Category: Starbucks

The Features of Starbucks Development

Introduction

The first Starbucks store was opened in Seattle by Jerry Baldrew, Zev Siegl and Gordon Bowker. Harward Schultz joined Starbucks in 1982 and become the head of marketing. He brought the Italian cafe culture in the United States. With his efforts and hard work company expanded to various locations, Starbucks has around 24,464 stores worldwide and is expanding day by day. Extra-ordinary success

Their main focus is on ‘quality’ and ‘goodness’. The mission is ‘ to inspire and nurture the human spirit- one person, one cup and one neighbourhood at a time’ and the company wants to reach as many people it can possibly with this mission. As well as they have their vision ‘ to establish Starbucks as the premier purveyor of the first coffee in the world while maintaining our uncompromising principles while we grow’.

Development of brand image

Starbucks is not just limited to its own store product selling but they also sell their products through other retail store like different restaurants, airlines, with other brands etc. For example, they have joint-venture with the well-known company Pepsi-Cola where they produce packed or bottled frappuccino. This helps the company to form a strong image not just under their own name but through the other channels also. With the introduction of some more exciting features like SVC ( stored-value card) which further resulted wit positive outcomes and there is a significant reduction in the time take for the transactions. Last but not least the relaxing atmosphere adds a more nice texture to their services of the company and hence these all further leads to the smooth functioning of the company and responsible for its success.

The best thing, company not just takes the quality and taste under consideration but also take care of the people’s overall experience. Also, they take time to time steps in order to adapt to the environment and provide the consumer with their best products and services.

A decline in customer satisfaction score

However, the company thinks that they are doing great and meeting the expectations but actually there are customers who are complaining about the company’s atmosphere and cleanliness and level of quality of their products. There are many who believe that the company is just trying to make more and profit, opening new branches, expanding their business. These reasons lead to decline in the satisfaction level of the customers.

Starbucks of 1992 differs from Starbucks of 2002

As mentioned earlier, Starbucks make time to time changes in their function in order to adapt to the new challenges and environment. Ther huge difference can be seen between the years 1992 and 2002. Mostly 50% of the total sales were from the whole bean coffee. On the other hand, it was 77% of sales from the other beverages. Generally 1992, they mostly have whole bean coffee. But in 2002, there was an addition of new items like food and new beverages. As it was just the beginning so in starting they have a lounge with an Italian cafe culture, later in 2002 they have smaller coffee stores than before and without lounging. Initially, the company targeted te mid to upper-class people. Later in 2002, they target young and lower-income people. The process was quite simple in the beginning but in the other hand, it was so complex after (2002). Even a few believe that in beginning customers were goes to te Starbucks but now Starbucks goes to the customers.

Some Suggestions

Studies show that customer satisfaction is a very valuable asset for any company. So in order to satisfy customers, Starbucks should serve according to the requirements of the customers, should speed up their services, there should be an efficient use of present resources and technology and should not harm the environment and should concentrate on sensitive issues like cleanliness for better functioning.

References

1. Starbucks: delivering customer services, Moon, Y., Quelch J. 2018, Harvard School Business https://hbsp.harvard.edu/download?url=%2Fcourses%2F695818%2Fitems%2F504016-PDF-ENG%2Fcontent&metadata=e30%3D

Blue Ocean Strategy for Faster Innovations in Starbucks Company

Introduction

The corporate sectors currently become more viable. As per Kim and Mauborgne (2017), the leaders or higher authority of enterprises are altering their methodology to support in an antagonistic corporate sector. The excessive procedure can set the firm on competing for guide however proper implementation can preserve it there as well as the vast majority of the firm battle for enactment by way of the company which over depends on auxiliary alterations like revamping. This essay discusses the blue-ocean stratagem which comprises of perceiving and creating an evident marketplace to satisfy by giving items or administrations in which buyers don’t realize that these enterprises want or need until it is acquainted with the marketplace and produce extensive innovations in fewer time-period. This essay also focuses on boundary activities and boundary objects which shows faster blue ocean innovations in multi-national firms.

Blue-Ocean Strategy

According to Agnihotri (2016) the blue-ocean stratagem refers to an idea that empowers companies to meditate as well as make advancement in their industry which may support the multi-national firms to the budgetary and monetary regions that occur as the fundamental interest of an enterprise to form reasonable benefit. The objective is to create an opposition superfluous. The technique expresses that if multi-national corporations want their corporations to acquire into the blue-ocean, they involve to make a worth advancement. This advancement will separate an organization from its rivals. The researcher Sitinjak and Gunawan (2018) deliberated that blue-ocean procedure forms key arrangement to make new request as well as create extraordinary expansion for an enterprise. To make such a methodology, there are a lot of systematic instruments and structures utilized in defining and performing it. The most importantly mechanism in esteem advancement and making of blue-ocean system is the canvas stratagem. This strategy is made when an institute accomplishes value-advancement which makes esteem at the same time for both the purchaser and the organization. The advancement in an item, administration, or conveyance needs to increase and make an incentive for the marketplace, while all the while lessening or disposing of structures or administrations which are less esteemed by a contemporary or future marketplace. It energies enterprises to concentrate at the same time on taking out and diminishing, just as levitation and making while at the same time opening another blue sea.

Boundaries Practices and Objects

Blue-oceans’ advancement has no pre-characterized boundaries or restrictions. Ailing in such structures, the blue-ocean planning is regularly deliberated exceptionally hazardous as well as the seawaters of a blue-ocean stratagem are commonly viewed as both strange and obscure. Despite that reality, a large portion of the profoundly effective enterprise and ventures in the present worldwide economy were formerly companies that made a blue-ocean procedure dependent on development and innovativeness as well as building up items and administrations which spoke to new clients and re-imagined their whole enterprises. The author Hanggara (2019) also contends that the organizations ought to rather search for fresh and different market-space as well as approaches to reevaluate the business. To put it plainly, elude no holds barred rivalry and concentrates on innovative development in the company. As indicated by Gündüz (2016) the restrictions practices of a blue-ocean stratagem are for firms to discover and create innovations by means of blue-oceans that involve open and developing marketplace and stay away from the red-oceans flea-market which involves over-developed and immersed marketplace). An organization will have more achievement, fewer dangers, and expanded benefits faster if they implement blue-ocean innovations. The analyst Kodama (2018) contends that the Blue-Ocean modernization approach contends that customers do not need to pick among worth and moderateness. On the off chance that an industry can distinguish what buyers presently worth and, at that point reevaluate how to give that significance, separation, and ease may both accomplished. The Blue-Ocean impression table is a piece of an overall technique and leases enterprises test the corporate suitability of thoughts. This procedure enhances thoughts and distinguishes openings with the possible, limiting danger. Blue Ocean provokes organizations to drive the limits objects of their businesses as well as offering shoppers something exceptional of massive worth.

