Introduction and connections to be made, which

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            In this every changing and growing global business world that we currently reside. Change has become a particle part of life and business. One must be willing to innovate and sustain the needs of the consumer base by not sitting on just the norm but aligning your business to strive for greatness. It is part of the strategic process for an organization to change and improve as its brand grows and as the consumer base increases and expands to differing groups, failure is not an option as that means you are stagnant and that can kill your business.  In this paper we will explore and assess the needs of Starbucks, a globally successful brand that has had a long history of reinvention and changes to increase the consumer base and innovate the products that they sell.


Current State of Organization

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            Currently the mission of Starbucks is “To inspire and nurture the human spirit- one person, one cup and one neighborhood at a time” this is due to the fact that Starbucks has targeted an aim to become the number one player in the international coffee market and to also become an industry leader and trend setter that other organizations look to.  Kevin Johnson, Starbucks CEO states that at the heart of their business is innovation, these innovation allow for opportunities and connections to be made, which in turn grow the business ( Starbucks, 2017). Johnson expressed the updates that the company would be taking during the Starbucks Annual Meeting of Shareholders, Johnson talked about innovation within customer experiences and also the benefits to partners (employees are referred to as partners at Starbucks, so that they feel they are one).

            In a paper by Abhijeet Pratap he states that if we broke down the mission statement from Starbucks it would have two notable areas, first the focus on the human spirit, Starbucks is focused on the area of human society and that why they are ethical sourcing and maintaining and complying within every aspect of the business to the environment and its empowerment for future generations. The goal is to inspire others by creating an atmosphere of participation and inspiration to all who come into contact with the brand. The second area is the oneness of the organization, focus on the individual customer and employee and the neighborhoods that are a part of the ecosystem of the Starbucks brand. The mission statement of Starbucks is less product oriented and more people oriented. Its focus and direction are all about the people and their wants and needs, this helps to drive the excellence and quality of the Starbucks brand and name to make it the global icon that it is now (Pratap, 2017)



Vision for Future

            Starbucks looks to be a leader in providing products that are of the best quality, a premier purveyor of the finest coffee in the world, while focusing on growth and the continual global expansion of the Starbucks brand and name. As the company and the products grow the vision statement must also grow to include the changes and improvements that reflect the growing array of products and services that Starbucks provides (Gregory, 2015). Starbucks is seen as more than just a place for a cup of coffee, it’s your home away from home, where you are always welcomed and wanted. That is why the core values of Starbucks is so consumer based.

§  Creating a culture of warmth and belonging, where everyone is welcome.

§  Acting with courage, challenging the status quo.

§  Being present, connecting with transparency, dignity and respect.

§  Delivering our very best in all we do, holding ourselves accountable for results.

We are performance driven, through the lens of humanity (Starbucks, 2017).

As a leader in the Retail Coffee industry, Starbucks currently makes up 60% of the business market (Geereddy, 2017). This allows them to be at the forefront of innovation and changes as a commander in the industry, the current strategic strategy in place is focused on providing products that exceed the experience and standards of the consumers and allows the door to be opened to new consumers. The objective is to make the products accessible to all store locations and then expand it to the online market after release.

            Starbucks CEO, Kevin Johnson stated during the Annual Meeting of Shareholders that the company was focusing on three areas of innovation for the coming year. These areas are Innovation in Coffee, Elevated Food Options, and Innovation in Premium Craft Iced Teas.

·         Innovation in Coffee with the flagship store in Seattle as the center for this new program, Starbucks has stated with the introduction of the Cascara Latte, they would then go on to introduce customers to a nitro cold brew that is now available in over 570 stores globally. The company continues to shine with the introduction of the first ever barrel-aged Starbucks Reserve Coffee that is already performing above projections. With future goals of opening 20-30 Roasteries globally.

·         Elevated Food Options: Mr. Johnson spoke on the plan to launch Starbucks Mercato a new lunch menu that features fresh and flavorful grab-and-go items that fit into a variety of dietary lifestyles. This expansion of the food business is due to growth since 2013, which has seen a 1.5% increase in plans to double food business by 2021.  

·         Innovation in Premium Craft Iced Teas: reinventing the craft iced tea with the introduction of Teavana shaken iced tea infusions. (Starbucks, 2017).

·          the website, which allows consumers to promote ideas or suggestions, request products that they would like to see back in stores and  improve on existing items



            Kevin Johnson, CEO has constructed a plan to see the company towards the future, the five-year plan has three major objectives, first is focused on the elevation of the brand. Secondly, the elevation of the consumer experience and lastly by doing these two things we will amplify the Starbucks experience as a destination rather than just a coffee shop (Staff, 2016). Currently Starbucks has a matrix based organizational structure that allows for increased efficiency at each location, this will allow changes to be tailored properly for all locations and groups.

(Nicolly, 2017)




            In the fight to be the Coffee King, Starbucks has entered the ring with corporations like Dunkin Donuts and McDonald’s to better serve the customer base and try to draw consumers away from the other businesses. The chart below details the current state of the coffee industry within the U.S. and how each company fares within that market, Starbucks leads the pack, but the competition continues to give a chase.

The newest competition to all of these mega-corporations is the growth of independent trendy coffee shops that are focused on the local communities that they are found in. these shops do not need to promote and market outside of the regional areas, allowing for sales to flow directly back to the area and consumers. Starbucks CFO Scott Maw states that ” what we have acknowledged … is the collective group of independent coffee shops out there, they are doing a lot of what Starbucks has been so good at for so long.” Because of these shops Starbucks has invested heavily in the Roasteries and The Reserve brand and hope to open 20 to 30 Roasteries in tourist-friendly locations throughout the global chain to combat the growth of independent chains (Taylor, 2017).


 (Team, 2016)

            While the thoughts of innovation within a corporation is a good thing to help continue the growth of a corporation and its industry, the lack of innovation and the limited ability to catch up and reform a company can and will kill its longevity within an industry. Currently, Starbucks has been an industry leader in the innovation of the coffee and products associated with coffee, but the competitive market that was regional and local has expanded to a global and corporate market that has ever changed the taste, flavors, and appearance. To properly keep the advantage and brand name that has become the Starbucks name it must always be on the forefront on innovation and continue to expand into other avenues and areas that promote and distribute the name of the corporation on a grand scale.







            The current strategy of Starbucks is quite simple by nature, make a brand that is seen as a high-quality product by all customers, and provide a consumer base with an experience that prompts a lifestyle accustomed to the best. By blanketing the coffee market with its selection, innovation, and the Starbucks experience, this corporation has built itself into a brand that continues to increase loyalty and growth year after year

Categories: Industry


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