Starbucks Company Analysis

Starbucks is known for the provision of quality products and services. The employees are well informed about coffee and the best ways of producing products suitable for human consumption. They have excellent business knowledge, which is evident in the way they deliver services to customers; they are trustworthy and exhibit a high level of credibility. There is an element of mutual respect between employees and the management which justifies the nature of work done within the company.

This is enhanced by experienced professionals recruited into different departments adding some value to the outcome on the business activities. Starbucks operates on high goals and standards which assist in the processes of business growth and expansion.

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Although it seems to pose a big challenge from the beginning, it helped in the process of capturing new markets hence increasing revenue. Partnership with other well-established companies like Pepsi gave it an upper hand in achieving high sales of their products courtesy of their brand name (Auch-Roy 11-13).

What has sustained my company?

Starbucks has been sustained in various ways, one of which is the use of a computer-based system. The system has been used as a means of tracking and storing data for overall sales within all stores. Computers provide very accurate and reliable information on these tasks and consequently save on costs and time. The company has invested in the hiring of staff members before the establishment of other branches.

This ensures they get well-established management team which is away from reducing costs on the processes of hiring and training. The quality of their products is verified and monitored carefully by the management team before being released for consumption.

The sustenance has also been ensured through the adoption of aggressive and achievable growth initiatives that ensure the Company competes favorably within the market. The strategic location of their chain stores ensures the possibility of developing new supply channels and also the promotion of new products (Auch-Roy 10-11).

What makes it a great company to work for?

The positive employee-management relationship is highly encouraged such that there is a common reference name ‘partners’ among the workers regardless of their position within the company. Employees of Starbucks are granted stock option plan whereby they have a range of choices to make concerning the purchase of shares from the company. All the employees are provided with comprehensive health and dental cover, which makes it possible for them to comfortably seek treatment when the need arises (Thompson & Zeynep).

They also receive education at Starbucks coffee school in San Francisco on a variety of units including coffee history, drink preparation, coffee knowledge, customer service, and retail skills.

New employees are given thorough training in various fields such as accounting, sales and marketing, and promotion of company brand name. The management team is extensively trained on issues regarding practices and procedures on information systems, human resource management and effective maintenance on store operations (Thompson & Zeynep).

What makes it a great company to do business with?

The low turn-over rates of the Company is evidence of its good performance hence making it a good business Company. They are flexible in decision making and can take on any challenge within any market environment. An example is how the Company handled the decision regarding non-fat milk, which later profited the Company by paying good dividends. Doing this meant that they were bowing to the customer’s demand.

They embrace innovations and abide by their business mission, enabling them to deliver quality services, and supply high-quality products. It’s a quality-driven organization with products crafted to satisfy consumer needs and desires. They also produce a variety of products to the market providing consumers with different options depending on their tastes (Thompson & Gamble).

What makes it a great company to invest in?

The management of Starbucks is strict when it comes to the methods in which end products are handled. Certain practices are not allowed on the side of the employees like smoking. The Company has the best-outlined structure on the purchase processes at reduced costs (Tabar). Starbucks provides a balance of equity among its shareholders, thus protecting small-scale investors from exploitation. This has encouraged more investors across all divides of the community to invest in Starbucks business.

It has a well-planned infrastructure that promotes growth and hence generates confidence within investors. The company is currently fine-tuning its operation through embracing a new technology known as Radio Frequency Identification Technology (RFID). Essentially, this technology is bound to bring massive improvement by reinforcing the communication between the Company and clients at affordable costs (Darguste & Wei).

Three reasons for the success of our company

In a bid to perform more expansive business and win more customers on board, there are different issues that have boosted the Company’s enthusiasm towards success. These include; making affordable products, making the Company more accessible to consumers and making good public awareness programs.

Products Affordability; after a thorough market survey, Starbucks realized the need to categorize clients based on their social life. Therefore, at the event of increasing prices, the level of income of consumers becomes the first consideration. This is done to ensure that they are not suppressed by the change in prices. Starbucks also gives premium prices for all the services rendered to customers. Priority is given to customers before implementing any new innovation that may affect the pricing methods (Auch-Roy 15).

Company availability; as the company expands its business operations, the focus is laid on strategic places that have a good consumer base. Starbucks increased the number of stores and offered services which satisfied the customer’s desires and needs i.e., those traveling, those at home and those in offices.

Public awareness; this was a very critical measure to take in a bid to sell the Company’s products and compete favorably in the market. Starbucks uses improved communication channels and also utilizes its strong brand name to woe customers. The Company also entered into partnerships with other small companies in order to create channels through which they could sell coffee and coffee related products (Auch-Roy 15).

Works cited

Auch-Roy, Herve. The Starbucks Corporation: Past, Present and Future, 2004. Web.

Darguste, Valerie & Peggy, Wei.Starbucks Coffee: Expansion in Asia. Stern School Of Business New York University, 2003. Print.

Tabar, Gregory. Financial Analysis, Starbucks vs. Java the Hut. Starbucks Project, 2010. Web.

Thompson, Arthur & John, Gamble. Starbucks Corporation. Fortune Magazine, 2009. Web.

Thompson, Craig & Arsel, Zeynep. The Starbucks Brand scape and the Discursive Mapping of Local Coffee Shop Cultures. University of Wisconsin – Madison, Department of Marketing, 2010. Print.

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