COFFEE CASE STUDY

Coffee Case Study

Coffee Case Study

Introduction of the Starbucks Corporation

Starbucks Corporation is the ranked number one in the coffee retailer. Starbucks own about 9000 coffee shops in different countries. Starbucks president and CEO Mr. Howard Shultz, follow a philosophy that a company should value its employees so that employees will value its customer. Although the first Starbucks opened in 1971 it wasn't until the 1990s that the company became the iconic coffee symbol of America. Starbucks' popularity exploded alongside a changing generation of young Americans who were on the move and connected to the world-wide-web, while yearning for bigger and better, no matter the cost. This generation quickly became known as the “Starbucks Generation” and now, a decade later; it's spilling over into a thriving market such as China. Starbucks entered China in 1999 and has now made it their number one target for growth.

The future of Starbucks is heading towards expansion in the rest of the world. One possible way of expansion can be establishment of co-ops restaurants. The original idea of creating the Starbucks coffeehouse giant came from three men from Seattle in 1971.

Starbucks is not any coffee shop. The strategy of Starbucks is focused on the development of Human resource. According to the CEO of Starbucks, “We believe in hiring exceptional people who are willing to work for excellent results.” (Starbucks Annual Report, 2007). This commitment shows the development strategy of Starbucks. Starbucks wants to create social environment and improve human experience. Its vision is to make Starbucks, the favourite place for coffee, for everyone. Starbucks is committed to achieve customer satisfaction through employee satisfaction.

External (Macro) Environment of Starbucks Filter Coffee

The significane of economic indicators to the strategic planning process in any business is the ability to benchmark economic environments that add to enhance revenue percentage, business increase and market size. Because coffee consumption is habitual, the demand for coffee is inelastic. A slight increase in the price of a cup of Starbuck's coffee will not have any serious damaging effect on its demand therefore, significant growth is forecast in Starbucks in spite of increasing prices. The increase in productivity due to significant technological progress also is expected to boost Starbuck's performance. They continue to reengineer and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings.

The goal is build the most well known and demanding coffee in the globe and starbucks indeed has been successful for last many years because of its market share and prime location. It has various agreements and contracts with many retailers, hotels airlines to increase its own recognition. It uses license strategy to maintain quality and high standards in its operations. It is also honored as the place where people would love to chat and relax. They have the best online programs and customers from their homes select various types of coffee from their homes. It has excellent compensation and benefit management and employees are considered as the major stakeholders (Simon 2009, ...