Starbucks: the Future of Coffee.
Introduction
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.
Key Stakeholders and Value Chain
There are several stakeholders in the coffee industry and Starbucks value chain. First, Starbucks is a public company and must exist to maximize the wealth of shareholders. In order to accomplish the maximization of wealth for shareholders, Starbucks must endeavor to support other key stakeholders including customers, suppliers, coffee producers, employees, and the environment. Combined, all of these stakeholders hold the fundamental key to Starbucks success.
Key Issues
Starbucks’ largest issue is how to profitably develop retail locations and operations in the global economy. Currently 85 percent of retail sales occur in the United States. In order to reach the goal of global coffee domination, Starbucks must focus on creating a similar brand image in other countries as they have developed in the United States. Branding is the most important issue in controlling Starbucks future and is both the foundation and capstone of all other strategic challenges and opportunities. It is the Starbucks image that allows coffee to be sold at premium prices and creates greater profitability throughout the Starbucks supply chain. Analysis
Quality, customer service, environment, packaging,
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.
Key Stakeholders and Value Chain
There are several stakeholders in the coffee industry and Starbucks value chain. First, Starbucks is a public company and must exist to maximize the wealth of shareholders. In order to accomplish the maximization of wealth for shareholders, Starbucks must endeavor to support other key stakeholders including customers, suppliers, coffee producers, employees, and the environment. Combined, all of these stakeholders hold the fundamental key to Starbucks success.
Key Issues
Starbucks’ largest issue is how to profitably develop retail locations and operations in the global economy. Currently 85 percent of retail sales occur in the United States. In order to reach the goal of global coffee domination, Starbucks must focus on creating a similar brand image in other countries as they have developed in the United States. Branding is the most important issue in controlling Starbucks future and is both the foundation and capstone of all other strategic challenges and opportunities. It is the Starbucks image that allows coffee to be sold at premium prices and creates greater profitability throughout the Starbucks supply chain. Analysis
Quality, customer service, environment, packaging,
References: SEC Annual Report. (2005). Form 10-K/A for STARBUCKS CORP. Retrieved on Friday, July 08, 2005 from http://biz.yahoo.com/e/050218/sbux10-k_a.html.