Gun Control Essay, Research Paper

Warren Cooksey

10/11/01

Starbucks Coffee

Given the evaluation, Starbucks appears to be pursuing its goals aggressively. The company has taken on the globe in such markets as Asia and Japan. Starbucks is even opening stores in Italy, where chairman Howard Schultz first copied his idea for the coffeehouse experience. Aside from global presence, the company also reaches its customers through several channels of distribution such as United Airlines, Nordstrom, Dryer s, PepsiCo and various hotel chains. I predict in the future I will be able to find Starbucks in places I d never imagine. One threat would be the possibility of coffee consumption trends decreasing. This would force Starbucks to consolidate its resources. However, Starbucks has capitalized on a trend that sets the company apart from its competitors.

The company has several strengths, which include the following:

+ Real estate opportunistic- Starbucks purchases store locations in heavy traffic areas. Sometimes they will put two stores on the same block simply to maximize profits. Starbucks real estate managers are patient and would rather buy a location that grosses 1 million rather than buy a location that only grosses $500,000.

+ Aggressive Growth- Starbucks is the first coffee retailer to take on the world. The company has essentially modeled themselves after McDonalds by setting up shop wherever coffee is consumed. The company uses clustering method to achieve business goals. Some of its markets include Spain, Japan, Thailand, New Zealand and Malaysia.

+ Creation of channels of distribution- these channels include: United Airlines, Kraft foods, Pepsico, Barnes & Noble and Nordstrom. These channels allow the company to have a further reach with consumers.

+ Corporate Level-Strategy: Starbucks corporate strategy has been to establish itself as the premier purveyor of the finest coffee in the world, while maintaining their aggressive principles as the grow. The company s principles are seen with its maintenance of a proven work environment for every staff member in its retail stores. It upholds diversity and promises the highest standards for its products. They live by a strict, slow growth policy completely dominating a market before setting its sights further abroad. This strategy has gained them the advantage of being one of the fastest growing companies in the country.

+ Effective human resources strategy- Starbucks has avoided a hierarchical organizational structure and has no formal organizational chart. They value their employees because they have a lot of interaction with the customers.

+ Vertical Integration- The Company roasts its own beans and distributes them efficiently. Most importantly, when they purchase beans they try to buy direct from the grower. Traditionally, coffee beans would change hands up to five times before it ended up in the coffee shop.

Favorable stock performance- The stock is volatile however Chairman and Chief Global Strategist, Howard Schultz emphasizes the creation of investor wealth by paying out dividends and continuing to grow the company.