BUSINESS TACTICS - LASA—Strategic Analysis: Organizational & Competitive

Module 2 A2

Romeo Joson

8/26/15

Overview of the organization

Starbucks Corporation commonly referred to as Starbucks coffee is one of the organizations from the Fortune 500. Starbucks is an American Coffee company that was founded by Jerry Baldwin, Zev Siegel and Gordon Bowker in 1971. The company has its headquarters in Seattle Washington and serves a worldwide region with an approximately 22,551 locations. Starbucks’ web address is starbucks.com . Starbucks coffee was ranked 5 in the Fortune 500 in 2015 in relation to food services. Starbucks coffee is the leading coffee dealer in the world. Under the effective management of the Howard Schultz ,who is both the president and the Chief executive officer of the company, it has been in a position to achieve its goals and objectives of being the leading dealer in quality coffee. Starbucks coffee has an employee standing of approximately 191, 000. The many employees enable it to execute its duties and responsibilities effectively (Schultz, Howard, 2011).

Organizational strategy and business model

Organizational strategy and business model are key concepts that determine the success of any business. With regard to organizational strategy, Starbucks coffee adopts a very effective organizational structure where there are clearly spelt out duties and responsibilities of each member of staff. However, the company’s main goal is to provide quality coffee and other products to the customers. Starbucks adopts a business model made up of various elements. Some of these elements include personal passion, an emotional connection as well as standing for something. These are the key elements of the company’s business model and that has helped the business achieving its glorious success.

Products

With reference to products and services, Starbucks Coffee offers a wide range of products in order to meet the diverse needs of the customers. Some of the products that the company provides to the customers include whole bean coffee, tea, Frappucino, espresso, pastries as well as snacks. The company’s products are usually highly priced compared to those of its close competitors (Schultz, Howard, 2011).

In terms of market positioning, Starbucks Coffee is the best and most successful company in the Coffee shop industry. Much of its success is associated with the effective leadership and very effective customer service. Quality is a core value in the organization as it strives to provide not only quality coffee but also quality treatment of the customers (Bussing-Burks, 2009).

There are various sources that I have used in gathering information about Starbucks coffee. Some of these include the company’s website, the company’s annual reports as well as textbooks.

There are numerous various reasons that have facilitated the selection of Starbucks Coffee as my organization. To begin with, the company serves as an example and a role model to all other companies regardless of the industries they are in. This is in relation to customer service. Starbucks is a very responsive company when it comes to customers’ issues. The customers are the top priority in Starbucks coffee. The company is in constant interaction with the customers in order to identify the areas of concerns that the customers may be having. Secondly, the company is very successful. In addition, Starbucks coffee offers a very good example in relation to employee recognition and leadership. The company has an outstanding management. Howard Schultz recognizes the significance of the other company’s stakeholders as of great importance in the company.

References

Bussing-Burks, M. (2009). Starbucks. Santa Barbara, CA: Greenwood Press.

Schultz, Howard. (2011). Onward: How Starbucks fought for its life without losing its soul. New York, NY: Rodale.

starbucks.com