Starbucks Employee? Customer?

YES!!!!! I would love to work for Starbucks! I think this company has great growth potential and they seem to really take care of their employees. As a professional, I think a part time position at Starbucks could offer great opportunities for extra cash, free coffee, and networking.

I am a Starbucks customer. I can't say that I am a regular as I generally make my coffee at home and enjoy n my commute to work. However, if I need a mid day pick-me-up then I always turn to Starbucks. Also, I like to try their seasonal drinks such as their pumpkin spice latte, etc.

Invest in the company? Yes! I foresee great success in both Starbucks and their market. They have laid a solid foundation for the future and continue to modify their strategy to meet the needs and demands of the consumer.

Most Interesting Fact...

The most interesting fact that I learned throughout my blogging experience with Starbucks is that the company takes great pride in their employees. In research for one of my blog posts I learned that when someone interviews for a position with the company they are often given taste testing opportunities, hand written thank notes, and even gift cards. Also, the company is a large advocate for health care. They provide some less then full time employees with health care benefits. That's an amazing benefit in today's job market!
Hats off to Starbucks!!! :)

Company Culture

Starbucks is known for coffees, creativity, and culture. Not only does this market leader have internal company culture, they also sell culture as part of their business model. The coffee giant has taken a single commodity like coffee and built an entire marketing empire around it. Stores now sell more than coffee, they sell an atmosphere. Whether you are a coffee drinker or not you have more than likely been to a Starbucks location for a "coffee date". The company does a great job of creating an environment that is very welcoming, yet relaxed and very metro, yet cozy. The culture of this company is obvious: innovative, chic, great tasting, and successful!

http://www.associatedcontent.com/article/126954/the_starbucks_culture_pg2.html?cat=31

CEO Makes Mistake On Coffee Prices

According to a recent article in the Seattle Times, Starbucks CEO Howard Schultz recently gave a statement regarding the increase in coffee bean prices. Schultz denied any indication that there is a shortage in coffee beans and insisted that the price increases were due simply to speculation. However, analysts from the VM group corrected the coffee executive on his mistake. They insist that there is a major shortage in coffee beans versus demand and that prices will only continue to rise in the future. "VM Group said, adding that it would "prefer trusting the judgement of a coffee traded rather than a coffee retailer." Perhaps Mr. Schultz will do more thorough research before speaking on behalf of such topics in the future.

http://seattletimes.nwsource.com/html/coffeecity/2013555790_analysts_starbucks_ceo_wrong_a.html?syndication=rss

"Putting Humanity Back Into The Recruiting Experience"

I recently read an article about Starbucks' recruting processes and how their approach takes them above and beyond other corporations their size. When an applicant interviews for a position at Starbucks he or she is likely to enjoy a "tasting" of some classic company brews, be given a tour of the facilities, and even sent a complimentary gift card after the interview. Howard Schultz, company CEO, says he wants to treat employees as well as he treats his customers. The corporate exec encourages managers to sent hand written notes and repsonses to employees, as well as replying to applicants in a timely manner.

Also, Schultz insists on giving his employees that work 20 hours or more per week health benefits. Starbucks' emphasis on their employees will perhaps help retain talent and encourage employees to give 110% every day.

http://secretsofthejobhunt.blogspot.com/2006/04/starbucks-shows-softer-side-of_27.html

China/Merger

Starbucks does have operations in China, according to a news article on the company's website. Starbucks Coffee International first entered the Greater China market in 1998, opening its' first store in Taipei, Taiwan. The first actual Starbucks store was located in the mainland of China in Beijing in January of 1999. The company takes pride in connecting with the communities of China.

http://news.starbucks.com/about+starbucks/starbucks+coffee+international/greater+china/

Starbucks has made at least one acquistion in its' corporate history. According to an article found on the Oraganic Consumers Association website, the company acquired Seattle Coffee Company. The rival company was purchased for approximately $72 million in cash back in 2003. The merger created both value and competitive advantage for Starbucks in the Seattle, WA market.

