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Business Studies
Starbucks and the Potential Expansion into Sri Lanka
The expansion of any company will require careful consideration. The expansion plan will need to facilitate a number of factors, including allowances for the country into which expansion is taking place, as well as the needs of the company in terms of acquisition of resources and training of staff. The plan will need to build on the strengths of the organization, take advantage of opportunities, and minimize the potential dangers that exist as a result of weaknesses and threats. In order to assess the way in which Starbucks may expand into Sri Lanka, it is necessary to look at the company itself before looking at the way in which it may expand.
Company Background
Starbucks is a global brand of gourmet coffee shops. Starting from 1 shop located at Pike placed in Seattle in 1971, it the...
Approximately 50% of stores are owned by franchisees (Starbucks, 2014).
The growth has been rapid, driven by Howard Schultz, who took over the firm from its original owners. Schultz joined Starbucks in 1982 in a position of director of retail operations (Starbucks, 2012). At the time Schultz joined Starbucks the company had already been successful for more than a decade with a focus on the roasting and selling of coffee beans (Schultz, 1998). Schultz realized was a graded a potential for expansion, and after a business trip to Italy in 1983 he believed the espresso bars he had seen would be a good model for expansion (Schultz, 1998).
In 1985 Schultz persuaded the owners of Starbucks to try his idea, and set…
A fourth foundational element is the strength of the Starbucks brand itself and is ubiquity globally. As a result of rapid and well-defined strategies for opening up retail stores, Starbucks is now considered one of the most preeminent and strongest brands globally. Starbucks has generated the strength of their brand through combining high-quality coffee and tea beverages with the third-place concept to generate customer loyalty and world-of-mouth among customers and their
In this, Krispy Kreme's strategy appears to be more focused upon monetary profit than risk-taking strategies for the sake of long-term customer relations. The company's franchising practices for example show that monetary strategy takes precedence over long-term quality assurance, whereas Starbucks' focus is upon using the company's inherent strengths to ensure the company's future growth. 3. Outcomes In general, both Krispy Kreme and Starbucks show favorable outcomes as a result of their
The company also has an interest in hiring internally. Staffing is a challenge for Starbucks, however, because of the company's growth rate and the need to maintain high standards of customer service (Weber, 2005). This is why the company emphasizes training to the extent it does, because training and enculturation is needed to support the staffing policy. Employee Training and Development Starbucks has an extensive training program in order to ensure
Starbucks' organizational culture that contributes to its success in a global economy. Indicate management's role with creating and sustaining the organizational culture. The first important element of Starbuck's organizational culture that contributes to its success in a global economy is its human resource. Starbucks's success is based on the excellent experience that consumers have when buying their coffee at the location, as well as on related activities (buying additional products,
Starbucks 2010 MOST ETHICAL RESTAURANT Starbucks Coffee Company was chosen Most Ethical Restaurant for 2010, according to strict screening methods and criteria (Ethisphere, 2010). These criteria were corporate citizenship and responsibility, corporate governance, innovation in public well-being, industry leadership, executive leadership, regulatory and reputation track record and internal systems and ethics or compliance program. Starbucks is the lone recipient of the award in the restaurant and cafe category (Ethisphere). Company History Starbucks Coffee Company
The company operates high volume retail outlets and has adopted a saturation strategy. Yet, inventories at the retail level are kept low in order to control costs. This is facilitated by strong logistics. Deficiencies in logistics would hamper growth prospects and compromise the Starbucks Experience. Moreover, the firm's ability to translate this competency into international markets will go a long way to determining how successful the company can be