Starbucks: Multi-Channel Growth

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Introduction

Starbucks is an internationally recognised company that first began operations in 1971. It grew to later become a public company through an initial public offer in early 1992. The company has applied growth strategies leading to its expansion into many more countries and hence to a wider market. This company continually shows creativeness and utmost competency in coffee making. They pride themselves as makers of one of the highest qualities of coffee. They also hold pride in having the best equipment for coffee. Therefore, in this paper, we are going to see how this company has grown from one country location to over 30 in less than 22 years. This growth was of course coupled with increase in sales toppling over 2.1 billion dollars. These sales have even gone higher of late into more billions of dollars. It is even more interesting to think that this company only started as one store in Seattle i.e. the so called Market of Pikes place.

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The Beginning of Starbucks

It all started when Jerry Baldwin, a teacher of English language, Zev Siegel also a teacher teaching History and finally Gordon Bowker who was by then a writer decided to open some store. They called it “Starbucks Coffee, Tea and Spice” This, they did open in Seattle due to the number of tourists there. With an investment of approximately 6, 350 US Dollars each, these 3 partners had a belief of building a base of clients in this area and which they so well did. There strategic decision was formed from seeing an excellent business opportunity in this market characterised by fine coffee. They had also observed that a similar success story in the very line of business in the Bay area of San Francisco (Schulz, 45). This had given them the necessary confidence in to trying out this new line of business for this area.

Starbucks Company first officially opened its doors for business in 1971. At this Seattle’s Pike, the company had a vision of supplying coffee to surrounding restaurants and bars. The store in this particular area was selling equipments for making coffee. These equipments were known to be of excellent high quality. These owners were mostly educating their cherished customers. They majorly informed them on the various benefits of performing dark roasting of coffee. Other than that, they did have a huge pride due to their deep knowledge of these coffee beans.

The initial targets of this very first store were those near its starting point at Place Market. Howard Schultz, a new recruit was brought on board. He was recruited purposely to monitor and ensure the success of retail and marketing. His employment was also in line with the initial vision by its owners. They majorly wanted their commitment to quality sustained. Also in their mission was to ensure that their customers did not only drink their coffee but they also did learn a thing or two. They did this though holding various sessions of customer education. This was to ensure that they indeed understood the various benefits that they thought were associated with dark roasting of beans of coffee.

However in around 1982 after the new recruit made some trip to Italy in the City of Milan. While on his visit, he did saw enormously vast bars that had a lot of quantity of espresso and coffee. This encounter caused some reasoning to ensue. He thought that cappuccino, coffee that had been freshly brewed and espresso ought to be sold by Starbucks. The company also ought to continue selling beans of coffee and equipments of a high quality. However, his idea did not get any goodwill from the owners. This was because the owners strictly did not want any kind of beverage to be sold by the Starbucks Company. It was until 1984 that the company owners were convinced of this new idea. This was formally accepted through opening of a 6th store that was to act as a kind of a test for this new line of products. This store was in actual sense a Bar for selling coffee, cappuccino and espresso. Amazingly, instant success was recorded.

Seeing how well his idea could work, he quickly left his job to pursue his dreams. His idea initially involved the construction of bars for espresso. These were to be opened up around the area of Seattle. Soon, Howard opened Giornale, a new store. The coffee that he brewed in this store was all form Starbucks. What he was therefore essentially doing was utilise the ability of Starbucks. This ensured that he continually offered highly brewed coffee from the expertise roasters of coffee that was Starbucks by then (Brent, 2002).

Giornale did finally take over Starbucks assets by the March of 1987. This was through a deal with its original owners for just over 3.8 million Dollars. Further, Giornale officially renamed itself to the now corporation of Starbucks. Amazingly, before that very year could end, Starbucks already had opened up 17 more stores. It now was enjoying a wider market through expansion into Vancouver and Chicago. This was all due to the vision that its owner was holding for this now small and growing company.

