Starbucks’ Mission & Strategic Choices

Starbucks Mission and Strategic Choices atomic number 18 They in Alignment? Executive compendium This root word examines strategic management, which encompasses concern decisions and performances that define the organizations c atomic number 18 and objectives, determine the most effective utilization of organizational resources, drive best courses of action to meet its mission, and seek to assure the effectiveness of the organization within the environment. This case ruminate evaluates the strategic management process, and applies those concepts to a practical case account of Starbucks mission logical argument.This case weigh is presented in the format of a formal backing report prep ard by a advisor and presented to the Starbucks Board of Directors and CEO that provides an analysis of Starbucks mission and strategic choices, and a summary of the alignment of those strategies to its mission. This report is open on a critical review of the Starbuck mission statement, g oals, and objectives, which is then compared against the strategic choices that Starbucks has made (e. g. reaping unalikeiation, research and development, operations) to determine how well Starbucks strategic choices are aligned to the confederations mission and day-dream. Finally, this study answers the question Will the lodge continue its past advantage? steamy Tanner, 2009 Starbucks Mission and Strategic Choices Are They in Alignment? Cover Sheet Starbucks Corp. 2401 Utah Avenue South Seattle, WA 98134 Ph matchless 206-447-1575 facsimile machine 206-682-7570 Web Site http//www. starbucks. com argumentation Plan presented toHoward Schultz, Chairman of the Board, President, CEO Starbucks Board of DirectorsPrepared byRandy S. Tanner Statement of Purposedepth psychology of Starbucks Mission and Strategic Choices Are They in Alignment? tabulate of Contents Executive Summary4 Background4 caller comment4 Starbucks Mission, Vision, Goals and Objectives. 4 Strategies. 5 commis sion Team. 6 Business Model. 6 Infra expression7 Offering. 7 revenue enhancement Model. 7 Pricing. 8 Customers. 8 Competitors. 8 Stakeholders. 8 merchandising Strategy. 9 monetarys. 9 Analysis10 Company Analysis. 10 Current trade Mix Strategies (Product, Price, People, and Promotion). 10 Current Target Markets10Market Analysis. 10 contest & SWOT Analysis. 11 Competitive advantage. 12 Financial Analysis. 12 Conclusion13 Are Starbucks mission and strategic choices in alignment? 13 Will the attach to continue its pastsuccess? 13 Executive Summary Are Starbucks mission and strategic choices in alignment? Yes. The strategies of innovation, product differentiation, and customer experience are today aligned with Starbucks published mission to establish Starbucks as the premier purveyor of the finest java in the creationness, while stir and nurturing the spirit of their customers.Starbucks continues to apply strategies to lead its product offer in both breadth and depth. Couple d with this dodging is the intricacy of deputy distribution channels to multiply the potential in increased revenues. Each crack in the product portfolio reinforces the brand conjure and note experience described in the companys vision statement. The recent focus on increase profits in existing enclosehouses is not a shifting of occupation dodge, but much of a symptom of line of products maturity less glom equals more than profit.The corporation has tempered its original goal of merchandise ascendence by saturation tiresomedown its process in new stores to commercialise dominance with more efficient and more profitable stores with its strategy of discipline elaborateness in key grocerys. The strategy of using the Seattles Best atom, fault Starbucks to expand the base of bodied customers also braves Starbuckss prime mission. This elevation of Seattles Best does not get a corporate-sponsored rivalry to the nearby Starbucks stores, but does serve as an alternate distribution channel for the companys expanded product line.Therefore, this strategy supports the overall brand quality of Starbucks as the premier deep brown berry, stock-still captures additional customers that do not seek the branded Starbuck experience and would likely choose one the inlet competitors. This strategy can cater to a slightly different clientele in both coffee berry stores and supermarkets and increase overall corporate revenues. Will the company continue its past success? Yes. A go on accent mark on customer satisfaction, coupled with effective strategies that develop new product lines, will rouse revenue growth and alter share prices.The authoritative vision and path summarized by Starbucks president and CEO, Howard