Globalization and Technology
Globalization and technology have significantly impacted how business operations are conducted. Fundamentally globalization tends to be the increasing economic interdependence among nations as well as their organizations around the globe in reflection to the flow of financial capital across border knowledge as well as product and services. Starbucks is a coffee outlet organization, which was founded in the year 1971. The organization is an American firm which is headquartered in Seattle Washington. The organization could conduct its business globally with an approximate of 97, 768 stores in 62 countries. Through the aid of embracing globalization, Starbucks has been able to supply its products and services in various markets around the globe and in return, it increases its revenue (1). For instance, Starbucks often buys coffee from different regions such as Africa, Asia as well as Latin America and through this the organization creates employment opportunities as well as it increases the export of goods hence improving the revenues of the various countries. Generally, through globalization Starbucks has been able to reach its full potential in the foreign market. Also, it has been able to sources its raw materials as well it has been able to develop new business strategies which aid the organization to remain competitive.
On the other hand, through the aid of information technology Starbucks has been able to develop innovative ideas as well as forward-thinking solutions such as the mobile app, and Starbucks reward loyalty program has enabled the organization to be able to improve its revenue. Additionally, through technology Starbucks has been able to develop successful analytical solutions, which are aimed at solving complex business solutions(5). Also, technology has aided the organization to manage both long and short-term project outcomes that involve huge data processing, artificial intelligenceand machine learning among other technological practices. Fundamentally, through the embracement of the vast alteration of technology Starbucks has been able to apply technology in different areas of its business operation assisting it to effectively satisfy the needs of their diverse client population.
Earning above-average returns
Starbucks may be able to attain above-average returns by ensuring that it attains a global brand recognition and equity, customer loyalty, leveraging technology and mobile outlets, having an effective human resource management and organizational culture, good corporate social responsibility image and emphasizing on the strategic location of stores. Factors such as strategic location often promote a temporary competitive advantage for the organization(2). On the other hand factors such as good corporate image, and customer loyalty tends to promote a permanent competitive advantage. For example, through the recently established projects such as the Starbucks Card as well as the Starbucks Reward, the relationship between the company and its clients’ have significantly been strengthened due to effective satisfaction of the clients’ needs and in turn, the clients have become loyal to the organization. Additionally, the experience that Starbucks has on providing quality client services, as well as store ambiance, which mainly reflects the culture of the regions where the organization operates, enables Starbucks to always remain competitive in the coffee industry. The store ambiance is a significant contributor to client loyalty, however also through effective human resource management, the employees are provided with strong values which improve in the development of both external and internal relationship among the suppliers and the clients(2). Generally, Starbucks may be able to attain an above-average return through ensuring that it continues to uphold its strong values and culture, which significantly enable it to provide a special client experience.
Vision and Mission Statements
The mission and the vision statements of Starbucks have significantly influenced the overall success of the organization. Through its mission and vision statement, Starbucks can emphasize leadership in the coffee industry. Generally, the mission Statement of Starbucks mainly focuses on the philosophical aim of the business. The mission statement states “to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time(4).” it fundamentally reflects what the organization does to keep the bunnies running. Also, it asserts that its target clients are provided with the required attention to satisfy their needs. On the other hand, the vision statement of the organization mainly focuses on emphasizing its leadership ability in the coffee industry. Starbucks 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(4).” Through the effective implementation of the mission and the vision statements Starbucks has been able to efficiently respond to its competitive environment enabling it to remain competitive in the coffee industry. The implementation of the corporate statements has enabled Starbucks to be able to develop a general strategy as well as intensive growth approaches. Additionally, the organization can develop corresponding strategic objectives hence enabling the organization to streamline its operations in alignment with the mission statement as well as satisfying the organization’s vision statement. Additionally, the Starbucks mission statement tends to focus on preparing the organization for future business operations and this enables the organization to efficiently develop effective business approaches which meet and satisfying the ever-changing market trends and demand(4). On the other hand, the vision statement of Starbucks tends to be clear, concise as well as inspiring and this enables the organization to be able to set and maintain a premier status in the coffee industry. Also, the focus on leadership tends to be a driving power that challenges the organization’s human resource and other related stakeholders to ensure that Starbucks provides its clients with satisfactory services and products.
Stakeholders tend to have a significant impact on the overall success of the organization. At Starbucks stakeholders also significantly influence the success of the organization as well as the corporate social responsibilities. The main stakeholders at Starbucks are employee, customers, suppliers, investors, environment and the government. Employees as one of the major stakeholders at Starbucks they are provided with satisfactory working conditions as well as their employment needs such as job security, high wages among other essential needs are effectively addressed and in turn, they are motivated to assist the organization to attain its corporate goals (Kimball, 2016). Customers, on the other hand, influence the success of Starbucks through the purchasing of goods and services. Starbuck ensures that it effectively meets the needs of its customers by providing them with high-quality services and products and in turn, the organization’s success is attained through customers becoming loyal to the organization. Suppliers are major influencers of Starbuck’s success because without their supplies the client needs would not be attained. Thus they influence the success of the organization through providing the required supplies on time and in turn Starbucks provides them with compensation based on their materials (3). The environment is another significant stakeholder at Starbucks because it encourages the organization to develop business strategies that focus on improving and promoting biodiversity. Investors are also the main influencers of Starbucks success because they provide the organization with the required financial ability to expand its business around the globe. Lastly, governments are essential stakeholders because for Starbucks to be able to expand its business around the globe it needs to meet the standards and regulation provided by the different governments around the globe
- Diversity and Inclusion | Starbucks Coffee Company. (2019). Retrieved from https://www.starbucks.com/responsibility/community/diversity-and-inclusion
- Glowik, M. (2017). Case study: Starbucks. Global Strategy in the Service Industries, 156-164. doi:10.4324/9781315682167-10
- Kimball, D. (2016). Corporate Social Responsibility at Starbucks: 2016–2017 Issues for Discussion. doi:10.4135/9781473972261
- Mission Statement | Starbucks Coffee Company. (2019). Retrieved from https://www.starbucks.com/about-us/company-information/mission-statement
- Technology: Starbucks Coffee Company. (2019). Retrieved from https://www.starbucks.com/careers/technology