According to Lee and Chung (2017), the blue-ocean advancement strategy perceives three boundaries practices to consider procedures that lead the faster innovations in Starbuck’s Company. The principal practice is to reclassify an organization and concentrate on non-clients. By making contributions that apply to non-clients, the company may pull in an industry that conventional contenders can’t. The subsequent practice is to make all-out arrangements. The organizations vend items that resolve issues or resource profits. The advantages provided to client issues, clever advertisers might have the option to provide reimbursement to their client’s requirement that rivals don’t give. The objects are named by providing the integral desires of clients. Another practice to make faster innovation is to perceive the adjustments that the merchandise manufacturer aspect. Regularly the harmony between value, highlights, and advantages directs a specific blend for a specific fragment. That equalization depends on customary perspectives on client desires which may never again be significant yet is solidified by features which include in trouble expenses, set up dissemination, and serious movement to increase the company’s innovations. The researcher Van den Burg and Torrie (2019) indicates that the blue-ocean procedure energies their frameworks and organizations into advancement and revelation of unknown domains, it might be hard for built-up progressive frameworks to rethink its haggle to a very surprising heading. The organizations need to proceed with its demonstrated schedule that creates benefit and influence on its upper hand as opposed to getting the vulnerability of things to come by facing the challenge of turning into another mover for growing more competitive force to generate new modernizations in the lesser period.

Blue-Ocean Innovations in Starbucks Company

Starbuck a multi-national enterprise, has made another interest in an espresso marketplace and opened an alternate desire for a product-item. As per Gupta and Malik (2018) Starbucks concocted another point of view that altered from simply drinking espresso to appreciate drinking espresso through creating it proficient concentration on an enthusiastic environment. Starting from within an organization, the Starbucks appeal workers fulfillment by setting up great remuneration strategies and expansive advantage bundles under the conviction in which an organization’s prosperity ought to be communal amongst an individuals who support its development, thusly creating them to consider and go about as proprietors also, pointing the preeminent for an industry. According to Rahma and Choudhury (2019), this blue-ocean stratagem has prompted extraordinary client care as well as it has facilitated them to accomplish a first-class brand acknowledgment. The company has concentrated more on enlightening the quality of their items and the brand-name itself than making items to assault the opposition. The researcher Nakamori (2020) expressed that the principal key activity for a blue-ocean procedure is to make evident market-space. To make an obvious space for the market which creates an opposition immaterial. Starbucks Company has had the option to execute this procedure and attract another bunch of clients who were customarily non-buyers of the business, for example, non-espresso consumers. They were attracted to outlets that proposing an extensive assortment of beverages, nourishment, tidbits, teacups, and different things, as well as the loosening up environment it gives. Hence, they were set up to follow through on a few times more than the cost of having espresso at somewhere else to have a Starbucks involvement. The researcher Alam and Islam (2017) argue that Starbucks has kept up an upper hand since making its unique blue-ocean system of carrying superiority, tastes, and value as well as bistro-style espresso decisions to the majority. To remain existing it should concentrate on its center capabilities as well as make new worth advancement by upgrading the client knowledge by putting resources into online substance and intelligence. As opposed to making all the more new items, people deliberate that their quality deceits in their image and by upgrading the association with their devoted clients, which the company will isolate themselves from others.

The researcher Todd (2016) proposed another boundary practices which Starbucks adopted to produce faster blue-ocean innovations through dispensing with the requirement to convey money, currency alteration problems, learning problems, decreased the time consumed on requesting and manufacturing espresso, read-out the list of food options and experiences espresso varieties, deals as well as recompenses accessible, elevated the client pleasure, reliability, and prizes, quantity of new clients, customer’s visits and made another income basis for an organization, facilitated in getting fresh and different clients and made an obvious space in an advanced folder marketplace. The researcher Lohtander and Ratava (2017) states that the eradicate increase diminishes and produce brace and incentive demonstrates the way that Starbucks is effectively safeguarding its blue-ocean marketplace as well as utilizing the procedure to keep up its upper hand and the prevailing situation in the business. Starbucks is as yet keeping up the market prevailing situation through quicker blue-ocean development and troublesome advancements.

Conclusion

In conclusion, the essay discussed that blue-ocean innovation in regions that are unrestricted of contenders. They are market-spaces made by organizations to keep away from contenders. This strategy provides the chance of benefits and achievement as well as extraordinary consumer loyalty. These tactics deliver vehemently in which organizations may regulate their field of rivalry and make a new request by altering the premise of rivalry. To ensure the faster innovation in the company then they have to build up plans of action in less time-period. This essay takes an example of Starbucks Company which implements the blue-ocean strategy to retain its upper-hand pressure and innovative development in their organizations. The limitations practices of a blue-ocean stratagem are for Starbucks Company is to discover and create innovations through blue-oceans that involve an open and developing marketplace and stay away from the red-oceans market which involves over-developed and immersed marketplace.

References

1. Agnihotri, A., (2016). Extending boundaries of blue ocean strategy. Journal of Strategic Marketing, 24(6), pp.519-528.
2. Alam, S. and Islam, M.T., (2017). Impact of blue ocean strategy on organizational performance: A literature review toward implementation logic. IOSR Journal of Business and Management, 19(1).
3. Gupta, P., Nagpal, A. and Malik, D., (2018). Starbucks: global brand in emerging markets. Emerald Emerging Markets Case Studies.
4. Gündüz, Ş., (2016), October. How to make blue ocean turning into red ocean blue again: A case study of a room escape game. In Proceedings of ADVED 2016 2nd International Conference on Advances in Education and Social Sciences (pp. 10-12).
5. Hanggara, F.D., (2019), November. Development Of Business Strategy Through Blue Ocean Strategy Model (BOS)(Case Study: Resto X, Batam). In 2019 1st International Conference on Engineering and Management in Industrial System (ICOEMIS 2019). Atlantis Press.
6. Kim, W.C., and Mauborgne, R.A., (2017). Blue Ocean Strategy with Harvard Business Review Classic Article ‘Blue Ocean Leadership'(2 Books). Harvard Business Press
7. Kodama, M., (2018). Boundaries Synchronization and Capabilities Congruence: Discussion and Implications. In Collaborative Dynamic Capabilities for Service Innovation (pp. 271-333). Palgrave Macmillan, Cham.
8. Lee, Y.L., Wang, W.S. and Chung, S.M., (2017), May. The Blue Ocean Strategy applied in a flood control product development. In 2017 International Conference on Applied System Innovation (ICASI) (pp. 1961-1964). IEEE.
9. Lohtander, M., Aholainen, A., Volotinen, J., Peltokoski, M. and Ratava, J., (2017). Location-independent manufacturing–Case-based blue ocean strategy. Procedia Manufacturing, 11, pp.2034-2041.
10. Nakamori, Y., (2020). Innovation Theory. In Knowledge Construction Methodology (pp. 1-17). Springer, Singapore.
11. Rahman, M.H. and Choudhury, S., (2019). The Influence of the Blue Ocean Strategy on Organizational Performance. Global Disclosure of Economics and Business, 8(2), pp.49-62.
12. Sitinjak, M.F., Pramawijaya, K. and Gunawan, A., (2018). ICanStudioLive use of Blue Ocean Marketing Strategy for Value Differentiation. Pertanika Journal of Social Sciences & Humanities.
13. Todd, L.A., (2016). An exploration of Blue Ocean Strategy’s capacity to sustain small businesses: A qualitative study (Doctoral dissertation, Capella University).
14. Van den Berg, S.W.K., Aguilar-Manjarrez, J., Jenness, J. and Torrie, M., (2019). Assessment of the geographical potential for co-use of marine space, based on operational boundaries for Blue Growth sectors. Marine Policy, 100, pp.43-57.

