Starbucks Corporation Business Case study

Mission statement

The mission of Starbucks is founded on nurturing and inspiring the spirits of individuals namely a single community, a single cup, and an individual.

Vision statement

The company’s vision is geared towards making Starbucks the leading producer of premium coffee globally and upholding the inflexible standards as the corporation expands.

Core competencies

The core competencies include its strong brand image, innovative workforce, involving the stakeholders, clients, and community in the company operations. Besides, the company offers delivery services to the clients and makes different coffee products that suit each client’s needs at affordable prices.

Ethical perspectives

The company admits that carrying out business activities in an ethical way while aspiring to perform every operation in the correct manner are key to attaining corporate success. Ethical compliance helps Starbucks in keeping its mission, philosophy and protecting its prestige and brand recognition.

How the overall company strategies are implemented

For the company to implement its corporation level strategies, Starbucks incorporates partners, shareholders, community, and clients in its daily operations. The strategy ensures that the stores and products are in line with its mission, ethical perspectives, and visions.

A decentralized company

Given that every administrator in the organization structure is permitted to make a decision that affects the firm’s operations, Starbucks embraces a decentralized power. The company has various stores globally and every outlet has dissimilar clients, administrators, and form of power.

How the company got where it is today

Initially, coffee drunk at Starbucks was meant to be inert and sweet. The employees passed the knowledge and fervor regarding specialty coffee to the clients. However, to improve the level of services offered, Starbucks had to change its strategy by making the employees to undergo special training on how to make quality coffee. Unlike in the initial strategy where coffee was prepared for consumption, the workers now prepare coffee based on the customers’ needs. Service delivery becomes easy given the poke-yoke method that enables a customer to relay an order at the back of the espresso-inn (Paryani, 2011).

How the company manages staffs and formation of teams

The decentralized nature of Starbucks operations allows workers to perform their duties in a flexible manner. The store administrators empower their staffs to be productive (Garner & Stead, 2013). The staffs work under the acknowledged cross-functional teams so that the most productive staff in the team is promoted to become accountable for the provision of particular functional services.

How the company innovates

The company is renowned to take the global oldest products and modify them into differentiated, value-laden and lasting brands. The differentiated products are difficult to replicate given that they are of the unusual positive brand image, based on technological capability, innovative design, extraordinary service, and exceptionally high quality. The initial strategy used by Starbucks hardly enabled other market rivals to replicate its products.

How Starbucks manages quality and examples of continuous improvement within the company

Starbucks products range depends on the customers’ quality requirements for coffee drinks. The fresh coffee drink has autonomous demand since the product has high precedence at Starbucks. Fresh coffee is perishable and only prepared when ordered by clients. For freshness, the consumers would require hot coffee. Nevertheless, Starbucks initiated double cupping and corrugated holders to evade hot-coffee finger burn problems. The Pike-Place light roasted coffee has recently helped the clients who hardly consume bitter coffee. The low-fat milk has the propensity of making an espresso drink to taste watery. The organic milk could come from cows lacking growth hormones instead of the pricey certified organic milk. The additions of syrup to a coffee drink help Starbucks in achieving the condition of flavored milk (Ireland, Hoskisson & Hitt, 2011).

How Starbucks treats employees, stakeholders, and how it impacts the community

Starbucks is apparently termed as a ‘partner’ given that the products and services are not merely offering employment but appear as our passion. The company in conjunction with other people encourages varieties in order to build an environment whereby everyone enjoys himself. Everyone including the employees and stakeholders is accorded the necessary self-respect and reverence. As a result, all stores run and managed by Starbucks are considered part of the society. The company indulges in corporate social responsibility to ensure that it contributes positively to the wellbeing of the community members where it operates. Through such initiatives, the company has been successful in ensuring that the shareholders are rewarded by generating profits from coffee sales and the employees are well remunerated (Hill & Jones, 2012).

The trends that have impacted their position

The location of Starbucks stores tends to be in a fully equipped atmosphere that every customer would wish to spend more time in such stores. It has comprehensive guidelines including no smoking, provides outlets for electronic equipment, and offers comfortably furnished seats (Hitt, Ireland & Hoskisson, 2014). Due to its innovativeness and the current level of creativity, Starbucks has changed its coffee designs such that the prices charged are unmatched and affordable to various consumers. Every coffee product is offered in different sizes to ensure that all classes of individuals can afford it. Starbucks has an attractive store atmosphere, offers the best client services, appetizing coffee beverages and appropriate sites that make the organization known despite the presence of additional market competitors that offer coffee.

References

Garner, J. & Stead, E. (2013). Sustainable strategic management. Armonk, NY: M.E. Sharpe. Web.

Hill, C. & Jones, G. (2012). Strategic management: An integrated approach. Boston, MA: Cengage Learning. Web.

Hitt, M., Ireland, D. & Hoskisson, R. (2014). Strategic management: Concepts and cases: Competitiveness and globalization. Boston, MA: Cengage Learning. Web.

Ireland, D., Hoskisson, R. & Hitt, M. (2011). Understanding business strategy concepts plus. Boston, MA: Cengage Learning. Web.

Paryani, K. (2011). Product quality, service reliability and management of operations at Starbucks. International Journal of Engineering, Science and Technology, 3(7), 1-14. Web.