Aims and Objectives
Starbucks is an ever growing business organization. Since its inception in 1971 it has laid success stories of business (Herve, 2004). On the one hand it expanded its operations globally and on the other has portrayed the sustainability of business in the time of severe recessions and declining economy. Starbuck is a success story, and it tells the managers how to manage and expand the business. The aim and objective of this report is to analyze the corporate and business strategy of Starbucks and conclude for future managers and business how to be successful in dynamic environment. The other aim of this report is to have a look on current strategies of Starbucks with respect to theoretical background of adopted strategy (corporate and Business) and come up with implications of future for Starbucks.
Purpose of Report
The main purpose of this report is to gain an insight in the importance of strategic management for any business and in this particular case “Starbucks”. The other purpose is to identify how strategic management and proactive strategic choice and analysis help Starbucks to become an international brand.
In this report, the report will examine the future of coffee industry in the today’s world when people are facing inflation and declining economies all over the world. How the coffee industry and in this report Starbucks in particular, will sustain in today’s environment of business? The report will also examine how companies can expand themselves from local operations to international operations. What strategies those companies follow which operate globally?
The main reason for doing this analysis is to find out the revival of Starbucks, after its decline from 2006 to 2008, when the Starbucks has announced closure of 300 stores and cutting of 6700 jobs (BBC, 2009). In the year 2011, the Starbucks announced 500 of free shares to its employees in UK, although weather was bad in the previous quarter of operation. But it’s the strength of Starbucks that helped the company to mange this kind of extra favor to its employees (Clarke, 2010).
The report will also analyze the structure of business which Starbucks is currently adopting and currently operative strategies of Starbucks. The report by analyzing the strategic implications of Starbucks will present a guideline to new companies about their survival and expansion both locally and internationally. The business model of Starbucks is an example for managers and researcher to find the strengths behind successful local and international operations.
Back ground history and Core Competence