Schultz, is a lading to continually improving our customer experience as the roadmap to renewed growth and increasing profitability, with stress on continued application of previously successful strategies, we will continue to innovate and differentiate, two timeless hallmarks of the Starbucks brand. (Starbucks Financial Releases, 2009) BackgroundStrategic management is a company-wide process that includesa long-term plan of action that assists in achievinganorganizations objectives andfulfills company vision, (course material) and is comprised of four major elements situation analysis, strategy formulation, strategy implementation, and strategy evaluation. (Bushman, (2007) This Strategic counselling process includes the following steps (Luca, 2009) 1. Developing a Vision/Mission/Goals and Objectives 2. Analyzing the environment company ( internecine and external) 3.Identifying sexual Strengths and Weaknesses and external Threats and Opportunities (SWOT) 4. Articulatingstrategic choices at the business, functional, and corporate levels 5. Selecting a strategy or strategies, based on in-depth immanent and external analyses, to accomplish vision and mission goals. These strategies may exist at sever al levels business, functional, corporate, and world(prenominal). Company Description According to the companys Factsheet (2009), Starbucks was founded in 1971 in Seattles Pike Place Market. The original name of Starbucks burnt umber, Tea and Spices was later changed to Starbucks burnt umber Company. As quoted from Google Finance (Starbucks Corporation, 2009), Starbucks, together with its subsidiaries, purchases and roasts whole covered stadium coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, tatty blended beverages, complementary food items, a selection of agiotage teas, and coffee-related accessories and equipment, by dint of Company-operated sell stores. Starbucks also sells coffee and tea products and licenses its trademark through other channels. Starbucks produces and sells a range of ready-to-drink beverages.The business segments of the Company are get together States, International, and spheric Consumer Products Group (CPG). The CPG segment includes packaged coffee and tea sell globally through channels, such(prenominal) as grocery stores and operates through joint ventures and licensing arrangements with consumer products business partners. Starbucks Mission, Vision, Goals and Objectives. Mission statements are fundamental to the survival and growth of any business, (Analoui and Karami, 2002) and set the direction and goal for the long term, reflecting the strategic intent. (course material) According to Germain and Cooper (1990), an appropriate mission statement serves to promote a reason of shared expectations amongst employees and communicate a public image of the steadfastly to important stakeholders and stems in the companys task environment. Starbucks mission statement as stated in the corporate Factsheet (2009) is To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising rationales as we grow. The companys stated Vision, G oals, and Objectives may be found listed as Our Starbucks Mission in the corporate website (The Company, 2009). This vision is convey as To inspire and nurture the human spirit one person, one cup, and one neighborhood at a time. Some of the companys objectives referred to as guiding principles included in that strategic vision focus on 1. Quality of the coffee 2. Robust partnerships 3. Human connection to customers 4. Unique nimbus of the retail stores that encourages social interaction 5. Being accepted as neighbor in the community 6.Obligation to shareholders (long-term success and profitability) Strategies. The original focus since the companys beginning has been on product differentiation, in both the product and the store setting. This strategy emphasizes a premium product served in a unique atmosphere. Some claimed tactic employed to execute these strategies are to (Factsheet, 2009) Provide a great work environment and treat each(prenominal) other with respect and dig nity. 