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Starbucks on Expansion Mode

This all started after 1987. The new CEO had already clearly demonstrated his vision of creating a corporate. This was through his initial company Giornale with which now he had expanded through acquisition of Starbucks. He thus only moved in a horizontal manner to ensure that he had integrated the market in Seattle. This he did after off course having seen how successful this new line of business was with Giornale. It was through the initial growth that ensured entrance into new existing markets. This strategically ensured that by 1988, there was a catalogue for mail ordering of this fine roasted and dark coffee. By 1990, further expansions were emerging (Argenti, 65). This was through addition of a new plant for roasting of beans along with the Seattle headquarters expansion. Through a search for development organizations, the company had officially launched its other ventures and developments. This thus ensured that it was experiencing progressive progress.

This owner of the now ever expanding Starbucks did want to retain employees who he considered as having excellently high quality. He therefore was the first individual to start a program offering stock to employees in a privately owned company. This program also incorporated those employees who were working on Part-time basis in the company. He cleverly used the term “partner” to refer to each and every single employee in this company (Johnmoore, 1). This seems to have worked quite well since the company did continue experiencing progressively high growth.

The big market of California was officially ventured into by Starbucks in 1991. The trendy nature of California made the Management of Starbucks have a developed firm belief in obtaining a new success. True to their firm belief this company had just in a period of 5 years surpassed its growth vision by more than 20 stores. This company had actually opened up to 150 stores in such a short span of time i.e. from 1987 to 1992. The major reason for this trend was that the company was really experiencing high volumes of sale (Johnmoore, 1). This sale was in turn attributed to its coffee of extremely high quality. This atmosphere of association was indeed growing very fast.

Initial Public Offer and Future Growth Plans

This initial offering took place on NASDAQ (National Association of Securities Dealers Automated Quotation System) in the June of 1992. In the year 1993, the market of Washington D.C. was ventured into (Rotman, 27). A company called Banes & Noble Inc entered into an understanding with Starbucks. The deal was to enable Starbucks freely sale its coffee in the bookstores owned by Banes & Noble. A second plant for roasting of beans of coffee was also build in this same year.

To ensure further growth, the company started getting into strategic partnerships. Therefore between the years of 1994 and 1995, the company spent up to 23 million dollars in a major acquisition. This was on the purchase of Coffee Connection Inc. This very time frame represented the unstoppable penetration of the Starbucks brand into about 15 more cities of the USA. Further still it pursued its expansion strategy thorough the formation of a PepsiCo Alliance. This alliance was to enable the manufacturing of drinks of coffee and their eventual distribution (Bryson, 1). Luckily, their alliance has paid off due to an outstanding success of Frappuccino, an iced drink of coffee. This drink is now popular in convenience stores and throughout the grocery. During this same period also, United Airlines, and the Hotels of Sheraton came on board. They were majorly signed in as new accounts.

Another alliance that this company did firm was with an Ice Cream Company called Dreyes Ice Cream. This was agreed in 1996. This partner company therefore ventured into production of ice cream products made from coffee. Amazingly the ice product became the most loved brand of ice cream that was made from coffee in the whole of the United States of America. On the other hand, the company was growing so fats in the United State of America. This rate was so much fast that up to 1, 015 new locations of Starbucks had been unveiled by the year 1996.

Starbucks Going International

By the time of opening store number 676 in 1995, the company had already been established as a name to reckon with. Through joint ventures with various international companies e.g. Sazaby Inc, the company stretched itself out of America and into the international arena. Using Sazaby for example, Starbucks managed to set base in Tokyo Japan. This specific launch of a store in Japans’ city of Tokyo is seen as the major event that marked the internationalisation of this Brand and company. Due to the ambitions of this company, it was no surprise that by the end of year 1996, there were stores up and running in places such as Singapore. These places were to increase drastically and include Thailand, Malaysia, Taiwan and New Zealand before the end of 1998. Soon, South Korea, China and Lebanon were to be graced with the presence of Starbucks in 1999.

