Starbucks Management

TUI

MGT 599

Module 1: Case Study

Executive Summary

In this paper, I will discuss the background and beginnings of Starbucks, including areas such as their mission statement, stakeholders, and its vision. In the last 16 years, Starbucks coffee has become a familiar staple of American Life. Years ago, individuals would not have spent more than fifty cents for a cup of coffee, but everyday millions of people will pay anywhere from three to four dollars for a cup of specialty coffee. However, they had just completed a very difficult fiscal 2008, and after 16 years of continuous growth as a public

company, we were for the first time talking about slowing growth, store closures and cost reductions.[1]

The mission of Starbucks is to “establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principals while we grow”.[2] Starbucks has a clear set of guidelines which has to be followed as a directional tool for the future of their business. The principals of Starbucks are stated as: (1) provide a great work environment and treat each other with respect and dignity, (2) embrace diversity as an essential component in the way we do business, (3) apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee, (4) develop enthusiastically satisfied customers all of the time, (5) contribute positively to our communities and our environment and, (6) recognize that profitability is essential to our future success. The mission statement along with the set of guidelines provides a focus for employees as they make strategy choices which support the employees as well as customers.

The question was asked, “Are Starbucks mission (vision, goals, and objectives) aligned with its strategies?” I believe that Starbucks strategies are: (1) advertising, (2) locations and, (3) to grow focusing on retail-consuming the product through personal, family or household use...