?
In the mid 2010 people were not