In 2011, Starbucks reported their highest ever annual revenue and operational income of $11.7 billion and $1.728 billion respectively (Starbucks, 2011). Starbucks corporate and business strategies, along with the relevant functional operations of key operating segments tell how Starbucks has been able to achieve the financial strength it has today. While Starbucks is flood tide off a record year for revenues, there argon still a number of organizational risks that Starbucks board of directors provide need reduce or mitigate going forward.
organisational Corporate Strategy
Starbucks is pursuing a growth by minginess strategy. Over the past eight years from 2004 to 2012, Starbucks has opened 9586 newfangled stores internationally, which represents an approximately 122 percent growth in stores (Starbucks, 2012). Starbucks is not sole(prenominal) trying to expand the markets served within its direct business, but in addition its continuing to increase the number of products offered within its primary business. Starbucks continues to introduce new brands of unrecorded and iced handcrafted beverages, new choices of baked and sweet-scented food, desserts and store merchandise, such as espresso machines, coffee brewers, grinders, and coffee cups.
organizational Business Strategy
Starbucks has become a coffee industry leader utilizing a specialization business strategy. Starbucks is driven towards providing its customer with the highest calibre coffee products and exceptional customer service. Starbucks provides its customers with what they feel is the finest coffee useable commercially, combined with an unrivaled café experience with custom prepared hot and cold beverages, comfortable seating arrangements, music, and a community tang within each store.
Starbucks remains effective at implementing this differentiation strategy for three important reasons. Firstly, they successfully invest internally in human resources, creating a fairly compensated and commanding employee, which in...If you want to get a full essay, order it on our website: Orderessay
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