Starbucks Case Analysis

Situation

Since 1971 Starbucks has been making the world a better place by proving great coffee to many countries around the world (Starbucks, 2011). Their mission statement still holds true today, which is to inspire and nurture the human spirit. Currently, Starbucks provide services in more than 50 countries and have more than 15,000 stores worldwide (Starbucks, 20011). The name Starbucks was inspired by Moby Dick and thus started the tradition of coffee traders (Starbucks, 2011). Starbucks is really proud of its products and claim that they “offered some of the world’s finest fresh-roasted whole bean coffees” (Starbucks, 2011). They are passionate about ethically sourcing the best coffee beans, roasting them with great care, and improving the lives of those who produce them. Starbucks does not only care about bringing revenue, but also their coffee, partners, customers, stores, neighborhoods, and their shareholders. Moreover, they constantly working to improve their merchandises to satisfy customers demand (Starbucks, 2011). Starbucks believe on human ethics and strive to do the right thing at all time.

Key Issues

There are numerous issues that facing Starbucks that they must find ways to surmount. One of such issues is the introduction of VIA instant coffee. VIA was introduced on March 2009 in New York City and across the United States in October 2009. According to several Starbuck’s customers, the new Starbucks VIA instant coffee is more bold and stronger than any other coffee that Starbucks has launched before. While some people enjoy this new Starbucks VIA, others find it a bit too strong and too bitter for their liking. Another issue that face Starbucks as a result of the VIA instant coffee, is the possibility of losing customers. Some analysts believe the VIA instant coffee would degrade the Starbucks brand (Berfield, 2009). In August 2009, 43 Starbucks was shut down in the United States alone (Chesto, 2009). While critics might see the closing of the...