Starbucks Organizational Analysis

10746 words 43 pages
Business Strategy

Organizational Analysis

Starbucks Coffee Company


Table of Contents

Executive Summary 3
Company History 4
Organizational marketing strategies 4 Starbucks as a Private Company (1987–92) 4 Starbucks as a corporation (1993-2010) 6
Organizational design and effectiveness 7
Starbucks Organizational Structure 9
External environment 9
Internal environment 11
International environment 13
Product and Service 14
Information technology and control systems 15
Organization size, life cycle, and possible decline 16
Organizational Culture 16
Ethical value 18
Innovation and change 18 Store Environmental Design 19 Sensory Innovation 19 Service Innovation 19 Consumer Education 20
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Starbucks coffee stores provided good quality products and services to their customers, and used a clear market positioning and aggressive marketing strategies to make Starbucks the rapid growth of global brands (Garza, 2005, para. 2).

Organizational marketing strategies

In order to analyze Starbuck cooperation, we should need to analyze how their marketing strategies are. We can know why Starbuck is a successful coffee cooperation’s leader in the world. In addition, their business strategies can be a reference to new business owners in order to develop their market share in the beginning of their business.

Starbucks as a Private Company (1987–92)

The new Starbucks had a total of nine stores in the beginning of period. The business plan was that Schultz wanted to present to their investors which was called for the new coffee company and planned to open 125 stores in the next five years—15 the first year, 20 the second, 25 the third, 30 the fourth, and 35 the fifth. Revenue hoped to reach 60 million in 1992. But the company did not have practical experience to manage multistories. Schultz had never led a growth effort of such magnitude and was just learning what the job of CEO. Therefore, he decided to hire a well-experienced person to manage his companies and gave his person which had absolute authorities to operate Starbucks coffee. Dave Olsen used to


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