Individual Assignment 1
Individual Assignment 1
[Name of the Writer]
[Name of the Institution]
Individual Assignment 1
Starbucks is the largest coffeehouse company in the world that has a presence in almost every profitable market with a presence in the 70 countries of the world. The company is a highly efficient industry player in terms of the quality of products it offers to the customers. In terms of global presence, Starbucks is a well-established brand almost in every emerging market. One of the secrets of the company's success is its partnerships with suppliers and relationships with all customers while having great contributions to social activities. The financial performance and other organizational and business strengths of the company can also be found impressive. Hence, this paper analyzes almost every aspect of Starbucks.
Starbucks is a premium roaster, retailer of specialty coffee as well as marketer in the world that operates in 70 countries around the globe. The company sells high-quality coffee in every store and coffee house and a variety of other tea and beverages. The company is a well-known name for its contribution to community wellbeing (Franke, 2017). The main strength of the company is the quality of its incomparable products with the huge presence and highest market share in the U.S. and international market.
Starbucks is the largest coffee company with having 27,339 stores and other locations in the world. The company became publically traded in 1985. Based on the competitiveness, operating results, performance, operations, and overall business efficiency, Starbucks is ranked among Forbes' top 500 world's biggest public companies (Franke, 2017). The market value of the company on global level amounts to 70.9 billion US dollars while the overall profit of the company 27.3 billion at the end of the last financial year 2018-19.
Relationship with Suppliers
Starbucks can be witnessed having a strong relationship with each of the stakeholders such as customers, suppliers, communities, and partners, etc. The company is a trusted and welcoming company for its suppliers. They have a supplier diversity program through which they put efforts to empower and increase the relationships and connections with suppliers. Starbucks can be found the greatest brand in suppliers' minds (Mason, Cole, & Goza, 2017).
Relationships with Customers
Starbucks considers and understand it that they are the world's largest brand in the world mainly because of their potential, valued, and loyal customers around the globe. The company's relationships with the customers are almost incomparable and this successful forging personalized relation provides Starbucks with a competitive point as well (Capital West, 2019). The company works to make customers feel valued and special as well as makes relationships central to content through developing a partnership with consumers or customers and it can be stated that it is a secret behind Starbucks' success as it gives importance to each of the stakeholders and capitalizes on this idea.
Being the world's largest coffeehouse company, the competition Starbucks has is very tough and strong. The company put every possible effort to stay competitive in the market place as it has the following strong and well-established competitors around the world.
Coffee Coffee Day
Strategy for Social Responsibility
Starbucks' social responsibility strategy is mainly based on the main three pillars; Community, environment, and Ethical Sourcing. The company has a huge and very positive impact on the communities and society in these three areas (Franke, 2017).
There are credible initiatives taken by Starbucks such as;
Recycling and waste reduction
Water and energy conservation
Green building and climate change mitigation
Responsibly grown coffee and ethically sourced Tea and Cocoa
Policy or Concerns with Climate Change
Being a highly social and society oriented company, Starbucks has a special strategy concerning climate change. The company has a specific climate change strategy that focuses on energy conservation, renewable energy, adaptation of climate change and mitigation efforts. Starbucks focuses on building LEED standards in its stores while becoming the largest buyer of renewable energy in a particular industry (Alwaleed, et.al, 2019).
The company works with Conservation International on the farm level to put climate-smart agricultural practices as part of C.A.F.É while partnering with other businesses to champion progressive climate change policy and practices.
Mission and Vision As It Relates To Social Responsibility
“To inspire and nurture the human spirit, one person, one cup and one neighborhood at a time”.
The mission statement relates to social responsibility because it is not only regarding company success and growth but it also states to “To inspire and nurture the human spirit”. This means to inspire people in every aspect (Stangis, & Smith, 2017).
“To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow”.
Vision Statement relates because it says that we maintain uncompressing principles while we grow.
Financial Trends and Strength.
The total assets of the company are $19,219.6 million with current assets of $5,653.9 million while having $616 million investments in the last year. The company's earnings per share are $3 to $3.05 and the stock price of Starbucks amounts to $82.43. Hence, this financial position and performance state that Starbucks is well-performing and highly efficient in terms of financial performance (Mason, Cole, & Goza, 2017).
Highest market share in the coffee market the huge number of customers in comparison to competitors.
The profitability and revenues Starbucks generates are highly positive compared to industry rivals.
Most efficiently performing players (in terms of operations and financial performance) in the market place and almost in the entire industry (Jo, & Kim, 2017).
Most convenient and effective customers of attaining products in Starbucks locations.
After an in-depth analysis of each and every aspect considering paper requirements, it has been found that Starbucks is a well sustained, well established and a strong coffee brand in the world. The credible performance in terms of financial outcomes, organizational setting and performance, market presence and share, and business operations led the company to list itself in the list of Forbes' 500 companies in the world. In terms of both business performance and social wellbeing or social work, Starbucks can be found highly appreciated by every community where Starbucks operates. The company has a specific and special strategy regarding climate change which clarifies that the company is socially responsible.
Alwaleed, N., Al Huwail, N. H., Singh, S., & AlMejhem, A. (2019). A Case Study on STARBUCKS. Journal of the community development in Asia, 2(2).
Capital West. (2019). Starbucks Business Plan | Business Plan Starbucks. Capital West Advisors. Retrieved from https://capitalwestadvisors.com/articles/starbucks-business-plan/
Franke, M. (2017). Strategic Management Report - A Strategic Pathfinder for Starbucks. Slideshare.net. Retrieved from https://www.slideshare.net/MaxFranke1/strategic-management-report-a-strategic-pathfinder-for-starbucks-38656629
Jo, A., & Kim, H. S. (2017). A Comparison of Starbucks between South Korea and the USA through big data analysis. Culinary Science and hospitality research, 23(8), 195-205.
Mason, A., Cole, T., & Goza, N. (2017). STARBUCKS: A Case Study of Effective Management in the Coffee Industry. Journal of International Management Studies, 17(1).
Stangis, D., & Smith, K. V. (2017). The executive’s guide to 21st century corporate citizenship: How your company can win the battle for reputation and impact. Emerald Publishing Limited.
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