"Surname 1Name:Instructor:Course:Date:StarbucksThird placed in America, Starbucks, which is situated in Seattle historic PikePlace Market is a well-known coffee house traces its origin in 1971 pioneered by threecover lovers namely Gerald Baldwin, Gordon Bowker, and ZievSiegl. The house wasconceived on the ideology that Americans have two oscillations; home and workplace(Starbucks Corporation, 375). However, a third place, which is a resting zone was lackingand thus the idea of creating a coffee place was meaningful. Since then, it has attractedthe likes of Schultz, Howard among other investors. Currently, the firm has established24,000 retail stores across 70 countries steered by mission ? to inspire and nurture thehuman spirit – one person, one cup, and one neighborhood at a time.? The firm derives itsreputation from high quality of coffee from green coffee beans directly fetched fromfarmers and adequate customer satisfaction, the hospitality of the attendance and proper Surname 2facilities such as washrooms and stores. Basically, the company deals in products such ashandcrafted beverages and Ready-to-Drink (RTD) products (Starbucks Corporation).Customer and serviceExplicitly, Individuals undergo ?hard skills? training for the acquaintance in cashregister and drink mixing and ?soft skills? training to cultivate a culture of goodcustomer-employee relationship and communication skills as part of the process to meetthe criterion for hiring (Qian, and Xing, 31). Individuals are policy driven and aredemanded to go beyond customer expectations. For instance, regular cleaning and refillof spills can be done voluntarily and free samples given where the mode of payment donot accord with the company demands. Barista is gauged on 90 days from the date ofemployment making the training a self-selection activity. Working in such an institutionpresents employees various challenges that require intellectual skills and interpersonalrelationship to meet the hard-soft skills balance demanded. Contrary to the old system ofcustomer purchasing beans at coffee connoisseur, the increasing number of the customerwith huge demands such as handcrafted beverage causes the queue to stretch beyond doorline and makes conversation with customer difficult (Moon and Quelch, 4-6).Barista’s job has grown more complex due to product proliferation extending theworking duration to 16hours (8hours/shift). For example making a ventitazoberry as wellas the crème is a 10 step process. Additionally, customization of drinks to meet clientsdemands consume a lot of time and poses challenges concerning product quality as wellas the customer focus. However, constant training of the baristas has been structured tomeet such challenges resulting from sophisticated drinks. Also, cafes in North American Surname 3have introduced automated espresso like verismo machine to simplify the process.Additionally, the company projects to inject$40 million more to meet the increasedworking hours challenge (Moon and Quelch, 1-2).Starbucks regards its employees as partners and not merely workers to encouragea sense of belonging. The company offers health insurance to its workers who totaling60,000 and majority coming from north America. This has seen employee satisfactionrise from 80% to about 90% which is a great deal. Consequentially, the firm was ranked47th following the survey conducted by Fortune. This aspect overruled the previouslower employee turnover of about 70% compared to the standard rate of 300% commonlyassociated with fast food industries (Moon and Quelch, 3-4). To back this, the managersin place promote baristas to managerial level upon going intensive training andmentorship. Significantly, the company created a large workforce that is competent.CompetitorsCompany’s competitors include Peet’s Coffee & Tea located in California andDunkin Donuts and Caribou Coffee that is based in Minneapolis (Moon and Quelch, 6-7).Peet’s Coffee & Tea generate over 60% of its revenue from the sale of beans. Thecompany has 70 stores established in 5 states. Among the strategies include ?roasting toorder.? Also, Dunkin Donuts has 3,700 stores spreading across 38 states. It deals withcoffee that contributes half of its revenue. In addition, non-coffee alternatives offered bythis café include Dunkaccino as well as the Vanilla Chai.Marketing in StarbucksSurprisingly, the firm is ranked among the top cafes effective marketing despitenot having a strategic marketing system. As a unit department, marketing strategies Surname 4include market research to collect and analyze market information while a category groupengages in the development of new products (Moon and Quelch, 9-11). Finally, thecompany markets its products through promotional activities. In a nutshell, everyone inthe firm is involved in the marketing of Starbuck’s product without any visible distinct.Starbuck’s 4PsThe company offers various products depending on the dynamic market forces.The firm focuses on innovativeness as one way of increasing customers’ satisfaction. Tea,coffee, pastries, smoothies, merchandise, and frappuccino beverages among others are thecurrent commodities the firm is selling to its customers located in different geographical.The present mix has grown vastly from continuous analysis and market examination bythe firm’s management and marketing team (Wei,n.d).Place is the other factor that matters greatly in the firm’s enthusiasm towardsmeeting the buyers’ demands. Starbucks cafes cover quantifiable proportion of mostproducts.Through coffee being a major product in the American market, the use of cafes,Starbucks app, retailers, and online store has triggered immensely towards its availability.Promotion of the company products plays key role towards the firm’s position tomeet its targeted thresholds. Advertising is the main strategy adopted by Starbuck inpopularizing its mix of products. According to Geereddy, through using TVs, internet,and print media Starbuck has ended in increasing the firm’s position in reducing theprevalence of informational asymmetries. The company still uses publications and salespromotions in increasing its market penetration in different markets.Starbucks still majors intensely in setting appropriate prices and pricing strategies.Premium pricing dominates the entire process of the firm’s initiative in working towards Surname 5serving customers best. The use of this technique helps the firm increase its highreputation in the market through giving most affordable offers. Similarly, theorganization has ended in stimulating the ego of the customers thus uplifting the firm’simage in the market.Environmental Analysis Dunkin Donald’s as well, McDonalds have resulted in