Essay About National Company And Fast Growth

Starbucks Essay
Howard Schultz’s vison for Starbucks was for it to become national company with emphasis on strong values and guiding principles that it’s employees would be proud of and that the employees could feel like their thoughts and decisions mattered. The vision from 2010 never changed fully but was an expansion of the 1980 vision. It amended the business needs and changes that took place to include more innovative and cost effective practices. Starbucks wanted to expand their market segments, complete their procurements while at the same time arrive in more international markets. Shultz’s idea in permitting employees to be a vital part of the company will continue to grow as new strategies will be put in place where applicable to withstand the business for times to come. Also Starbucks wanted the customers experience to be differentiated from Starbuck competitors. As in any business, if they are not willing to grow with their customers, then they will eventually fail. Starbuck clearly understands this concept and their strategic vision has evolved with their customer’s overtime. Starbucks employed the focused differentiation strategy with an emphasis on product differentiation in order to appeal to a variety of customers within and ever expanding company base of competitors market.By Starbuck’s using the foresight of Schultz’s vision, Starbucks focus was on expansion. Starbucks employed knowledgeable leaders who saw the need of building larger production facilities to help Starbucks with handling the fast growth. Starbucks’ key policies were to have high quality customer services, individualized store location ambiance and their commitment to offering the highest quality products. Starbucks partnered with their employees by offering benefits to include stock options to all their employees both full and part time, as well as each employee was thoroughly trained through and intensive specialized range of employee training program like an educational coffee training program. Starbucks foundation since its founding has been, “To build a company with soul.” This value is instilled by offering and purchasing the best beans and brewing the coffee to perfection. Starbucks’ also value their partnership with their employees’ so they can offer high quality customer service for each and every customer. The stores are in a variety of neighborhoods offering individualized store ambience. All of these values are implemented while offering happiness, stability and growth to Starbucks shareholders.Schulz implemented a sincere social and environmental responsibility strategy which has also helped to create and maintain their excellent public image. In 2010 Starbucks was named to the Corporate Responsibility Magazine’s “100 Best Corporate Citizens.” With this honor and strategy it supports the actions for Starbucks to manage their philanthropic activities which included 4 key elements: Ethically sourcing all of the company’s products, community involvement, environmental stewardship, and to offer farmers loans. Starbucks performance in the US vs. the international market, in the US the market is four times larger and more profitable. The US had revenue of $6, 5720.10 million while the International revenue was only $1,608.00million. The revenue growth rate percentages both represented a negative growth rate in 2009. Starbucks International growth rate was about 3% lower than the US. However, due to the fact there was an economic recession, which struck in 2008-2009, it is not surprising that there was a significant decrease in growth within both market shares. Prior to the downturn of the growth rate the US market had before to slow since 2006, but the figures were still positive once again until 2009. Starbucks United States20092008200720062005Revenue $ Millions$6,572.10$6,997.70$6,560.90$5,495.20$4,539.50Growth Rate %-6.10%6.70%19.40%21.10%Operating Income $ Millions$531.80$454.20$1,005.20$955.20$818.50Operating Income/Revenue %8.09%6.49%15.32%17.38%18.03%Starbucks International20092008200720062005Revenue $ Millions$1,608.00$1,774.20$1,437.40$1,087.90$852.50Growth Rate %-9.40%23.40%32.10%27.60%Operating Income $ Millions$92.90$110.00$137.70$108.50$82.30Operating Income/Revenue %5.78%6.20%9.58%9.97%9.65%