PRINCIPLES OF MANAGEMENT

Prepared By:

PAYAL ACHHRA (02)

PUJA HIRANI (13)

DHARTI PARIKH (32)
NIDHI PARIKH (33)
 To become a national company with
values and guiding principles that
employees could be proud of.
The owner – Howard Schultz indicated that he
wanted to include people in the decision-making
process and that he would be open and honest
with them.
The employees treating one another with
dignity enjoying diversity in the work place,
reflecting the local community, having high
standards’ for coffee, being the good member
of the community and being of course,
profitable. That it led not only to domestic,
but also international expansion.
Starbucks to become the most respected
brand name in coffee and for the
company to be admired for its corporate
responsibility. Its aim was “ to build a
company with soul”.
 Starbucks – the coffee shop a privately held
company has attain its annualized growth of
25% since 1993.
 They have been Starbucks - Here is some
information about Starbucks that you might
not know.
 successful in having 25,000 stores in various
locations and their long-term growth
planned is 30,000 stores all over the world.
 The recent survey says that there are 5
new stores opening every day.
 They currently serve 40 million customers
a week.
 They are taking good care of its
employees by providing health insurance
not only to its full time employees, but
also for those working 20 hours or more.
 They have reached up to $6.3 billion in
annual sales.
 Their sales per square foot is much higher
than McDonalds.
 FACED BY COMPANIES AND THEIR
EMPLOYEES:

 Problem :Lack of unity and morale of

employees
Solution :Build a new relationship of mutual
respect between employees and management.
 Problem : lacking in experienced management
and knowledgeable employees.
 Solution : he employed experienced
personnel.
 Problem : In Chicago dark-roasted coffee was
rejected by customers and both rents of
warehouse and wage rates were become
expensive.
Solution : For this, more
experienced store managers
were hired for balancing
expenses and a critical
mass of customers caught
on to the taste of Starbucks
products.
 Long Queue :
 Coffee was weak and feeble :

 Atmosphere :
(1) Why was Starbucks so successful ?
Ans : They are successful because they are
everywhere - in every major cities corners
and have a "store" in small towns, rural or
otherwise. They set their prices, and the
public paid without any hesitation. They not
only provide a friendly environment for its
customers but also for it employees providing
friendly service. In short, their way towards
the journey of success was due to their
Quality, Consistency, and Ubiquity.
(2) How does Starbucks differ from other
coffee houses?
Ans : As their aim was “to builds a
company with soul”. This meant that
employees had to listen carefully to what
customer wants and meet their expectations.
Also, as a large company, they have been
able to do extensive market research and
marketing--much more so than most coffee
houses.
(3) How could the company attract non –
coffee drinkers?
Ans : Coffee - houses are in the business of
selling coffee. At times, however, customers
may be looking for the atmosphere a coffee
house can offer, but not the caffeine. Besides
offering caffeinated and decaffeinated
beverages a great variety of speciality coffees
as well as teas are offered. Customers can also
get juices, pastries, coffee mugs, coffee making
equipments and even CDs.
(4) What other challenges may Starbucks
encounter in the future?
Ans : As competition has tremendous increase,
many companies may come up with new ideas for
drinks and opening into new markets throughout
the world ... any business that stays stagnate
eventually will fall behind to competition .. also
with the economic situation around the world they
may need to find a way to lower prices or many
people might switched to substitutes for starbucks,
like home made coffee or cheaper coffee where
they can find it .
 
 
A poor economy that leads consumers to
trim their expenditures for non-essentials.
 New entrants saturating the market. Existing
retailers, such as McDonald's, adding specialty
coffees to their offerings.
 If coffee bean prices continue to rise an
inability to raise prices would pressure the
profit margin.
 Changing consumer tastes moving away from
coffee based drinks.