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Various countries that the company initially found itself included Japan, Hawaii and Singapore. This did enable it to pursue further its various plans for example the coffee house development in Japan. One of those notable acquisitions by Starbucks was the United Kingdom located Coffee Company called Seattle in 1998. This company had 56 different locations and up to 60 million US Dollars did exchange hands. This acquisition also marked the start of a new target of obtaining stores numbering into 500 before the end of 2003 in Europe alone (Baker, 2).

Later on in 1999, other acquisitions followed. These included the tea company called Tazo and a contract that spanned into long time period with the supermarket called Albertson’s. The Albertson deal saw the opening of at least 100 Coffee bars for Starbucks in its groceries. This thus saw the eventual introduction of Tazo tea and Frappuccino across the Midwest (Savanese, 1). Other Starbucks merchandise that was part of the Starbucks brand was also introduced in this region that was majorly centralized by Albertson. Further partnerships ensued in 200 for example the Host Marriott. This played a major role in ensuring continuous growth especially in the industries operated by hotels (Monique, 1).

2001 represented substantially enormous growth. This was through the addition of approximately 1, 400 all in new stores. There was therefore a total of up to 4, 709 stores by the end of the year. Additionally, the Japanese branch of this company had also opened up to 300 locations in Japan. The immense success in this foreign land full of Japanese people as attributed to a lot of popularity that Starbucks had attained in this country. Along with this popularity was the immense financial succeed that it was enjoying. This was especially so after the initial public offer in the Japan NASDAQ.

With the major aim of Starbucks being to become a leading company in the global market, the company tries to make the lives of people worldwide better through what it calls making difference in the lives of people. Therefore, this apparent situation with an international look looks like it is going to be a part that is emergent to this company. In the eyes of an average person, they have achieved their ambitions. This is due to the success that the company has so far enjoyed. However according to the views of Starbucks itself, it is just about to achieve its goal. This is because although it now has an outstanding international presence it is only in a fraction of the world i.e. Bahrain, Hong Kong, Australia, Lebanon, Israel, Oman, Japan, Malaysia, Kuwait, New Zealand, South Korea, Philippines, Qatar, Singapore, UAE (United Arabs Emirates), Peoples Republic of China, Taiwan, Switzerland, UK (United Kingdom)and of course the United States of America (USA). Other countries include Egypt, Algeria and South Africa.

One of their most notable additions while in the early stages of going to the international scene was the compact disc addition (Smith, 28). This was majorly as a result of an experiment that was previously so popular. This amazing outcome of music that was in-house became a permanent feature of all products that were in the store. Therefore from the start of this experiment way back in 1995 up to date, it has become a part of this company.

Generally, this idea of the company becoming a major player to be reckoned with in the international scene seems to be taking the company quite well. This is from the fact that companies with impact in the global scene seem to eagerly want to partner with Starbucks. This kind of attention is evidently quite important for this company. This is from the fact that there is now a strong foundation base towards future international markets development. This ultimately acts as a strengthening factor for its mission.

The ambitions of Starbucks has enabled it become a corporation on the global market. With now more that 5000 stores in United States of America and the whole world combined, this brand is enjoying immense presence in more that 40 countries. This coupled with a total employment of about 100, 000 employees, it is truly a global player in the markets

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Mission and Organizational Culture

Just like many other successful organisations out there, they too have a mission. Their mission involves its establishment in the world as purveyor of coffee that is the finest in all measures. It hopes to do this while it still maintains principles that are never uncompromising. It also hopes to continue with its trend in growth. The possibility of achievement of this mission has been greatly attributed towards a number of goals that had been set. These goals along with their accompanying principles have helped in governing of the process of making decisions in this company. Additionally, there are a host of known procedures to be followed. This company uses this for future control. Quite notably though, the company’s guidelines are set with its mission statement

The six Starbuck principles include providing an environment for working that could be termed as being great. This is to ensure respect and honour for everyone. Secondly, they do ensure that diversity has been embraced. To this company, it is essential in how they carry out their business. Another principle involves the application of standards that are high. This is especially important when it comes to their purchase, roasting process and eventual delivery of their fresh coffee. They also do strive to ensure that customers are always satisfied. Another one of their principle is to contribute to the society. They do this through ensuring that the environment is conserved. Lastly however, the company has a principle of essentially recognizing profits as an important feature to ensure their success in future.

