Explain the mission statement of any your choice and critically

evaluate the strategy of your organization

Starbucks Coffee’s Vision Statement & Mission Statement

Starbucks CoffStarbucks Coffee’s mission statement and vision statement reflect
the company’s emphasis on leadership in the coffeehouse industry. The firm’s
mission statement serves as an indicator of what the company wants to do at the
core of its business. On the other hand, Starbucks Coffee’s vision statement
shows what the company wants to achieve in the future. In this regard, through
the mission statement and vision statement, the firm guides the activities of
employees, and shows customers what the business is capable of doing. In
particular, the Starbucks Coffee mission statement shows customers the benefit
that they can get from the company.
Established in 1971 in Seattle, Washington, Starbucks Coffee continues to follow
its mission statement and vision statement to influence organizational
performance and strategic direction. The current success and global industry
leadership of Starbucks is a direct manifestation of its vision and mission
statements.

Starbucks Coffee’s Vision Statement

Starbucks Coffee does not readily present its vision statement. However, a careful
reading of the company’s website reveals that its vision statement is “to establish
Starbucks as the premier purveyor of the finest coffee in the world while
maintaining our uncompromising principles while we grow.” This vision statement
has the following components relevant to Starbucks:
Premier purveyance
Finest coffee in the world
Uncompromising principles
Growth

Being a premier purveyor means that Starbucks Coffee wants to achieve

leadership in providing its products, especially coffee of the best quality.
Starbucks has already achieved the premier purveyance component of its vision
statement because it is now the largest coffee and coffeehouse company in the
world. However, it is not yet clear if Starbucks effectively addresses the finest
coffee in the world component of its vision statement. Analysts and critics point
out that coffee from McDonald’s or Dunkin Donuts may be better than Starbucks
coffee in some aspects. Nonetheless, Starbucks Coffee addresses the
uncompromising principles component of its vision statement. These principles
include ethical conduct and a warm culture. Starbucks maintains these principles,
especially after Howard Schultz resumed his role as CEO in 2008. Also, the firm
satisfies the growth component of its vision statement, as manifested in the
continuing global expansion of the business through new Starbucks cafés.
Starbucks Coffee now has more than 22,500 locations around the world. Thus, the
firm effectively addresses its vision statement.

Starbucks Coffee’s Mission Statement

Starbucks Coffee’s website states that the company’s mission statement is “To
inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.” This mission statement reflects what Starbucks does to
keep its business running. Such mission statement has the following key
components relevant to Starbucks:

Inspire and nurture the human spirit

One person, one cup and one neighbor at a time
Starbucks Coffee inspires and nurtures the human spirit starting with its
employees. To address this component of its mission statement, the company
maintains a small company culture, where rapport and warmth are important.
This component of Starbucks Coffee’s mission statement also pertains to
customers’ experience. The company extends its warm and small company
culture to its customers. At Starbucks, employees’ and customers’ first names are
used. Also, the design of Starbucks cafés has a warm and cozy feel. These
approaches inspire and nurture meaningful and warm relationships. Starbucks
Coffee’s mission statement also indicates a personal and gradual approach. The
one person, one cup and one neighbor at a time component of the mission
statement shows that the firm ensures meaningful impact on every employee and
customer. This part of the mission statement also means that Starbucks Coffee
plans to continually and gradually grow the business, one place or neighborhood
at a timeless Vision Statement & Mission Statement

Starbucks Coffee’s Generic and Intensive Growth Strategies

Starbucks Coffee Company’s generic strategy (based on Michael Porter’s model) is
responsible for its emphasis on specialty coffee products. On the other hand, a
combination of intensive growth strategies influences the approach that
Starbucks uses for growth and expansion. These intensive strategies for growth
are also directly related to the company’s generic strategy. Intensive growth
strategies must be aligned with the generic strategy to maximize firm
performance and potential success. In Starbucks Coffee’s case, such alignment is
observable in the firm’s continuing emphasis on penetrating markets with its
specialty products, while offering these products to customers from various
segments. Thus, Starbucks successfully aligns and follows its generic strategy and
intensive growth strategies.
Starbucks Coffee’s generic strategy, based on Porter’s model, allows the
firm to compete based on specialty products. Starbucks also uses its intensive
growth strategies to support expansion, although its focus is on market
penetration.

