StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Starbucks Corporation's Business Culture - Case Study Example

Cite this document
Summary
The stores that are 13 or more months old accounted for 6% of the revenue. The revenue growth was fueled by a 3% increase in the number of transactions and a 3% increase in…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.2% of users find it useful
Starbucks Corporations Business Culture
Read Text Preview

Extract of sample "Starbucks Corporation's Business Culture"

The paper "Starbucks Corporation's Business Culture" is an excellent example of a case study on business. Business is so good for Starbucks, as reflected by the overall revenue increase to $16.4 B in 2014. The stores that are 13 or more months old accounted for 6% of the revenue. The revenue growth was fueled by a 3% increase in the number of transactions and a 3% increase in average ticket. In 2014, there was a 25% increase in profitability. For the fiscal year 2014, Earnings per share (EPS) increased to $2.

71 compared EPS of $0.01 in fiscal 2013. Starbucks was able to return $ 1.6 B in dividends and share repurchases to shareholders. The increase in both operating profits and EPS was primarily driven by lapping the $2.8 B Kraft litigation charge in the prior year, coupled with lower commodity costs and sales leverage. Starbucks will continue to perform well in 2015 due to an acquisition of Starbucks Japan and the addition of about 1,650 new stores (Starbucks Corporation). They expect sales revenue growth of 16% to 18%.

However, they expect a slight decline in the operating income when compared to fiscal 2014 due to the slightly dilutive margin impact of the Starbucks Japan acquisition. They expect high growth in EPS from $0.43 to $0.49 (Starbucks Corporation 5-36). Starbuck’s global international expansion has some advantages and disadvantages. The China market is so important to Starbucks because of the increase in sales, net revenue and operating income in this market reflect the growth and excellent performance of new stores in the region.

The China/Asia segment thus has the potential to contribute significantly to the company’s overall profits in the future. Expansion to India will be equally bear desirable results as the other neighboring markets. In Europe, however, Starbucks is struggling because factors affecting the success of Europe stores and licensees are different from those in the US. Additionally, the stores in Europe are at an early stage of development, hence bombarded with stiff competitions and other factors.

Starbucks supply chain has greatly improved global business by helping the company get high-quality raw materials from a broad range of domestic and international markets. The distribution channels have helped to distribute finished products on time. There is a challenge to ensure that suppliers and distributors comply with the set standards to ensure the smooth running of the business (Starbucks Corporation 5-73). Howard Schultz is a great inspirational CEO. He had left Starbucks for a short period to begin his own II Giornale coffeehouses.

However, in August 1987, he returned to buy Starbucks. According to Schultz and Gordon, he always advocates striking a balance between profitability and corporate social conscience (25). Social responsibility helps the company to reflect on the extraordinary efforts that coffee beans farmers put forth in preparing the farm produce. It also demonstrated how the business cares for people that depend on it for their livelihood. Howard initiated “Create Jobs for USA” to address the issue of unemployment among the youths and as a form of giving back to society.

Starbucks is considered as one of the best corporations to work for. The work environment is satisfying since it gives all employees equal opportunities to express their feelings and ideas and be part of their success story (Marahão and Carrieri 23). It focuses on building relationships with its employees and enable them to achieve professional growth. Starbucks has made careers so appealing by offering handsome pay that is tailor-made to cater to each employee’s needs. They value recognition by promoting and giving prestigious titles and significant benefits to high-performing and long-serving employees.

Some employees are referred to as partners since they help them achieve their goals due to high performance and staying longer in the company (Starbucks Corporation). As a customer at Starbucks, I like the sweetness of the Starbucks Caramel Iced Coffee brand. I am emotionally connected to the brand because of the rich brown color and the coolness it offers during a hot afternoon. The social consciousness of Starbucks draws me even closer to the brand. They value farmers who work tirelessly to produce coffee beans.

