The Current Position of Starbucks Essay Example | Topics and Well Written Essays - 3000 words

The Current Position of Starbucks - Essay ExampleThough profit maximization, sales maximization makes the backb unrivaled of every companys objective, Starbucks have over insisted on this and failed to maximize its quality management and customer needs. The replacement of comfy seats with stands, stylish coffee cups with general cups, stuffy environments and add together of sandwiches whose smell overpowered the sweet scent of brewed coffee is in any case a nonher strategy that led to the drastic decline of the companys sales. This shows a complete excursion of the companys mission and goal. Waitresses and waiters have also been overburdened they no longer appreciate their work. They feel that the goal they were working hard to achieve and bind has suddenly changed (Mulcaster, 2009). Brewing of coffee was the major idea behind Starbucks formation. However this idea has changed to automatic making of coffee that customers complain about. The quality of coffee is not felt anymore a nd so is the social effect of the stores. The employees attachment with the customers has reduced due to the tall coffee making machines that destruct the customers view when coffee is do (Mintzberg et al., 2003). ...ategy to help them cope up with the food crisis problems, such as decreasing its prices, or even changing the type of cups to small ones that were affordable just wish its competitors deed. Nonetheless, this company did not take into concern efforts made by its competitors. Many stores came up with new strategies to combat Starbucks increased sales. The strategy then industrious by this company was to open even more stores in the US. However they failed to carry along their distinctive character with them, such as brewing coffee, front of comfy seats, and ensuring that the sweet aroma of coffee was put away intact. As a result the decline of its shares in the stock exchange was inevitable. This is because there is no one who would like to be associated with a declin ing firm which translates to low dividends due to the low profits and sales realized. Though Starbucks Company still has the capabilities and resources that can help it to still lead in the coffee world, the environment in which it is running its business is too tight. First the economy has changed. Food prices have hiked, meaning that the disposable income of the consumers is low. They allow therefore not opt to take expensive coffee. In addition, its competitors are doing all they can to make sure that they also increase their sales and also penetrate the market just as Starbucks is doing. They are thus growing at the same level. The companys employees are also getting threadbare of the introduction of new products. Not that it is wrong, but because their opinion is not taken into concern. They feel that they are not part of the company anymore. However, Starbuck Company can be able to reinstate itself once more and be on the lead in coffee roasting and retailing.