With such a mission and principles, this company rarely finds any type of resistance wherever it sets its base unless if it comes from competitors which is quite understandable. This is because these guidelines do apply to employees irrespective of whether one is a worker or a manger. Thus a notable standard of its own is always maintained. Therefore these guidelines and the combined mission statement also end up being of great importance to the eventual customer. This is due to the support that is given to him or her.

Culture

Culture stands as one of those phenomena’s that might act as a possible threat to the existence of Starbucks. This is because, while this company prides in making high quality coffee, some people in other countries do not see all the fuss in the high quality coffee. To these people, they do not have any form of interest in coffee that is said to be of high quality or poor quality for that matter. Coffee is just coffee. Moreover, in some countries, people are not interested in having all these strictly environments for drinking coffee. They do drink coffee in hotels that serve any other type of food when necessary or while at home. They do not enter into a store just for a cup of coffee. This is obviously quite contrary to the model of business and Starbucks Strategy. Hence the need of Starbucks matching services, variables within the environment as well as services to the various countries of targeted interest.

The Market in the USA

Although Starbucks has its roots in the United State of America, it still has to localize in some areas. This is a strategy to ensure that more sales are ensured and hence more profits. These efforts are widely channelled through de-branding and pseudo-localization. To Starbucks, these are efforts of ensuring that their stores attain some bit of personality that is familiar to the communities around it. Some of the new introductions to these cafes include the sale of alcohol within the store. There will also be live music being played and some sessions of reading of pieces of poetry (Hammers, 1).

Starbucks seems to be completely dropping its name from one of its store. The store is located on the 15th Avenue Capitol Hill. The newly renamed store would now be bearing the name of the neighbourhood in which it is situated.

This is a move that is seen as trying to give back store to the community. This is so especially from the known fact that while Starbucks was rising, it led to the closure of many locally owned stores. Since the move is only a test, it is a wait and see situation to learn of its impact to the profitability of Starbucks.

Japanese Market

Japan was first ventured into by Starbucks in 1996. The intention of the firs store in district of Ginza was to avail all the experiences of a typical Starbucks store in the USA to the Japanese people. The second shop on the other hand was strategically located at Ochanoizu. This was so as to serve the generally high number of students and workers. They were deemed to be quite busy and hence an environment was created by Starbucks for them during their free time.

In Japan, Starbucks deed face some hard time. This is because their American vision did not seem quite viable. While smoking was strictly prohibited in the Starbucks store worldwide, the Japanese are on the other hand known to be smokers. They do smoke everywhere even in stores. This seemed like a problem for the new store since the existing local ones did allow smoking in their stores. Eventually however, the Starbucks store did became popular especially among the non smokers who were mostly women. This is because they wanted to have their cup of coffee in a peaceful environment that was away from the crowd and was not filled with smoke.

Further, Starbucks policy seems to have ensured its popularity. They were literally located on each street side and hence customers saw no need of ever crossing the streets so as to have that cup of coffee.

Although Starbucks did not have different varieties of coffee, they had o find other varieties in Japan. This is because of the culture that is in existence in Japan. The Japanese people are generally used to having different varieties and tests of tea. They hence expected the same with coffee, unfortunately, due to globalization by Starbucks; the taste was the same worldwide. Therefore, the company went out of its way to ensure a satisfied public. They introduced some localized that had only been made so as to ensure that the Japanese were satisfied. A certain launch called “Kyoto Match Latte” seems to contradict what Starbucks stands for. This is because it actually has absolutely nothing in common with coffee. Instead, this new entrant is showing the company’s efforts towards reaching the market. Canned coffee double shots have also been introduced in Japan from the fact that people really value time. This is so as to ensure that it can be sold almost anywhere. It is ideal to a variety of consumers since it can be ether served as cold or hot.