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 Historical Strategies for business growth noted in the 2006 shareholders meeting included continued expansion of retail stores, and expansion of the companys portfolio of unique and innovative products to appeal to a broad consumer base. (Business Wire, 2006) These products included Premium and proprietary food offerings as a component of the Starbucks Experience. Introduction of warm breakfast items in Company-operated stores by 2008. Joint venture with apple to launch a Starbucks Entertainment Area on iTunes. Introduction of a heated-on-demand vending initiative, Expansion of its kraft paper kindred to dist ribute Starbucks coffee into supermarkets. Recent changes to this original entree which were in response to the recent stinting downturn and drop in share prices are aimed at retaining customers, rather than gaining new ones. According to Howard Schultz, the companys CEO, The issue at hand is the follow of losing your core customer. (Adamy & Wingfield, 2009) These changes in business strategy shift the focus from market saturation with additional stores to (Starbucks Newsroom, 2009) 1. Increasing profits in existing stores, 2. Expanding the product base, and 3. check global store expansion in key markets. While continuing with the strategy of product expansion (to even include some non-food products), Starbucks has tempered its desire for continually opening new stores. This disciplined approach includes more niche targeting in key markets and even opening, or converting to, a Seattles Best vice Starbucks.Some of the new tactics announced at the 2009 Shareholders Meeting to im plement this strategy include A $500 million structural expense reduction to align the companys cost structure to its current business strategy Focused efforts to improve operational efficiencies with technology investments, and better training for store managers Emphasizing the concepts of survey and quality to the customer with selective price incentives Launching VIA Ready Brew eye blink coffee to tap the $17 billion instant coffee market Expanding alternate foodservice channelsManagement Team. Corporate organization and key management team members include (Reuters, 2009) Howard SchultzChairman of the Board, President, CEO Troy Alstead old-timer Financial Officer, Chief Administrative Officer Arthur I. RubinfeldPresident Global Development Martin P. ColesPresident Starbucks Coffee International Clifford BurrowsPresident Starbucks Coffee US Paula E. BoggsExec VP, General Counsel, escritoire Michelle GassExec VP Marketing and Category Olden C. LeeInterim Exec VP Partne r Resources, Director Dorothy J.KimExec VP Global Strategy, Office of the CEO Peter D. GibbonsExec VP Global Supply Chain Operations Culver, JohnExec VP, President Global Consumer Products, Foodservice & Seattles Best Coffee Business Model. According to Osterwalder, Pigneur, & Tucci (2005), a companys business model includes infrastructure, offering, customers, and revenue model. 1. Infrastructure the core capabilities and competencies, partnership network, or business alliances, and value configuration (what makes it mutually beneficial for a business and its customers). . Offering the value of products and serve offered for a specific customer segment, and how it differentiates itself from its competitors. 3. Customers includes (1) the target audience for a business products and operate, (2) the distribution channel used to reach the customers (includes selling and distribution strategy), and customer relationship management. 4. Revenue model the cost structure and reven ue flows that define the companys income. Infrastructure.Starbucks infrastructure ( gross revenue & distribution model) began as a basic shopkeeper model1 brewing and serving fresh, premium quality coffee in a relaxed neighborhood atmosphere. This model chooses a location frequented by targeted customers, employs low-wage workers, and establishes twin business based on customer satisfaction and ease of access. Recent strategic management strain is trending toward, or adapting part of the Loyalty or Service Quality model to reinforce the perceived quality of the product. Part of this model is based on the belief that it is cheaper to keep customers than gain new ones.Offering. The Starbucks brand portfolio is marketed as premium and, therefore, is luxury goods, relying on consumer discretionary spending to drive sales. (Hattery, 2009) This portfolio includes Starbucks Entertainment, Starbucks Hear Music, Tazo, Ethos water, Seattles Best Coffee, and Torrefazione Italia Coffee offe rs a variety of products and services through its retail stores and other channels, including 30 blends of Coffee Handcrafted Beverages fresh-brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, and Tazo teas. Merchandise home espresso machines, coffee brewers and grinders, premium chocolates, coffee mugs and accessories, and gift items. Fresh Food cook pastries, sandwiches, and salads. Starbucks Entertainment selection of music, books, and film from both emerging and set up artists. Global Consumer Products bottled Frappuccino beverages, Discoveries chilled cup coffee, DoubleShot espresso drinks, Starbucks Iced Coffee, whole bean coffee and Tazo teas, Starbucks Coffee Liqueurs, and a line of