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Starbucks: Decision-Making Insights

Starbucks is an international coffee chain founded in 1971. It currently operates in more than 70 countries and has a presence in America, Europe, Asia, and the Middle East. Its mission is to inspire and nurture the human spirit one person, one cup at a time through coffee. Its logo represents a siren to attract customers with a cup of coffee.
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0% found this document useful (0 votes)
21 views8 pages

Starbucks: Decision-Making Insights

Starbucks is an international coffee chain founded in 1971. It currently operates in more than 70 countries and has a presence in America, Europe, Asia, and the Middle East. Its mission is to inspire and nurture the human spirit one person, one cup at a time through coffee. Its logo represents a siren to attract customers with a cup of coffee.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

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Starbucks

Abraham Airtón Castro Medina & Jeisson Javier Bonilla Sinisterra


November 2019.

Catholic University of Táchira.


Faculty of Economic and Social Sciences.
Administration Mention Marketing.
2nd "A" of Marketing
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Introduction:
In everyday life, we all make decisions.
every day, since we get up and decide to go to
to work. In the case of the decision-making process in the
organization refers to those decisions that are
relevant to the operation of the [Link]
decision-making process in an organization
it begins with the detection of a situation surrounding some
problem. Next comes the analysis and definition
of the problem. To do this, it is necessary to have a system
of reliable, timely, and updated information, which
allow to clearly understand the nature of
problem to solve.

In this case, we will talk about decision-making.


at Starbucks. Starbucks Corporation is a chain
International Coffee founded in Washington. It is the
largest coffee company in the world, with more than 24
000 locations in 63 countries. In 2008, Starbucks closed 900
establishments, where he placed notes indicating that
it would take some time to perfect his coffee. That said
let's talk a little more about Starbucks...

Historical review:
The first store with the name Starbucks was opened
in Seattle, Washington in 1971 by three partners: the professor
from English Jerry Baldwin, the history teacher Zev Siegel,
and the writer Gordon Bowker. The three, inspired by the
coffee entrepreneur Alfred Peet opened his first store
for sale of grains and machines for coffee, located in the
2000 Western Avenue, from 1971 to 1976. During the
the first year they were exclusive clients of Alfred Peet for
then start acquiring green coffee beans from others
suppliers.

The businessman Howard Schultz is


he joined the company in 1982, and
after a trip to Milan, proposed to
its partners to expand the sales operation
of coffee beans, with the sale of coffee
express and others, which was rejected by
these for considering that this new
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the activity would distract from the company's original goal,


they also estimated that coffee was something that should be
prepared at home.

Schultz opened his own chain of coffee shops in 1985.


with the name Il Giornale, taking the name of a
newspaper published in Milan. A year earlier, the three owners
the originals had decided to buy Alfred's company
Peet, Peet's, and selling the Starbucks chain to Howard
Schultz, who in turn decided to change the name of his
company Il Giornale for Starbucks.

In 1987, the new chain of coffee shops Starbucks


opened its first locations on the outskirts of Seattle and in
Chicago. The company went public on the stock exchange on
June 26, 1992, since then the actions have had
a sustained growth reaching 39 dollars in
2006. Since that year, the trend has been downward.
reaching 17 dollars in 2008.

In 1999, several establishments were vandalized during


the Protests against the WTO summit in Seattle.

In the year 2000, some products were introduced under


the fair trade label.

What does the Starbucks logo mean?

The design of this logo began in Seattle in 1971,


with three friends who loved coffee, they also liked the
novel Moby Dick by Herman Melville, so much so that they decided
to name the company like Captain Ahab's ship; but
the brand executive terry heckler decided that the coffee
"pequod" didn't sound good. So they chose the name of the
official captain of the ship: STARBUCKS.

Heckler later studied maritime books and found


a 15th-century engraving of a two-tailed mermaid, instead
to attract sailors, this mythical mermaid would tempt the
people with a coffee cup. Initially this logo
she wore a siren with a bare chest but after some
complaints, the design was redone so that the hair would cover her
body… in 1987 the logo changed from brown to green a symbol
of freshness and fertility, in 2011 the Starbucks siren was
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redesigned with rounder details, it was also added


a rounder shadow on the right side of the nose a
small symmetrical element that made her look more human,
it is in 70 countries and markets reaching that starbcuks
generate a brand value of 8.7 billion dollars.

