...Starbucks Structure Brandy Nichole Carnes Management for Organizations Instructor John LaCasse MGT 330 10/15/2012 Starbucks Structure Starbucks is currently still leading retailer in the sales of specialty coffee in the United States and other locations worldwide because this company not only focuses on quality of the product, coffee, but also the quality of the environment for customers and employees alike. While the company has endured a financial set back recently their proven commitment to quality and genuine feel good atmosphere along with some other changes will succeed in getting this company back on track and back on top. Job Description with Specifications Our company is currently reevaluating our Barista position in an attempt to remain in top competition with other companies while still providing our benchmark customer service. The position of Barista will now require more in-depth beverage training requirements as well as more intensive customer service training; the new hire must be able to follow food division standards and best practices, follow specific station duties as directed by manager or lead and provide excellent customer service to our customers on a continuous basis. The employee shall also demonstrate their current knowledge of hot, cold coffee stations as well as the food service station without assistance from the manager or another employee. Daily opening and closing inventories will need to be accomplished by each new oncoming Barista...
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...Strategy case study: Starbucks-sacrificing dividends for growth Starbucks has grown a lot since it's opening in Seattle in 1985. It went from 17 stores, to over 15.000 stores all around the world in 2010. But they are changing their strategy, and purpose. They started closing down shops, and refocused on the Starbucks experience, which would increase customer's willingness to pay and also increase profitability. They even payed their first dividend 2010. That ment a huge change of purpose. But is growth bad ? It has it's benefits and dangers. Warren Buffet states, that ‘Growth benefits investors only when the business in point can invest at incremental returns that are enticing – in other words, only when each dollar used to finance the growth creates over a dollar of long term market value.’ We can say that it worked for Starbucks in the beginning, when growth also meant growth of the share price, and even though no dividends were paid, the company was still profitable over the years, but with the emerging of new competition (ex. McDonalds coffee shops,…), and the loss of some of the Starbucks Experience, in 2008 the company didn’t see any share price growth, and still hasn’t paid out any dividends. From this, we can see focusing strongly on growth is not always a good idea, and while it can bring the company market share in the beginning and can even prove the be more profitable in the long term, it should not be the only purpose of the company. And when Starbucks reached...
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...Overview The case explains why Starbucks had to expand outside the US and the entry strategies it adopted in international markets, and discusses the various risks faced by Starbucks and the effect of these risks in its revenues in international markets. Problem Major Problem The major problem of the case was the not so well planned international operations of Starbucks compared to its US operations and the entry strategies it adopted in international markets. Minor Problem The minor problems were: The pricing of the products offered. The high level of prices of the products of Starbucks is generally caused by too expensive cost of production that causes suffering to its customers. The operation problems encountered by the business due to lack of a trained workforce. The inappropriate and unsuitable real state/location for its store. Objectives To solve the problems of this case study. To recommend advices and solutions regarding the problems encountered of this business. Facts *Alternative Course of A*ction To study and think carefully about the decision of entering international markets. To go for a supplier of cheaper items needed in the operation that would enable the business to lower the prices of its products and make it affordable and attract those middle as well as low profile consumers. To hire trained applicants to ensure the smooth...
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...Case Study 1: Starbucks- Going global fast 1.) An example of a controllable element that Starbucks has experienced when entering the global market is the mod and trendy designs of stores. According to the article, Starbucks overseas still seems new and hip; this benefits the company because in places such as Italy, consumers want more modern coffee houses. Another example of a controllable element that hurts the company is their lack of food options vs their Italian competitors, as well as their very expensive pricing. An example of an uncontrollable element which Starbucks faces in other countries, such as Israel, is the preconceived prejudice that the company is greedy. 2.) One major risk the company is facing is cannibalism from their own stores. Although Schultz claims that they self cannibalize their stores at a rate of 30% a year, this is an issue that can worked on. I believe by closing down some stores which may be affected by self cannibalism Starbucks will be able to save money not only from eliminated the issue, but also on normal costs of running a business. Another issue they seem to be having is the newer generations in the US no longer enjoying the environment Starbucks has been famous for. I believe a solution to this problem would be to obtain more customer input on what their preference may be. Starbucks is known to be innovative when dealing with customer service and satisfaction. I feel they should do a quick survey and see who their market is and...