Starbucks’ Decision to Shift Consumers towards Non-dairy Milk: How Strong Are Attitudes towards Milk?

Starbucks’ recent decision to emphasize on non-dairy options for using as alternatives to milk has brought about a great tension in the dairy industry of the US. However, the decision tends to act as a driving force for other food services and agricultural industries, thereby adding fuel towards the use of nuts, soy and other beverages in the foodservice sectors. Pertaining to the notions of the socio-psychological concept of consumer attitudes, it can be stated the decision of Starbucks tend to have a strong and powerful impact on the thinking and behavior of consumers along with marketers.

The consumer behavioral outcomes reveal that the decision of customers regarding the purchase or use of a product not only depends upon the quality, tangibility, and benefits provided to the individual self but also its impact on the environment and society. In this regard, it can be said that Starbucks’ decision to shift towards non-dairy options may be well-accepted. It is found that in total, dairy use resulted in about 21% of the global carbon footprint of Starbucks in 2018 and thus, the company has aimed in reducing carbon consumption to promote sustainability (Bloomberg.com, 2020). However, dairy-free drinks tend to cost more than that of the dairy-drinks. In this context, the attitudes of consumers towards milk appear to be strong. Raising the prices of the drinks may turn off customers if the competitors continue to sell dairy-drinks at low prices (Insider, 2020).

Thus, by applying the theory of motivation proposed by Maslow, it can be said that Starbucks may fail in meeting the safety needs of consumers by increasing the prices of the dairy-free drinks. However, pertaining to the long-term relationships developed by Starbucks due to the best quality of its coffee, it is found that the company has managed to provide a sense of community and belonging to the customers (Kumar, 2016). This may prevent them from switching to other brands if prices increase, Moreover, the company has attempted to delve into a sustainable cause to switch to non-dairy alternatives. On the contrary, the innovative farm practices and use of the latest technology have caused the ecological footprint of the coffee industry to shrink. The attitude strength of consumers is determined by their knowledge about the products and the extent to which they care about (Wu et al. 2016). The planet-friendly approach of Starbucks is appreciated since, in the 21st-century business market, the concern for environmental sustainability is increasing. Considering this fact, it can be said that the attitudes of consumers towards milk are strong since the production and use of dairy products tend to bring an increase in the emission of greenhouse gases, thereby harming the planet. The cognitive appraisal approach is based on emotions underlying the motivational roots for explaining their impact on consumer behaviors. This approach has gained popularity since its promising ability to study consumer emotions. Using this approach in the case of Starbucks, it can be stated that ‘outcome desirability’, referring to the outcome of the decision appears to be positive since it will assist the company in achieving the benchmark of achieving environmental sustainability.

References

1. Bloomberg.com. (2020). Bloomberg – Are you a robot?. [online] Available at: https://www.bloomberg.com/news/articles/2020-01-21/starbucks-taking-aim-at-milk-is-latest-blow-to-beaten-up-dairy [Accessed 24 Feb. 2020].
2. Insider. (2020). Vegans are holding sit-ins at Starbucks because dairy-free drinks cost more. [online] Available at: https://www.insider.com/vegans-protesting-starbucks-extra-charge-nondairy-milk-2020-2 [Accessed 24 Feb. 2020].
3. Kumar, K., 2016. An Analysis on Brand Loyalty: A Case Study on Starbucks.
4. So, J., Kuang, K. and Cho, H., 2016. Reexamining fear appeal models from cognitive appraisal theory and functional emotion theory perspectives. Communication Monographs, 83(1), pp.120-144.
5. Wu, T.J., Tsai, H.T. and Tai, Y.N., 2016. Would corporate social responsibility affect consumers’ attitudes towards brand and purchase behavior? Buyer-seller guanxi as the moderator. Revista de Cercetare si Interventie Sociala, 53, pp.272-287.

Starbucks 2019: Financial Reporting Rules

Rules for financial reporting are the standard requirements that public companies must conform to under the generally accepted accounting principles (GAAP). These standards are created by the Financial Accounting Standards Board (FASB) and enforced by the Security and Exchange Commission (Carlson, 2019). This report covers the rules of financial reporting followed by Starbucks.

Control Procedures

The reporting of control procedures is required by the U.S. government for public companies, such as Starbucks, as is required under the Sarbanes-Oxley Act (SOX). A provision of the SOX act indicates that companies must provide an internal control report that is evaluated by an outside auditor for soundness (Harrison, Horngren & Thomas, 2015). These controls are implemented to prevent fraud and clerical errors that may compromise the accuracy of a company’s financial statements (Sullivan, n.d.).

Starbuck’s internal control procedures, as well as the independent audit statement conducted by Deloitte & Touche LLP, are explained under Item 9A in the FY19 annual report. The audit affirms that Starbuck’s internal control procedures were effective and sound as of September 29, 2019 (Starbucks, 2019). Starbuck’s internal controls over financial reporting include maintaining records that accurately and fairly reflect transactions, provide assurances that transactions are recorded for the preparation of financial statements, that receipts and expenditures are made in accordance with management authorization, and that unauthorized acquisition, use, or disposition of company assets that have a material effect on financial statements would be prevented or detected on a timely basis (Starbucks, 2019). These control procedures assure investors that Starbuck’s financial statements are reasonably accurate.

Segment Information

Segments are a company’s subset of business operations and divisions that directly earn revenue for the company (Harrison et al., 2015). The FASB requires that public businesses report financial and descriptive information about its reportable operating segments (Financial Accounting Standards Board, 1997).

Starbucks (2019) gives information regarding its financial segments under Item 1 of the FY19 annual report. Starbuck’s three operational segments include the geographical locations of the Americas (U.S., Canada, Latin America), International (Asia, Europe, Middle East, and Africa), and a consumer package goods division called Channel Development. Revenues for Starbuck’s operating segments as a percentage of total net revenues for fiscal 2019 were: Americas (69%), International (23%) and Channel Development (8%) (Starbucks, 2019). In depth segment financial data is reported under Item 7 (pg. 27-29) in the FY19 annual report.