premium ice creams. Starbucks Card a reloadable pre-paid debit card.Revenue Model. Starbucks revenue model includes its cost structure and revenue flows. Starbucks operate costs are at present influenced by fluctuations in the commodity prices (milk and coffee beans) which have risen sharply in the past. Starbucks purchases teas and primarily Arabica coffee beans directly from international markets in Costa Rica, Africa, Asian Pacific, and China. The wholesale price of coffee beans is unstable and often suasible to dramatic price changes from a variety of weather and political events that may, or may not, affect global production.These reactionary prices can remain elevated for several years. Coffee prices in 2008, for example, were 20% higher on average than 2007, allowing in Starbucks paying an average price of $1. 42 per pound of green (unroasted) coffee. The price of draw futures also rose dramatically from $13 to $18 per hundredweight in March, 2007, falling only belatedly to $17 in September, 2009. Starbucks revenue flow from its company operated coffeehouses relies on discretionary consumer spending, and can be unnatural by negative frugal conditions. In fiscal 2008, Starbucks generated $10. billion in reven ue through the sale of whole bean coffee, food, equipment, and beverages. The distribution channels included both its retail stores and specialty operations. pic Figure 1 Revenue Categories Company operated retail stores (7,238 stores in North America and 1,979 international) generated 84 per centum of the total revenue. (Hattery, 2009) The stay 16 percent was generated through the specialty operations segment, which is chartered to develop the companys brand through third base parties outside the traditional coffeehouse. This segment channels, and percentage of specialty operations revenue generated, include 1. Licensed Stores (48 percent) find in airports and supermarkets that generate licensing fees, royalties, and retail revenue from coffee, tea, and CDs. 2. Foodservices Operations (25 percent) sells Starbucks coffee to restaurants, offices, hotels, and Barnes & Noble Cafes under different licensing contracts. 3. packaged Tea and Coffee (21 percent) sold at various food sto res. 4. Branded Products (4 percent) like ready-to-drink beverages and ice creams sold through partnerships with Pepsi and Dreyers.Pricing. Starbucks has maintained a premium pricing strategy for its branded premium quality coffee beans and unique customer experience. Customers. Starbucks serves approximately 50 million customers a week in its stores. The target market is defined as young (25-to-45 years old) professional men and women, in higher income brackets with stressful lives (at work, home, or both). Most members of this target market live in the suburbs and commute to work in urban areas. (Holmes, Bennett, Carlisle, Dawson, 2002) Competitors. Although Starbucks maintains a dominant position in the specialty coffeehouse market and has no single clear enemy in the sector, (Hattery, 2009) competitors include other specialty coffee shops, doughnut shops, and restaurants. The closest specialty coffeehouse competitor is Caribou Coffee, with only 415 stores, with the major compe tition being dispersed among the thousands of independent or small-chain coffee shops (i. e. , Diedrich Coffee, Inc, Coffee Heaven Intl. , Autogrill S. p. A. Stumptown Coffee Roasters, Intelligentsia Coffee & Tea, Inc), and McDonalds Corp2. Stakeholders. Starbucks organizational stakeholders include both individuals and groups who have an interest (give-and-take) relationship with the substantial. (course material) These internal and external stakeholders of Starbucks are identified as shareholders, employees (including board members, executives, managers, supervisors, and baristas), customers, suppliers, local communities, and global alliance partners3 Marketing Strategy.As described in VoteForUs (n. d. ), since the companys inception in 1971, its selling strategy has do by the traditional advertizing avenues of billboards and commercials and focused on seven fundamentals to differentiate Starbucks from other cafes. These fundamental areas of marketing focus are (VoteForUs, n . d. ) 1. Perfect Cup of Coffee an emphasis on product quality (rich, voluptuous taste and aroma) to support the premium pricing structure. 2. Third Place creating the third place for everyone to go to amidst home and work.This is another differentiation technique, aimed to create a unique and relaxing experience or atmosphere with which Starbucks could be branded. 3. Customer Satisfaction find that customers feel the uniqueness of enjoying their Starbucks coffee experience. 