For example, Schultz offers his employees to have the right to have stock shares of the company so employees share the success of Starbucks. Furthermore, Starbucks designs special training and program for employees. This not only motivates employees, but also makes them ready for future in the company. Also, Schultz is always seek for feedback and advice from his employees, which make them feel empowered and encouraged. 2.
The Industry demand has changed due to a shift in consumers’ attitudes towards healthier products. This placed Starbucks’ coffee culture at risk and threatened the company’s future. Starbucks has tailored their menu to include more organic and healthy product mixes, venturing into tea, bread and fresh juice products (Geereddy, n.d). Starbucks’ cornerstone product differentiation strategies and Human Resource Management are the main impacts to strategy formulation. Starbucks’ is a premium valued brand; costly to imitate.
As a result of this experience, customers were educated about coffee, and it became a value-added service at Starbucks. The more the customer knows about how coffee is grown and prepared, the more loyal they become, and the more willing they are to pay for a high quality cup of coffee. The best quality coffee beans have always roasted till it becomes dark which is what
Product: Starbucks mainly specialized in coffees and but also sells other beverages such as premium quality teas, ice-blended beverages, pastries and some of their merchandise like for instant tumbler and mugs. They still continued to innovate more of their products to cater to attract more people to buy their product. For example, in 1994, Starbucks starting selling Frappuccino at their store. Price: Starbucks announced in 22nd September 2010 that there will be an increase of prices for their beverages due to the increasing prices of raw materials such as coffee beans. They tried to maintain the prices to make it affordable to everyone.
Introduction Starbucks has shown an exemplary understanding of conflict management. Through the analysis of two recent scandals, the coffee giant clearly understands the relationship between conflict and performance as well as the different approaches to managing conflict. Annotated Bibliography for Article One Citation. (2015). Starbucks’ Red Cup Controversy, Explained.
Starbucks is able to give this lifestyle the quality experience that has attracted such a market in the United States, people are able to enjoy a luxury coffee in the store, but also on-the-go. However, Chinese consumers of Starbucks have different tastes, “they value space and couches on which to relax in the afternoons” (Burkitt). So in order to address these desires, Starbucks is adding stores that have 3,800 square feet that can accommodate large groups of friends, family, and businesses employees coming together for the afternoon. The company is also not also relying on income rises in households to attract the Chinese to Starbucks; they are relying on lifestyle in the emergence of a shifting lifestyle. In order to attract the rising Chinese population too openly or subconsciously identify to more “cosmopolitan tastes” they have adjusted the store layouts in accordance to culture and aesthetical appeal of the geographic location.
The threats in the operating environment can also be overcome by differentiating products offered at Starbucks from those of the competition in terms of better quality, impeccable service delivery, and augmenting customer service and quick response to queries. Developing a huge social media presence and offering product information and pricing through social media is the other strategic recommendation for Starbucks aimed at accessing a large audience and meeting the needs of technology-savvy generation that forms a huge bulk of Starbucks clientele (Hajli, p. 112). This will allow Starbucks to increase its physical and online market reach and expand the information on the company overcoming challenges on physical
Starbucks sees the advantage of turning to local partners as the most effective way to reach out to their target and consumer market. If Starbucks were to do this by itself, it would be very difficult for them to face the bureaucracy, infrastructure, distribution, business practices and challenges, therefore it would be a great
The recent improvement of mobile applications allows Starbucks to add its payment option and also allows Starbucks to expand its distribution channel with the food delivery applications. The availability of coffee machines for home use is a big threat for Starbucks because it will decrease the necessity for people to go to Starbucks to buy good quality coffees. 5. Ecological/Environmental