Starbucks Coffee Essay Example for Free

Starbucks Coffee Essay Starbucks coffee has pursued rapid expansion both at home and abroad. In mid- 2004, Starbucks could boast more than 7,800 outlets around the world, and chairman Howard Schultz and CEO Orin Smith have no plans to slow the growth, ? The company planned at least 1, 300 more stores in 2004 and has a long term goal of reaching 10, 000 outlets in the United States alone. The presidents vision is that the company ? Starbucks? could have as many as 15,000 international stores. Today Starbucks has nearly 1, 500 store outlets in the United States including Europe , Pacific Rim ,Middle East and Mexico. ? Most of Starbucks international stores are now operated as joint ventures with local companies. Starbucks has to go fast or lose the opportunity ? and a local partner can facilitate rapid development of a new market. Executives are learning to adapt the companys operating methods and product offerings to better suit local conditions and tastes. 1) ? How could you classify Starbucks grand strategy and global strategy? Which of Porters competitive strategies is the company using? Explain each answer? ? ? We classified the grand strategy of starbucks pertaining to its Growth. In order for starbucks to sell and market its products is by: ? A. ?Allocating new funds to invest namely like prime locations and lots. Basically any establishment will earn more if the store is located in a highly busy route or place. Potential clients can be marketed. ? B. Investing in hiring the best and qualified personnel. In order for a store to run smoothly , the company should have competent and high breed of people who can manage the store and the same time enjoy the work itself. ? C. ?Purchasing of new set of equipments , glassware , lighting , tables and chairs can be a plus factor for a good ambiance. For the Global Strategy , Starbuck is implementing Transitional process where in they seek to achieve both global integration and national responsiveness. A true transitional strategy is difficult to achieve , because one goal requires close global coordination while the other goal requires local flexibility. However a lot of increased competition means they must achieve global efficiency , going pressure to meet local demands and national responsiveness. Starbucks designs quality stores to sell and market its products to use components in a few larger scale, basically , the company goes global to introduce it to other countries and to increase its market. 2. Discuss how top executives are using leadership structure , information and control systems and or human resource to implement international strategy? What steps would you recommend for implementing drive-through stores or Hear Music coffee houses? ? Top executives uses its leadership qualities by bringing Starbucks on a the right path and showing a vision for the company and its employees. Top executives have several ideas percolating to the companys growth. ? a. Establish rapport and solid partnership or joint venture with other countries makes things cohesive. b. ?Adapting the companys operating methods and product offerings to better suit local conditions and taste. Not all countries have same taste with regards to starbucks products. They sell what is needed and wanted. c. Acquiring highly skilled people barista? who can prepare , serve and enjoy the tasks. 3 Starbucks has typically maintained a uniform look and feel to its outlets and product offerings. What do you think this change might mean for starbucks in terms of further international expansion? ? ?Starbucks is known for there quality of coffee, excellent service and appealing ambiance. We believe Starbucks coffee is a brand and neighborhood name. You can see a starbucks store in a 2 km radius. Basically there everywhere. Making some changes the way they look and maintained a uniform type of set-up can only mean one thing. The Company is growing. Changes are normal. Most of the food and coffee establishments try to change and create ideas to in order to sell new products. As for starbucks , they should do the same to be more competitive and to increase sales and revenues. ?