Starbucks Case Study - Had to write a case summary about the topic assigned. PDF

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Starbucks Case Study Starbucks has also been one of the main competitors for being able to get coffee. Their way to stay in the upper-part of the coffee market, is by maintaining focus on keeping their products strictly coffee related. With Starbucks being one of the leading contenders for coffee, their estimated profit growth of 15% to 20% by 2021 with their intended expansion of new stores. Although they plan for the opening of new stores, by 2021, their status of a sales revenue of $2.16 Billion in 2016 according to MarketWatch (2017). Following their substantial amount of sales revenue in 2016, Starbucks also had $1.57 Billion worth of goods sold in 2016 too. With their tremendous success, it would explain their current stock value of $52 a share. When it comes to international expansion for Starbucks, they see growth in revenue by pursuing international expansion. According to CNBC (2016) “Starbucks said it expects its fastgrowing China business could one day eclipse its U.S. market”. This would explain why international expansion has sparked Starbucks interest in pursuing the thriving market China has. CNBC (2016) also reported Schultz said, "Not only will China one day be bigger than the U.S., but our business in China will demonstrate that we will be one of the...most significant winners in terms of a Western consumer brand". Although Starbucks sees success in China, their European revenues haven’t been the best. The competition in Europe is at a high, which means the quality of Starbucks coffee would have to be high. This is also the result of why Starbucks hasn’t seen any profits while being a part of the European market. In 2000 Howard Schultz left Starbucks due to the tiresome work he put into growing Starbucks globally. With his return in 2008, Shultz came back with a plan to get Starbucks back on track for success. While Schultz was away, Investopedia (2015) reports Starbucks stock price was flat for the course of the 8 years. Starbucks was seeing revenue grow, but that was only due to constantly having to open new stores to keep up. With new stores being opened, the current ones were seeing a decline in sales over time. When Schultz made his comeback, he stuck true as a true CEO and “fired nearly all executives, shut down lagging stores and chartered a new course for the company to ensure that operations would not be sacrificed for growth.” according to Investopedia (2015). Starbucks has always been favored for its work environment that it provides amongst its stores. This thing about Starbucks could stem from its CEO Howard Schultz who according to Investopedia (2015) “entitles them with comprehensive health insurance and an option to own stocks, part-time employees, included”. With how Howard handles his work staff, he also respects the idea of diversity and culture amongst his business when it comes to preference. The value shared for the customers and employees through Starbucks is something that’s aimed for, you’re supposed to feel like you’re a part of the business yourself. To encourage the positive effect, they bring to not only the employees but the community, Starbucks has hired over 8,000 veterans according to Starbucks (2017).

Personally, I’ve never had Starbucks coffee, as I’m not really a coffee person. I have always been around friends who have had a taste for what they consider “the best coffee”. Which although I’ve never tried Starbucks coffee, I can see the loyalty Starbucks builds with its customers, while seeing how often my friends get it. In elementary, every day before school my aunt would always go to Starbucks. This just showed me how good she valued Starbucks coffee, to have a daily routine of getting some. I’d have to consider that I don’t have an emotional attachment to Starbucks, but I wouldn’t say I couldn’t develop one if I end up having a taste for coffee.

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Ramakrishnan, Sruthi. Starbucks sets five-year growth targets, to open 12,000 more stores. 2016. Daniels, Jeff. Starbucks' China business will one day overtake its US market. 2016. Korones, Sarah. Starbucks struggles to compete in European market. 2012. Chris, Joseph. 7 Howard Schultz Leadership Style Principles. 2015. Investopedia. Why did Howard Schultz leave Starbucks, only to return eight years later? (SBUX). 2015. Starbucks. 10,000 Veteran and Military Spouse Hires by 2018. 2017....