Star Bucks

Corporate Strategy

Business Strategy

Functional Strategy

Risks and Responses

Board of Directors

April, 2011

Introduction

Five Cs – Community, Connection, Caring, Committed and Coffee, describes the essence of Starbucks Corporation. A company that from the very beginning relies on innovation and passion to build a very successful business that sells products never heard of such as a “third place environment” and “coffee experience” aggregated to a very high quality product. This report proposes to address Starbucks strategies and innovative vision and goals.

Corporate Strategy

Based on its mission and goals, Starbucks corporate pursues the following corporate strategy in the profitable coffee market:

➢ Growth Strategy:

This strategy has been pursued by Starbucks using different methods:

• Concentration: Steady growth of store numbers and increase of same-store sales to maximize market penetration and ultimately growth into a global empire

• Diversification:

o Greater variety of products: food items, coffee-related accessories, souvenirs besides coffee drinks

o Alternative point of sales: whole-bean coffee through grocery stores and ready to brew cups to be used with domestic brewing machine such as Tassimo

o Higher profitability: marketing focused on high-margin items such as seasonal drinks while generating add-on sales of accessories and pastries

➢ Stability Strategy:

• Upkeep of social and cultural trendy: Starbucks nurture its “third place” atmosphere, a place outside of home and work, ideal both for informal meetings and an escape from daily life

• Standardized high-quality products and service that customer seeks at every store all the time

• Maintenance of great working environment:

o Allowing employees to use initiative and make decisions

o Treating each employee...