Starbucks,
an American company headquartered in Seattle, Washington has clearly embraced
globalization with more than 27,000 stores in over 50 countries around the
world with a reported total revenue of over $22B in 2017. (Number of Starbucks stores worldwide from 2003 to
2017, 2018)
There are over 13,000 locations in the US alone which attributed to Starbucks
capturing 39.8% market share and with Dunkin’ Brands Inc. coming in second with
21.9% market share. (Market share of the leading coffee chains in the United States in 2016,
2018)
The US leads all other countries with total number of stores, but the second-place
stop goes to China with just under 3,000 locations. There are only 2 additional
countries, Canada and Japan, with over 1,000 locations. The Starbucks
globalization strategy for 2018 is to add 2,300 new locations globally,
compared to the additional 2,250 that were added in 2017. (Starbucks Opens Store in Puerto Rico, Expands Global
Presence, 2018)

Starbucks
continued global expansion into different and emerging markets around the world
inevitably has led to more companies in other countries who supply their products
to expand their reach to these additional markets as well and increase their
opportunities. For instance, Starbucks coffee comes from places like places
such as Latin America, Africa, and Asia-Pacific. (Do You Know Where Your Coffee Beans Come From?,
2018)
With the ever-expanding strategy for Starbucks this globalization stimulates
revenue those areas, which tend to be lower income nations, and increases the
overall export of goods.

With
the ever-changing world of technology, like many companies Starbucks must adopt
and innovate on many different forms of technology to keep and increase their
overall industry market share on a global scale. For example, with the increase
of mobile payment systems, such as Android Pay and Apple Wallet, making sure
all your locations can support that infrastructure to not dissuade the new
generations from using a location. Starbucks has stayed with the younger
generation trend and created a strong social media presence on all the
platforms like Twitter, Instagram and Snapchat to stay in contact with their
customers as well as their competitors.

Embracing
technology from a global perspective assists in providing a culture of on
demand training programs. Starbucks ability to adequately train employees on
specific procedures consistently the same way throughout the whole company,
regardless of where they are in the world, ensures their ability to provide
customers with the best possible service experience. Leverage different vendors
you can deliver carefully crafted training programs that employees must
complete to ensure they are adequately trained for their assigned position in
the company.

There
are five areas in the industrial organization model that are referred to as the
five forces of competition. They are the external environment, the industry,
strategy, assets and skills, which will all be used to implement the company’s
strategy. Starbucks would do well using this model to earn above-average
returns. They would need to look at other companies such as Coffee Bean, Keurig
and Dunkin Donuts. Starbucks would have to go through each company’s filings
and profiles to be able to determine which of the companies have documented
above high average returns. Once a company is selected, Starbucks management would
formulate an above average strategy for analysis. After completion, required
assets and skills would need to be developed and then examined for execution of
the strategy. The last step would to implement the approved strategy to pursue
above average returns as the company they selected.

When
using the resources based model it would be a more of a detailed analysis of a
specific successful company in the coffee industry. The areas that are studied
are the company’s capability and competitive advantage within the industry. Initially
the goal for Starbucks would be to identify the target company’s resources and
study their strengths and weakness as compared to Starbucks own shortcomings.
Then once the capabilities are established that will allow Starbucks to chart a
plan to do even better than any of their competition. In the third step, the
competitive advantage must be established based on the potential of the evaluated
company’s resources and capabilities. In the last step is the obvious
conclusion where the strategy that best utilizes the Starbucks’ resources and
capabilities must be selected and then implemented to acquire superior returns.

Starbucks’s
vision statement was not clearly displayed but overall it is being a
responsible company. The achieve this by emphasizing the importance of striking
a balance between profitability and having a social conscience. Starbucks
achieves their vision by practicing ethical sourcing of their coffee, acting
with consideration of their impact on the environment and actively working
towards giving back to their local communities. (Starbucks
Company Profile, 2018) Starbucks clearly states their mission
statement on their website as, “Our mission is to inspire and nurture the human
spirit – one person, one cup, and one neighborhood at a time”. (Starbucks Company Profile, 2018)

Capital
market stakeholders have a large effect on the overall success of the company.
They would consist of institutions such as banks and shareholders who are
heavily invested into the company and want to preserve and increase their
wealth. The capital market stakeholder’s make their money when the share price
goes up and they continue to see increases in quarterly dividends. The product
market stakeholders are people who benefit directly from the business without
necessarily investing money, such as suppliers and some customers. These
suppliers would be the companies that provide essentials such as coffee making equipment
used to operate Starbucks locations. They are dependent on Starbucks success to
continue selling their products to Starbucks as they are most likely their
largest buyer. Finally, you have the organizational stakeholders, who are you
employees, the baristas and managers who brew the coffee and serve the products
play the most significant part in the entire process. The employees run the
day-to-day operations and ensure the company’s success by providing an elevated
level of customer service that keep patrons happy to create return visits. Starbucks
rewards its employees very with attractive benefits and provides to each
employee the best training it can to develop the skills needed to advance their
careers. Starbucks offers college tuition reimbursement to its employees
seeking to further their education. Starbucks invests heavily in their
employees because they see immediate and lasting returns on their investments.