Aims and Objectives. Starbucks is an ever-growing business organization. Since its inception in 1971, it has laid success stories of business. On the one hand, it expanded its operations globally and on the other has portrayed the sustainability of the business in the time of severe recessions and a 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 are to analyze the corporate and business strategy of Starbucks and conclude for future managers and business how to be successful in a dynamic environment. The other aim of this report is to have a look on current strategies of Starbucks with respect to the theoretical background of the 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 into 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 the coffee industry in 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 that did 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 the closure of 300 stores and cutting of 6700 jobs. In the year 2011, Starbucks announced 500 of free shares to its employees in the UK, although weather was bad in the previous quarter of operation. But it’s the strength of Starbucks that helped the company to manage this kind of extra favor to its employees. 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. Background history and Core Competence It was in 1971 when an English teacher, a history teacher, and a writer, named Jerry Baldwin, Zev Siegel and Gordon Bowker respectively opened a shop “Starbucks Coffee, Tea and Spice” in Seattle, WA. It was at that time when three people invested 1350 US dollars each and borrowed a loan of 5000 US dollar from bank to start first Starbucks Store. The initial motive behind the store was a mission to provide the exclusive experience of coffee and tea with extra quality. The concept of ambiance which is still working behind every Starbucks store is given by the co-founders. The co-founders at the start deepened their knowledge of coffee and concentrated on the extraordinary experience of customers visiting their store. The initial success of Starbucks was because of cofounder’s insight into the coffee business and the perfect location of stores in Seattle. Schultz was ambitious in the expansion of stores, as by visiting several other coffee stores in the town he realized that any store can learn the art of good coffee making and the survival of Starbucks lies in the expansion. So here we can point out that. The initial strategy of Starbuck was expansion. In the September 1982 Starbucks stores were opened all across the country. The Starbucks success is deeply rooted in Schultz philosophy of expansion and developing a culture of Starbucks embedded in trust and loyalty. He was planting Starbucks Corporation with in-depth knowledge of the coffee industry, with quality service to customers, trust in employees and planning a vision for the future.