Estimates

A statement about estimates and assumptions is required in the preparation of financial statements to be in conformance with GAAP (GCA Savvian Advisors LLC, 2015). This statement declares that the values of assets, liabilities, revenues and expenses reported within a company’s financial statements may be estimated and may differ from actual results.

Starbuck’s statement of estimates and assumptions can be found under Note 1 of the FY19 consolidated financial statements. In this note Starbucks declares that estimates may be applied (but not limited) to inventory reserves, asset and goodwill impairments, assumptions underlying self-insurance reserves, income from unredeemed store value cards, stock-based compensation forfeiture rates, future asset retired obligations and the potential outcome of future tax consequences of events that have been recognized in financial statements (Starbucks, 2019). This statement disclaims that estimates and assumptions are used in the FY19 report and that reported values may not completely reflect actual results.

Investments and Fair Value

Assessing and measuring fair value reported on a company’s financial statement is required by the FASB in order to comply with GAAP. It is defined under topic FASB ASC 820, which states that “fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” (Minotti, 2016). This fair value measurement consists of a three-level hierarchy for reporting. Level 1 fair values are the quoted prices directly comparable to identical assets in an active market at the measurement date, level 2 values are the significant observable inputs that are not quoted prices, and level 3 values are the significant unobservable inputs unique to a company (‘Fair value hierarchy leveling’ n.d.).

Starbucks statement of fair values is found in Note 1 of the FY19 report, where the company policy for each hierarchy is defined in detail. Financial values and further explanation of level 3 assets and liabilities are found in Note 4 of the FY19 report. The total asset fair value balance in 2019 is $3016.0 million and the total liability fair value balance in 2019 is $18.2 million (Starbucks, 2019). These total values are broken into the three-level hierarchy and reported under Note 4.

Leases

In 2016, the FASB implemented a new standard that requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases (‘Leases,’ n.d.).

Starbucks (2019) states that their leases consist of retail stores, roasting, distribution and warehouse facilities and office space for corporate administrative purposes under operating leases. Values for lease amounts are reported under Note 10 of Starbuck’s FY19 consolidated financial statements. Total rent expenses were $1666.0 million in 2019, and $1625.2 in 2018 (Starbucks, 2019).

References

1. Fair value hierarchy leveling. (n.d.). Retrieved from https://data.bloomberglp.com/professional/sites/10/Fair-Value-Hierarchy-Leveling-Fact-Sheet.pdf
2. Financial Accounting Standards Board. (1997). Disclosures about segments of an enterprise and related information. Retrieved from https://www.fasb.org/summary/stsum131.shtml
3. GCA Savvian Advisors LLC. (2015, December 31). Notes to financial statements. Retrieved from https://www.sec.gov/Archives/edgar/data/1254219/000125421916000005/notes1.pdf
4. Harrison W., Horngren C. T., Thomas C. W. (2015). Financial accounting (10th ed.). New York, NY: Pearson Education
5. Leases. (n.d.). Retrieved from https://www.fasb.org/leases#section_2
6. Minotti, S. (2016, July 6). Understanding FASB ASC 820 – and important proposed changes. Retrieved from https://blog.skodaminotti.com/understanding-fasb-asc-820-important-proposed-changes/
7. Starbucks. (2019). FY19 annual report. Retrieved from https://s22.q4cdn.com/869488222/files/doc_financials/2019/2019-Annual-Report.pdf
8. Sullivan, D. (n.d.). GAAP Principles for Internal Control Procedures. Retrieved from https://smallbusiness.chron.com/gaap-principles-internal-control-procedures-63102.html

IT Usage for Starbucks Company

Introduction

Starbucks was established in 1971 by three local businessmen to sell high quality whole beans coffee. Starbucks opens its first coffee store in Seattle, Washington. In 1990 Starbucks grow its base camp in Seattle and furthermore construct another broiling plant. In 1990s Starbucks opens 60 retails shops in United Kingdom. Toward the finish of 2000s Starbucks all out branches was 3500. Coffee is one of the quickly developing industry in this world because of its business methodology. Expansion of Starbucks around the world is still in the beginning times and Starbucks has an open door for future development. Starbucks principle objective was to dispatch itself as the most famous and regarded brand on the planet.

The organization fundamental goal was to the extension of its branches everywhere throughout the world, to expand its retail business, grow new methods, item and present new appropriation directs so as to accomplish its objectives. With various assortments of espresso and organic juices, Starbucks is consistently the principal alternative that the client picks when he/she frantically needs coffee. Be that as it may, now and then clients are likewise exhausted of going to Starbucks as they are not demonstrating a lot of enthusiasm for changing things as per the desires of clients. Hence, in order to fulfill the needs of the clients, starbucks must start thinking out of the box and follow a new innovative business approach (“Starbucks Marketing”, 2016).

Growth opportunities

Starbucks is effective when it actualized the launch of fresh juice in United States. Once Starbucks has begun serving fresh juice it was running successfully in United States since it has enough assets, framework to dispatch new items in the market. It required some investment for Starbucks to arrive at this new items for clients. Another part that Starbucks organization must consider and use Information Technology assets to get everything in one place and guarantee smooth progression of change and execution of espresso, tea and new natural product juices. For web based marketing, Starbucks put away part of cash for online advancements and commercials to arrive at clients. The organization arranged for free trial of the items to such huge numbers of individuals in all the supermarkets. This activity results numerous individuals to purchase this item and this arrangement is suggested by numerous clients. This can bring about numerous proposal of the organization to the individuals and they can alter the re-discharge the item if necessary. They run web based life notices and web based outdoors this can arrive at numerous clients, so they can put orders as indicated by their enthusiasm for espresso and juices. Not only is Starbucks concentrating on expanding its footprint, but also changing its store mix.

It is significant for the organization to consider that individuals don’t favor fresh juice in winter, so the organization ought to set up its own marked tea for winter. For this organization should spread their examples in all the stores and advancements utilizing online life and get clients audit and dispatch their marked tea and this speculation may cost high for the organization however the profits will be high. Instead of opening more dine-in restaurants, the coffee giant is concentrating on drive-thrus in the outer edges of urban and suburban areas (“Starbucks growth strategy”, 2016).

Tailored Menu based on Customer’s Interests

The eating habits of the customers are evolving. Individuals resemble to eat alongside some espresso. These interests can be known just on the off chance that we connect with the clients. There will be numerous customers consistently to the stores. The assessment of the clients can be gathered with the assistance of an online study where they can give data of whether they are happy with the administration or not. Most of the customers are anticipate having the choice of breakfast with a cup of coffee at Starbucks.

