Monday, February 10, 2020
Starbucks Coffee Company Essay Example | Topics and Well Written Essays - 500 words
Starbucks Coffee Company - Essay Example The organizational structure of Starbucks consists of the divisional and functional structures. It is also in a monopolistic competition where there are many coffeehouses competing with each other selling different product lines. A lot of companies are trying to win over Starbucks by developing a good marketing strategy focusing on the product mix and primarily the ambiance. It is the strategy of the company to serve the customers with high-quality products similar to its mission and lessen the expenses through highlighting the controllable expenses. Also, maintaining a good environment of the store is their strategy because it attracts loyal customers. The company focuses on high-margin items at the same time creating sales through additional items. The capital and costs structure of Starbucks falls into a low to average budget in every location and its major investments are the property and most importantly the equipment used in the store. The company yields its primary operating costs on labor or employment and cost sales. Thus, the budget of the company goes into its products and equipment mainly and no costs are allotted to advertise the company separately. Accordingly, the company is confident with its ongoing profitability most especially on doing international business. Other competitors such as McDonaldÃ¢â¬â¢s, which is adding premium roast coffee on their product line, is not a threat to the company because Starbucks has established its brand to be the largest coffeehouse in the world and produces high- quality products.