Starbucks’s mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”
Aspect
Description
Analysis
Mission Statement
“To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”
Starbucks’ mission emphasizes its commitment to fostering a sense of community and providing a welcoming environment for customers. It reflects the company’s aspiration to go beyond simply selling coffee and create a positive, human-centered experience in its stores.
Core Values
Starbucks’ core principles include creating warmth and belonging, acting with courage and innovation, connecting with transparency and respect, and delivering excellence with accountability.
These core values underpin Starbucks’ company culture and guide its actions and decisions. They emphasize the importance of inclusivity, innovation, transparency, and accountability in every aspect of the business, from customer interactions to product development.
Vision Statement
“Treat people like family, and they will be loyal and give their all.”
Starbucks’ vision centers around creating a sense of family and loyalty among its customers and employees. It aims to make Starbucks locations feel like a second home, fostering a strong sense of community and comfort. This vision reflects the company’s dedication to building lasting relationships.
Business Model
Starbucks primarily operates as a chain business model, with a focus on company-operated stores. Company-operated stores account for the majority of its revenue (over 80% in 2022). The company also utilizes licensed stores to expand its brand globally.
Starbucks maintains tight control over product development, branding, and customer experience through company-operated stores. Simultaneously, it leverages licensed stores to amplify its brand presence and generate revenue in various regions worldwide.
Global Expansion
Starbucks continues to expand its global store base in established markets like the U.S. and newer, high-growth markets such as China. The expansion includes a mix of company-operated and licensed stores to optimize its global footprint.
Starbucks’ global expansion strategy allows it to cater to a diverse range of customers while maintaining control where necessary and leveraging partnerships in other regions. This approach ensures that the brand remains accessible and relevant on a global scale.
Social Impact
Starbucks is committed to its Starbucks Global Social Impact strategy, which includes ethical coffee sourcing, community contributions, and being an employer of choice. These initiatives align with its objective of being recognized and respected as a global brand.
Starbucks places importance on ethical practices, community engagement, and employee satisfaction as key elements of its corporate strategy. These efforts contribute not only to its reputation but also to its mission of nurturing the human spirit and creating a positive impact on both a local and global scale.
Creating a culture of warmth and belonging, where everyone is welcome.
Acting with courage, challenging the status quo, and finding new ways to grow our company and each other.
Being present, connecting with transparency, dignity, and respect.
Delivering our very best in all we do, holding ourselves accountable for results.
As pointed out in Starbucks 2018 Annual Report:
Our objective is to maintain Starbucks standing as one of the most recognized and respected brands in the world. To achieve this, we are continuing the disciplined expansion of our global store base, adding stores in both existing, developed markets such as the U.S., and in newer, higher growth markets such as China, as well as optimizing the mix of company-operated and licensed stores around the world. In addition, by leveraging the experience gained through our traditional store model, we continue to offer consumers new coffee and other products in a variety of forms, across new categories, diverse channels and alternative store formats. We also believe our Starbucks Global Social Impact strategy, commitments related to ethically sourcing high-quality coffee, contributing positively to the communities we do business in and being an employer of choice are contributors to our objective
Starbucks Vision In A Nutshell
This instilled a vision at Starbucks to “treat people like family, and they will be loyal and give their all.”
The vision statement is articulated around the concept of family, loyalty, and generosity.
What it means from the business standpoint is that Starbucks is a place where people spend a lot of time. Therefore, it has to feel like a second home.
Understanding Starbucks Business Model
Starbucks is a retail company that sells beverages (primarily consisting of coffee-related drinks) and food. In 2023, Starbucks had 44% of company-operated stores vs. 56% of licensed stores which might make you think Starbucks is a franchise business, when in reality most of its revenue (nearly 82% in 2023) came from company-operated stores, thus making Starbucks a chain business model.
If we look at the combined financial statements of the company, we can draw a few interesting conclusions.
Starbucks follows a chain business model strategy, where most of its revenue comes from its owned stores. For instance, in 2023, with nearly $36 billion in revenue, most of the revenue came from owned stores ($29.46 billion) compared to franchised stores ($4.51 billion) and other revenue sources ($2 billion). Yet owned stores have higher operational costs compared to franchised stores.
The company revenues were in the last years primarily driven by company-operated stores.
However, let’s look at the composition of the company-operated stores vs. the licensed-operated stores. We can notice how Starbucks most of the total stores as company-operated. And the remaining as licensed stores.
In 2023, Starbucks operated 19,592vs. 18,253 licensed stores. Starbucks leverages primarily company-operated stores to keep tight control over product development, branding, distribution, and customer experience. It also leverages licensed stores for better amplification of brand, revenue, and profits.
While keeping a majority of its stores, company-operated was critical to control the brand and experience as much as possible.
The company also used the licensing model to substantially grow its brand worldwide.
Key Highlights about Starbucks:
Mission Statement: Starbucks’ mission is “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.” This mission reflects the company’s commitment to creating a welcoming and community-oriented coffee experience.
Core Values: Starbucks’ core principles that shape its company culture include:
Prioritizing transparency, dignity, and respect in connections.
Delivering excellence and being accountable for results.
Vision: Starbucks’ vision revolves around the idea of treating people like family to foster loyalty and dedication. It aims to create a sense of community and comfort, making Starbucks locations feel like a second home for customers.
