Analysis Of Quick Service Restaurants
Quick Service Restaurants (QSR) - The popularity and face of QSRs have increased and changed over the past 10 years. Starbucks has generated a new generation of QSR style and quality. Starbucks has forced the coffee service industry to re-invent themselves in order to compete in the marketplace.
General Environment: How will the forces be changing over the next three years and how will these forces impact the industry (i.e. demographics aging, population)? According to the Tea & Coffee Trade Journal Starbucks Wars: How McDonald’s and Starbucks defined their industry. (Nov. 2006). They have forced those who are in the industry to make vigorous changes to stay afloat in the industry. This is the strength of Starbucks being the industry leader which has also created opportunities for its competitive to challenge their performance in order to be considered as a player in the marketplace. Not only is there leadership their strength it also poses as a threat to its competitors.
The industry has caused other QSRs such as Dunkin Donuts to create a more sophisticated premium coffee to attract a wider customer base. Starbucks over the next three years will increase its presence in the marketplace by creating more business by entering communities of ethnicity. Starbucks will increase its demographics by implementing diversity into its business plan of strategies.
Starbucks has been the leader in the QSR – coffee service industry and has a proven trailblazing reputation. The industry trailblazer plans to continue opening new Starbucks and build partnerships with other corporations to reach and maintain their goals. Starbucks continue to enjoy a profitable partnership with The Magic Johnson Corporation who is dedicated to the vision of Starbucks. The Johnson Corporation has become an essential player in the industry by helping to increase Starbucks presence in communities of color.
Starbucks serves all age population due to their loyal customer base. Their customers maintain a dedication to their QSR. QSRs service all age population due to their exhibiting a need for the service.
Who are their suppliers? Identify the forces and how they are affecting the organization. Starbucks has a supplier diversity program which strongly supports diversity in business. They give extra effort to support suppliers of diverse ethnicity they are members of the National Minority Supplier Development Council, and the Northwest Minority Business Council.
The suppliers effect the organization in an armstrong way creating supplier diversity in action is a reinforcement to good business sense and strategic planning. Starbuck’s mission statement clearly states their supplier’s must exhibit: value, quality, service, business stability, and business practices. Their business plan includes community outreach efforts which cause a positive double-dipping effect in communities.
Their business plan is all inclusive, and encompassing of servicing the demographics, aging population, and suppliers. Starbucks has a very defined plan that utilizes each component.
They have targeted the demographics of minority communities and using suppliers from minority companies to actively enforce their programs and future business plan to increase profits and revenue. The task environment that Starbucks implement creates a optimal organization. Starbucks has been the industry leader and continue to raise the bar of QSR.
Impact of the environment on the organization and the decision(s) of the managers; How is the corporate culture of the organization influencing behavior and how the organization functions?
The corporate culture of the organization provides training programs to influence the behavior of the managers to control the functioning capacity of the organization directly influence the behavior of the employees. The corporate culture of the industry is one of concise product knowledge, precision skill training, and customer service that demands efficiency throughout the organization.
Starbucks has caused other QSR to offer premium coffee. Starbucks has used an age-old beverage and redefined the industry by delivering a premium quality product.
The only weakness that Starbucks exhibit is their trying to enter different portion of a different industry; Starbucks began a campaign for trying to create a name for themselves in the music and entertainment arena. They have enjoyed a small percentage of sales from their music CDs, but the premium coffee still is the strong selling point for this organization.
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