Starbucks Macro Environment

Struck mission Statement is to inspire and nurture the human spirit – one arson, one cup and one neighborhood at a time’ (Struck 201 1 a Struck Mission Statement). With over 17,000 stores worldwide, they seem to be living the statement, but they didn’t make their name on coffee alone. In 1 991 , Struck became the first privately held U. S. Company to offer stock options program that included part – time employees. Since then Fortune named Struck One of “The 100 Best Companies to Work For” four separate times.

They have also been named one of the world’s most ethical companies by Allegro Strategies.

The list of awards given to Struck goes on and on. What they all add up to is a brand that withstood the test of time. Struck has expanded their brand from brewed coffee and lattes to a full menu of gourmet drinks, breakfast sandwiches, and pastries. They offer Wi-H service to allow for working coffee breaks and last minute study sessions.

They have transformed the corner coffee shop into a hub that supports diversity in demographics across the community. But as the macro-environment that surrounds this brand empire shifts will they be able to change with it?

There are so many things in business that we can control, and yet there are till so many factors that seem to be out of our hands. The recent economic crisis is a living testament to that. Despite warnings from economists we were a nation living the high life. Nobody wanted to question what happens when the entire nation is overextended.

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But we all found out the hard way. The effect of the economy on business was astronomical. Even well established brands have felt tremors from the economic turmoil that is present on the world stage. But what are the long-term effects?

Struck has positioned itself well as part of our daily lives, not just in America, but across the world. : Even as we all tighten our spending belts it remains a part of the day to day routine for millions of people worldwide. Since the beginning of the financial meltdown in 2008 experts have been putting out lists telling consumers how to cut expenses. Without fail cutting out gourmet coffee continues to top the list. How has this affected the bottom line? In 2009 Struck closed 300 stores and cut over 6000 jobs. (Seattle Times, 2009).

Starbucks Macro Environment Analysis

But after the all of the cuts and closures, and two consecutive years of tumbling profits, 2009 ended up being Struck best earnings year yet. With careful management the brand has been able to withstand the worst economic conditions since the company was founded. If only economics was the only speed bump the company was facing along the way. Conservation is the buzz word of the decade. Conserve money, conserve energy, and conserve resources. The world is going green, and companies aren’t missing their opportunities to capitalize on the green revolution. Currently Struck is blazing trails in community responsibility.

They are offering incentives for using reusable mugs instead of the traditional paper cups. They host cleanup projects in local communities, recycle products used in store, and support local farmers. CEO Howard Schultz made a vow to make all Struck cups 100% recyclable by 2012. Despite all of this community awareness, over 3 million paper cups bearing the siren logo end up in landfills every year. (Struck Cup Dilemma, 2010) When Struck introduced the paper cup in 1984, they had 7 stores. Now their convenient mobile billboard has become an industry wide problem.

But as they do with most problems the company is faced with Struck owned the problem, and looked to find a way to dominate it. They developed the first cup featuring 10% post-consumer recycled content In 2006 the cup won the won the National Recycling Coalition’s annual award. .(Struck Cup Dilemma, 2010) Whether Struck efforts are a part of a human spirit marketing campaign or actual corporate responsibility, they are staying true to their mission statement and making a difference. As a whole American society is one of instant gratification. We want things now and we are not concerned with the consequences.

However, in recent years we have started to see a shift in that line of thinking. People are paying ore attention to the things that we are consuming and their affects both on us and the environment. This change in behavior has a lot of companies scrambling to revamp marketing strategies from fast and friendly to quick and healthy options. Even on this front, Struck seems to be one step ahead Of the rest. From double espressos to skinny SOY chi tea lattes they have the market covered. The question now seems to be will they be able to change with the social climate? So far their track record shows that they are setting the trends.