Starbucks

Strategic Intent
• Vision: “To become a national company with values and guiding principles that
employees could be proud of.”
• Mission: “Establish Starbucks as the premier purveyor of the finest coffee in the
world while maintaining our uncompromising principles while we grow.”
• Business Definition: Specialty Eatery Industry
Fits within the largest segment of disposable income spending – food and
beverages,Steady growth in this segment in the 1990’s has led to an abundant
number of new companies,As demand for convenience has made eating out a
normal routine, the demand for specialty food services has increased in recent
years.
• Objectives: “To make Starbucks the most respected brand name in coffee and for
the company to be admired for its corporate responsibilities.To turn all Starbucks
employees into partners, give them a chance to share the success of the company.”
 Strategy Formulation

SWOT analysis
For Starbucks
Coffee
 Strategy Formulation

• Business and corporate level strategy:

-Market Expansion Strategy
-To make Starbucks a great place to work(ESOP)
-Starbuck’s store expansion strategy
-International Expansion
-Joint ventures
-Coffee purchasing strategy
-Starbuck’s CSR strategy
• Strategic Choice and Strategic planning:
To create a comfortable Third Place environment,To serve customer a
customized high-quality product,To achieve high level of profitability by
focusing on high-margin items while generating add-on sales,To minimize
overall expenses by focusing on controllable expenses.
 Strategic Implementation

• Resource Allocation:Resources focussed more on quality of the product

and employee rewards rather than on advertisments.Sponsors multimedia
promotions and wi-fi networks.
• Structural: Functional in structure and relatively flat, Corporate
organization is tall with four levels of management above store
management.
• Functional: Corporate headquarters exercises controls over individual
sites ,Total Quality Management is specifically built into their
processes,Utilizes a large amount of information technology (IT),Internal
controls for the store are determined by the manager based in part on
information provided by the IT system
 Strategic Evaluation

• Starbucks is able to sell in some respects emotions and experiences. This is

basically what every marketing try to realize and to measure. By providing
a unique atmosphere, the customers enjoy the time they spend in the stores.
The interior design and the smell of coffee are the most important aspects
that support the company’s store concept.
• Starbucks strategy comprises to locate its stores at special places such as
urban areas, the first floor of blocks of offices, and entrances of the
underground. These places, of course, get the more crowded the better the
economic situation is.
• For the convenience of the customer Starbucks has its stores in different
formats like kiosks,drive through windows etc.