Final Case Study and Strategic Plan- Starbuck's Global Quest 2006

Final and Strategic Plan- Starbuck's Global Quest 2006 - Case Study Example Introduction In the modern world, coffee is one of the most popular refreshment beverages with nearly US$80 billion sales in retail every year. Starbucks is one of the largest coffee houses of the world, with 20,366 stores in 61 countries (Alvarado et al., 2007; Khattab et al., 2013). Starbucks started its venture in 1971 in Seattle Pike place with the objective of providing coffee with immense quality and taste. It was initiated by three academics Jerry Baldwin, Zev Siegel and Gordon Bowker. Starbucks in later years was joined by Howard Schultz who led the marketing strategies to make it famous worldwide. In 1982, the company was taking a new outlook in its endeavor after Schultz visited Italy and saw a promising future for Starbucks in the coffee industry. He utilized the resources and the ability of Starbucks in providing quality beans for establishing a coffee bar named as II Giornalle. The concept of coffee bar was proving to be a successful endeavor for Starbucks. Due to the ac ceptance of Schultz’s strategies Starbucks gained importance in the market and it was highly appreciated by the people. Through his strategic management skills and marketing skills, he purchased Starbucks in the year 1987 and renamed it as Starbuck Corporation. The coffee bar II Giornalle was renamed as Starbucks Corporation by Schultz as the brand was known by people and was readily acceptable. Schultz was by then the Chief Executive Officer (CEO) of the company and was trying hard to implement strategies to expand the business and make outlets in various regions such as Chicago and Vancouver. In the 1990s, the company saw expansion by opening 676 stores and providing in-house music to make the people feel relaxed while enjoying the coffee. Starbucks flourished worldwide by the year 2000 and is still strategizing to make the business more popular and financially sound (Shah et al., 2010). The present mission of the company is â€Å"to inspire and nurture the human spirit â €“ one person, one cup and one neighborhood at a time† (Starbucks Corporation, 2013). The company ranks 208th in the Fortune 500 list along with generating revenue of US$13,299.5 million (Cable News Network, 2013). The performance of the company experiences upsurge in the revenue but its profit earning is considerably low due to several factors such as competition from the rivals. Thesis Statement The objective of the study is to evaluate the economic, marketing and the financial condition of Starbucks. The organizational structure and the issues faced by the company are evaluated. Correspondingly, a report entailing three-year strategic management proposal to Starbucks’ managing board of directors would be provided. Economic Assessment The economy of a country plays an important role in the success and failure of a business. The global turmoil in the economy in the recent past affected the business of various companies and also affected the strategies they implemen t. The economic slowdown of various countries affected the consumer behavior pattern and hence affected the profit of the companies in the recent past years. With regard to Starbucks, the economic condition also affected the profitability and the market share of the company as the countries such as Greece and Spain which were like cash cow turned out to be question mark. This implies that the market share

Are either Machiavellis or Erasmus Styles of Leadership Relevant to Essay

Are either Machiavellis or Erasmus Styles of Leadership Relevant to Todays World of the Early 21st Century - Essay Example By contrast, a feared leader would have suitable reason and excuse for their actions, for instance killing people. On the contrary, Erasmus insists that a true prince should always think of his moral obligations to the people under his leadership. In supporting this viewpoint, Erasmus states that a good prince allows and does everything that would bring peace to his country in realizing that war would lead to misfortunes (Spielvogel 353). In my own opinion, I consider these opposing viewpoints as relevant to today’s world of the early 21st century. Machiavelli notes that the belief of honesty as the best policy remains as naive. Thus, the natural selfishness of people would be a more realistic starting point for politics. He maintains that a loved leader would persist in doing what should be done would not maintain his power but rather undermine it. Therefore, a leader must be prepared to act immorally when necessary in order to maintain his power. He goes on further to say th at, a new leader would always be forced to act treacherously, inhumanly, and ruthlessly and disregard the precepts of religion. In this regard, a new leader must be prepared to vary his conduct to suit changing circumstances and winds of fortune that would constrain his power. It would be worth to note that a leader should be capable of becoming immoral when necessary but should as well not deviate from the right conduct if possible, as remarked by Machiavelli (Donskis 74-89). Machiavelli’s theories make his politics modern as they incorporate aspects of interdependence, diversity, and political participation. He pictured the ways of world politics in which the most reliable and hard-hitting leaders would survive through warfare. He constantly opposed the monist tradition in Western rationalism, pluralism, and dualism. The shift from the individualism of liberalism to republicanism emphasized in the western political philosophies. The theory of republicanism recognizes the si gnificance of tolerance, private goals, as well as the instrumental value of society.        Ã‚