Starbucks essentially consists of wide assortment of espressos, can put together the feedback from clients about the progressions that are required to the menu with the assistance of web based survey. Utilizing IT, Starbucks can really make an online connection and give a customized platform where ideas for new items can be given by customers. When the surveys are given, a group can utilize IT to gather the most wished focuses and the progressions can be made to menu. Many other food companies like Dunkin Donuts and Krispy Kreme follow this method and get useful feedback from customers, which has helped them progress in their business. Starbucks wants to get coffee drinkers to eat more food at its stores (Garnick, 2017).

Increased Efficiency of distribution channel

Distribution channel is the core of any business. We do know venture from an espresso bean to a cup is muddled. To make it simpler flexibly chains are required. At first, as there is only one store, the significance of circulation channel isn’t required at Starbucks. Be that as it may, presently the stores are being extended and there is have to send the fixings to the stores on schedule. This expanded part of costs for Starbucks and the deals dropped. Let us consider a scenario when Starbucks didn’t know that its supply chain was meeting the company’s preset objective. One piece of information that things were not exactly right: the organization’s operational expenses were rising despite the fact that deals were cooling. Between October 2007 and October 2008, for instance, distribution chain costs in the United States rose from US $750 million to more than US $825 million, yet deals for U.S. stores that had been open for in any event one year dropped by 10 percent during that equivalent period.

Utilizing IT, to defeat the issues of supply chain, they can really make an arrangement where the conveyance channel can be streamlined, the expenses can be decreased lastly upgrade the offices. This assists with decreasing the weight of costs on the organization and builds the deals. Furthermore, an authority group can be designated to keep an eye on the supply chain choices (Cooke, 2010).

Conclusion

Starbucks is a global organization with recognition all around the world. Starbucks uses a simple yet effective method, “connecting links between treating employees with dignity and respect and producing good product and services.” That was the main considerations that separate Starbucks from others and bring the fruitful to Starbucks. Starbucks expansive its business with the assistance of entrenched techniques of it situated itself in the market. Be that as it may, each item has an actual existence cycle and that value declines with time. The same applies for starbucks as time passes, so this is the ideal time for them to move their market and arrange their systems to increase their customer base and business.

References

1. Cooke, J. (2010). From bean to cup: How Starbuck’s transformed its supply chain. Supply chain quarterly. https://www.supplychainquarterly.com/articles/438-from-bean-to-cup-how-starbucks-transformed-its-supply-chain
2. Garnick, A. (2017). Starbucks aims to double Food Business. Puget Sound Business Journal. https://www.bizjournals.com/seattle/news/2017/03/22/starbucks-aims-to-double-food-business-by-2021.html
3. Let’s look at Starbuck’s Growth Strategy. (2016). Trefis Team. https://www.forbes.com/sites/greatspeculations/2016/09/19/lets-look-at-starbucks-growth-strategy/#45530c753d71
4. The History and Introduction to Starbucks Coffee Marketing. (2016). https://www.ukessays.com/essays/marketing/the-history-and-introduction-to-starbucks-coffee-marketing-essay.php

The Background and Peculiarities of Starbucks Corporation

Introduction

Starbucks corporation is an American multinational chain of coffee shops that started in Seattle, Washington on the 31st of March in 1971.

It was founded by Zev Siegl, Gordon Bowker and Jerry Baldwin who were three university friends that really liked coffee. They were inspired by the novel “Moby Dick” and by the sea; that’s where the logo of Starbucks came from. It represents a siren that calls people to grab a cup of coffee and the green color represents freshness and growth. In this report I will give a brief summary about Starbucks coffee’s CEO and his leading style. Also, I will discuss Starbucks coffee’s organizational culture, social responsibility, the company’s global strategies and operations.

BODY

Kevin Johnson is an American businessman and a software engineer. He first worked at IBM during late 1980’s, then worked in global technical support at Microsoft. He also worked as a chief executive of Jupiter Networks from September 2008 to January 2014. He joined Starbucks in September 2009 as a board member. He was appointed chief operating officer for two years. Since 2017, Kevin Johnson is the CEO of Starbucks.

He has a big role in the growth of Starbucks; he implemented many changes including mobile ordering and pickup. He also made a global distribution deal with Nestle in the US and China. Due to a terrible incident with two black men in Philadelphia Starbucks, Kevin made anti-bias trainings for management and new hires mandatory. Moreover, the CEO opened centers and research labs to test new products and equipment ideas.

He was named one of Seattle’s most influential people of 2018 In Seattle magazine for partnering Starbucks and Mary’s place and supporting homeless families. Kevin Johnson prioritizes employees by encouraging them to become part of the company’s growth. He also started an internal program to help employees start their own projects. His open-minded approach encouraged professionals to be innovative and collaborative.

Starbucks has a very recognizable organizational culture through its values, customs, traditions and behavior in the organization’s context. The employees work as partners in a warm and friendly ambiance; they also interact with customers. Starbucks includes several organizational culture dimensions. The first one is to pay attention to details, employees work with precision and pay attention to details. The second one is people orientation; managers make decisions by taking into consideration their effect on people and the third dimension is team orientation because all the work is in teams and not individuals.

Starbucks cares about making a positive social or environmental impact. Their social responsibility is based on three points: community, ethical resourcing and the environment.

They help providing education, work opportunities and making difference in peoples’ lives. Moreover, they give training opportunities for youth and have a very big military commitment. They hired 25,000 veterans and military spouses in 2018. To be as environmentally friendly as possible, Starbucks is employing the dark green approach and is committed to recycling and conserving water and energy. This has a very good impact on the company.

Starbucks is operating in 76 countries in more than 24,000 stores all over the globe; in Africa there are shops in Egypt, South Africa, Morocco and Tunisia. In Europe, in the United Kingdom, Turkey, Germany, France, Spain, Poland, Ireland, Switzerland, Netherlands and other countries. Also in Asia, in China, Japan, South Korea, Thailand and other countries. They opened their first international store in Tokyo in 1996. Starbucks coffee’s global attitude is very centralized beneath its CEO but all the company’s international activities are operated by a subsidiary named Starbucks Coffee International Inc. This subsidiary develops all businesses outside the United Sates. This shows that Starbucks is taking a polycentric approach to staffing.

Starbucks is using the concentration strategy as a main growth strategy for the company. Its main growth strategy is based on increasing the number of stores, not just dine-in restaurants but also drive-thrus in the outer edges of urban and suburban areas. Also, through licensing for merchandise and franchising in some countries such as Dominican Republic. But that’s not the only growth strategy that Starbucks uses. It concentrates on expanding its global reach by entering more countries especially in the middle east and Africa. Moreover, Starbucks Coffee uses product development as a secondary growth strategy by creating new products to gain more revenues.