It could therefore be evaluated that Starbucks did not consider much about the local cultures of the Japanese market when it ventured into the market. This is clearly from such policies as not allowing smoking in the stores. However, they seem to have done quite well in the long run. All this risk was put in the hope that this new market would embraced the new brand with open arms just as they had embraced the McDonald’s and the French wine.

Chinese Market

China is another one of the Asian countries that did have a big impact of Starbucks growth. However to ensure more sales, localization was adapted. In the year 2008 on 13h of November, CCFA (China Chain Store & Franchise) did report an oncoming launch by Starbucks the launch was of a coffee product that was domestic in china at Yunnan. This move was seen as one deemed to satisfy preferences and the cultures if the locals. A few years ago, strategies of a similar manner have been experienced. One such fine example is the introduction with the traditional Chinese culture of tea for example the all classy green tea: Jasmine, Olong and Dragonwell. Another one of those localization methods in china was the offer to purchase of mooncakes. This was officially exclusively released during the festivals if the Moon in china. All these ha especially happened in Chengdu, Beijing and Shanghai.

Asia is highly considered as a potential market after Europe. This has thus led to the increased interest by Starbucks in these Asian countries. Their efforts have started paying off gradually with more people taking the Starbucks coffee.

Other Markets

There is a high competition in Europe. Starbucks is however trying to approach this issue through many avenues. One of the ways is trying to sell other thing in its store for example beverages of ice and music. In Argentina, A similar trick that was used in Japan is as well being applied there. There has been introduction of other tastes of coffee to satisfy the local market. There are over 50 different countries of date in which Starbucks enjoys its presence and it tries to localize in those countries in different ways.

Globalization

Starbuck itself defines a Starbuck store as a place that could almost be described as offering a unique interaction. This is because as a customer or client enters into a store, they often leave not just with a mug of coffee but also with rich created interaction. They tend to ensure that all that is done in the store is geared toward honouring this very important kind of connection. They therefore not only give coffee that is considered to be high in quality but also engage in customers. This ensures that communities end up doing their own business transactions in a responsible manner.

Starbucks could be easily defined as a place where one can become a member of a society or community that has sorts. It is a place without any form of loneliness and hence you are bound to meet so many other people. This all happens without any need of doing something or anything. However, a Starbucks place is usually divided into 2 major visible sections. This first division allows for fast service. This transactional service is also very simple. It is normally frequented by customers who dash in and within a few minutes, they are out again holding a cup of coffee in their hands.

In the second section, there is the often some adequate room to ensure that seated customers are having a good time. The space is usually just perfect to double up as a workspace or even an office. Hence it is often a den that is quite cosy or a place for meeting. There are therefore an ever present number of customers who are either conducting interviews or reading the newspapers. They could also be busy on laptops or having a relatively small meeting for a business. However, there is also a most notable characteristic of individuals in this space that is public. The individuals are always kind of in a space that they consider private for themselves. Thus customers who would not want to receive any kind of bother would always end up in a private space in this public space.

Therefore the nature of the world today has in some sense forced people to become isolated in some way. They however do strive to ensure that they are still part of this larger community. In order to do this, they would always prefer to go to Starbucks store. This is because some feeling of society could be achieved in these stores.

Most stores world over that belong to the Starbucks brand have this basic setting. This together with other things like the high quality global taste of coffee is what defines Starbucks.

Adaptation

Adaptation could be defined as process of an environment becoming a suitable place for habitation. However for the sake of this topic, it could be defined as the process through which Starbucks is trying to ensure that it receives strong acceptance. The various adaptation processes that have been undertaken by Starbucks include the production of other tastes of coffee to suite the market for example in Argentina Japan and China. There have been also efforts in the USA to try and de-brand the stores so that they could attain a more local look. This long with selling of other beverages, alcohol and many other products not originally from Starbucks is all a way of trying to boost sales.

