PRINCIPLES OF MANAGEMENT
Starbucks - Planning
Planning is the foremost need of every business organization. It is done at all levels of management. No matter what type or extent of planning a manager does, the important thing is that planning takes place.
Starbucks has many stores in almost 37 countries. Starbucks long term goal is 15,000 US stores and 30,000 stores globally and to earn a good amount of revenue of 20 to 25% from them.
Starbucks has an even “glitzier” goal which takes it beyond its coffee roots and in helping define society’s popular culture menu.
Starbucks is considered as the most dynamic retail brand. It has been able to become a “Global Brand Leader” by reinventing the coffee experience. Starbucks gave US the “Café life” which didn’t existed before. Starbucks has changed our tastes, our lifestyles and penetrated in us by becoming part of the popular culture. Starbucks covers a broad base of customers from urban professionals to clerical assistances; Starbucks has found a way to appeal everyone despite of its high prices.
Starbucks broad “strategy” is to grow into a global empire and any new change is done with great care and planning. Growth strategies are made to exploit customer connection.
Starbucks sells a lot of items and has grown beyond coffee into related businesses and they do so by developing these products with other companies. Company also launched the “Prepaid cards” as well and it was very successful because the company has made it easy to purchase, reload and use for the customers. The company is finding innovative ways to get the prepaid cards into potential customers.
Company’s another successful brand extension was music. Schultz thought that the music has always been a part of café house experience. The company launched the Hear Music Café in Santa Monica, California.
At these stores, customers burn their own compilation CD’s. Starbucks then decides to selectively link Star bucks brand with...