The SWOT analysis is a strategic management tool that assesses the strengths, the weaknesses, opportunities and the threats related to the business and its internal and external environment. The SWOT analysis of Starbucks considers the strengths and weaknesses inherent in operations in the coffee, the coffeehouse and related business. It also considers the opportunities and the threats related to the competitive landscape.

Starbucks coffee’s strengths are its strong brand image because the company has a growing population of loyal customers which adds to the stability of the coffeehouse of the business. Also it has an extensive global supply chain because Starbucks coffee’s suppliers are carefully selected based on the quality of coffee beans. Moreover, its moderate diversification through subsidiaries which minimizes the effect of market and industry risks. Starbucks coffee’s weaknesses are its high price points, because it limits the company’s market share especially in areas with lower incomes. Also, its generalized standards for most products because it limits the flexibility of the coffee and the coffeehouse chain business. The third weakness is the imitability of its products.

Starbucks coffee’s opportunities are expansion in developing markets because it increases the revenues. Also, business diversification which helps improve the company’s long-term stability. Starbucks coffee’s threats are competition involving low-cost coffee sellers because there are other coffee shops that serve similar products with lower prices. Also, the imitation of the products. Last but not least, the independence of coffeehouse movements.

CONCLUSION

In conclusion, the background of Starbucks Corporation reveals that it has a strong leadership position in the market, a suitable work environment, innovation commitment and organizational financial sustainability. Starbucks continues to accelerate its international presence, and as a result it continues to be one of the top leaders in the coffee industry and customer oriented organization.

The Aspects of Starbucks Corporation in China

Starbucks

Starbucks Corporation is an American multinational chain of coffee houses and roastery reserves headquartered in Seattle, Washington. As the world’s largest coffeehouse chain, Starbucks is seen to be the main representation of the United States’ second wave of coffee culture. Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automatic espresso machines for efficiency. As of early 2020, the company operates over 30,000 locations worldwide in more than 70 countries. Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers; some offerings (including their annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of the store.

Since, the foundation of the starbucks company it has gained a lot fame around the world and opened its branches almost in every edge of the world. Officially, company was found in 1971. Company also opened its branch in China also.

Since their entry into China in 1999, they have been focused on developing a company that is committed to sharing the Starbucks experience with Chinese consumers, “one cup, one person and one neighborhood at a time” while passing on classic coffee culture. They care about their partners, so that they can provide customers with a Starbucks experience that exceeds their expectations; and about the community, so that they can all work together to contribute to others.

Currently Starbucks has opened more than 4,300 stores in 180 cities in mainland China, employing over 58,000 partners. Their unique scale allows them to practice their promises every day through every single one of Starbucks stores.

The company currently opened six flagship stores in China which pay tribute to love of coffee. These stores are located in Beijing Kerry Center, Beijing Tai Koo Li, Chengdu Tai Koo Li, Shanghai Disney Town, Shenzhen MIXC World and Suzhou Center.

Statistics

Starbucks’ unique digital platforms, including the Starbucks Mobile App and My Starbucks Rewards helps the staff connect with their customers outside of the stores. Starbucks has always been committed to creating emotional connections between the staff and customers through continuous innovation. In December 2015, Starbucks launched their official Tmall flagship store to combine its unique store experience with an online “fourth space”, which was the first “Internet+Coffee” platform for Starbucks. In December 2016, Starbucks announced a strategic partnership with Tencent, on China’s top mobile social application – WeChat – to introduce a social gifting experience to encourage an emotional connection with others in today’s digital age.

Today, Starbucks announced it will invest approximately $130 million (USD) in China to open a state-of-the-art roasting facility in 2022 as part of its new Coffee Innovation Park (CIP). As Starbucks largest manufacturing investment outside of the U.S. and its first in Asia, the CIP will incorporate a roasting plant, warehouse and distribution center, creating highly-skilled jobs and new career opportunities that will further drive smart and sustainable coffee manufacturing in China. The plant will serve as a key component of the Company’s global roasting network. The bold infrastructure investment further deepens Starbucks multi-decade commitment to strengthen the specialty coffee industry in China, where it aims to have 6,000 stores by 2022.

Building on Starbucks sustainability announcement in January, the CIP will incorporate advancements in sustainable manufacturing, smart supply chain innovation, and technology to support the aspiration to deliver the most energy- and water-efficient roasting operations for Starbucks in the world, while minimizing waste. The new roasting plant facility will be designed with the intent to apply for U.S. Green Building Council LEED Platinum certification, as well as China’s Three Star Green Building standards.

From farm to cup, Starbucks has helped shape the specialty coffee industry in China through continued investment in training and infrastructure, including the opening of the Starbucks Yunnan Farmer Support Center in 2012 to provide open-source agronomy resources to coffee farmers throughout the region. The new CIP, wholly-owned and operated by Starbucks, will source coffees from China and around the world directly from origin for processing, roasting, packaging and distribution, for the first time in China. Construction of the CIP will begin later this year in the city of Kunshan, an hour from Shanghai.

With the CIP set to handle Starbucks largest roasting capacity outside the U.S., the investment highlights the Company’s ambition to further globalize its roasting network and reinforces Starbucks strategic focus on the U.S. and China as its two lead growth markets. Currently, Starbucks operates six other roasting facilities — one in Amsterdam to support European markets, and five in the U.S. The warehouse, roasting and distribution capabilities of the CIP will lay a strong foundation for continued business growth and development in China.

Starbucks vision extends far beyond roasting. Once in operation, the CIP will integrate green coffee bean warehouse management and processing, with plans to co-locate a highly-automated and ‘intelligent’ distribution center that will become the heart of Starbucks distribution network in China. The facility also will serve as a training ground for coffee roasters and key roles across Starbucks coffee supply chain in China.

As of May 2020, Starbucks has around 31,256 locations spanning 79 countries and territories on six continents:

• Luckin Coffee reached 2000 by January 2019, and expected to reach 4500 by the end of the year, beating Starbucks which is expected to have 4,121 stores. This company is current opponent of Starbucks
• Luckin Coffee’s rapid expansion is turning into a nightmare scenario for Starbucks for a number of reasons. One of them is that Luckin has begun to steal the buzz from Starbucks by opening up stores in high profile places like the Forbidden City —where Starbucks was famously evicted a decade ago.

Then there’s the prospect of Luckin Coffee challenging Starbucks for monopolistic behavior, according to Statista. And that could end up costing Starbucks a great deal of money and time, as has been the case with other American companies.

Meanwhile, there’s Luckin’s business model, which focuses on smaller stores, technology, and speedy delivery, which appeal to the younger generations.And there’s more: price competition—the worst nightmare of every business. Luckin Coffee products sell 20% below those of those starbucks.

That’s expected to put pressure on Starbucks’ market shares, sales growth and profit margins, especially as the Chinese economy slows down.

