The strong coffee culture in the United States seems to play a role in Starbuck's great showing. However, this coffee culture is not necessarily present throughout the rest of the world (Weinberg and Bealer, 2002), potentially limiting Starbuck's growth elsewhere in the world
59 to $2.67 a share and backed its prior outlook for at least 10% revenue growth and global same-store sales rising in the mid-single digits" (Armental & Jargon 2014)
Secondly, there are concerns about the ways in which workers are treated at actual stores, beyond the rhetoric of the company. In 2008, when the company was enduring many of its financial difficulties, Starbucks was ordered to "pay its California baristas more than $100 million in back tips and interest that the coffee chain paid to shift supervisors" as shift supervisors had been forcibly 'sharing' in the tips paid to baristas in the general tip pool (Carter 2008)
In 2008, Starbucks announced a radical shift in its market super-saturation policy whereby it used to open up stores literally across the street from one another. It closed 600 stores domestically, in an effort to respond to criticisms about its product and service quality (Linn 2008)
The organization shifted its focus to expansion abroad, to take advantage of an untapped market and to be a 'first mover' in the coffee market of Europe and East Asia. "Today Starbucks is in 62 countries around the globe" including India and China (Loeb 2013)
"One of Starbucks' key marketing strategies is to provide customers with an exceptional experience. The chic interior, comfortable lounge chairs, and upbeat music are not only differentiators that set Starbucks apart from the competition, but also have strong appeal to younger generations who fantasize about Western coffee culture as a symbol of modern lifestyle" (Wang 2012)
Within the divisions, marketing, partners supporting store development, partner resources and finance will be reporting directly to their particular functions but still be accountable for results at divisional level. These teams are being centralized in order to create an infrastructure that has global span, capability and is effective (Onward, 2008)
It closed ten stores in reliably "money losing" locations." (Dawson & Holmes, 2002) Cutting back on the number of stores and curtailing costs, analysts say, may be the only way for Starbucks stop losing money and to "inject some steam back into the stock price
This creates a more harmonious work environment but it also shows to the baristas that they are not just viewed as low-level employees, but rather as a stakeholder and someone who could progress going forward and build a career at the company. This internal equity should result in a better work environment, in addition to helping to attract better employees to these positions (Kappel, 2012)
Keurig Green Mountain is definitely a fast-cycle competitor. A primary reason for selecting Keurig Green Mountain as a viable competitor of Starbucks Coffee Company is that the company has helped to put the K-Cup on the market and promoted it to the point where the K-Cup is nearly ubiquitous, and copied by every major coffee company (Bower & Hout, 1988)
Starbucks focused on creating an aspirational and consistent brand that would translate to different product markets (Thompson & Strickland, 1999). Starbucks offers a wide variety of coffee products, drinkware and accouterments, music and Wi-Fi, and personalized customer service (Flight, 2007)
The most influential competitive business-level strategy that Starbucks has put in place is differentiation. Starbucks focused on creating an aspirational and consistent brand that would translate to different product markets (Thompson & Strickland, 1999)
Starbucks recent emphasis on global markets illustrates the company's approach to diversification. Starbucks designed an entry strategy to the Chinese market that would be inoffensive to Chinese culture (Wang, 2012)
The company is the largest contributor to the CARE relief fund which provides health, education, and humanitarian programs throughout the world and, specifically, in the areas where Starbucks purchases its coffee supplies. Collaterally, Starbucks has actively participated in improving agricultural conditions in the same areas and ensuring that the farming techniques being used are environmentally friendly (Argenti, 2004)
From 1987 to 1992, the company was privately owned but in 1992 a public offering of stock was made which allowed Starbucks to develop into the undisputed leader in premium price caffeine products in the world (Schulz, 1999). Part of Starbucks' success has been tied to its dedicated policy of corporate responsibility (Beckley, 2007)
Ordinarily, these problems would not be a problem as consumers usually do not stop patronizing companies encountering labor problems but, due to the upscale nature of Starbucks' clientele, such problems are more serious. Starbucks' clientele tends to be more sensitive to issues involving the environment, matters of free trade, social responsibility, and labor matters and, therefore, also more apt to react negatively to Starbucks being involved in or accused of irresponsible behavior in any of these targeted areas of social concern (Dickinson, 2002)
The timing of the NLRB action and the increased efforts of the SWU to organize could not come at a worse time for Starbucks. The struggling world economy has caused a lower demand for premium coffee products while, at the same time, companies like Dunkin Donuts and McDonalds have increased their efforts to capture some of the Starbucks' market share (Larson, 2009)
Growth, however, often brings with it problems that have often been the death knell of some corporations and Starbucks is confronted with one such problem and how it deals with it will mark whether Starbucks can continue to enjoy success. The problem facing Starbucks is its messy legal dispute with a group identified as the Starbucks Workers Union (SWU) (Lynd, 2007)
The NLRB ruled against Starbucks in that action and marked the first success for the newly formed SWU. The SWU is part of the larger Industrial Workers of the World union which has begun to actively recruit members throughout the Starbucks' organization (Maher, 2006)
By the late 1980's the organization that has now attained international acclaim was put in place and has demonstrated steady growth ever since. From 1987 to 1992, the company was privately owned but in 1992 a public offering of stock was made which allowed Starbucks to develop into the undisputed leader in premium price caffeine products in the world (Schulz, 1999)