Sunday, January 15, 2012

Starbucks Business Plan

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Starbucks Mission Statement

Product Strategy

Products & Services

Company Future


Yukon Blend Coffee (MILD)

Barista Bear Coin Bank

Sheryl Crow Compact Disc

Starbuck's Barista

Home Espresso Machine

Italian Roast (BOLD)

Barista Grinder

Starbuck's Apron


Tazo Tea



Appendix A

Privacy Policy

"Purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment  - primarily through its company-operated retail stores" (Starbucks, 2000).

Vision and Intended Strategy

"The Companys objective is to establish Starbucks as the most recognized and respected brand in the world. To achieve this goal, the Company plans to continue to rapidly expand its retail operations, grow its specialty sales and other operations, and selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels. Many of Starbucks defining characteristics are also where we came from, how we do business, and who weve partnered with to continue to bring you great products and services" (Starbucks, 2000).

Products and Services

The company currently offers many avenues to purchase the products electronic convenience through on-line storefronts, retail stores, grocery stores, and business coffee services. Starbucks on-line store fronts retail the company's products through a web-based electronic-commerce web-site found at http// Currently, the online stores offer products ranging from coffee, tea, and chocolates. The company also offers services such as listening and purchasing the company's music CD compilations, as well as applying for a Starbucks Visa credit card. The company's retail stores offer similar products of the online store including fresh pastries, and fresh-brewed coffees and beverages.

The retail stores also offers additional services available to customers such as high-speed Internet access. Some locations also offer live entertainment Starbucks continuing support of local artists and musicians.

Starbucks grocery store segment offers a limited product offering more segmented towards grocery store purchase behaviors. Grocery store programs offer products such as whole bean coffee, bottled beverages, and Starbucks coffee ice cream. The company's business segment delivers Starbucks coffee direct to participating workplaces.

Functional Level Strategies

Starbucks is involved in coffee conservation, fair trade, organic growing, farm direct, and community outreach programs. These programs, too name a few, support Starbucks efforts in sustaining acceptable and moral coffee farming practices, as well as supporting and evolving corporate and social community support.

Starbucks develops connections with their participating coffee bean farmers.
"Purveying quality coffees means much more than selecting the finest beans on the market. It means protecting a way of life for our farmers by supporting social, economic and environmental issues that are crucial to their livelihood. Commitment to Origins is dedicated to creating a sustainable growing environment in coffee origin countries" (Starbucks, 2000).

Fair trade coffee that is certified is one way Starbucks supports "a better quality of life for the farmers and their families. The Fair Trade certified label certifies that the farmers who grew the coffee received a premium price above the prevailing market prices. Internationally, independent organizations provide supervision of the Fair Trade system by working closely with small-scale farmers to certify their product. By joining cooperatives, the farmers can then sell their beans directly to importers, roasters and retailers at favorable guaranteed prices. The cooperatives, which are democratically run by the participating farmers, help contribute to the social and economic stability of their communities" (Starbucks, 2000).

Starbucks Mission Statement

· Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.

· The following six guiding principles will help us measure the appropriateness of our decisions

· Provide a great work environment and treat each other with respect and dignity.

· Embrace diversity as an essential component in the way we do business.

· Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.

· Develop enthusiastically satisfied customers all of the time.

· Contribute positively to our communities and our environment.

· Recognize that profitability is essential to our future success.

Environmental Mission Statement

· Starbucks is committed to a role of environmental leadership in all facets of our business.

· We fulfill this mission by a commitment

· Understanding of environmental issues and sharing information with our partners.

· Developing innovative and flexible solutions to bring about change.

· Striving to buy, sell and use environmentally friendly products.

· Recognizing that fiscal responsibility is essential to our environmental future.

· Instilling environmental responsibility as a corporate value.

· Measuring and monitoring our progress for each project.

· Encouraging all partners to share in our mission.

"Starbucks begun to provide high-speed wireless Internet connections in its stores. A move that stems from a wide-ranging wireless partnership that involves Compaq, Microsoft, MobileStar Network, and others, the new approach made its debut in Dallas on May and will eventually reach 70% of the ,700-plus stores that the company owns in North America."(Anders, 2001) Offering Internet access to our customers is an excellent service addition. As easy as ordering their latte, Starbucks customers can check e-mail, surf the Web, watch streaming video or download multi-media presentations in the comfort of Starbucks via a fast, reliable standards based wireless Internet connection for notebook computers and Pocket PCs.

Starbucks customers can trial T-Mobile HotSpot service for free at approximately 1,00 Starbucks stores in the United States (Starbucks, 2000). An additional, 800 Starbucks locations in the U.S. are scheduled to feature the service by the end of the year. With an eye toward global expansion, Starbucks and T-Mobile have also initiated a six-month pilot in select London and Berlin locations(Hume, 2001). This service is a natural extension of the Starbucks coffeehouse experience, which has always been about making connections with the people and information that are important to us over a cup of coffee, said Howard Schultz, Starbucks.

Mobile professionals across the globe have been waiting for just such an offering high-speed wireless Internet access in a familiar and widely available location that keeps them connected while on the road, or between the home and office (T-Mobile, 2000).

On January, 2000, Starbucks selected HighJump Software's internet-based Supply Chain Execution suite solution to automate its distribution efforts (Hunnius, 2000). By improving their distribution of coffee as well as retail goods for their stores and specialty operations, Starbuck's can complete their evolution into a brick-and-click operation (Thompson, 2000). Starbuck's will continue to seek opportunities and ventures that effectively combat competition while meeting their mission be the premier purveyor of the finest coffee in the world, provide a great work environment, embrace diversity, maintain the highest standards, develop satisfied customers all of the time, contribute positively to our communities and our environment, and recognize that profitability is essential to our future success.

Limited retail store departments are represented on the website. From coffees to teas, the website offers limited packaging and product options. For the best selection, a retail store visit is recommended. The Starbuck's retail store did not post a privacy policy, but the privacy policy is posted at their website found at http// , and it contains what information the company collects and what they do with it. An excerpt of this policy can be found on page 4, appendix A.

The Starbuck's website does use cookies. Cookies only identify the users computer to the website which may correlate other information, including personally identifying information, with the cookie. The company uses cookies to automate access and data entry functions of the site such as online ordering information for purchases, better suit preferences or interests, or customize promotions or marketing. In addition, cookies also allow the company to track website use to determine those areas which are useful or popular and those that are not thereby enabling us to improve and update the Site effectively.

Although not required for browsing, website users can register on the website in two ways directly via website or through MS Passport. "When you register with us on the Site, you are required to submit an e-mail address and password. Additional information may be included in your registration profile such as name, address and billing information" (Starbucks, 2000). Starbuck also supports Microsoft Passport users. "We encourage you to read the .NET Passport Privacy Policy, which governs the information collected in your .NET Passport profile" (Starbucks, 2000).

Newsletters are not available, although email alerts can be configured in a registered website user account. The alerts include special promotion and event information. The retail store does not distribute a printed catalog, but brochures are available, including retail coffee machine literature and home-delivered coffee through USPS. One surprising fact, or missing piece of information that the team noticed is the website is not promoted in the retail store. Even yet, most posters, flyers, and signage were not labeled with the notation not even in small print. For the real Starbuck's atmosphere, selection, and vibrance, one most visit the retail stores unless you physically cannot. Your coffee can be delivered, in whole bean or grounds only so sorry, no Cafe Latte.

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