But equity analyst, John Zolidis isn’t concerned about Starbucks competition in China. “We spoke to the company about this within the last two weeks and also touched on the expansion of Luckin coffee which is trying to go from zero locations to 4,000+ in just a few years,” says Zolidis. “Based on our exchange with the company, we believe that China guidance is very reasonable and even offers the potential for upside due to company initiatives including delivery. Further, we would argue that coffee (even premium priced coffee) is not economically sensitive in the sense that a $1000 Iphone might be.”

Still, winning the minds and the wallets of Chinese consumers won’t be easy. China is a diverse rather than a homogeneous consumer market, which consists of three segments:

• The highly globalized segment, in which Chinese consumers display similar preferences and tastes with consumers in highly developed countries. This segment extends over three eastern regions: The Pearl River Delta, which includes Hong Kong, Guangzhou and Shenzhen; the Yangtze River Delta, which includes Shanghai and nearby cities; and the Beijing-Tianjin region.
• The highly localized segment, in which consumers maintain their local preferences and tastes. This segment may be found in the most remote rural areas of central and western China.
• The semi-global market segment, in which consumers display a mix of global and local preferences. This segment is a collection of “mega-cities” like Fuzhou, Zibo, Qingdao, Shantou, Dalian and Huizhou.

So far, Starbucks has expanded into the easy target, the highly globalized segment, which requires little localization of the products sold in its home market.But it will be extremely difficult to reach the other two segments, without substantial changes to its business model.And that will further undermine the company’s scalability, revenue growth and profitability.

Reference list

1. https://www.forbes.com/sites/panosmourdoukoutas/2019/01/21/starbucks-worst-nightmare-in-china-is-coming-true/#7738b8a517ec
2. https://en.wikipedia.org/wiki/Starbucks
3. https://stories.starbucks.com/press/2020/starbucks-coffee-innovation-park-in-china-extends-global-roasting-network/

Starbucks Pricing Strategy

The estimating technique of Starbucks has gotten dynamic in the ongoing years as it endeavoured to modify its valuing to meet changes in the expense of crude materials just as movements in the buying intensity of the market during the beginning and movement of the monetary crisis. The dynamism of the evaluating procedure of Starbucks rose out of the adjustment in context over its pricing. In a meeting with Troy Alstead, the official VP, boss regulatory official and CFO of Starbucks, he communicated the thorough and constant endeavours made the organization to coordinate its estimating configuration dependent on the investigation of client explore.

Components considered in the investigation are land area, expenses and edges, and item size inclinations of clients or client gatherings. This implied value developments upwards or downwards however the advantage to clients is a higher priority than the value shifts. In the succeeding years, Starbucks would probably proceed with dynamic estimating by thinking about monetary and advertising perspectives.

The financial parts of the valuing of Starbucks incorporate information costs and different expenses moved to the purchaser. Changes in these variables influence the valuing methodology of Starbucks. The expense of Starbucks espresso is because of the nature of the espresso beans fermented for clients. The ease of work in espresso ranches prompted the reasonable exchange development. This prompted long haul direct buy understandings among Starbucks and its wellspring of crude espresso beans. The advantage for espresso ranchers is pay security in the drawn-out advantage for Starbucks is the steady nature of espresso beans provided by espresso manors. This converted into greater expense for espresso as information.

The vacillation in the cost of dairy items likewise influences the cost of Starbucks. The organization has expanded its cost in any event multiple times since 1990 and one of the common purposes behind the ascent in cost is the expansion in the expense of dairy items. Nonetheless, the decreases in dairy item cost turned into a help to Starbucks since these momentary decreases in dairy item cost, not at all like cost increments, are not prone to influence the cost of Starbucks items.

Oil cost unpredictability likewise influences the estimating of Starbucks in view of increments in transportation cost of crude materials to Starbucks and its shops and vitality cost remembered for the working expense of the organization. Starbucks likewise decides its cost through different expenses moved to clients, for example, publicizing costs. The nature of experience and brand esteem likewise structure some portion of the cost of Starbucks. These make its cost generally higher when contrasted with contenders, for example, McDonalds and Dunkin Doughnuts just as neighbourhood bistros.

Starbucks’ estimating methodology is painstakingly determined and dependent on a blend of the objective market, utilizing an excellent way to deal with marking. The solid brand character drives deals, despite having more extravagant items. Furthermore, Starbucks’ advancement procedure additionally drives mindfulness and deals around extraordinary occasions and occasions.

Menu at Starbucks- The menu at Starbucks is profoundly specific and centered. The menu things are applicable to the evaluating system, on the grounds that the valuing procedure shows how the organization can value high while additionally accomplishing ideal edge. The menu is actually the equivalent at each and every store, and the absence of factors implies that Starbucks can source item in mass to drive down the expenses.

Starbucks additionally offers a decent choice of choices, without overpowering the client. For instance, food choices are a small amount of the contributions at numerous different shops and they are pre-made and prepared to warm. The organization loses on that unique touch that you may see at a neighbourhood bistro, yet Starbucks eateries are very effective.

Starbucks: Organisational Culture of the Company

Starbucks is an American coffee brand, chain and company that began its journey in 1971 to provide people with the best coffee and coffee experience. It opened its first location near Pike Place Market in downtown Seattle, Washington and now operates over thirty thousand companies worldwide. From the beginning, the company has been set up to ethically source and roast the best quality coffee in the world. Throughout the years, the coffee company has managed to build a strong brand for themselves, by putting in an enormous amount of efforts in establishing a strong organizational culture. Organizational culture is known as an organization’s beliefs, rituals, language, assumptions, values, and ways of interactions that are used to make their organization more unique. This essay will analyze the Starbucks Company organizational culture and will discuss how it has been established in the company, leaders, workers and communities. This essay will also discuss how their organizational culture reflects in their industry and this essay will advise those who are seeking to become a member of this company on how one should behave in it.

Starbucks organizational culture starts with its values, the company has four values that help make their coffee experience different from other competitive companies. The first value focuses on creating a cultural environment in which everyone feels that they belong, and everyone feels that they are welcomed. The second one is to deliver the best in what they do and be holding themselves accountable for the results. The next one is to act with courage, being willing to challenge obstacles and look for new ways for the company to grow as well as others. The last value is to always be present and connect with others both with dignity and respect. The company created rituals to reinforce and communicate their values to employees and created them for those who already work for the company to remind themselves of those values. One of their rituals was designed by one of the company’s founder Howard Schultz, the ritual was made to plant the love for coffee to the new hires entering the company. One of the first things that the new hires do when starting the job is a tasting of the manager’s favorite coffee. This tactic is done to shows the store managers passion for the coffee and it is done to reflect that passion onto the new hire. Over the next few days the new hires are required to taste all the coffee blends that Starbucks offer and then document their reactions to them. Employees that have been there for a long time like executives sometimes do tastings again to remind themselves of their passion for the coffee. The companies cultural is so well established that they even have their own well-known cultural language in all their coffee shops. Starbucks cultural language is well implanted in all their loyal customers, for example when a customer enters to purchase a drink, they automatically know the names of the drink’s sizes. The customers know that a small is called a tall, a medium is called a grandee and a larger is called as a venti and so one. Its cultural language is so well implanted in every customer that even outside of the coffee shops when asked what size they purchased; the customer will always respond with Starbucks given names to the drinks sizes.