These procedures however tend to occur and are managed without any form of interference form the headquarters. They however are allowed by the headquarters to do as they deem beneficial and more income generating.

Product Information

Starbucks does indeed have high volumes of requirements when it comes to coffee consumption for later sale. It therefore does involve a huge number of suppliers to meet its demand for coffee. This led to an extreme competition by the many suppliers to ensure that they got the chance to supply them with coffee. For the eventual benefit of Starbucks itself, it started a cultivation of a relationship that was to be of a long time basis. It ensured that these suppliers received some training. Additionally, the company also closely worked with them. To ensure that proper quality was maintained, some 3 samples were extracted form their suppliers at 3 different time periods. These 3 samples involved the use of a pre export sample and another one prior to shipping. The last sample was usually extracted after the shipment had been delivered. To ensure that their supplies kept high standards of coffee at all times these measures were taken in form of samples. Therefore, if the company was to find that one of the 3 taken samples from a particular supplier was not satisfactory, it could rightly refuse to accept any further dealing with the affected supplier on that particular shipment.

This process of supplying the all important coffee had an excellent design. This in the long run did ensure that optimum efficiency had been attained and eventually maintained. This on the other hand led to production that was top notch. Forecasting that was quite sophisticated was used as a model for running this system. Therefore, there were always forecast that were almost 100% accurate. This ensured a manufacturing process that had been integrated to full levels (Rotman, 6).

Price Fluctuations

All things said and done, Starbucks seems to be a company than has become established properly. Being a company that can be said to be well rounded, they have indeed become a leader in this industry. A very strong image in a brand has been built eventually leading to securing of a huge share of the market as compared to their ultimate competitors. Through thorough research that the company has undertaken time and again, its management panel seems to have become well informed of consumers and how they change their behaviours when it comes to consumption of coffee.

However, one theory does hold true, i.e. increase in the average prices of coffee will eventually lead to some reduction in the consumption of coffee (Degrande, 1). As much as an increase in the price of coffee would seem as a threat to the business of Starbucks, it is a minor threat in the eyes of this huge corporation. This is from the founded truth that this company has already secured its customer base. Therefore, this increase in price would definitely lead to changes in behaviour of the customers but this increase is not bound to drastically have an effect on their consuming habits.

Starbucks is however trying to curb this by interacting directly with the farmers. Such interactions involve the development of centres that offer support to farmers. The centres have for example been established in Rwanda and Costa Rica. These centres in the long run do bring expertise and other resources to farmers. Therefore, high coat of production that was initially being experienced by farmers is drastically reduced. This is through a reduction in infection by fungus and thus s general increase in the quality of coffee. Premium coffee production is thus increased. In the long run, future coffee that is of high quality is ensured. This is because the farmers have been helped to bring about sustainability in their farms. Also their communities have become strengthened and therefore they can even pit more effort in this seemingly rewarding venture.

Management of Human Resources

Since the company has a deep understanding of just how valuable their customers are, they always have had intentions of treating them well. They try to provide some outstanding working environment. This is so as to ensure in the final run that all of their employees are respected. They also strive to achieve dignity treatment of their employees. This type of value that has been enshrined in its culture makes the workers develop some feeling of being important. It has even extended to those employees working on part time basis. These same employees are given some incentives to buy stock that belongs to the company. This program is known as the BSP (Bean Stock Program). This is through giving the employees stocks at some lowered prices. It is no wonder that the company has a strong belief that their business of coffee is also tightly related to eventual development of people. They therefore do have a mandatory training for improvement of personal skills at an interpersonal level.

