STARBUCKS COFFEE CORPORATION: Introduction The aim of this report is to submit a structured analysis of the company using various analytical tools. The analysis will then provide the basis for formulating a conclusion and offering my recommendations.
ANALYSIS Strengths: Leadership: Howard Schultz recognized the potential of Italian style coffee houses and introduced the concept to the United States. Against resistance from within the company he persisted with his idea and the CEO made the coffee house outlets attractive and comfortable with an ambience equal to that of the Italian model, a place to meet with friends and family.
Quality product: Starbucks purchase the recognized world leading quality coffee beans, including the Narino Supremo coffee bean, the growing of which Starbucks controls outright. The company also roast the beans differently, condemning any poor batches not thought to be perfect.
Labor/management relations: company's policy of mutual respect, health care, training and the profit sharing plans results in high morale, loyalty and greater output.
Employees are empowered working in a 'laid-back' atmosphere.
Slow-growth policy: Starbucks rigorously researches a market before entering it, and does not move into another location until the current area is fully dominated. ( This can also be a weakness ). Although Starbucks have this policy it was one of the fastest growing companies in the U.S. in 1999 as sales grew 63 percent.
Market selection: Starbucks uses direct mail marketing and only opens stores in areas where this is shown to be strong. A store will typically be opened after tracking e-mail order customers which determines the highest concentration of existing buyers in a city, then opens a store in that area, building on an existing customer base.
International partnerships: To allow Starbucks to expand into Asia, the company has entered into a joint venture with a Japanese company...