Starbucks Corporation’s Coffee Business Research
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Starbucks Corporation’s Coffee Business Research
Strengthens and Weaknesses 3
Conclusion and Recommendations 4
Strengths
Starbucks Corporation’s coffee business has various strengths, such as its brand and reputation across the globe due to its lead in the coffee and café industry (Starbucks Corporation, 2021). Starbucks has branded itself as a reliable organization. It has developed robust regulations of social responsibility and committed itself to sustainability and utilizing its products ethically. Another strength involves a loyal customer base that loves its products and provides positive feedback and referrals to others. Thirdly, Starbucks had practical technological innovations since it developed a loyalty program that rewards frequent users with free drinks (Starbucks Corporation, 2021). Finally, Starbucks’ human resources and structure that has covered the Middle East, C.A.P., Africa, Canada, and other nations worldwide, which has helped enhance the reputation of Starbucks.
While Starbucks has a number of strengths, there are also a few drawbacks. For example, promoting local cultures through menu and store design, specifically in international locations, could prove a risk since not every culture prefers their coffee served the Starbucks way. Starbucks also produces products that are expensive, which makes them a challenge for the average person to afford, and it is something that Starbucks should investigate. Comment by Leigh A. Ruggiero: I would try to come up with as many weaknesses as you have strengths. You can find a few more weaknesses or you can describe these two weaknesses in more detail.
Capacity for Learning and Change
Starbucks has a [blank] relationship with learning and change. The organization is very [nimble/adaptable/stagnant]. This [adaptability] is illustrated by the way Starbucks has dealt with the COVID-19 pandemic in the short- and long-term. The corporation recently started laying a foundation for a transformational phase that will inform a new store format called Starbucks Pickup. The store format is designed for consumers who prefer to make orders in advance and pay via the Starbucks mobile app for pickup and delivery through Uber Eats (Starbucks Corporation, 2021). This initiative began when Starbucks closed 100 stores in a year due to lease expiration and other related circumstances, and announced that it would shut down approximately 400 coffeehouses over the next 18 months. Starbucks has initiated a significant change due to its learning capacity. Such changes will ensure customers get their orders early enough and save a lot of time and energy going to the physical coffee stores. Comment by Leigh A. Ruggiero: Cite the SEC report (or other document).
Conclusions and Recommendations Comment by Leigh A. Ruggiero: The corporate financial status is sound, enhancing external investments and getting the necessary resources to facilitate the primary strategy to achieve its goals and values. Market penetration to the organization involves extending its boundaries internationally and would help develop brand value and gain additional market share. The company has showcased its formula for profit, and consumer engagement has worked, and it should divert from its contemporary strategy. Thirdly, the organization should be compassionate of cultural diversity in their services so that one community should not feel unrecognized.
The following [5] conclusions and recommendations should be taken into account:
Conclusion 1
[Describe your first conclusion for 2 – 3 sentences
Recommendation 1
It is recommended that Starbucks should develop its existing strategies such as market development, market penetration, and product development based on the discussions above.
Conclusion 2
We cannot deny that Starbucks has a competitive advantage, especially in its quality compared to the generic coffee commodity. Yet, in terms of the convenience of the market, Starbucks should pursue substitutes that compete in crucial areas like America, Canada, and other parts of the world. Such as a pre-packaged drink.
Recommendation 2
It is therefore recommended that Starbucks pursue products that compete in [State a specific recommendation based on the above conclusion in 1 – 2 sentences].
Conclusion 3
[Describe your first conclusion for 2 – 3 sentences
Recommendation 3
It is therefore recommended that Starbucks [State a specific recommendation based on the above conclusion in 1 – 2 sentences].
References
Starbucks Corporation (2021). UN Global Compact.
Starbucks Corporation (2021). Starbucks Stories & News.
https://stories.starbucks.com/leadership/kevin-johnson/