Starbucks Criticised

Generally, the Starbucks Company has had a developed reputation for being quite creative in new developments. The downside of this is that their often new developed products are always prone to falter as time goes on. Further still, their more than ¾ presence solely in the USA is seen as not an efficient way of spreading out business risk (Cateora, 1). Critics would argue that to ensure that a business is not highly prone to risks associated with any type of business, and then they ought to look for and ensure they have established presence that is dominant in a number of countries. Moreover, the company seems to be solely dependant on advantage that has been created through competition. This stands as a possible slow turn if they ever would want to venture into some other new sectors.

The leveraging of distribution channels that are known as 3rd party has also created some flows in due to the lost power of control (Bryson, 1). This creates a possible threat in the near future. These license agreements allowing the selling of Starbucks products in other different location and other countries. It is no wonder Starbucks is trying to correct t his possible flow by making sure that all licenses to operations are retained with exception of only a few.

Recommendations for Starbucks

Since Starbucks has had generally successful financial and marketing goals, it seams to be better placed for some beneficial advances. These could include penetration of the market further to ensure truly global presence. It also stands at an upper hand to venture further into more technological advances. It could further its joint ventured programs and ensure a more penetration in the USA market.

This company should consider penetrating more in these big upcoming markets of the India and China. They would in the long run ensure that should a person have a thought of coffee, they would eventually end up thinking of Starbucks.

However, with apparently over 85% of profits enjoyed from the people of the United States of America, they should ensure that these loyal customers in this country are kept and new are continually found. This should be through ensuring a sustainability of their innovations and elegant service to customers.

Further still, more could be capitalized to ensure the repeat buying of coffee. This could be done through simple procedures like encouraging of more meeting in the Starbucks store through providing simple things like bigger table to offer conferencing abilities. This could be also through ensuring that internet connectivity is possible in all stores all over the world. This would encourage even groups of college students meet in a Starbucks store to do their assignment on “Starbucks” using the internet within the Starbucks premise. This use of the all powerful tool of technology might lead to ensuring a longer stay of customers in the store. Hopefully, this might translate into higher sale of coffee and hence more profits.

The reward system for the employees ought to be revamped. This is especially so since a majority of employees at Starbucks are usually under the age of 20 years (Brooks, 3). They ought to put more emphasis on medical care for its employees. There also ought to be more improvements on wages that are paid outside the hour of working along with other raises semi-annually. All these along with other normal benefits to its staff would lead to increased incentive for employees to perform better at work. This would also lead to even lower rates of turnover by the employees. This would most definitely be due to the employees feeling that they get the satisfaction that they need from their jobs.

Conclusion

The vision and mission set by this company clearly has helped it become a global brand. These, coupled with their aggressive expansion schemes, have seen the company grow into a huge corporation. Through ensuring that only the finest quality of coffee is offered, this brand has become associated with the best, world over. The company has also strived to maintain its image through retaining its finest employees who offer renowned service to customers. Through offering of stock to employees, they have come to associate more with the company and hence working hard to ensure its eventual success. Additionally, proper incentives have always been given to these employees to ensure that they remain in this company. However, more expansion plans can still be in the making as the company is yet to make a major impact especially in African countries. This is especially so from the fact that the only places in Africa where the company seems to have its presence are South Africa, Egypt and maybe some few countries in the western parts of Africa.

Works Cited

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Brooks, Susan. Starbucks Is the Undisputed King. 2008.

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Cateora, Phillip. International Marketing. New York: McGraw-Hill Higher Education, 2007.

Degrande, Joann. Starbucks Outlines Blueprint for Multi-Channel Growth. 2010. Web.

Hammers, Maryann. Starbucks is Pleasing Employees and Pouring Profits. 2003. Web.

Johnmoore, James. The Starbucks Digital Network. Why Bother?  2010. Web.

Leslie, Kaufman. Where Does the Starbucks Cup Go? 2010. Web.

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Schulz, Howard. Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time. New York: Hyperion, 1997.

Smith, Martin. The Empire Filters Back: Consumption, Production, and the Politics of Starbucks Coffee. Urban Geography, 17.6(1996): 4-5.

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