Starbucks Analysis

II. Starbucks Mission Statement

Establish Starbucks as the premier purveyor of the finest coffee in the

world while maintaining our uncompromising principles as 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.

III. Company’s goals and objectives

Starbucks had some very good and professional goals for their company

in the future. Not all goals were about dominating the market, but some

were to earn the respect of customers and stockholders. Shultz wanted

the company to become the most respected brand name in coffee and for

the company to be admired for its corporate responsibility. He spoke of

having a keystone value in the effort “to build a company with soul”.

That keystone value was that the company would never stop pursuing the

perfect cup of coffee. Shultz wanted Starbucks to be known as the best

place to buy specialty coffee that did not add any artificial flavoring

polluting their product. Along with earning the respect of customers,

Shultz also wanted to keep the respect and treat his employees with

care. He wanted to offer Health benefits and stock options to all

employees who worked 20 or more hours per week. Starbucks wanted to

become a national company with values and guiding principles that

employees could be proud of.

Earning the respect of customers and employees were not the only goals

of Starbucks, but like any other company, growth was also on the mind.

One of the first goals and dreams of Shultz was to setup Espresso bars

in all the stores like he had experienced in Italy. He felt that the

friendly and pleasurable environment would help the company grow and

make customers feel that coming to a Starbucks was a good time. Shultz

also had a plan to open 125 new stores outside the Pacific Northwest

and outside the United States in the next five years. He wanted to open

15 stores the first year and five more each additional year. To keep

the quality of coffee that Starbucks sold, Shultz felt that the store

should only be company-owned and not franchised out.

IV. Situation Analysis

-Strengths and weakness, opportunities and threats

Starbucks, like many other companies had some strengths and weaknesses.

One of the best strengths that a company can have is a CEO who is not

afraid to take a chance and try knew things. Before Shultz came over to

Starbucks the company did not have any plans of major growth or product

expansion. Companies should always have knowledge of what they are

selling and that is what Starbucks did. They knew everything that there

was to know about coffee and if they didn’t they would find out.

Starbucks always prepared all of their managers and employees by

sending them to training seminars and classes to learn how to roast the

perfect bean, brew the perfect cup and how to serve each customer

correctly. Starbucks believed in quality of its products and the

character and location of its stores.

Companies all have strengths, but they also have weaknesses to.

Weaknesses were very easy to see when the company was first put

together. Baldwin and Bowker were very narrow-minded and had no desire

to expand the company very far. The two were also afraid to try knew

things such as starting an Espresso bar and a sit in area where people

can sit around, talk and make new friends. Though after Shultz took

over the company, it seemed as though the weaknesses started to

dissolve and the opportunities began to grow. Shultz took advantage of

the opportunity to expand the company into new areas and markets.

Entering new markets brought forward the idea of creating new product

lines. They started by selling bakery goods

at the espresso bars and along with selling their beans, they began to

sell their Starbucks Barista home espresso machine. Opening the

Espresso bar also enabled them to sell the CD’s that the company played

while customers sat and drank. Partnering with Dreyer’s and Pepsi

enabled Starbucks to put their name on ice cream products