Starbucks Coffee’s Generic Strategy (Porter’s Model)

Starbucks Coffee uses the broad differentiation generic strategy. In this generic
strategy, the goal is to make the company different from other competitors. It is
such difference that makes Starbucks stand out. The company’s emphasis on
specialty coffee easily differentiates Starbucks cafés from many other
establishments that offer coffee. However, the application of the broad
differentiation generic strategy also extends to other areas of the business. For
instance, Starbucks uses its sustainable and responsible sourcing policy to
differentiate its products from competitors. This generic strategy is also
manifested in the company’s culture. While competitors like McDonald’s and
Dunkin Donuts emphasize low cost, Starbucks Coffee emphasizes a warm friendly
ambiance that people enjoy.

An implication of the broad differentiation generic strategy is that Starbucks

Coffee must continue innovating to ensure differentiation in the long term. This
generic strategy could lose its strength when competitors also find ways to stand
out. To address this issue, Starbucks keeps innovating its product mix and supply
chain. In applying the broad differentiation generic strategy, Starbucks focuses on
specialty ingredients and products, such as baked goods that do not have high-
fructose corn syrup. Starbucks also innovates its supply chain to satisfy its generic
strategy through a continuing search for the most sustainable and finest
ingredients. Thus, based on this generic strategy, Starbucks Coffee’s strategic
objective is to innovate products and its supply chain.

Starbucks Coffee’s Intensive Strategies (Intensive Growth Strategies)

Market Penetration. Starbucks Coffee’s main intensive growth strategy is market
penetration. This intensive strategy supports the firm’s growth by maximizing
revenues from existing markets. Starbucks already has presence in 65 countries
around the world. To maximize revenues and growth in these current markets,
the company applies the market penetration intensive strategy by opening more
company-owned stores. Starbucks also applies this intensive strategy for growth
through licensing for merchandise and franchising in some countries, such as the
Dominican Republic.

Market Development. Starbucks Coffee uses market development as its

secondary intensive growth strategy. This intensive strategy supports the
company’s growth by generating revenues in new markets or market segments.
For example, Starbucks Coffee plans to enter more countries. These countries are
mostly in Africa and the Middle East. In this intensive strategy, Starbucks grows by
expanding its global reach.

Product Development. Starbucks Coffee also uses product development as a

secondary intensive growth strategy. This intensive strategy involves creating new
products to gain more revenues. Starbucks continues innovating its product mix.
For example, after the firm acquired The Coffee Connection, it started offering
Frappuccino at Starbucks cafés. The company also introduced sodas in 2014.
Through such new products, Starbucks grows through this intensive strategy.

Strategic Analysis and Recommendation for Starbucks Coffee

Starbucks Coffee’s broad differentiation generic strategy ensures that the firm
maintains competitive advantage through specialty products and ingredients. This
generic strategy translates to various policies and programs to keep the firm
differentiated. A challenge in applying this generic strategy is that Starbucks must
always innovate. Starbucks needs to keep improving and innovating ahead of
competitors to maintain its growth based on this generic strategy.

Starbucks Coffee’s intensive growth strategies are aligned to the firm’s generic
strategy. Because it stands out based on differentiation, Starbucks can penetrate
markets and compete with other firms in these markets. However, the business
lacks significant presence in Africa and the Middle East. Thus, Starbucks can use
its intensive growth strategy of market development to grow in these regions.
Also, the intensive growth strategy of product development can be used to offer
products that suit the distinct cultural preferences of consumers in Africa and the
Middle East.

Starbucks Coffee SWOT Analysis

Starbucks Coffee Company stands as the biggest coffeehouse business in the
world. The firm’s competitive advantage is based on its strengths, as shown in this
SWOT analysis. In SWOT analysis, business strengths are evaluated to determine
the ability to address weaknesses, opportunities and threats. This SWOT analysis
of Starbucks Coffee presents the internal factors and external factors significant
to the firm. Even though Starbucks is already a strong global brand, various
factors threaten the business. As such, the firm must innovate its approaches to
overcome these threats. The result of this SWOT analysis shows that Starbucks is
strong, but it constantly faces major threats in various markets around the world.
Starbucks Coffee’s SWOT analysis shows that the company’s strengths far
outweigh its weaknesses. However, this SWOT analysis also points to major
threats that could prevent the success of new Starbucks cafés in markets outside
the United States.

Starbucks Coffee’s Strengths (Internal Strategic Factors)

This component of the SWOT analysis model deals with the internal factor of
business or organizational strengths. Starbucks Coffee’s main strengths are:

Strong brand image

Extensive global supply chain
Diversified business through subsidiaries
Starbucks has one of the world’s strongest and most popular brands. The
company also has a growing population of loyal customers who prefer Starbucks
based on quality and the brand. In addition, the company has a global network of
suppliers. The firm has also acquired businesses as subsidiaries, such as Ethos
Water, Seattle’s Best Coffee, and Teavana. This part of the SWOT analysis shows
that Starbucks is resilient through diversification and a global supply chain.