They appreciate workers who are behind innovative products. Their customers have not left behind since they take care of their needs and preferences.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Starbucks Corporation's Business Culture Case Study, n.d.)
Starbucks Corporation's Business Culture Case Study. https://studentshare.org/business/1857662-study-case
(Starbucks Corporation'S Business Culture Case Study)
Starbucks Corporation'S Business Culture Case Study. https://studentshare.org/business/1857662-study-case.
“Starbucks Corporation'S Business Culture Case Study”. https://studentshare.org/business/1857662-study-case.
  • Cited: 0 times

CHECK THESE SAMPLES OF Starbucks Corporation's Business Culture

Segmentation and Targeting

The prices offered by Starbucks were extremely high and the company was trying to develop a new culture for its customers.... Considering that Starbuck was very careful when it came to coffee production, the company managed to maintain a stable relationship with its suppliers hence, it faced minimal threats and competition (starbucks Corporation SWOT Analysis, 2008)....
3 Pages (750 words) Essay

Starbucks Coffee Company

Strong employee culture: Generous benefits keep employees engaged and high employee morale encourages innovativeness and pleasant staff-customer interaction.... View on Starbuck's business model Unlike other stores, Starbucks avoided the licensee model.... Starbuck's business model is based on brand loyalty.... Based on consumer behaviour (Griffin, 2011: 494-5) The company's business model has created value out of consumer behaviour....
4 Pages (1000 words) Research Paper

Global Business in Emerging Regions

The study intends to evaluate the organizational culture of Starbucks and South Africa's market environment.... Furthermore, the objective of the essay is to: Understand the culture of Starbucks Understand the South Africa market potential The competitive analysis of Starbucks in South Africa Recommendation about the entry strategy mode of Starbucks in the emerging market Part A Company and Industry Analysis About Starbucks Company History Starbucks came to existence in the year 1971 in Seattle Pike Place market....
14 Pages (3500 words) Essay

Planet Starbuks: Caffeinating the World

It has cut a niche in the business world by changing the way people in America and around the world view Planet Starbucks is a Seattle, Washington-based coffee company.... It has cut a niche in the business world by changing the way people in America and around the world view and consumes coffee.... Planet starbucks is a Seattle, Washington-based coffee company.... he Success of starbucks Marketing Strategy in the United States ...
6 Pages (1500 words) Research Paper

Organizational Culture

The visible aspect of organizational culture… In this context, I chose Starbucks as a coffee producing company with a visible organizational culture. ... awbucks ‘s culture seeks to first connect with the employees, then with its customers since the company Organizational structure Organizational culture Organizational culture is a system of shared values, beliefs, and assumptions that show employees what is inappropriate or is appropriate behavior....
2 Pages (500 words) Assignment

Starbuck Corporate Social Responsibility

Thу paper has such sections: Starbuck's business expansion; E-business; Potential ethical impacts of the company; Comparing the negative ethical issues and the company's CSR Policies.... The company growth has some negative business ethics implications on its own workers and even those in other companies.... Despite the challenges faced by Starbuck, the company has adopted some of the best business or corporation to enable it to realize its goals and objectives....
7 Pages (1750 words) Essay

International Marketing Strategy of Starbuck in China and In the UK

More remarkably, the chain of outlets seeks to give its consumers increased service reliability, high product quality, and management of operations as it seeks to increase its business growth and sustainability.... hellip; The conclusion from this study states that starbucks has shown the company's ability to have competitive advantages and translation of its capabilities are core to the achievement of standardized marketing mix aspects.... Indeed, starbucks remain as one of largest and most recognized coffee industry in the global scale because of its efficient expansion and management approach....
29 Pages (7250 words) Essay

Strategic Management in an International Context

Howard Schultz (the CEO) initiated various plans of actions to ensure Starbucks achieves its goals and objectives efficiently and The management strategized the Cooperation's plans to fit the internal and external business environment, and its internal coherence without facing any challenge or influencing its operation negatively (Schultz & Gordon 2011, p27).... Some of the issues surrounding Starbucks Corporation business environment includes competition, clients and suppliers, improvements in technology, market, laws and government, social and economic trends....
5 Pages (1250 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us