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...CASE QUESTIONS: STARBUCKS 1. What factors accounted for Starbucks’ extraordinary success in the early 1990s? First, Starbucks offered the premium-quality product. Its coffee beans were sourced from the Africa, Central and South America, and Asia-Pacific regions. Starbucks purchased green coffee beans directly from growers and controlled the custom-roasting process, and distribution to retail stores around the world. Most coffee beverages were handcrafted following the number of specific steps. Second, Starbucks offered uplifting customer service to customers. Store employees (partners) recognized regular customers and provided personalized service. Partners were trained to listen to customers, identify their real need, and offer solutions to customers with the Starbucks’ “Just Say Yes” policy. Third, Starbucks offered an upscale, pseudo-European, yet inviting atmosphere. Stores had seating areas, inspired from Italians’ espresso bars, so customers could come to relax and hang out (social experience). The major customers were affluent, well-educated, white-collar female between the ages of 25 and 44. The company-operated stores were located in high-traffic, high-visibility settings such as retail centers, office buildings, and university campuses, which provided customers with easy access to the stores on a daily basis. Lastly, Starbucks had capital to expand its business across the nation. In 1992, Starbucks went public and raised $25 million...
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...foreign direct investment in the last 25 years has been phenomenal. FDI can take the form of a foreign firm buying a firm in a different country, or deciding to invest in a different country by building operations there. With FDI, a firm has a significant ownership in a foreign operation and the potential to affect managerial decisions of the operation. The goal of our coverage of FDI is to understand the pattern of FDI that occurs between countries, and why firms undertake FDI and become multinational in their operations as well as why firms undertake FDI rather than simply exporting products or licensing their know-how. The opening case describes the international growth of Starbucks. The closing case explores Cemex’s foreign investments. OUTLINE OF CHAPTER 7: FOREIGN DIRECT INVESTMENT Opening Case: Starbucks’ Foreign Direct Investment Introduction Foreign Direct Investment in the World Economy Trends in FDI The Direction of FDI The Form of FDI: Acquisitions versus Greenfield Investments The Shift to Services Country Focus: Foreign Direct Investment in China Theories of Foreign Direct Investment Why Foreign Direct Investment? The Pattern of Foreign...
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...Case Study #2 1). What is Starbucks Product? Gourmet coffee, sandwiches, teas, and pastries would be the obvious answer but Starbucks also sells atmosphere. They sell a relaxing environment between office and home. Starbucks gives consumers a place where a person can gather with friends instead of going to a local bar. Patrons will meet friends to discuss current events or use the change of environment for working while offering great coffee at high prices but include free internet and at some locations even free cell phone charging. Due to their popularity, Starbucks is now selling “handcrafted” soda, beer and wine, a far cry from the early years of lattes and Frappuccino’s. These are not new products but new to the coffee chain and their introduction would give the obvious impression that Starbucks product strategy is to increase growth not by increasing US locations but offering different items then what they currently stock. 2. What advantages does McDonald’s have in competing with Starbucks for coffee sales? McDonald’s has been somewhat successful with the offering new coffee products when it launched the McCafe line in 2008, a more upscale version of McDonald’s plain cup of coffee. These products are a more reasonably priced version of a gourmet coffee drink and are available with the convenience of a drive through window. As Starbucks sways more in the direction of a fast food franchise it has left some of its fans stating they are no longer pure coffee...