inducing a quantifiablecompetition to the products offered by Starbucks. These firms are known for their highquality coffee they offered in the market luring large population of customers. Thecompany has therefore been fighting towards dominating the market throughoutperforming these core competitors in the percentage sales it makes Technological advancements have still affected the company’s position inmeeting the anticipated goals. The organization has therefore ended partnering with largeIT solution companies such as Apple in investing in the internet (Aiello, Giorgia, andGreg, 311). Many customers are currently available online and through the firm usingthis approach has ended in increasing its relevance in the market. The ecological changes have taken a negative dimension an aspect that has endedin lowering the firm’s position in meeting the set strategies. Global warming, adverseclimatic changes, and strict environmental legislations have contributing significantly inmaking the firm’s operations a tricky task (Starbucks Corporation, 371). Most of thechanges have ended affecting the production of coffee beans thus making the possiblesales’ targets uncertain. At times, the firm has ended offering cheaper products that compromise onquality. It is an aspect that has ended in affecting many customers in their social-cultural Surname 6perspective.In most countries, the family structure is changing leading to lowerednumbers of people members taking the offered products (Jianfei,n.d). Lifestyle audit isstill showing many people trying for better and healthy living styles. Through embracingthis technique, the firm is recording declining sales transition. Political factors have still induced considerate fluctuations in the manner Starbuckcould execute its operations in numerous global markets.Frequent changes in the regimeof government ruling and legislations have had tremendous pressure in the Starbuck’sability to sustain its customers in different markets (Jancenelle, et al., n.d). The need forthe company to comply with the constraining rules and regulations have made thecompany to part with quantifiable financial loses. SWOT Analysis of StarbucksStarbucks has recorded increased stock within the last trading period accountingfor more than 40%. It was a significant change since it outperformed S&P 500’s that had8%. Through examination of the firm’sstrengths, weaknesses, opportunities, and threats(SWOT), we will eventually come up with viable conclusions on its status.Over the past period, Starbuck has portrayed continuous growth. Between 2010and 2014 the growth in its shares increased to 53% a value close to double. The firm hasmanaged to control operations in large populated areas such as China and Japan. Thetransition has enabled it to increase its proactiveness towards attainment of better marketposition(Chang,n.d). Having over 22,088 subsidiaries within a global scope, theorganization has increased its ability to serve numerous customers. The significantgrowth experienced by the organization has been proportionate to the generated sales thus Surname 7making financial position to grow(Chang,n.d). Statistics show during the last quarter thefirm to have generated 7% growth in America’s market, 12% in China, pacific, and Asia,and 2% increase in Africa, Europe as well Middle East regions. This growth is a soundchallenge to brands provided by McDonald’s and Dunkin’.The company’s main weakness is uneven international growth. Despite theAmerica remaining a potential market, some areas such as EMEA remain experiencingserious economic crisis. Inflation among other economic degrading factors have endedweakening these countries’ economies thus reducing on their respective consumers’marginal propensity to consume. The future of Starbucks seems dull since economies ofits target i.e China, Japan, and other African countries, are experiencing sudden decline.The expansion expenditure is vast an issue contributing to immense capital lose that doesnot correspond returns in the target markets.Over the last quarter, the expenses haveincreased from 3.84 to 13%. Despite the generated revenue being high, the firm has anurgent need of ever working towards minimizing expenditure budget.The opportunities of Starbucks improving its global presence still exist.Havingopened new store in China is a great milestone the firm has achieved. Within thepreceding period, the organization ought to look on the modalities of doubling them. Thiswill increase its ability to nourish and continue being the leader in the market.The firmought to focus on preparing buyer packaged products that are convenient to buyers.Products such as coffee beans are of positive contribution and can aid in rising theposition of the firm in the market.Starbuck has opened tea bars, coffee museum, and winebars(Starbucks). These opportunities of the organization are likely to contribute towardsaccrued benefits that would aid in the firm growing positively and nourish its set Surname 8objectives. If the generated ideas flourish, the firm will end in being happy to enjoymarket excellence and dominance despite the prevailing dynamics.Price instability of coffee offered by Starbuck is a serious threat affecting itsmarket penetration progressiveness. Starbucks mainly deals in the sell of Arabica coffeewhose prices are ever changing. If it happens the firm foresees any future rise, it ends inbeing bound to lock the prices. In the last year (2016), the firm had to lock it at a 70%contract. Through taking this initiative, unforeseen decline in prices lower than thecontracted might cost the firm losing significant amounts of money. Competition isincreasing to greater extend within US and Canada.These are aspects likely to retard thefirm’s growth rate though adaptive measures must end in getting developed.ConclusionFrom the above analysis, we result in realizing the tremendous revolution theStarbuck organization has experienced. Through a series of environmental analysis andconsumer awareness, the firm has ended achieving its motives despite the prevailingmarket competition. The use of appropriate business models and forecasting techniques,the Starbuck organization has the propensity to work in ascertaining the soundestoperational strategies. Through segmentation, continuous improvement, and researchactivities, the firm has increased its global reputation fostering superiority in majorinternational markets. The firm should therefore take the initiative of working hard insolving the dynamic challenges likely to affect long run operation. Upon designing therelevant strategies, the firm will end in achieving the projected sales thresholds despitethe prevailing market pressure. "