Case Study: Starbucks
I. Statement of the problem
As Starbucks succeeds in the rapid growth of its business around the world, there are still some places on some countries which seem uncaptured by the company’s taste and aroma. Starbucks has faced a variety of “community push back” situations, .as they call it. Each push back incidents are reviewed and studied by Starbucks managers to conclude to a decision whether to open a store or withdraw the efforts invested instead. * How will the Starbucks management handle the community push back incidents and what are their preventive plans for such issues?
II. Objectives * To deepen its research on locations where they are planning to open a store. * To gain the community’s respect and acceptance. * To strengthen its human resource development program such as trainings, seminars and most importantly benefits of its coffee growers.
III. Theoretical Framework STRENGTHS * SMART STRATEGIES * Starbucks way of partnership first, country second. * GOOD COMPENSATION PROGRAM * Starbucks good compensation program builds strong relationships to its employees, which for them (Starbucks management is the key of their success. * PRODUCT VALUE * Starbucks sells an experience, not just coffee. | WEAKNESSES * AGGRESSIVENESS * Starbucks have been too aggressive in expanding the business globally through penetrating to different countries and culture which brought them bad publicity and community rejections. People see this as erosion to their local environment and culture. * GLOBALIZATION * The company is more focused with the expansion of the company and that tends to come up with fewer sales, revenues and also the minimum number of market share. | OPPORTUNITIES * BRAND NAME’S REPUTATION * Starbucks brand over a couple of decades has built its sturdy reputation which makes it seem less for Starbucks to push broader and various product lines which can humongously add up to its profit generation. *
As Starbucks succeeds in the rapid growth of its business around the world, there are still some places on some countries which seem uncaptured by the company’s taste and aroma. Starbucks has faced a variety of “community push back” situations, .as they call it. Each push back incidents are reviewed and studied by Starbucks managers to conclude to a decision whether to open a store or withdraw the efforts invested instead. * How will the Starbucks management handle the community push back incidents and what are their preventive plans for such issues?
II. Objectives * To deepen its research on locations where they are planning to open a store. * To gain the community’s respect and acceptance. * To strengthen its human resource development program such as trainings, seminars and most importantly benefits of its coffee growers.
III. Theoretical Framework STRENGTHS * SMART STRATEGIES * Starbucks way of partnership first, country second. * GOOD COMPENSATION PROGRAM * Starbucks good compensation program builds strong relationships to its employees, which for them (Starbucks management is the key of their success. * PRODUCT VALUE * Starbucks sells an experience, not just coffee. | WEAKNESSES * AGGRESSIVENESS * Starbucks have been too aggressive in expanding the business globally through penetrating to different countries and culture which brought them bad publicity and community rejections. People see this as erosion to their local environment and culture. * GLOBALIZATION * The company is more focused with the expansion of the company and that tends to come up with fewer sales, revenues and also the minimum number of market share. | OPPORTUNITIES * BRAND NAME’S REPUTATION * Starbucks brand over a couple of decades has built its sturdy reputation which makes it seem less for Starbucks to push broader and various product lines which can humongously add up to its profit generation. *