SAVING STARBUCK' SOUL

Saving Starbuck' Soul

Saving Starbuck'Soul

Introduction

Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries worldwide. The company operates primarily in the US. It is headquartered in Seattle, Washington and employs about 150,000 people. Top management believes in involvement in the activities of the corporation and employees enjoy unsurpassed benefits in the industry. Schultz strongly believes that Employee satisfaction is directly related to customer satisfaction.

Situational Analysis

In regards to the coffee bean market, although it has endured much criticism for its purported monopoly on the global coffee-bean market, Starbucks only accounts for roughly two percent of global coffee production. According to Starbucks, they purchased 4.8 million pounds of Certified Fair Trade coffee in fiscal year 2004 and 11.5 million pounds in 2005. They have become the largest buyer of Certified Fair Trade coffee in North America, 10% of the global market, and the only company licensed to sell Certified Fair Trade coffee in 23 countries (Helm, Burt, 2007).

SWOT Analysis

Strengths

Starbucks Corporation is a very profitable organization, earning in excess of $700 million in 2006. It is a global coffee brand built upon a reputation for fine products and services. Due to its specialization in all things coffee, it achieves high buying volumes, and utilizes international sourcing, some from fair trade suppliers. It has almost 9000 cafes in almost 40 countries. Starbucks was one of the Fortune Top 100 Companies to Work For in 2007, ranked at number 16 (Helm, Burt, 2007). The company is a respected employer that values its workforce.

Weaknesses

Starbucks has a reputation ...