Starbucks’ Mission: Aligned with Its Strategies

Is Starbucks tutelage (vision, goals, objectives) aligned with its strategies? Analyze Starbucks based on the strategic passage outline and write a fin page paper answering the preceding question. As I drove to work this forenoon, I trenchant to make a slight detour from my regulation route to get a cup of morning goodness in the form of unused deep brown. I could surr barer stopped off at the recession convenience barge in, smelt gasoline being pump and the ring-a-ding-ding of the slot machines that frequent just about wholly Las Vegas shaping, but I was looking for a footling more something.I decided to drive an particular(a) 30 seconds out of my focal point to go to an establishment that I knew would provide slap-up quality drinking chocolate, sue it with a grimace, and provide an environment that was classy and warm. I decided to go to Starbucks. As I walked in, I smelt the fresh hot chocolate grounds and comprehend a catchy song on the stereo. When the co ngius behind the counter greeted me with a big smile and asked, What can I get started for you? I knew I had make the right decision.The Starbucks corporation has done an outstanding job since 1970 with the transaction of its strategicprocess resulting in it currently owning 40% of the specialty coffee bean trade and boosting annual gross sales exceeding $7 cardinal jibe to an phrase published by Burt channelise. Figure 1. Strategic forethought Tasks fit to the courseware in that respect are louvre stairs to be accomplished in the Strategic wariness Process. See Figure 1 above. The one all- cardinal(a) area that this graph excludes however is analysis. I result include this step in the following discussion. armorial bearing StatementFrom the Starbucks website we find that the Starbucks missionary work statement is, pretend Starbucks as the premier purveyor of the finest coffee in the beingness bandage maintaining our harsh principles while we grow. The website goes on to say the mission is more than words on a piece of paper but preferably a philosophy that guides how we do business each day. While the later half appears to be go beat on and corporate jargon, it is actually relevant in the expression the Starbucks supports business daily. With this mission statement they have hardened who they are and what they intend to do.Breaking it down progress we find that the key market is the coffee market, the persona is to be the premier purveyor of the finest coffee, and that the distinction is doing all of this while maintaining their uncompromising principles. I allow state the uncompromising principles as part of the objective area to follow. synopsis Starbucks knows that it is not in this market alone. In position in some areas of the domain it is already pretty behind. According to caterersearch. com, in the UK Starbucks has been usurped by Costa coffee tree as the UKs largest coffee shop operator, with 24. % (540 cut ins ) compared to 24. 7% (555) for the Whitbread-owned cosmic string. The article went on to say that the market stretch outs to have huge growth, exceeding 15% per twelvemonth. The courseware introduced one method acting of analyzing the market cognise as SWOT (Strengths, Weaknesses, Opportunities, and Threats). It was provoke to find the following chart, Figure 2, located in the Datamonitor Starbucks Corporation political party Profile. Figure 2. Starbucks SWOT compend This SWOT analysis invariably helped Starbucks with the next form of the strategy process, that of objective setting. Setting ObjectivesAs mentioned earlier, Starbucks mission statement eludes to uncompromising principles. According to the Starbucks. com, these principles include 1. run a great work environment and oercompensate each other with respect and dignity. 2. Embrace salmagundi as an inborn component in the way we do business. 3. Apply the highest standards of excellence to the purchasing, roasting an d fresh delivery of our coffee. 4. Develop enthusiastically satisfied customers all of the time. 5. Contribute positively to our communities and our environment. 6. Recognize that profitability is essential to our succeeding(a) success.While the Corporation calls these principles, and they are principles indeed, they in handle manner use these principles as a set of objectives from which they conduct their daily operations. A concluding objective that has lately come about from the Corporate Chairman Howard Schultz, is to experience that the conjunction does not forget its roots as it attempts to continue to grow. Schultz is aggressive. According to a Business calendar week article by Burt Helm, he would like to triplet annual sales up to $23 billion by the year 2012, and almost quadruple the result ofStarbucks stores globally. This is smart.He sees the strengths and opportunities of the SWOT analysis above and wants to work out on his global presence and take favor of the continual 14-15% annual growth of the market. Schultz also knows that there are slowing US retail sales however. To counteract this he intends to preserve the old innovation feel of a coffee bistro. In target to keep up with the demand, Starbucks has had to modernize some of its procedures. Helm states that the company has had to sacrifice some of the old world feel and incorporate the use of automatic espresso machines, void sealed bags of coffee, CDs, and so on.Schultz wants to minimize the watering down of what he calls The Starbucks Experience. This is difficult in todays hostelry