Business Philosophy of Starbucks

Business Philosophy of StarbucksStarbucks is a coffee tree shop company. It is one of the most popular coffee shops in U.S. and other countries. Starbucks purchases and roasts mellowed-quality whole bean coffees and sells them. Starbucks has to a greater extent than 16,600 coffee shops in about 40 countries. The outlets bye coffee drinks and food items, as well as roasted beans, coffee accessories, and teas. Starbucks operates more than 8,800 of its shops, which be situated in about 10 countries (mostly in the US),Starbuck aim is to be the best brand in only over the world. Starbuck take over introduced a coffee named Frappucino for those who dont like to dumbfound coffee. Starbucks has become more than your regular coffee shop. nation are coming in the shop for a morning lift before trend to the office or people are stopping by while enjoying a mid afternoon stroll throughout the city streets, Starbucks has enticed more than regular people tactile sensationing for thei r daily dose of coffee.Frappuccinos which are created with real milk are a favourite amongst Starbucks customers. They come in a variety of flavours, of course, tralatitious Coffee, golden caramel, chocolate chip, sweet strawberries and cream, smooth vanilla, and chocolaty mocha. In the summer, when the heat become intolerable a Frappucino get out cool you down and you preempt also determine with crushed ice. Starbucks has successfully brought drinking coffee to a higher level. Starbuck also launched his lead storybucks card for customer who leave behind receive free syrup and fee milk when they order espresso drink.Ethical SourcingStarbuck coffees want to lead for their best coffee in the world. Starbucks always believe in serving best coffee to their customer if possible. Starbucks has always believed in buying, roasting, and serving the highest quality coffee in the world. By promoting responsible growing practices, star buck are able to serve a nifty cup of coffee while h elping to improve the lives of farmers and protect the environment. We are also applying the knowledge we put on gained through our work with coffee farmers to other areas of our supply chain.Environmental StewardshipStarbucks believe in the importance of caring for our planet working with and encouraging others to do the selfsame(prenominal). As a company that relies on an agricultural crossing, it figure outs close business sense. As a company that relies on an agricultural product, Starbucks is vulnerable to the effects of climate change. In order to maintain our high quality standards and help preserve the planet for future generations, were pickings downright actions to reduce our environmental impact. At the store level, energy and water conservation and other green building strategies continue to be key priorities with potential to significantly minimize our environmental footprint.Toward 100% reusable or recyclable cupsIn March 2006, Starbucks introduced a new disp osable cup containing 10% postconsumer recycled content. Starbucks are working to develop a recyclable paper cup that reduces its environmental impact over its entire deportment time the materials used to make it, the impact of the way its manufactured, and the way it is disposed of after use. In 2009 star bucks convened a first-ever summit with local governments, cup manufacturers, recyclers, and other stakeholders to jointly identify the steps required to make our cups recyclable in form and in practice. And we developed local market survey and implementation tools to bucket along front-of-store recycling in the future and we found that we had served 4.4 million more beverages in reusable cups in 2009 than in 2008.Toward 100% recycling in our storesOver the years, starbucks white cup has been integral part of the coffee raise experience. At the same time, it has become a major concern among our customers due to recycling challenges. In order to respond to customers and minimiz e our carbon footprint, were aiming to ensure 100 percent of our cups are reusable or recyclable by 2015. Were currently working on a number of complementary initiatives to advance our progress in this area. We realize there is no quick fix for this problem we still have much to learn. we are making the best what we can do to clean the environment and by recycling our cups.MARKETINGSTARBUCKS IS A GREAT COMPANY FOR MARKETINGStarbucks competes in a highly substitutable market .Starbucks has done a lot in this area to promote brand loyalty by orienting its overall pick up and structure to be one of a socially responsible organization with the idea will that people will ultimately support organizations that give back and are aware of their impact. The company also strives to havethe absolute best customer service realising that people not only buy coffee, but a social experience as well.One advantage that may set Starbucks apart is the having a self-coloured on product line marketing program. It should hire qualified online marketing managers to oversee its websites function retain customers and curb product substitution. trade MixWhen Starbucks marketing their products firms need to create a successful mix ofProduct the right productPlace sold at the right pricePrice in the right price furtherance using the most suitable promotionStarbucks marketing mixPRODUCTStarbucks is known for providing superior products and services. Consumers have enjoyed the experience they encounter at Starbucks, and now for those who seek a high quality non-coffee drink can enjoy the same experience. By introducing these new summer drinks, Starbucks will enjoy an entirely new segment to market its products to. When looking at the sales revenues for the summer drinks it is important to consider that some of the existing customers will inevitably cross over and begin consuming the new drinks. In the end, the expansion of the product line is a wise decision because of the ease of ad option to Starbucks reputation for quality as well as the low cost of implementation increase consumer awareness of the companys activities.PRICEStarbucks products are reasonably priced while whirl quality coffee.Products are targeted towards general publics, thus their pricing are generally acceptable to attract more customers. Price and quality determines the value of the product. Starbucks was expensive and was positioned in accordance with that. They always tried to deliver the high value promised to the consumer.PLACEStarbucks is a place for people to come to, a place to not be alone, a place to be with other people, and a place where, without having to do anything people become a part of a community of sorts. From my first observation at Starbucks I noted that the character of the put is divided into two categories. First there is the quick and simple transaction, in and out with your coffee and the atomic number 42 is the use of Starbucks as an office, meeting place. To so me customers convenient is the key point. Hence, Starbucks takes into consideration for these consumers.PROMOTIONStarbucks invested heavily in training their staffs and did innovative tactics to manage their human capital. Thus they differentiated themselves in the market by constantly providing higher quality servicesStarbucks Marketing SWOTStrengthsStarbucks Corporation is a very lucrative organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year.It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries.Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce.WeaknessesStarbucks has a reputation for new product development and creativity. However, they remain vulnerable to the fortuity that their innovation may falter over time.The organization has a strong pr esence in the get together States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.OpportunitiesStarbucks are very good at taking advantage of opportunitiesNew products and services that can be retailed in their cafes, such as Fair workmanship products.The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific margin nations are beginning to emerge.ThreatsWho knows if the market for coffee will grow and stay in favor with customers, or whether another type of beverage or leisure activity will replace coffee in the future?Starbucks are exposed to rises in the cost of coffee and dairy products.