Starbucks

Starbucks is a popular brand that has been successful and admired by other companies (Simmons, 2005). It has grown from a single coffee shop in Seattle 33 years ago to a $ 4.1 billion international company.

From only one store over 30 years ago in Seattle for its expansion is still growing today with thousands of stores in the United States and in foreign countries, Starbucks Coffee Company is undoubtedly famous worldwide success story.

Many points can be attributed to the success of these innovative companies from Starbucks holistic statement copyright statement skewed to the environmentally conscious social Starbucks. But one thing is certain, when Starbucks came up with a new media campaign social virus has another company record.

Starbucks marketing strategy is not often seen in many businesses today. Have you ever noticed that it's rare to find a Starbucks in newspaper ads, billboard advertising space, or posters in places where you can expect to see ads for other companies, even big ones such as McDonalds?

Now, Starbucks Coffee Company not only goes for unconventional marketing strategies to have fun. They thought hard about promoting their company, and have decided that Starbucks is more likely to benefit if the use of unconventional word of mouth viral social media strategy that fits perfectly the concept of the company wants to portray.

Of course there are environmental factors that influence the success of business for Starbucks. Those factors are economic factors, globalized production factors, cultural factors, and demographic factors (Fellner, 2008).

Economic factors, economic factors that help companies determine whether a country would be a good market are the industrial structure and income distribution. Country's industrial structure refers to the subsistence economy of a country, economy of raw material exports, the economy of industrialization, and industrial economics. Like Starbucks can choose a good market. These factors establish the need of products and services, income levels and employment rates. A country's income distribution will also determine whether there was sufficient demand from family income to ensure the offer of products or services.

Marketing decisions for an economy like the United States with higher levels of income for the broader market will differ from one country with a more narrow market of revenue. Being a manufacturer of premium and specialty coffee, Starbucks requires that the target market will be able to sustain the demand for coffee. This requires a significant market research into the demographic and physical infrastructure of the cities they move into

Cultural factors, one of the strongest environmental factor that Starbucks is faced to deal with foreign cultures is a factor. Starbucks has become an icon of globalization. Starbucks has become the target of anti-globalization protesters fighting Western consumption and exploitation in the Majority World. Protests were not only from countries steeped in tradition such as Asia. The protests also came from countries such as Australia, France, Germany, and Italy in defense of their native culture is not affected by consumerism and materialism.

Demographic factors, to some experience of Starbucks stores in Macau in the years ago, had a tendency to try Starbucks coffee. Almost every day there was a queue of students lining up in front of the stores in that period. However, after a while, the tide went out. So we can see that Starbucks does not really focus on the student market completely. Indeed, one of the main market targets is that the labor force. We were able to recognize that all of Starbucks products, set prices high. Target customers are adults who can afford the price. Furthermore, we can see that the majority of customers will be tourists passed since the store is located in the tourist attractions. Perhaps, Starbucks customers expect more of men rather than women. It is very clear that female customers would not prefer a cake and coffee with such a high fat and calories.

Global production, striving to become a global coffee brand, Starbucks has tripled its revenues over the last 5 years to about U.S. $ 8-billion in 2006.With only 20% of the world's coffee consumed in North America, Starbucks aggressively sell the victims in these countries which already have dedicated coffee or tea drinker.

Growth has been paced by opening new stores around the world. In 2001 the company had 3200 retail locations in America and around 400 outlets in 17 other countries. Today Starbucks has about 12,000 stores, nearly 4,000 of which are located in 36 countries outside the U.S.

Then, there are two major factors for management process as follows (Schultz, 2011):

Legal-political factors, every nation has very different in their political-legal environment. Before Starbucks decided to run a business in a foreign country, the attitude of the state of international manufacturers, government bureaucracy, political stability, and monetary policy must be fully considered). One example of the political instability that led Starbucks to reconsider opening a store in this country is India. Government of India is very unstable. This country has elected 10 new governments in the last 25 years. This instability makes doing business risk due to continuous changes in the laws and supervision of the business and finance. One common theme of human nature in the whole world is bribery to obtain financial gain or the law. But, Starbucks does not use the benefits of the law.

General business environment, in addition to sell coffee, Starbucks wanted to be a "second home" for the customer to the activities of coffee, chat or others. This position makes Starbucks could be called a cultural icon of modern urban society, including the major cities in Indonesia.

Until 2007, the expansion of Starbucks business had spread broadly. With the growing portfolio of stores and other businesses that are not related to coffee, Starbucks is making an icon which is regarded as a successful business. Role of Starbucks becomes business case studies in business schools. Starbucks bottom line "rock star" in the retail industry as well as modern cultural icons.

Next, ways of success for the process management of Starbucks are planning, organizing, leading, controlling.

Planning is a management function that assesses the environmental management to set goals and map out future activities to achieve those goals.

There are very few business people encounter as often as Starbucks. With retail stores in almost every street corner you'd be hard pressed to not find a convenient location to buy a cup of premium coffee. If management and the powers that be at Starbucks have their way then it will be much more a name synonymous with premium coffee. Starbucks is the whole coffee experience as it comes with a person who has become one of the stores they know. From the plush seat and slim music, for their sponsorship of films such as Akeelah and the Bee, Starbucks created a whole environment for people to experience and enjoy.

An example is the plan of Starbucks, Starbucks plans bigger push into smaller cities in China as the world's largest coffee-shop operator stores tripled in this country who will be the second largest market by 2014.The company will have 1,500 stores in more from 70 cities in China in 2015 and expansion through the small towns are "most definitely" a viable way to grow, John Culver, towards China and Asia Pacific.

Organizing is a management function that determines how the company's human, financial, physical, information and technical resources developed and coordinated to perform tasks to achieve the desired objectives; deployment of resources to achieve strategic objectives.

