Starbucks is a giant coffee shop chain aimed at customers willing to spend extra money in search of high-quality service and products. The growth of the company is significant – starting in 1971 with one cafe, today the number of Starbucks coffee shops is inexorably approaching 28 thousand, and at the same time, retaining its original character (Business Casual, 2020). The Starbucks phenomenon is explained not so much by the quality and assortment of coffee but by the atmosphere of each establishment, for which customers are willing to overpay.
Starbucks’ mission and vision are to become the world’s leading purveyor of the world’s finest coffees while maintaining our unwavering principles as the company grows. These principles include a workplace that respects employees; cultural diversity; the highest standards of work with coffee, customer satisfaction; contribution to the local community; profitability. Currently, Starbucks is committed to an entrepreneurial strategy, that is, preference is given to young people who have high potential and competence, are ready to work in a team, and want to achieve maximum results.
The structure of Starbucks can be described by examining the connections between the various departments of the organization, the interaction of its members with each other, as well as with the external environment. Emergence means that the potential of the organization is greater than the sum of the potentials of the elements included in the system separately. This property manifested itself in Starbucks when it reorganized its structure, combining all its elements into several homogeneous divisions. This allowed several times to improve the potential of the organization as a system.
The company’s future strategy should include assessing the organization’s competitive position in the industry and combining the results of the industry analysis, the position of the company, and its competitors. At the same time, it is essential to clearly determine the company’s current position in the industry, bearing in mind both its financial results and strategy. Since there is a clear trend toward the formation of company networks, it may be necessary to assess the relative positions of their participants (Farrukh et al., 2020). The next step, the analysis of cooperative actions, is needed to understand how joint efforts, such as closer cooperation, information sharing, or process changes, can correct network weaknesses and achieve improved coordination or cost reduction. It is very important at this stage of the analysis to go beyond what is and consider the future sustainability of the company’s or network’s competitive advantage.
For Starbucks, the most effective way to compete in the battle with large corporations is through innovation. Positioning is the ability to outperform other companies in the industry and deliver the right message to the right people. Having assessed the potential client, their interests, and preferences, the company must determine the optimal location of the office, outlet, etc. It should be convenient, and the organization needs to calculate the number of customers for the payback of the business (Farrukh et al., 2020). After that, it is important to correlate the data with the audience living or working around the intended location of the business. It is possible that the market the company is going to enter is oversaturated at the moment. In this regard, the actions of competitors need to be analyzed and strategy and focus on uniqueness created.
References
Business Casual. (2020). How Starbucks really became a coffee giant [Video]. YouTube. Web.
Farrukh, M., Meng, F., Wu, Y., & Nawaz, K. (2020). Twenty‐eight years of business strategy and the environment research: A bibliometric analysis. Business Strategy and the Environment, 29(6), 2572-2582.