Business Model: Starbucks primarily follows a chain business model, with a focus on company-operated stores. In 2022, company-operated stores accounted for more than 80% of total revenues, emphasizing the importance of maintaining control over product development, branding, and customer experience.
Global Expansion: Starbucks is dedicated to expanding its global store base, both in established markets like the U.S. and in newer, high-growth markets such as China. This expansion includes a mix of company-operated and licensed stores to optimize its presence worldwide.
Social Impact: Starbucks is committed to its Starbucks Global Social Impact strategy, which includes ethical sourcing of high-quality coffee, community contributions, and being an employer of choice. These initiatives align with the company’s objective of maintaining its reputation as a recognized and respected global brand.
Starbucks’ main individual shareholder is Howard Schultz, the founder of Starbucks. Major institutional shareholders comprise BlackRock, with 7.18%, and The Vanguard Group, with 8.6% ownership. Starbucks follows a heavy-chained business model, where the company-operated stores play a critical role in the company’s long-term strategy, compared to McDonald’s heavy-franchised business model, where the long-term plan is to have over 95% of the stores as franchising.
Starbucks is a retail company that sells beverages (primarily consisting of coffee-related drinks) and food. In 2023, Starbucks had 44% of company-operated stores vs. 56% of licensed stores which might make you think Starbucks is a franchise business, when in reality most of its revenue (nearly 82% in 2023) came from company-operated stores, thus making Starbucks a chain business model.
Starbucks follows a chain business model strategy, where most of its revenue comes from its owned stores. For instance, in 2023, with nearly $36 billion in revenue, most of the revenue came from owned stores ($29.46 billion) compared to franchised stores ($4.51 billion) and other revenue sources ($2 billion). Yet owned stores have higher operational costs compared to franchised stores.
Starbucks follows a chain business model, building its brand through its owned stores. And its owned stores are also where most of the revenue is generated. In addition, the owned stores are a great asset to keep experimenting with new products while maintaining tight control over the customer experience.
In 2023, Starbucks operated 19,592vs. 18,253 licensed stores. Starbucks leverages primarily company-operated stores to keep tight control over product development, branding, distribution, and customer experience. It also leverages licensed stores for better amplification of brand, revenue, and profits.
Starbucks made 60% of its revenue, in 2023, from beverages, followed by other revenue, which accounted for 22% of the total revenue (that comprises packaged and single-serve coffees and teas, plus royalty and licensing revenues, beverage-related ingredients, serve ware, and ready-to-drink beverages, among other items.) and food, which accounted for 18% of the total sales in 2023.
Starbucks’s mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”
Starbucks is a multinational coffee chain headquartered in Seattle, Washington. It was founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker in 1971. From a single and very humble bean roasting store in Pike Place Market, the company is now a global giant operating over 37,711 stores around the world. This large global footprint obviously increases the competition for Starbucks in many different markets. The coffee industry itself is also highly competitive, with established players including McDonald’s and Dunkin’ Donuts.
Starbucks follows a matrix organizational structure with a combination of vertical and horizontal structures. It is characterized by multiple overlapping chains of command and divisions.
McDonald’s and Starbucks sit in the opposite spectrum of retail business models. Indeed, whereas McDonald’s follows a heavily franchised business model, Starbucks follows a heavy-chained one.
Starbucks highlights its mission as “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”
Starbucks is a global consumer brand with direct distribution, recognized brands, and products that make it a viable business. Its reliance on the Americas as a primary operating segment makes it a weakness. At the same time, Starbucks faces risks related to coffee beans price volatility. Yet the company still has global expansion opportunities.
Adidas’ mission is “To be the best sports brand in the world.” Adidas AG is a German multinational initially founded in 1924 by Adolf Dassler who developed spiked running shoes out of his mother’s house. Today, the company is the largest sportswear producer in Europe and the second largest globally behind rival Nike.
Tesla’s vision is to “create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles,” while its mission is “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” Tesla used a transitional business model as its ecosystem grows.
Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.”
Apple’s mission is “to bring the best user experience to its customers through its innovative hardware, software, and services.” And in a manifesto dated 2019 Tim Cook set the vision specified as “We believe that we are on the face of the earth to make great products and that’s not changing.”
Netflix’s core mission, strategy, and vision are that of “improving its members’ experience by expanding the streaming content with a focus on a programming mix of content that delights members and attracts new members.”
Coca-Cola’s Purpose is to “refresh the world. make a difference.” Its vision and mission are to “craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in people’s lives, communities, and our planet.”
Starbucks highlights its mission as “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”
Microsoft’s mission is to empower every person and every organization on the planet to achieve more. With over $110 billion in revenues in 2018, Office Products and Windows are still the main products. Yet the company also operates in Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and more.
Walmart’smission can be summarized as “helping people around the world save money and live better – anytime and anywhere – in retail stores and through eCommerce.” While its vision is to “make every day easier for busy families.” Walmart defines “busy families” as the bull’s eye of its business strategy.
Nike vision is “to bring inspiration and innovation to every athlete in the world.” While its mission statement is to “do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.”
Google mission statement is to “organize the world’s information and make it universally accessible and useful.” Its vision statement is to “provide an important service to the world-instantly delivering relevant information on virtually any topic.” In 2019, Sundar Pichai emphasized a renewed mission to allow people “to get things done!”
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
