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Starbuck

Essay by   •  December 24, 2010  •  2,205 Words (9 Pages)  •  1,406 Views

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Business Plan

Overview of the Business

Starbucks Corporation (NASDAQ: SBUX) is a coffeehouse chain based in the United States. Named after a character in the novel Moby-Dick, Starbucks is the largest coffeehouse company in the world,[1] with 7,521 self-operated and 5,647 licensed stores in 39 countries.[2] Starbucks serves drip brewed coffee, espresso- and non-espresso-based hot beverages, tea, and ice-blended drinks. It supplements these offerings with pastries, salads, and sandwiches. It also sells coffee mugs and other paraphernalia, as well as bagged coffee beans. Through its Starbucks Entertainment division and Hear Music brand, the company has ventured beyond refreshments into books, music, and film.

From its founding in Seattle, Washington, as a local coffee bean roaster and retailer, Starbucks has experienced a rapid expansion, making it the subject of a number of controversies. In the 1990s, the company was opening a new store every workday, a pace that continued into the 2000s. Domestic growth has since slowed down, though the company continues to expand in foreign markets. The first international location outside of the U.S. and Canada was established in 1996, and they now comprise almost one third of Starbucks' stores.[3] With its emphasis on being a "third place," Starbucks has helped develop a coffeehouse culture in places around the world.

Mission Statement

Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.

The following six guiding principles will help us measure the appropriateness of our decisions:

Provide a great work environment and treat each other with respect and dignity.

Embrace diversity as an essential component in the way we do business.

Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.

Develop enthusiastically satisfied customers all of the time.

Contribute positively to our communities and our environment.

Recognize that profitability is essential to our future success.

Starbucks is committed to a role of environmental leadership in all facets of our business.

We fulfill this mission by a commitment to:

Understanding of environmental issues and sharing information with our partners.

Developing innovative and flexible solutions to bring about change.

Striving to buy, sell and use environmentally friendly products.

Recognizing that fiscal responsibility is essential to our environmental future.

Instilling environmental responsibility as a corporate value.

Measuring and monitoring our progress for each project.

Encouraging all partners to share in our mission.

SWOT Analysis Starbucks

Strengths

* Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year.

* It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries.

* Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce.

* The organization has strong ethical values and an ethical mission statement as follows, 'Starbucks is committed to a role of environmental leadership in all facets of our business.'

Weaknesses

* Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

* The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.

* The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.

Opportunities

* Starbucks are very good at taking advantage of opportunties.

* In 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD.

* New products and services that can be retailed in their cafes, such as Fair Trade products.

* The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge.

* Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.

Threats

* Who knows if the market for coffee will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee

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