BUS 499 - Assignment 1: Strategic Management - 96098

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Starbucks

Introduction

Starbucks Corporation was launched in 1971 and is now the largest coffeehouse company in the world. It is based in Seattle, Washington and has more than 20,000 outlets all over the world. It believes in serving the best possible coffee, grown under highest quality standards and sourced using ethical practices. Starbucks offers a range of products, viz. coffee (more than 30 blends and single origin premium coffees), handcrafted beverages (Frappuccino, smoothies, Tazo tea, fresh brewed coffee), Merchandise (coffee and tea brewing equipment, mugs and accessories, packaged goods, music, books and gifts), Fresh Food (Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups) and Consumer Products (coffee and tea, ready to drink products and ice-creams). The brand portfolio consists of Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulange and Torrefazione Italia Coffee (Starbucks, 2012).

Impact of Globalization and Technology

Starbucks operates in around 62 countries around the world. It has not just opened its stores in those countries but has adapted its operations to the needs of the specific countries. The simple fact that its menu includes local food items, to cater to the local taste, shows that the company has truly gone global. Other than that, the company gets involved with the communities in the specific countries. It gets the local businesses also involved in its own business operations.

With changing technology, Starbucks also upgraded its operations. It is one of the first coffee restaurants to offer free wi-fi to its customers. In fact its status as a premier coffee brand forces it to adopt the latest technology in its operations. Not only the market factors force the company to upgrade, in fact, up gradation helps the company to increase the efficiency of its operations.

Though there are positive aspects of globalization and technology on the company, yet there are many negative impacts also on the company. The number of competitors has increased along with the intellectual property issues. Many rivals copy the business practices of the company and even