Starbucks Coffee’s Weaknesses (Internal Strategic Factors)

This dimension of the SWOT analysis model indicates internal factors like
inadequacies that present challenges to business development. Starbucks
Coffee’s main weaknesses are:

Higher price points

Generalized standards for most products
Imitable products
The relatively higher prices of Starbucks products make them less accessible to
the large population of lower-middle class and lower class consumers. Most
Starbucks products are also based on generalized corporate standards that make
the products less aligned with cultural demands in some markets. Also, Starbucks
Coffee’s business is imitable in terms of products and café ambiance. This part of
the SWOT analysis shows that Starbucks must innovate to overcome its
weaknesses, especially the imitability of products.

Opportunities for Starbucks (External Strategic Factors)

This component of the SWOT analysis model focuses on external factors that a
firm can use to grow its business. Starbucks Coffee’s main opportunities are:

Expansion in Asia, the Middle East, and Africa

Diversification of product mix
Partnerships or alliances with other firms
Starbucks has the opportunity to expand in the Middle East and Africa, where the
firm currently has minimal presence. The company also has the opportunity to
expand in Asia, where economic growth rates are high. In addition, even though
Starbucks already has a considerably diverse product mix, further diversification
can help improve its competitive advantage. Partnerships and alliances can also
strengthen Starbucks Coffee’s competitive position. This part of the SWOT
analysis shows that Starbucks has major opportunities for global growth.
Threats Facing Starbucks (External Strategic Factors)
In this aspect of the SWOT analysis model, the focus is on external factors that
could reduce business performance. The main threats to Starbucks Coffee’s
business are:

Competition from low-cost coffee sellers

Imitation
Independent coffeehouse movements
Low-cost coffee from firms like McDonald’s and Dunkin’ Donuts effectively
compete against the pricier Starbucks products. Also, other companies can
imitate the business. Many competitors have already imitated Starbucks and
succeeded, such as Stars and Bucks, a coffeehouse in the Palestinian Territories.
There is also a growing social movement supporting independent coffeehouses
and opposing large coffeehouse chains like Starbucks. This part of the SWOT
analysis shows that Starbucks must ensure competitive advantage amid potential
negative effects of the identified threats, especially imitation and competition.

Recommendations based on Starbucks Coffee’s SWOT Analysis

Starbucks Coffee’s SWOT analysis shows that the firm has the business strength to
maintain competitiveness. However, the company must exploit opportunities for
global expansion as soon as possible, to gain advantage over other firms also
attempting to globally expand. To address the issue of competition with low-cost
coffee products, Starbucks can emphasize quality and uniqueness in innovation of
products to differentiate them. Starbucks can also increase efforts for trademark
and intellectual property protection to reduce the threat of imitation.

Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations

Starbucks Coffee Company, founded in 1971, has grown to an international brand.
As the world’s biggest coffeehouse company, Starbucks continues to lead the
industry in sustainable business and innovation. Such success is attributed to the
firm’s ability to address the external PESTEL/PESTLE factors. The PESTEL/PESTLE
analysis framework indicates the most significant influences on Starbucks based
on characteristics of the remote or macro-environment. Despite its current
industry leadership, Starbucks must continue monitoring its remote or macro-
environment. The PESTEL/PESTLE analysis model can be used to satisfy this need.
Through continued effectiveness in addressing the external factors identified in
the PESTEL/PESTLE analysis of its remote/macro-environment, Starbucks Coffee
can continue to succeed despite the negative forces impacting its business.

Starbucks Coffee’s industry leadership is linked to the company’s effectiveness in

addressing external factors identified in this PESTEL/PESTLE analysis. The
PESTEL/PESTLE analysis model is used to determine the most important issues
that Starbucks must address in its business strategies.

Political Factors Affecting Starbucks Coffee’s Business

This part of the PESTEL/PESTLE analysis framework identifies the impact of
governments on business. Starbucks experiences the following political external
factors in its remote/macro-environment:

Regional integration of markets (opportunity)

Improving governmental support for infrastructure (opportunity)
Bureaucratic red tape in developing countries (threat)

Regional integration is a current trend and external factor that presents an

opportunity for Starbucks to globally expand. Also, most governments around the
world are improving infrastructure, which creates the opportunity for Starbucks
to access more markets or suppliers. However, bureaucratic red tape persists in
most countries. This external factor is a threat because it makes business
expansion more difficult for Starbucks, especially in developing countries. Thus,
this aspect of the PESTEL/PESTLE analysis model presents mostly opportunities for
Starbucks Coffee.

