The Rise And Success Of Starbucks

1421 words - 6 pages

The Rise and Success of Starbucks

Millions of Americans these days depend on the glorious caffeine rich nectar provided to them daily by the local Starbucks chain store. With its humble roots firmly planted in Seattle, Washington, this little coffee shop has turned from a novel idea, into a veritable necessity for Americans on the go. The amazing success of Starbucks can be attributed, in part, to operational planning. Starbucks has become a well-known company for selling the highest quality coffee beans and best tasting coffee products. It was one of the first companies to realize that the real money to be made was in beverage retailing, not just coffee beans. Starbucks created a coffee for the coffee connoisseurs, and exhausted all resources to acquire only the highest quality of coffee beans. It was through operational planning that the management team behind Starbucks was able to be so wildly successful. By utilizing their strengths, and capitalizing on trends, as well as periodically evaluating weaknesses and threats, this little coffee house has become America?s most enjoyable place to get coffee.
To understand operational planning, a basic background in the planning process is required. Corporations today use a top down approach to map an organizations future.
Strategic planning or Top-Level management are the executives of a company and are responsible for the long-term goals and strategies. Tactical planning or the middle level managers take the long-term goals and classify them to smaller more specific goals. Finally, operational planning or the frontline managers are responsible for developing plans to accomplish short term objectives that in turn accomplish goals identified from upper management.
Operational Planning 2

Starbucks? executives have defined their business with the mission statement to ?Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow? (Starbucks mission statement). Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2005. It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries. Strategic planners have also proved the significance of their work force by providing benefits and implementing programs such as the ?Bean Stock? program. By offering employees the opportunity to own stock within the company, every member of the staff has a stake in the success of the Starbucks organization. All of these examples show the commitment of top executives to their people. However, the most astounding commitment comes from the hiring of remarkable operational managers. This majority of front line managers are truly one of the Starbuck?s organizations strengths. Operational managers are the individuals who shoulder the responsibility of making a profit. Fortified with the company mission statement these supervisors...

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