Global presence:

5.1 America
5.1.1 Mexico
Central America
5.1.3 Argentina
5.1.4 Chile
5.1.5 Colombia
5.1.6 Bolivia
5.1.7 Peru
5.1.8 Uruguay
5.2 Europe
5.2.1 Spain
5.2.2 France
5.2.3 Portugal
5.2.4 Andorra
5.2.5 United Kingdom
5.2.6 Netherlands
5.3 Asia
5.3.1 China
5.3.2 South Korea
5.3.3 Japan
5.4 Near East
5.4.1 Israel
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Annual evolution of the number of Starbucks establishments in


the world between 2008 and 2018

Mission
Inspire and nurture the human spirit, one person,
one cup of coffee, one community, one customer at a time.

Vision
Continue being one of the best brands globally
worldwide and seek for customers to see Starbucks as a
second home.

Starbucks coffee business model


Global strategy based on the customer.
Emotional marketing: it is based on effective connection
between the brand and the customer.
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The strategy of Starbucks has resulted in its


consumers do not consider coffee sales as a
producer, if not as a service: "the experience"
Starbucks. Where the essential is to establish a connection.
emotional with the customer, and once the consumer
I wish to belong to the Starbucks community, your next
The objective, as a company, is to engage the customer in
an entire experience
Strategy development

1st study of the consumer (individual)


The company is aware that the majority of
their customers are not so sensitive to the increase in
prices since they take into account other variables.

2° exploitation of the key success variable


The success variable of that company is one hundred percent.
one hundred centered on the experience that comes with taking a
coffee cup and turn that experience into something that the
consumer seeks and obtains only with the
Starbucks products and services.

3rd customer service system


for Starbucks it is essential that the
consumers perceive that with important for the
company through a personalized and friendly approach.

Type of decision-making

Partners:
From the individual who makes your cappuccino
decaffeinated even to the person you pay and they give you a
smile, all Starbucks employees are partners of the
company. Although the workers there also
they have specific positions, including waiters and
shift supervisors, the company Starbucks refers to
as their employees as "partners". This term aims to
clearly show how integrated the employees are,
regardless of their location in the chain, with respect to the
success of the company.
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Basic structure
The structure of Starbucks Corporation is not
common. The company executives supervise the company.
from its headquarters in the city of its birth,
Seattle, Washington. Throughout the country, district managers
they supervise the regional store groups. These managers
they inform directly to Starbucks Corporation. In each
store, the manager acts as the boss. Below this manager
in the store, there is a collection of supervisors of
shift that acts as managing directors in exercise when the
The store manager is not here. Below the supervisors of
the rest of the employees are located, to whom
it refers to as waiters.
Licensed stores
Starbucks does not operate under a franchise system;
however, they have licensed displays. The stores
with a license are common in supermarkets, the
libraries and anywhere else where Starbucks is not a
independent building. These licensed stores
they are equally controlled by Starbucks Corporation and
must adhere to the same rigorous guidelines. All
the items sold in licensed stores,
including food, must be approved by the
offices of the company Starbucks. This firm maintains its
control in an attempt to protect the company's name and
to ensure that it remains associated with quality.

How much does it cost to buy a Starbucks franchise?

A franchise can cost between 250,000 pesos.


(13,000 USD) and 10 million pesos (600,000 USD), The
the correct coffee franchise depends on the capital with which
stories. In this article, we tell you how much a
Starbucks franchise, and what options are there to invest
in your coffee franchise.

How many Starbucks stores are there in the world?

According to the research conducted by


Quartz, Starbucks has stores in 63 countries, where
The United States is the nation with the most establishments of
that coffee brand, with more than 11 thousand; followed by Canada,
with one thousand 396, and China with one thousand 219.
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Nestlé buys Starbucks rights

The Swiss multinational Nestlé announced an agreement


with Starbucks to buy it for 7.15 billion
dollars (5.976 million euros) the rights for
market the coffee and tea products of the largest chain
of cafes around the world outside their establishments.

Conclusion:

The owner of the Starbucks company aims to


philosophy of having a good relationship with employees and
make an investment in them. Since they are the ones who maintain
in direct contact with customers and feeling happy in
the workplace and ensure their loyalty.

It is important to emphasize that their business model has


granted the position that few companies achieve in such a short time
time. The centralization and exploitation of the key variable of
success has made Starbucks one of the best companies to
work because it is not only emotional marketing that
it influences the high consumption of its products, but it is also the
the contact that their workers have with the client which makes that
both are satisfied at the end of the day.

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