Coffee and Starbucks Essay

6001 Words Jul 6th, 2013 25 Pages
Meghan McGowan
Professor Gervais
Case #3
4/2/12

Starbucks Corporation

Summarize the overall strategy of Starbucks Management in its effort to create and develop a new concept and a rapidly expanding company.

The overall goal of Starbucks Management was to create an American version of the Italian coffee bars that Howard Schultz had experienced first-hand in Milan. He believed that Starbucks should function as an important part of the community, as a meeting place for its customers. He wanted Starbucks to become an experience that would differentiate itself from its competitors. One of their key strategies in meeting this goal is a focus on customer service in order to create an experience for its consumers. Another one of
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Starbucks retail operations group outlined the minimum amount of equipment each store would need. This meant that standard items could be ordered from vendors in volume at 20 to 30 percent discounts. The items would then be delivered to the site from a warehouse or from the vendor. A technological advance was that they used computer software to build store layouts that would calculate costs as the design progressed. This cut costs by a significant amount and shortened the process of opening a store to 18 weeks. 5. Increasing intensity of marketing and sales activities
Originally, Starbucks didn’t spend a lot of money on advertising, because they relied mostly on word-of-mouth. In 2008 McDonald’s stepped up their advertising to highlight their McCafe coffee drinks. In order to counter this Starbucks undertook the largest advertising campaign ever. 6. Seeking out high-quality inputs
Starbucks promotes environmentally sustainable practices in coffee cultivation methods and have specific guidelines they follow called Coffee and Farmer Equity Practices that help farmers to grow high quality coffees in environmentally beneficial ways. In 2000 they began purchasing their coffee organically and a growing percentage of their coffees were grown organically as well as Fair Trade Certified. 7. Improving employee skill, knowledge, and experience
Starbucks has a

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