4. Creating a Starbucks Community this marketing strategy has even expanded to create a community around their brand. On their website, individuals are boost to express their experiences with Starbucks history, and the company strives to personally join in the discussions. 5.Smart Partnerships create strategic partnerships that expand business opportunities and increase sales. 6. Innovation a strategy to continually create new products or services that support their customer base or add new customer se gments. (different coffee flavors, more food on their menu, and one of the first to offer internet capability in their stores) 7. Brand Marketing The Starbucks marketing strategy has always focused on pipeline advertising and viral marketing, letting the high quality of their products and services speak for themselves.Financials. Evaluating the companys financial statements since the economic low point of May 2008 with its first bunsly decline in profit, and 38 percent stock plunge Starbucks has managed to maintain a sanguine balance sheet. Con substantialnessated company revenues for Q3 2009 were $2. 4 billion, compared to $2. 6 billion in 2008, reflecting a five percent decline in store sales. every quarter financial sheets verify the reduction in operating income and correspond slight increase in net profits.With the cost realignment scheduled to be completed in 2009, operating costs are expected to drop further. numerate revenues for Q2 2009 show a positive rebound wit h a sustained upward trend over the last two quarters. Share prices which bottomed around $8. 00 during Dec08 through Mar09 have stabilized around $19. 00 for the last quarter. In response to the implemented cost reduction strategies, touchstone & Poors raised the companys short-term debt ratings (from A-3 to A-2) and revised its outlook to stable from negative, (Ogg, 2009), reaffirming the BBB corporate credit rating.According to Ogg (2009), S&P believes that the companys performance will continue to stabilize and that the credit metrics will continue to improve or remain at the current levels. Analysis Alignment in the framework of strategic management refers to the mutual agreement and enforcement of the companys vision, mission, and goals with its business strategies. These strategies are employed to achieve and maintain a competitive advantage in the market segment, and ensure long-term profitability for the company. Company Analysis.This company analysis focuses on three f actors or issues involved in maintaining a competitive advantage. These factors and issues are (1) current target markets, (2) current marketing unite strategies, and (3) the strengths and weaknesses of the Company. The companys marketing mix strategies are discussed in relation to the Five Ps of Marketing. The elements of Five Ps of Marketing include product, price, place, people and promotion. (Nimetz, 2009) These factors are explored in comparison to Starbucks published mission, vision statements, and guiding principles. To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. To inspire and nurture the human spirit one person, one cup, and one neighborhood at a time. Current Marketing Mix Strategies (Product, Price, People, and Promotion). Starbucks built its coffee stores on the principle product of Arabica coffee beans. This product was marketed as a premium quality item that The pricing system of rules followed the premium quality scheme, offering the customer more than a cup of coffee.Starbucks stores became the third place to go to and enjoy a unique atmosphere. One new strategy that CEO Howard Schultz brought with him was the emphasis on the aim of sales clerks, or Barristers who brewed and served the coffee. Specialized training for employees reinforces their role in the customers perceived value of the product the unique Starbucks experience. The promotion tactics employed by Starbucks broke with traditional concepts and avoided advertising, relying on word-of-mouth or viral advertising techniques where satisfied customers willingly share with others, and promote the Starbucks experience.This viral advertising has turn up quite effective. Current Target Markets. For most Starbucks most consumers, coffee is not just coffee, but more of a ritual a deserved reward. However, although the targeted market of professionals contains a significant percentage of hig her-income professionals, the recent pass in sales (and corresponding drop in shares) implies that they too are affected by the economic downturn and willing to reduce their rewards. Market Analysis. A market analysis reviews the specific market segment being targeted, and examines the demographic and social data required to know your