This paper provides a thorough discussion on how Starbucks works its way from good to great. Starbucks’ mission is “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks 1). Starbucks offers over 30 blends and single‐origin premium coffees to their customers (Starbucks 2). As of July 1, 2012, the company has 17,651 stores across the globe. Starbucks Company is an international coffee brand built on a reputation for having high quality products and unique friendly services. The company has strong comparable store sales growth of 7% in the United States and 6% sales growth globally (Starbucks Investor Relations). Thus, financial strength of Starbucks is continually growing. The company is an esteemed employer that places great value on its workforce.
The road to greatness was never an easy path for Starbucks. The company had its own series of issues and controversies. Last January 24, 2012, Starbucks expressed its support for gay marriage legislation in Washington State. Such support met lots of reactions from anti-gay marriage. Some organizations launched a boycott against the company. However, the company leaders of Starbucks stated that their support for gay marriage is in line with their vision to promote equality and embrace diversity with respect and dignity (Garber). On February 2012, Starbucks openly supported the carrying of weapons in the States. Thus, a boycott was hurled on Starbucks to persuade them to join the other retail chains that prohibit the carrying of guns. The company defended their stand on the issue by stating that wherever the store is, the store will abide to the laws of the country (Murphy). On June 2012, Starbucks was put into the hot seat after mistakenly asking Irish people to tell what makes them proud to be a British. The message was intended for the British individuals in Ireland. Some Irish threatened not to go back to Starbucks unless they receive an apology which the company sincerely gave to them (Quinn, 2012). On October 2012, after fourteen years, Starbucks paid £8.6m in corporation tax in the UK (Gompertz). For several years, the company reported that it was experiencing losses in UK hence it was not forced to pay the corporate tax. On November 2012, the company struggled to defend the reasons for its tax avoidance for many years (Murphy). On December 2012, Starbucks expressed its plan to use its cups to convince the lawmakers to establish a deal to avoid automatic tax hikes as well as government spending cuts (Baertlein).
One of the trademarks of a company that works hard to be great is its willingness to venture into innovative techniques. Innovation has been at the forefront of Starbucks’ operations. On March 9, 2012, Adam Brotman was appointed as the new chief digital officer because of his various digital projects including social media, digital marketing, web, mobile, Starbucks Card, e-commerce, Wi-Fi, and many more. One of the many digital projects of Starbucks is its mobile payment system through a 2-D barcode-scanning system, built into iPhone and Android apps. The use of mobile technology has solved the problem of Starbucks concerning slow service.
Starbucks also ensures that the company engages in disciplined action by ensuring that its operations do not pose negative impact on people and the community where it highly functions. Starbucks is committed to its environmental accountability. The company has developed more environmentally friendly cups. It is also working hard in expanding its recycling program. The company is also committed in reducing its energy consumption by 25%. In terms of water, Starbucks has removed its dipper wells and replaced them with manual faucets. In this way, the company is able to minimize 15% of water consumption. The company also makes use of energy efficient designs for all its stores in order to lessen environmental footprint. Since 2004, the company has been planning strategies that focus on renewable energy, conservation, collaboration, as well as advocacy.
The strategy employed by Starbucks is uniquely planned and created and one which is not commonly applied in various businesses at present. Not one Starbucks ad in newspapers, billboards, and ad spaces can be seen, just as what one can usually watch in television commercials such as those of McDonalds. Starbucks used eccentric form of strategies that are exceptionally and not so often tried yet most perfectly paralleled the idea that the coffee company wanted to implement. In terms of products, they go through various stages. Some of these stages may take a long time. Frappuccino is being introduced at an earlier time. Frappuccino is a summer drink. It is during late summer that the product reaches its peak growth. The decline stage will start to happen during the middle period of fall. When Starbucks was first launched in the market, the coffee was served for only 50 cents. Gradually, Starbucks found it nook in the market and continues to grow worldwide.
It has been the company goal to provide an excellent atmosphere for everyone who wants to have some form of relaxation after a day of hard work. This has been one of the strongest ideas that Starbucks has and one that has attracted most customers. Satisfaction is Starbucks most important concern. From the door entrance up to the last sip of their coffees, Starbucks wants to ensure that the customers would experience the feeling of uniqueness by having the luxury of enjoying Starbucks coffee.
Just like any other successful businesses, Starbucks Company began its operation with a single vision in mind. This vision is what they intend to follow until the end. Moreover, just like other highly successful ventures, the leaders responsible in creating Starbucks’ vision. Starbucks Company has been recognized for having created strategic partnerships that show the reality that another technique to improve or develop your business is by creating smart partnerships. However, to achieve full greatness, Starbucks has to find ways to uplift its reputation and clear the issues on tax payments. Furthermore, the company must find way on how to keep with the competition against other businesses.
Works cited
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Collins, James C. Good to Great. 1st Ed. New York, NY: Harper Business, 2001. Print.
Garber, Andrew. 'Starbucks Supports Gay Marriage Legislation'. The Seattle Times. N. p., 2012. Web. 30 Jun. 2014.
Gompertz, Simon. 'Starbucks 'Paid Just £8.6M Tax''. BBC News. N. p., 2012. Web. 30 Jun. 2014.
Korones, Sarah. 'Starbucks Struggles To Compete In European Market'. Smart Planet. N. p., 2012. Web. 30 Jun. 2014.
Krishna, Sonali. 'India’s Coffee Market Competition Is Ferocious: Howard Schultz, Starbucks'. The Economic Times. N. p., 2011. Web. 30 Jun. 2014.
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Van Grove, Jennifer. 'How Starbucks Is Turning Itself Into A Tech Company'. Venture Beat. N. p., 2012. Web. 30 Jun. 2014.