Starbucks culture continues in the company’s leadership, the company uses the same values to reflect into their managers, human resource, development programs, baristas and baristas interactions with customers. The companies corporate culture follows the servant leadership, which is a philosophy that focuses on leaders serving the employees and helping them use all their talents and potential, so that the organization is built to benefit society. Starbucks corporate culture uses this philosophy and translates it as employees first in their workforce, meaning that leaders, managers and supervisors are to support employees to ensure that they grow within the company. The company uses this type of leadership to emphasizes on the care of the employees moral and emphasize on customer satisfaction. This feature was established in the company’s culture by former president Howard Behar, because it fit his belief that employees who are cared for are the ones that will care for the customers. The company’s culture also follows another tactic called openness which was also established by Behar designed to make employees less fearful to voice their opinions to leaders or managers. This tactic also helps leaders, managers, and supervisors to have an open mind and become better listeners to their employees.

Starbucks conducts business worldwide and even then, their culture follows them within those environments and within their business buildings as well. Starbucks culture dose not only stop when it comes to strengthening their team, they also strengthen communities they conduct business in. All Starbucks stores are part of a community and are committed to strengthening those communities. One hundred percent of all Starbucks stores worldwide participate in community services annually, they recently launched a new service program. The new service program was designed to engage retail partners by allowing them to work part time at their stores and part time at a Local Points of Light Program Location. Starbucks will also start donating one hundred percent of their food in stores that did not sell for the throughout the day, to help rescue food and not waist. For those who are interested in joining this company’s workforce, The best advice to follow in order to make it far in the company, is to enter the company with an open mind. People who enter with open minds will be better off in the job because they will learn to be a better communicate not only to their team, but to customer. They will learn that they are cared for but with that care they must have the open mindset to not just think of themselves, they must learn to think about others.

Starbucks is one of the many companies that created their own cultural organization for the purpose of showing inhabitants what the company strives for both internally and environmentally. Each company has developed their own unique cultural organization that affects their environmental and internal surroundings differently. Their own unique cultural development is what helps build loyal customers, because those who believe in what the company stands for will continue to buy their products.

Written Communication Analysis: Starbucks Stories & News

Starbucks has a section of its website entitled, “Starbucks Stories & News,” where the Executive Vice President, Rossann Williams, updates the company’s stakeholders about how the company is navigating through COVID-19. In the first letter, written on March 4th, 2020, Williams addresses the company’s partners’, customers, and communities, on the precautionary steps Starbucks has taken during the pandemic. There are five steps listed addressing cleanliness, consumer’s personal cups, travel, large meetings, and reporting/supporting someone impacted by the virus. The five steps make it quick and easy for readers to grasp.

Not only is the company taking steps to increase the cleaning and sanitizing of all stores, but they are paying their partners additional profits to perform these CDC recommended and time-consuming tasks. Also, the establishment is still honoring the 10-cent discount to customers who bring in personal cups, even though customers are unable to use them during this time. The restrictions on large meetings and travel and the examples listed above, prove the company is taking steps to protect their employees, partners, and customers. The post effectively addresses everyone employed by the company and the public transparently and compassionately. Williams writes with a positive tone to give the audiences, listed above, peace of mind and encourage their continued support of Starbucks.

Method of Communication

The letter posted on Starbuck’s website ensures their partners, employees, and community are informed about how the company is addressing COVID-19. Also, a letter is a professional way of communicating with both a large and diverse audience.

Design Elements

The letter has a plain appearance. Its simplicity makes readers focus solely on the content rather than on design elements that take away from its intended purpose. Also, minimalism gives the letter a professional look that balances with its serious content pertaining to the COVID-19 pandemic.

Rhetorical Approach

EVP Williams leverages all three rhetoric appeals as communication tools in the letter. She employs ethos or an appeal based on the character of the company by stating, “we quickly initiated a regular cadence of communications with our store partners to ensure they have the support they need. We’ve already taken a series of precautionary steps in response to this emerging public health impact…” Also, the last few paragraphs begin with, “we are also,” and “we will continue.” This reveals the company’s trustworthiness as it pertains to taking action in response to the pandemic. Also, Williams uses buzz words like, “transparency” to further emphasize the credibility of Starbucks.

The author also used logos, or logic, in detailing first the company’s two key priorities, “caring for the health and well-being of our partners and customer and playing a constructive role in supporting local health official and government leaders….” She describes in detail the precautionary steps the company is taking to meet those objectives.

Finally, Williams engaged pathos, or an appeal based on emotion, to connect with her intended audience. She writes, “First and foremost, the health and well-being of our partners and customers remains top of mind and our highest priority” and “Our focus remains on two key priorities: Caring for the health and well-being of our partners and customers and playing a constructive role in supporting local health officials and government leaders….” In doing so, Williams connects emotionally with the audience by expressing care and compassion. Towards the end of the letter, Williams writes that the company hopes that partners will look back on how Starbucks handled this pandemic and see how much they cared for their people, customers, and community. Using all three forms of rhetoric makes this a very powerful letter.

Communication Issues

The letter has two communication issues. For one, it has a lot of text, which can prevent the audience from reading it fully. Adding photos that relate to the letter’s content will not only make the letter more visually engaging while emphasizing the company’s credibility. For example, photos capturing the stores getting cleaned and sanitized would prove that Starbucks is taking the pandemic seriously. Also, part of the letter is vague, leaving readers without pieces of information. The author mentions gaining lessons from their leadership team and partners in China, she does not share what those learnings included. Also, Williams concludes the letter by stating, “Guided by our Mission and Values, and a commitment to one another….” She failed to explain the company’s mission and values, leaving less of an impact and opening the doors to misinterpretation. To further support connecting emotionally with her audience the author might have stated how often she intended to provide communication updates to her audiences. In this way, she would be demonstrating the extent the company truly prioritizes both their partners and customers.

Conclusion

Overall, Williams clearly communicated how the company is navigating through the pandemic. Williams connects with the audience by writing compassionately and transparently. Adding photos and greater detail around some vague statements, as well as setting expectations of the timing and frequency of future communications will enhance the letter’s effectiveness. These improvements will better educate and engage the intended audiences while also building the company’s credibility.