http://www.organicconsumers.org/starbucks/starbucks_fair_trade.cfm

Vertical Integration/Outsourcing

Based on information available on  the company's website, Starbucks does not exercise vertical integration; however, the company does outsource some of its' responsibilites. Outsourcing is defined in the text as "farming out certain value chain activities to outside vendors."  According to an article found online, Starbucks recently outsourced duties to Unisys, an IT services firm. "The outsourcing deal was part of the firm's plan to implement their "expansion goals" of opening an estimate of 3,600-20,000 outlets worldwide. Unisys would be responsible for the IT infrastructure services international Starbucks outlets, support centers and manufacturing facilities." Outsourcing is yet another method to help contribute to the continued success of Starbucks.
http://www.outsourcing-weblog.com/50226711/starbucks_entering_the_outsourcing_scene.php
http://www.starbucks.com/

Focused Differentiation Strategy

Starbucks offers a focused differentiation strategy. This strategy is described in the text as "concentrating on a narrow buyer segment and outcompeting rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals' products." ( Thompson, Strictland, Gamble, pg. 140) Starbucks has implemented a reward program that gives back to frequent customers. The "My Starbucks Rewards" program allows customers to make purchases at their local Starbucks and receive points for every purchase made with the rewards card. Those points are then used toward discounts, free merchandise, etc. Also, Starbucks is continuously offering new products on their menu. The coffee-drinking company introduces new beverages in accordance with the seasons and holidays, and have even extended their menu beyond beverages offering breakfast and lunch items. The company's loyal customers have coined the phrase "a cup of Starbucks." With the great success of Starbucks, it's easy to see the focused differentiation strategy works well for the company.

https://www.starbucks.com/card/rewards/program-information
http://www.starbucks.com/

Stock Price- $27.37 ( @ 8:42AM Oct. 18)

Strengths/Weaknesses

Some of the main strengths that I have discovered since blogging about Starbucks include their product differentiation, customer loyalty, and brand power. The company continues to develop new products to set their company apart from competitors. After researching Starbucks it appears that they have some of the most loyal customers of any company in their industry. These coffee drinkers love their Starbucks and find that competitors fall short with their renditions. Finally, the amount of brand power that Starbucks carries is amazing! It has become such a common brand that some refer to coffee as a cup of "Starbucks".

Weaknesses for the company include too many expansions, and pricey products. Starbucks over extended themselves a few years ago by opening too many stores too fast. This resulted in the close of several stores both in America and internationally. Also, Starbucks competition has recently increased, with restaurants like McDonald's offering flavored coffees at a lower price. This same price competition could prove to be a weakness for the company in the future.

SBUX- $25.94 ( as of close of business Oct.1, 2010)

http://www.starbucks.com/

Did You Know?!

The Company Name- " The Starbucks name came from Starbuck, Captain Ahab's first mate on the ship in Herman Melville's classic 1851 novel Moby Dick, who was depicted as avid coffee drinker."

The Starbucks' Logo- "The originial Starbucks logo is based on a 16th centure Norse woodcut; a two-tailed mermaid encircled by the store's original name, Starbucks Coffee, Tea and Spices. The mermaid or siren reflects the seafaring origins of the early coffee traders."

http://me.starbucks.com/NR/rdonlyres/19A33462-4647-4AAB-B000-998F8113C8B9/9182/FactsaboutStarbucksMiddleEastENGLISH.pdf

Starbucks' Welcomes Fall!!

Starbucks is now offering Pumpkin Spice Latte for all the fall loving, coffee drinkers!! Enjoy!!! :)

Mission / Public Relations

Starbucks' Mission states:
Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

Stabucks' mission grasps the very nature of the company while including the emotional and geographical aspects. The company's mission is well suited for internal uses to movtivate employees and provide a sense of ownership in the company, and also provides a strong foundation for the public reatlions department in external usues.

