Essay Example on Starbucks: Purchasing, Roasting, and Selling High-Quality Coffee

Paper Type:  Essay
Pages:  6
Wordcount:  1481 Words
Date:  2023-02-27

Worksheet 1

The Starbucks Company was formed as a Washington Corporation in 1985 (Koehn, 2001). Its main tasks are that it purchases and roasts high-quality coffees and sells them together with fresh, rich-brewed coffee, cold blended beverages, Italian-style espresso beverages, accessories related to coffee as well as their own equipment and a variety of complementary food items (Koehn, 2001). In addition, the company is involved in the selection of a line of compact discs and the premium teas mainly through the company-operated retail stores (Koehn, 2001). The Company's mission is to inspire and nurture the human spirit, i.e., one person, one cup, and one neighborhood at a time.

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Starbucks company sells tea and coffee through other channels and also through sure of its equity investees. It also produces and sells Starbucks DoubleShotTM and Frappuccino coffee drinks as well as the line of premium ice creams (Koehn, 2001). The company has its core objective to establish Starbucks as the most respected and recognized brand globally. In a bid to achieve the set objective, the company intends to proceed with the fast extension of its retail activities, to develop its Specialty Operations, and to specifically seek after different chances to use the Starbucks brand through the presentation of new items and the improvement of new distribution channels.

Worksheet 2: Customer Profile of the Company

The company has gone from a mother and-pop espresso business to one of the brands which are most perceived across the globe. Starbucks company has succeeded mainly by offering customers a luxury that is affordable in the decadent coffee drink form. Coffee shop concept has been revolutionized by the company so that the lineup of the customers for the pleasure payment of the top-dollar mainly due to their achievement of the favorite coffee concoction that is made with the premium beans. This is then fashioned into every manner of taste. Even consumers of the coffee have their preferred menu things, and simply like the coffee houses of yesteryear, Starbucks has sandwiches, sweets and different bites (Koehn, 2001). In all actuality, the association has done so well by knowing definitely whom its expected intrigue gathering is whenever and going full scale to consider their particular clients.

The Starbucks, unlike any other company,deserves its due credit for changing the espresso involvement in the U.S. and furthermore in the entire world. The espresso drinks like cappuccinos and lattes, and their variations were confined mostly to the Italian restaurants while the Americans use watered-down drip coffee or instant coffee for a caffeine buzz (Campbell, 2016). The main demographic target for the company involves the affluent as well as the urban, often on-the-go professionals in white-collar jobs looking to have their caffeine fix with them to the office. Starbucks centers on this statistic by opening stores in upscale neighborhoods, making client assistance a need by paying better than expected wages for the businesses of restaurants and offering advantages like medical coverage and educational cost repayment.

Worksheet 3: Country Profile

The United Kingdom, where the Starbucks is situated, is a state composed of historic countries of Wales, England, and Scotland. It is well known as the home of both the industrial revolution and modern parliamentary democracy. The Starbucks opened its first store on the king's road in Chelsea. During that time, it was, meant to be the first of the 500 Starbucks across Europe (Moon, 2009). Amusingly enough, Starbucks in the U.K. began by acquiring a current espresso chain here, called the Seattle Coffee Company, which was controlled by two Americans who began the organization in the wake of moving from Seattle to London. Starbucks attempted to profit by the tea savoring society England and began to advance its stores as meeting places as opposed to only a spot to get a beverage.

Starbucks has an extremely enduring outside condition in the nation. The critical clarification for this might be in light of the fact that it works in the Food and Beverages industry. This infers clients may diminish usage for the most part yet won't quit obtaining completely. Thusly, as a downturn is the most critical factor, Starbucks needs to lower costs and augmentation of the value (Moon, 2009). Thusly, it can hold its customer base and addition buyer commitment.

Worksheet 4: PESTEL Analysis of the Market for the Product in the Country.

PESTEL entails an acronym that stands for the five main factors which affect any business. They include; political, economic, social, Technological, Legal and Environmental. The main political factor on Starbucks in the UK is about the sourcing of the raw materials. This has got a lot of attention from the politicians in source countries and also from the West. Therefore, the company wants to have full adherence to environmental and social norms (Hong, 2010). Besides, there is also a need to follow the laws and regulations in the countries where Starbucks buys the raw materials. Other factors include employment laws and tax policy.

For the economic factors, the company has to work on rising labor as well as the operational cost. More stressing to the company is the falling profitability as well as the inflationary environment (Hong, 2010). Other economic factors that can affect Starbucks are the local exchange rates of the currency, level of taxation, and, finally, the local financial environment in different markets.

There are other impacts associated with the socio-cultural factors on the coffee company. The main factor of this kind is that the company can offer cheaper products; hence, it might have to sacrifice on the quality. This will lead to the expansion of the consumer base to include the buyers from the middle and lower-income tiers (Hong, 2010). Other socio-cultural factors involved in the country include consumer preferences, changing family patterns in Europe and the USA, changes in the population lifestyles, among other factors.

Besides, Starbucks has also faced the influence of technological factors. It is in a good position to enjoy the emerging benefits of mobile waves. The company introduced WI-FI capabilities in its outlets since they noted that the internet is crucial to its customers (Hong, 2010). The emergence of innovative technology, as well as other technological factors, incorporates other technological factors. The environmental rules and regulations, global warming, the environmental disasters in the parts involved in coffee production form part of the environmental factors in the Starbucks Company. Finally, there other legal factors affecting Starbucks. Therefore the company must ensure that it does not violate any laws and regulations in countries and the home market from where they acquire their raw materials (Campbell, 2016). It should also be watchful on the introduction of the consumption and production-related policies and regulations by health authorities.

Worksheet 5: Current Promotional Activity of the Company

The marketing and promotional strategy of the company involves positioning its outlets as a place where the consumers can spend time apart from their workplaces or home. Every one of its stores was made as agreeable and unwinding as would be prudent. Not just that, they attempted to make it open and promptly accessible, where the vast majority go to unwind (Moon, 2009). For instance, shopping centers, where most companions hang out - particularly the women. Based on the pricing strategy of the company's products, they are priced higher than most other coffees brands to image carried by its brand. In any case, they realized exactly how to put a more significant expense but get their focused on the market to purchase their espressos reconsidering.

In the company, there has been an implementation of numerous promotions in a bid to reach its targeted market. One of the promotional activities employed by the company is the use of the Starbucks card. This is a technique that allows customers to promote the company's products through a system of referrals (Moon, 2009). In cases where a customer buys a gift card, it provides the company with free advertising as well as bringing new customers apart from showing brand loyalty. Starbucks also provides a card for corporate sales to show appreciation of the employee for a job well done.


Campbell, K., & Helleloid, D. (2016). Starbucks: Social responsibility and tax avoidance. Journal of Accounting Education, 37, 38-60. Retrieved from

Hong, S. Y., Yang, S. U., & Rim, H. (2010). The influence of corporate social responsibility and customer-company identification on the publics' dialogic communication intentions. Public Relations Review, 36(2), 196-198. Retrieved from, N. F. (2013). Howard Schultz and Starbucks coffee company. Retrieved from

Moon, Y., & Quelch, J. A. (2009). Starbucks: delivering customer service. Harvard Business School. Retrieved from

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Essay Example on Starbucks: Purchasing, Roasting, and Selling High-Quality Coffee. (2023, Feb 27). Retrieved from

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