in which most businesses attempt to get consumers in and out as quickly as practical and customers expect and demand the same, a phenomena known as The McDonaldization of Society. Implementation and Execution of the Strategy Starbucks has apply the principles and goals into daily operations. Looking through page afterwards page of the Starbucks website, it is evident that the corporation has in ternalized these principles and uses them as guidelines.Providing a great work environment hashappened in a number of ways. Starbucks provides employees with training and education. One program listed on the Starbucks website is called, Learning to Lead. In this program employees moderate heart and soulive management practices. Another employee programis Business and colloquy in which workers are offered a variety of classes to attend in their management skills. These programs allow for advancement and a sense of accomplishment by employees. They added together with company benefits are attempts by Starbucks to foster a hail-fellow-well-met work environment.Diversity is accomplished through the hiring process. Starbucks knows that it is important that every voice is heard, and in which employees strive to take away about one another. In doing this, the company ensures that no group of potential customers are alienated. Starbucks applies the highest standards in new delivered coffee in a couple of ways. According to the company home page, Starbucks works with suppliers and farmers daily in an attempt to sustain high quality coffee production. In addition to this, a program known as CoffeeEducation was put into effect in which employees learn the finer nuances of coffee, from aroma to taste, and as a result are better adequate to(p) to speak to customers about the gourmet products. The intent of this according to Helm, is to share Starbucks passion for coffee and to make the coffee industry more like the wine industry. If Starbucks is open to make its customers connoisseurs of coffee, it can then stock and sellhigh end coffee for up to $28 per pound. Starbucks knows that competitors such as McDonalds, Dunkin Donuts, or even the corner convenience store cant compete in this niche of the market.Starbucks has had success with ensuring that coffee drinking is an experience. According to Jeneanne Rae, 80% of Starbucks revenues come from customers who yell t heir stores an average of 18 times a month. This statistic alone tells us that the company is keeping its customers happy. The adept lighting, the plush furniture, the smooth music all sanction in this endeavor. Rae goes on to say, people will gladly pay more for an experience that is not completely functional but also emotionally recognise. Simply put, I could go to the corner store and get a cup of coffee for $. 5 and get my caffeine shot for the day. In this process however I may feel like Im missing out on the finer things in life, The Starbucks Experience. As a result, I will go out of my way, pay $2 for a cup of coffee, and feel more satisfied. Starbucks also strives to bestow positively to its communities and surrounding environments. It strives to be a chummy gathering place for locals. According to its website, Starbucks supports local organizations with hard currency and contributions as well as promotes art, culture, education, and environmental awareness.The fina l goal of Starbucks is to be profitable and promote future success. It does this through taking care of its stakeholders. The Starbucks Code of morals for CEO and Finance Leaders states, I am charged with ensuring that stake holders interests are appropriately balanced, defend and preserved. All corporate decisions are made with the preceding oath in mind. Starbucks will continue to have success in the coffee market due to its strongstrategy. From vision statement, through SWOT, to implementation, and finally the execution of daily operations, it has been a synergistic effort.This process has culminated in what has been coined, The Starbucks Experience. nodes will take a 5 minute detour, just as I did this morning, to be greeted with a warm smile, receive a shriek hot cup of java, all in a clean quant old world feel environment. Howard Schultz and his bunch are well on their way to achieving their goals of 40,000 stores and $23. 2 billion in sales by the year 2012. REFERENCES Datamonitor Starbucks Corporations Company Profile, 25 Jan 2005. Retrieved 20 July 2007 from, http//www. investor. reuters. om/data/files/Company%20Profile%20Sample%20for%20Reuters. pdf Helm, Burt. 9 Apr 2007. SAVING STARBUCKS SOUL Chairman Howard Schultz is on a mission to take his company stomach to its roots. Oh, yeah-he also wants to triple sales in five years. Business Week. Retrieved 20 July 2007 from http//proquest. umi. com/pqdweb? index=44=1252343951=3=1=3=PROD=PQD=309=PQD=1184944744=29440=1 Keel, Robert. 10 July 2007. The McDonaldization of Society. Retrieved on 20 July 2007 from, http//www. umsl. du/keelr/010/mcdonsoc. html McDonalds to open coffee chain in Japan, 12 July 2007. Retrieved on 20 July 2007 from, http//www. topix. com/drink/2007/07/mcdonalds-to-open-coffee-chain-in-japan Rae, Jeneanne. 27 Nov 2006. The Importance Of Great Customer Experiences? Business Week. Retrieved 20 July 2007 from http//proquest. umi. com/pqdweb? index=60&did=1166573331&SrchMode=3&sid=2 &Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1184944933&clientId=29440&aid=1 UK coffee market set to double over the next 10 years, 23 May 2007, Retrieved on 20 July 07 from,