Starbucks Company Goals At the end of 2013, Starbucks had over 19,000 stores in more than 62 countries. The company’s goal for 2014–15 is 1,500 net new stores (new stores opened minus existing stores closed). Starbucks’ financial goals include revenue growth of 10 percent to 13 percent and earnings per share growth of 15 percent to 20 percent. In addition to the quantitative/fiscal goals, Starbucks focuses on continuing to develop new coffee/tea/juice/bakery products in multiple forms and staying true to its global social responsibilities. Starbucks’ ambition is to rank among the world’s most admired brands and enduring companies through its “laser focus on disciplined execution and robust innovation” and to maintain Starbucks’ standing as one of the most recognized brands in the world. Company Strategies Starbucks has been called the most dynamic retail brand over the last two decades. It has been able to rise above the commodity nature of its product and become a global brand leader by reinventing the coffee experience. Over 60 million times a week, a customer receives a product (hot drink, chilled drink, food, etc.) from a Starbucks partner. It’s a reflection of the success that Howard Schultz has had in creating something that never really existed in the United States café life. And in so doing, he created a cultural phenomenon. Starbucks is changing what we eat and drink. It’s shaping how we spend our time and money. Starbucks has found a way to appeal to practically every customer demographic, as its customers cover a broad base. It’s not just the affluent or the urban professionals and it’s not just the intellectuals or the creative types who frequent Starbucks. You’ll find soccer moms, construction workers, bank tellers, and office assistants at Starbucks. And despite the high price of its products, customers pay it because they think it’s worth it. What they get for that price is some of the finest coffee available commercially, custom preparation, and, of course, that Starbucks ambiance the comfy chairs, the music, the aromas, the hissing steam from the espresso machine all invoking that warm feeling of community and connection that Schultz experienced on his first business trip to Italy and knew instinctively could work elsewhere. As the world’s number one specialty coffee retailer, Starbucks’ portfolio includes goods and services under its flagship Starbucks brand and the Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange, and Verismo brands. Recent product introductions include a Hazelnut Macchiato, a single-origin coffee from Ethiopia, and a Starbucks Reserve® coffee from Colombia. Here’s something you might be surprised at. You can expect to get carded at your neighborhood Starbucks soon. What? Starbucks is making a more intentional move into wine and beer sales. The company tested the concept at a single Seattle store in 2010 and now offers alcohol at 26 locations, where store sales have shown a significant increase during the time of day when alcohol is offered. The “Starbucks’ Evenings” concept offers selected adult beverages (beer and wine . . . tailored to regional taste preferences) and an expanded food menu after 4 p.m. So, the plan is to roll out Starbucks’ Evenings to thousands of stores over the next several years. Starbucks’ loyalty program continues to distinguish it from competitors. Its My Starbucks Rewards™ has almost 7 million active members with more than $4 billion loaded onto the cards. And the company has made a huge investment in mobile payments, accounting for more than 4 million transactions every week in the United States. Its Starbucks Card apps for Android phones and iPhones have been hugely popular. The company also announced a partnership with Square, the mobile payments start-up. Square processes all credit and debit card transactions at Starbucks stores in the United States. Eventually, customers will be able to charge their order to their credit card simply by saying their names. Starbucks’ primary competition comes from quick-service restaurants and specialty coffee shops. McDonalds, for one, has invested heavily in its McCafé concept, which offers coffee, real fruit smoothies, shakes, and frappés. And there are numerous specialty coffee shops, but most of these tend to be in local markets only. Discuss Question: Q1. Make a list of Starbucks’ goals? How many types are there? How would you discern an Starbucks’ actual goals? Q2: Discuss the types of growth strategies that Starbucks has used? Q3. Do you think Starbucks brand can become too saturated that is extended to too much many different products? Why or Why not? Q4.Is Starbucks “Living” its mission? You can find the company mission on its website at (www.starbucks.com). Discuss. Q5. Planning takes a lot of effort. Why do you think peoples should engage in it? Justify with example? Q6. Setting Organizational goals is an important step in planning. What are the approaches to setting organizational goals? Which you consider the best? Why?
Starbucks
Company Goals
At the end of 2013, Starbucks had over 19,000
stores in more than 62 countries. The company’s
goal for 2014–15 is 1,500 net new stores (new
stores opened minus existing stores closed).
