Foundations of Management

Executive Summary

Starbucks Coffee Company was founded in 1971 in Seattle, Washington State. . Starbucks, specializing in the sale of drinks and coffees, is present in the United States and in 39 countries through 13,000 sales outlets. The company is now the largest multinational chain of coffee shops. Starbucks aims to become the most recognized brand of coffee. In order to achieve long term growth, Starbucks is utilizing effective marketing strategies. Starbucks is facing a lot of competition from its competitors. Number of challenges has resulted from the continuous expansion of Starbucks. Initially, the most important business approach of Starbucks was customer connections. Starbucks also confronted several challenges when operating in foreign markets. Originally the principle of Starbucks is to provide its customers with high quality coffee.

Executive Summaryii

Introduction1

SWOT Analysis2

Competition for Starbucks3

Challenges in Foreign Market4

Strategies of Starbucks6

Conclusion9

References10

Foundation of Management

Introduction

Globalization is the global expansion of the market economy, the predominance of the market economy based on competition and profit, extended to any type of production and exchange of goods and services. To illustrate the phenomenon of globalization, we have chosen to focus on the Starbucks. The company is now the largest multinational chain of coffee shops. This company, founded in 1971, has shown a very significant expansion and rapid gradually opening stores in many countries around the world. It is become a symbol of globalization. Starbucks, specializing in the sale of drinks and coffees, is present in the United States and in 39 countries through 13,000 sales outlets (Datamonitor, 2011).

Starbucks Coffee Company was founded in 1971 in Seattle, Washington State. the origin of this adventure started when the three entrepreneurs joined Jerry Baldwin, Professor English, Zev Siegel, professor of history and Gordon Bowker, writer. The three partners starting a business specializing in the manufacture and marketing of coffee beans of high quality as well as the sale of coffee machines.

Starbucks customer is much younger and more feminine than in cafes traditional. It is a modern and mobile customers aged between 25 and 55 years. These clients can come to a coffee break in these stores rather simple and functional. Starbucks Coffee Company is now among the coffee retailer giants. The company has as many as 10,000 coffee shops in more than thirty countries. Starbucks aims to become the most recognized brand of coffee. In order to achieve long term growth, Starbucks is utilizing effective marketing strategies. Currently, the company is relying on retail expansion along with the product and service innovation to achieve growth and success. In order to implement these strategies, Starbucks has opened new stores in both existing and new markets.

The business of gourmet coffee is at its peak. A number of players have entered into this market ranging from multinational chains to road side cafes. Specialty coffee in the United States is the fastest growing business. The credit of Starbucks' success goes to the projection of its stores. The stores of Starbucks coffee offer customers a venue where they can ...