Economic Factors Important to Starbucks Coffee

This component of the PESTEL/PESTLE analysis model refers to the economic
conditions and changes significant to business. Starbucks faces the following
economic external factors in its remote or macro-environment:

High growth of developing countries (opportunity)

Declining unemployment rates (opportunity)
Rising labor cost in suppliers’ countries (threat)
The high economic growth of developing countries and the declining
unemployment rates create opportunities for Starbucks to gain more revenues
from various markets around the world. However, the rising labor cost in
developing countries is an external factor that threatens Starbucks because it
increases the company’s spending for ingredients. The firm sources much of its
coffee beans from developing countries. Thus, this part of the PESTEL/PESTLE
analysis model presents mostly opportunities for Starbucks Coffee.

Social/Sociocultural Factors Influencing Starbucks Coffee’s External Environment

This aspect of the PESTEL/PESTLE analysis framework shows the social conditions
and trends influencing consumers and business. Starbucks must address the
following social/sociocultural external factors in its remote/macro-environment:

Growing coffee culture (opportunity)

Increasing health consciousness (opportunity)
Growing middle class (opportunity)
Starbucks has opportunity to increase its revenues based on increasing demand
for specialty coffee, which is due to a growing coffee culture and a growing
middle class around the world. Also, the company has the opportunity to widen
its array of more healthful products to attract health-conscious consumers to
Starbucks cafés. Thus, all the identified external factors in this component of the
PESTEL/PESTLE analysis model present opportunities for Starbucks Coffee.

Technological Factors in Starbucks Coffee’s Business

In this part of the PESTEL/PESTLE analysis model, technologies and related trends
are identified. Starbucks experiences the following technological external factors
in its remote/macro-environment:

Rising mobile purchases (opportunity)

Technology transfers to coffee farmers (opportunity)
Rising availability of specialty coffee machines for home use (threat)
Starbucks has the opportunity to improve its mobile apps and linked services to
gain more revenues through mobile purchases. The company also has the
opportunity to improve its supply chain efficiency based on new technologies
coffee farmers use. However, the rising availability of home-use specialty coffee
machines is a threat to Starbucks because it increases the availability of
substitutes to Starbucks products. Thus, this aspect of the PESTEL/PESTLE analysis
framework presents mostly opportunities for Starbucks Coffee.

Ecological/Environmental Factors
This component of the PESTEL/PESTLE analysis model identifies the effects of
ecological or environmental conditions and changes on business. Starbucks faces
the following ecological/environmental external factors in its remote or macro-
environment:

Business sustainability trend (opportunity)

Growing popular support for responsible sourcing (opportunity)
Growing popular support for environmentally friendly products (opportunity)
The business sustainability trend focuses on business processes that ensure
minimal environmental impact. In relation, responsible sourcing emphasizes
corporate social responsibility in the supply chain. Starbucks has opportunities to
enhance its performance in these areas. Note that the company already has
responsible sourcing policies. Starbucks also has the opportunity to offer more of
its products in recyclable packaging. Thus, in this part of the PESTEL/PESTLE
analysis model, Starbucks Coffee has major opportunities.

Legal Factors
The legal factors in the PESTEL/PESTLE analysis model are the laws and
regulations on business. Starbucks must address the following legal external
factors in its remote/macro-environment:

Product safety regulations (opportunity)

GMO regulations outside the United States (opportunity)
Increasing employment regulation (threat)
Starbucks has opportunities to improve its performance by satisfying product
safety regulations and regulations on ingredients from genetically modified
organisms (GMOs). Starbucks is already performing well in these aspects.
However, increasing employment regulation, especially in developing countries,
threatens Starbucks Coffee’s access to the labor market. This external factor also
impacts Starbucks through increased spending for human resources. Thus, in this
aspect of the PESTEL/PESTLE analysis model, the identified external factors
present mostly opportunities for Starbucks Coffee.

Recommendations based on Starbucks Coffee’s PESTEL/PESTLE Analysis

This PESTEL/PESTLE analysis shows that most of the external factors in Starbucks
Coffee’s remote/macro-environment present opportunities. However, the
company must work to address the identified threats, especially the threat of
substitution linked to the increased availability of home-use specialty coffee
machines. On the other hand, Starbucks cannot do much but to avoid the threat
of bureaucratic red tape. Overall, the PESTEL/PESTLE analysis framework indicates
that Starbucks Coffee has plenty of room for further global growth.