Starbucks’ financial goals include revenue
growth of 10 percent to 13 percent and earnings
per share growth of 15 percent to 20 percent. In
addition to the quantitative/fiscal goals,
Starbucks focuses on continuing to develop new
coffee/tea/juice/bakery products in multiple
forms and staying true to its global social
responsibilities. Starbucks’ ambition is to rank
among the world’s most admired brands and
enduring companies through its “laser focus on
disciplined execution and robust innovation”
and to maintain Starbucks’ standing as one of
the most recognized brands in the world.
Company Strategies
Starbucks has been called the most dynamic
retail brand over the last two decades. It has
been able to rise above the commodity nature of
its product and become a global brand leader by
reinventing the coffee experience. Over 60
million times a week, a customer receives a
product (hot drink, chilled drink, food, etc.)
from a Starbucks partner. It’s a reflection of the
success that Howard Schultz has had in creating
something that never really existed in the United
States café life. And in so doing, he created a
cultural phenomenon. Starbucks is changing
what we eat and drink. It’s shaping how we
spend our time and money.
Starbucks has found a way to appeal to
practically every customer demographic, as its
customers cover a broad base. It’s not just the
affluent or the urban professionals and it’s not
just the intellectuals or the creative types who
frequent Starbucks. You’ll find soccer moms,
construction workers, bank tellers, and office
assistants at Starbucks. And despite the high
price of its products, customers pay it because
they think it’s worth it. What they get for that
price is some of the finest coffee available
commercially, custom preparation, and, of
course, that Starbucks ambiance the comfy
chairs, the music, the aromas, the hissing steam
from the espresso machine all invoking that
warm feeling of community and connection that
Schultz experienced on his first business trip to
Italy and knew instinctively could work
elsewhere.
As the world’s number one specialty coffee retailer,
Starbucks’ portfolio includes goods and services under
its flagship Starbucks brand and the Teavana, Tazo,
Seattle’s Best Coffee, Starbucks VIA, Starbucks
Refreshers, Evolution Fresh, La Boulange, and
Verismo brands. Recent product introductions include
a Hazelnut Macchiato, a single-origin coffee from
Ethiopia, and a Starbucks Reserve® coffee from
Colombia.
Here’s something you might be surprised at. You can
expect to get carded at your neighborhood Starbucks
soon. What? Starbucks is making a more intentional
move into wine and beer sales. The company tested the
concept at a single Seattle store in 2010 and now offers
alcohol at 26 locations, where store sales have shown a
significant increase during the time of day when alcohol
is offered. The “Starbucks’ Evenings” concept offers
selected adult beverages (beer and wine . . . tailored to
regional taste preferences) and an expanded food menu
after 4 p.m. So, the plan is to roll out Starbucks’
Evenings to thousands of stores over the next several
years.
Starbucks’ loyalty program continues to distinguish it
from competitors. Its My Starbucks Rewards™ has
almost 7 million active members with more than $4
billion loaded onto the cards. And the company has
made a huge investment in mobile payments, accounting
for more than 4 million transactions every week in the
United States. Its Starbucks Card apps for Android
phones and iPhones have been hugely popular. The
company also announced a partnership with Square, the
mobile payments start-up. Square processes all credit
and debit card transactions at Starbucks stores in the
United States. Eventually, customers will be able to
charge their order to their credit card simply by saying
their names.
Starbucks’ primary competition comes from quick-service
restaurants and specialty coffee shops. McDonalds, for
one, has invested heavily in its McCafé concept, which
offers coffee, real fruit smoothies, shakes, and frappés. And
there are numerous specialty coffee shops, but most of
these tend to be in local markets only.
Discuss Question:
Q1. Make a list of Starbucks’ goals? How many
types are there? How would you discern an
Starbucks’ actual goals?
Q2: Discuss the types of growth strategies that
Starbucks has used?
Q3. Do you think Starbucks brand can become
too saturated that is extended to too much many
different products? Why or Why not?
Q4.Is Starbucks “Living” its mission? You can
find the company mission on its website at
(www.starbucks.com). Discuss.
Q5. Planning takes a lot of effort. Why do you
think peoples should engage in it? Justify with
example?
Q6. Setting Organizational goals is an important
step in planning. What are the approaches to
setting organizational goals? Which you consider
the best? Why?
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