customer. This required information concerning the targeted customer includes Who they are Where they are How to reach them Identifying their needs (what justifies premium price) Size of market Percentage of market captured Market growth potential Starbucks market for its coffee stores is targeted at 25- to 45-year-old professionals looking for solitude, or social interaction, without alcohol. This higher-income crowd of young, college-educated represents a group which tends toward higher luxury-consumption levels.The failure to successfully add drive-through service to its stores clearly differentiates its clientele from McDonalds or Java se a chantey customers whose needs or to grab a quick caffeine jolt on the way to or from work. According to Euromonitor International Plc,4 Starbucks has captured 52 percent of the global specialty coffee market. According to Mintel (global consumer research firm in Chicago) Starbucks controls 43 73% of the U. S. market share5 in coffeehouse sales in 2005, with its closest rivals being Caribou Coffee, and Peets Coffee and Tea.Competition & SWOT Analysis. The SWOT analysis identifies and evaluates a companys internal factors (strengths and weaknesses) and external factors (opportunities, and threats). This analysis helps to focus on key issues to consider in strategic planning. The following detail are an updated paraphrase of the SWOT analysis from Marketing Teacher (2007) Strengths. Starbucks Corporation is a very profitable organization, earning in excess of $459 million in 2008. The company generated revenue of more than $10. billion in 2008, majestic revenue for 2007. It is a global coffee brand built upon a reputation for fine products and services with approximately 9000 cafes around the globe. Starbucks is know as a respected employer that values its workforce, and was one of the Fortune moderate 100 Companies to Work For in 2005. The organization displays strong ethical values and an ethical mission statement that emphasizes its commitment to environmental leadership. Weaknesses. Starbucks has a reputation for new product development and creativity.However, they remain vulnerable to the hatchway that their innovation may falter over time. The organization has a strong presence in the U. S. with more than three quarters of their cafes located in the home market. An increased percentage of international cafes would help to penetrate business risk. The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise. Opportunities. New products and services can be retailed in their cafes, such as Fair Trade products. The company has the opportunity to expand its global operations with the emerging markets for coffee in India and the Pacific Rim nations. Additional co-branding with other manufacturers of food and drink can be pursued. Capitalizing on the Seattles Best brand in both the retail and franchise markets could diversify revenue streams and spread business risk. With recent economic conditions, and dwindling disposable income, Starbucks could pursue a larger market share of the homemade coffee market with increased advertising. Pursuing additional partnerships with manufacturers of other goods and services has potential to decrease Starbucks dependency on it single competitive advantage in retail coffee. Threats. Starbucks has been branded and marketed as a luxury item, relying on the disposable income of its targeted customers. Regional, or national economic instability can be reflected quickly in revenue loss. Future growth of the coffee market is uncertain. A change in the current fad of coffee shops would significantly impact Starbucks major source of revenue. Starbucks is exposed to unpredictable cost increases in wholesale coffee and dairy products. Recent growth in the coffee house market has attracted many competitors, including copy cat brands and national restaurants that pose potential threats to Starbucks competitive advantage. Competitive advantage. Starbucks established an early dominance in the market segment of coffee houses, and sustains its competitive advantage6 through differentiation7 by capitalizing on a unique experience that offers ambiance and unusual product variety. The primary strategies employed to establish market dominance were branding, creativity, and saturation by store expansion. 1.The branding strategies include quality product, personal service, a sense of community, and environmental responsibility. This strategy is strengthened by market and demograp hic analyses to slightly customize each store to the local city/community personality. 