Recent events in the company include its' expansion of the successful Starbucks VIA Ready Brew line to grocery stores around the world. "Customers have enthusiastically made Starbucks VIA part of their daily lives," said Howard Schultz, Starbucks chairman, president, and ceo." Other news and events can be found on Starbucks' facebook page, twitter account, or in the newsroom at http://www.starbucks.com/.

SBUX- $26.13 ( as of close of business 09/24/10)

http://www.starbucks.com/about-us/company-information/mission-statement
http://news.starbucks.com/
http://www.facebook.com/Starbucks
http://twitter.com/starbucks/

Weathering Tough Times

As the global economy continues to struggle, Starbucks' executives are making plans to remain successful during tough times. The company's CEO, Howard Schultz, unveiled several key points to help the corporation survive a sinking market. "The company's plan includes increased store and operating efficiencies, additional cost reductions, and delivering long-term growth." ( http://news.starbucks.com/article_display.cfm?article_id=5) The company plans to place emphasis on their strong culture and core values while continuing to cater to their loyal customers through incentatives and reward programs. It appears Starbucks is on track to weather the tough times.

SBUX- $26.16 ( as of 09/21/2010)

External Environment

As Starbucks continues to grow, so do the number of rivals or competitors the company must face. Resturants like McDonald's and Sonic have recently began creeping in on Starbucks' market share by offering flavored and iced coffees at a lower price. While McDonald's and Sonic can be considered competitiors of Starbucks, the opposite is not true. Starbucks focuses on gourmet coffees while the other two restuarants are primarily in the fast food industry. The problem with fast food companies entering into Starbucks' market is that fast food chains typically provide a similar product at lower cost to the customer, and are more readily available than Starbucks' stores. With a downward sloping economy, households are focusing on "more bang for the buck" so a one-stop shop at McDonald's or Sonic for breakfast and coffee off of a value menu is better suited for the middle class budget. However, there are some customers that will remain devoted to the Starbucks brand regardless of economic conditions or convenience.

Another external factor working against Starbucks' success is the depressed economy. The economy was cited as the reason for several store closings in recent months, and also the blame for post poning the expansion of new stores across the globe. It seems even a good cup of coffee can't pull one out of an economic slump. All is not lost for Starbucks, however. The company has taken advantage of some of their external factors by implementing product differentiation, expanding product lines by offering more food options and music collections, and offering free wi-fi to customers that drink in the lobby. Product differentiation has derived in many forms including new coffee drinks and holiday drinks that a customer cannot find on a competitor's menu; further distinguishing the Starbucks brand from competitors.

SBUX - $25.07 ( as of close of business 09/03/10)

Introducing Starbucks

Starbucks is a caffine-driven, multinational company that is focused on perfecting, brewing, and selling the perfect cup of coffee.  Opertaing more than 16,000 stores in over 50 countries, Starbucks takes pride in serving the highest quality coffee grown and brewed under ethical and envrionmentally friendly practices. The company's mission "to inspire and nuture the human spirit- one person, one cup, and one neighborhood at a time," is demonstrated through the organization's culture. Ethical sourcing, environmental stewardship, and community involvment are all facets that President and CEO Charles Schultz find necessary to remain a responsible corporation.

The company is governed by a board of directors consisiting of nine members, both male and female. As the company continues to grow so does their menu; Starbucks now offers an extensive line of coffees, teas, breakfast foods, and health snacks. With great success in recent years, the company has developed an enormous amount of brand power. Customers often associate a good cup of coffee with Starbucks. Perhaps this same brand power is what helped create such a loyal customer base for the company. "To say Starbucks purchases and roasts high-quality whole bean coffees is very true. That’s the essence of what we do – but it hardly tells the whole story."

Stock price at close of business 08/30/10- SBUX $23.43

http://www.starbucks.com/

http://phx.corporate-ir.net/preview/phoenix.zhtml?c=99518&p=irol-govBoard

http://www.starbucks.com/about-us/company-information

http://www.marketwatch.com/investing/stock/SBUX