Organizing is something very important for Starbucks and is something that begins with their top management. Jim Donald, CEO and current president, describing himself as he personally responded to 75% of e-mails and notes of things that people say that he felt it was important "fanatical about communicating.". He is very forward thinking people, and this all the time as evidenced by the constant management and attention to details as minute as a period of fifteen minutes from day one.

With the example of organizing a meeting of paring down to an hour to forty-five minutes he had saved eight hours a week. According to the vice president of beverage categories, Starbucks can save $ 12 million if all accomplished executives like that. Jim Donald is one person in the limelight as far as Starbucks is concerned and he makes every individual in the organization feel like they need. When visiting the store he would talk with the barista and even go so far as to wear an apron and get behind the desk to help them. Compliance with this policy, shows that he is concerned with saving money and increase your bottom line but not at the expense of employees.

Leading is the management function which energizes people to contribute their best individually and in collaboration with others.

Leading or directing other name, is the process of trying to influence others to achieve organizational goals. Task manager is to motivate the people who are responsible for specific tasks to help them achieve their goals and thus the common goals of the organization (Schultz, 1997). Directing not only be applied to individual situations, but also in groups and teams. Directing has been and will continue to be an important part in the organization of Starbucks.

For example, Starbucks is the number one coffee retailer in the world with about 10,000 coffee shops in more than 30 countries. With stores already so much and long term expansion plans to grow to 15,000 U.S. stores and 15,000 international stores, Starbucks must have a tactical plan to maintain a consistent moral around the world and motivate their employees to achieve common goals. There are several key actions that Starbuck is taking to lead the community in social responsibility and positive treatment of employees.

Controlling is a management function that measures the performance, comparing it with goals, implementing the necessary changes, and monitor progress.

Control within the organization that was established at various levels (Balkin, 2012). Starbucks controls can be examined in the context of cultural responsibility, and social growth. These controls also provide a competitive edge shops.

For example, for the control of the Starbucks culture has a unique corporate culture and customer. In order to establish and maintain a culture, a certain 'control' needs to be enforced. Culture may be defined as employee behavior, norms, attitudes, language and traditions of the organization. Cultural controls can help build and maintain the attributes of a particular company. Particular company may adopt a "normative control" that makes customers want to behave a certain way to preserve their culture. To use normative controls effectively, companies need to create an environment where customers are concerned about the impact of their behavior on

In conclusion, the Starbucks marketing strategy has always focused on “word-of-mouth” advertising and letting the high quality of their products and services speak for themselves. For years, this has been uniquely Starbucks, and it has played a huge part in making Starbucks Coffee Company a success (Sweet, 2007). The definition of social media viral marketing speaks to this new word of mouth that Starbucks has run with and made their own.

It is clear that the company has created greatly individualized marketing techniques to fit the promotion of the Starbucks brand as it applies to the unique concept it was built on (Blumenthal, 2007).

Even with its missteps and setbacks, Starbucks’ marketing strategy has led the company to its current success. This fact is enough to realize that there can be much to learn from what this company has achieved to the benefit of many small businesses.

Customer satisfaction is a very important issue with Starbucks. From entrance to the store to the very last drop of their coffees, it is a must that customers feel the uniqueness of enjoying their Starbucks coffee experience. Without a doubt, Starbucks Coffee knows the answer to the question, why is customer service important.

From the very beginning, the Starbucks marketing strategy has focused on creating the “third place” for everyone to go to between home and work . Creating this unique and relaxing “experience” and “atmosphere” for people has been very important for the company as they have realized that this is one of the strongest concepts attached to the company, to which customers have been strongly attracted (Behar, 2008).

There are some recommendations for the future of Starbucks.

First, the advertising and promotion In an effort to renew their brand name, Starbucks needs to address important issues, the name needs to convince people that coffee is superior to Starbucks coffee and other beverages.

The second is the product differentiation due to the updating of the Starbucks brand, but to convince consumers why Starbucks coffee excellence through large-scale marketing efforts, Starbucks also has to work on product differentiation Because Starbucks coffee of good quality.

The third is the coffee variety and quality control. It is because in serving different consumer preferences, Starbucks needs to increase the varieties of coffee are offered. Currently, Starbucks offers only one type of coffee to consumers, while its competitors, like Peet's coffee, offering several types of coffee to meet a wider range of customers.

Then fourth is the Starbucks Drive-Through because of the lack of tables and chairs at Starbucks during peak periods, so that should make the Starbucks drive-through to a lot of anticipation of people who come to Starbucks.

                                                         

With those recommendations, there are values can be got by Starbucks. Those are provide a great work environment , treat each other with respect and dignity, embrace diversity, apply the highest quality standards for products, develop enthusiastically satisfied customers, contribute to the community and environment, and recognize that profitability is essential to future success.

 

 

 

Bibliography

    

Howard P. Behar; with Janet Goldstein. It's Not about the Coffee: Leadership Principles from a Life at Starbucks. Portfolio. 2008.

Karen Blumenthal. Grande Expectations: A Year in the Life of Starbucks' Stock. Crown Business. 2007.

Kim Fellner. Wrestling with Starbucks: Conscience, Capital, Cappuccino. Rutgers University Press. 2008.

Howard Schultz; Dori Jones Yang. Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time. New York: Hyperion Books. 1997.

Howard Schultz; with Joanne Gordon. Onward: How Starbucks Fought for Its Life Without Losing Its Soul. Rodale Books. 2011.

John Simmons. My Sister's a Barista: How They Made Starbucks a Home Away from Home. Cyan Communications. 2005.

Leonard Sweet. The Gospel According to Starbucks: Living with a Grande Passion. Waterbrook Press. 2007.

Luis R. Gomez-Mejia David Balkin. People. Performance. Change. New Jersey. 2012