2. The creativity strategies emphasize constantly looking for new ideas, new products, as well as new experiences for guests. (Thompson & Gamble, 1999) Successful products are retained while weaker products are eliminated in a continuing cycle of process improvement. 3. Although growth in the store expansion strategy has peaked, new stores are still being added.This strategy has been modified from saturation by area concentration, to a more disciplined approach, that identifies key markets, based on market analysis that emphasizes individual store profitability. (Adamy & Wingfield, 2009) Financial Analysis. Starbucks has a solid financial status with multiple revenue streams from multiple coffee related products. A look at Starbucks Profit and Loss and Cash Flow tables8 (shown in Table 1) reveals a slight dip in gross revenue, but a positive trend for increased net income. This is probably a resu lt of the recent cost restructuring and emphasis on store profitability.Future revenue streams from coffee house sales are expected to increase from a combination of stable sales and higher efficiency. Revenue streams from alternate distribution channels show a slight, but steady increase, further bolstering Starbucks solid financial foundation. In Millions of USD Jun 2009 Mar 20099 Dec 2008 Sep 2008 Jun 2008 Revenue 2,403. 90 2,333. 30 2,615. 20 2,515. 40 2,574. 00 Total Revenue 2,403. 0 2,333. 30 2,615. 20 2,515. 40 2,574. 00 Gross Profit 539. 10 470. 20 481. 80 393. 50 452. 60 Total Operating Expense 2,199. 90 2,292. 40 2,497. 50 2,501. 20 2,595. 60 Operating Income 204. 00 40. 90 117. 70 14. 20 -21. 60 Income Before Tax 217. 30 34. 90 98. 30 -1. 20 -33. 20 Net Income 151. 50 25. 00 64. 30 5. 40 -6. 70 Table 1 Quarterly Financials Conclusion Are Starbucks mission and strategic choices in alignment? Yes.The strategies of innovation, product differentiation, and customer experience are directly aligned with Starbucks mission to establish Starbucks as the premier purveyor of the finest coffee in the world, while exalt and nurturing the spirit of their customers. Starbucks continues to expand its product offering in both breadth and depth. Coupled with this strategy is the expansion of alternate distribution channels that will multiply the potential in increased revenues. Each offering in the product portfolio reinforces the brand name and quality experience described in the companys vision statement.The recent focus on increasing profits in existing stores is not a shift of business strategy, but more of a symptom of business maturity. Less waste equals more profit. The corporation has shifted its goal from market saturation slowing its growth in new stores to market dominance with more efficient and more profitable stores with its strategy of disciplined expansion in key markets. exploitation the Seattles Best segment, vice Starbucks to expand t he base of customers for the greater corporate good requires close examination.As a corporate-sponsored competitor to the nearby Starbucks stores, this strategy seems in conflict with the prime mission. However, as an alternate distribution channel for an expanded product line, this strategy supports the overall brand quality of Starbucks as the premier coffee, nonetheless can capture some additional customers that do not seek the branded Starbuck experience and would likely choose one the niche competitors. Seattles Best can cater to a slightly different clientele in both coffee stores and supermarkets with a different set of customer needs, while increasing overall corporate revenues.Will the company continue its pastsuccess? Yes. A continued emphasis on customer satisfaction, coupled with effective strategies that develop new product lines, will stimulate revenue growth and stabilize share prices. The current vision and path summarized by Starbucks president and CEO, Howard Sc hultz, is a commitment to continually improving our customer experience as the roadmap to renewed growth and increasing profitability, with emphasis on continued application of previously successful strategies, we will continue to innovate and differentiate, two perennial hallmarks of the Starbucks brand. (Starbucks Financial Releases, 2009) References Adamy, J. & Wingfield, N. (2009). Starbucks brews new strategies to fight slump. Wall bridle-path Journal (Europe), p. 4. Retrieved July 11, 2009, from ProQuest Newsstand. (Document ID 1662578621). Analoui, F. and Karami, A. (2002). CEOs and development of the meaningful mission statement. Corporate Governance, 2(3), 13-20. Retrieved dreadful 31, 2009, from ABI/ pronounce Global database. (Document ID 181714601). Bushman, M. (2007). The major elements of the strategic management process. Associated Content website.Business and Finance. 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