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...BRANDING How Starbucks’ Growth Destroyed Brand Value by John Quelch JULY 2, 2008 WHAT TO READ NEXT 10 Charts from 2013 That Changed the Way We Think Make Your Emotions Work for You in Negotiations The Real Problem with Pensions Starbucks announcement that it will close 600 stores in the US is a long-overdue admission that there are limits to growth. In February 2007, a leaked internal memo written by founder Howard Schultz showed that he recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special. Either you have to cut price (and that implies a commensurate cut in the cost structure) or you have to cut distribution to restore the exclusivity of the brand. Expect the 600 store closings to be the first of a series of downsizing announcements. Sometimes, in the world of marketing, less is more. Schultz sought, admirably, to bring good coffee and the Italian coffee house experience to the American mass market. Wall Street bought into the How Starbucks’ Growth Destroyed...
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...BTC 200 (50969) 04/24/16 Homework # 1 Got Milk? It’s good for you Unless it’s contaminated 1) Explain why the supply chain can dramatically impact a company’s base performance. Supply chain management involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. The dozens of steps are required to achieve and carry out each of the above components. SCM software can enable an organization to generate efficiencies within these steps by automating and improving the information flows throughout and among the different supply chain components. 2) List all of the products that could possibly be affected by a problem in the U.S. milk supply chain. The products that could possibly be affected by a problem in the U.S. milk supply chain are: Chocolate, Ice cream, cheese, butter, yogurt, evaporated milk, sour cream, whey products and infant formula. 3) How can a CRM system help communicate issues in the supply chain? Customer relationship management involves managing all aspects of a customer relationship within an organization to increase customer loyalty, retention and organizations profitability. Customer contact is often one of the first signs of issues with product quality once the product has reached market. Because a CRM system can track a customer complaint, a company can use the CRM system to help pinpoint the quality issue within the supply chain. Understanding where complaints...
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...Case: Starbucks Questions for Discussion 1. What factors accounted or the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? • Factors: It is own value, creating an uplifting experience every time customers walk through the door; located in high traffic, high visibility, retail centre. Innovation e.g. set up an espresso bar in their downtown Seattle shop. Specialty coffee, premium, 50% sales of beans. Relax consumer – intimacy – baristas, knowing customer’s name and drink hard skills & soft skill; atmosphere furnishing, music, aroma. • Value proposition: 1) coffee offering highest quality, lots of control over supply chain; 2) service customer intimacy, loyalty of customers, customizing drink in their way; 3) atmosphere providing an upscale yet inviting environment. • Tight value proposition for well defined market: customer patterns stay for a while (linger/ hangout), rituals: read magazine/ do puzzle, chat; established customers coffee fanatics, 24-44, white collar, well educated, affluent, female; brand perceptions/ image escape: a 3rd place, premium coffee, affordable luxury. • Brand image: sense of community, everywhere – the brand, good coffee on the run, place to meeting and move on, convenience oriented - on the way to work, accessible and consistent. 2. Why have Starbucks’ customer...
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...Marketing Mix: Starbucks MKT/421 Marketing Mix: Starbucks When thinking about the companies that have had the most successful marketing strategies, Starbucks is one of the top companies. Starbucks is an international coffeehouse beverage chain that has become very successful. Their marketing strategies have allowed it to surpass other coffee offering outlets such as Peet’s Coffee and Dunkin’ Donuts. Starbucks has been able to capitalize on consumers wanting a quality coffee or tea beverage delivered at a reasonable price point. One of the key factors in their marketing strategy has been to cater to areas where consumers have a disposable income and a “want” for their products (“Starbucks Marketing”, 2013). Additionally, as revenues skyrocketed, Starbucks began offering their product at retail outlets. This enables any consumer to experience their product without even having to visit a local Starbucks coffee shop. This has proven to be a very successful venture for the company. Fiscal year 2011, boosted over 11 billion dollars in revenue for the coffee giant. None of this would have been possible without a successful marketing mix (“Starbucks”, 2012). Marketing mix The actual term marketing mix was first used back in 1940’s, but gained momentum in 1964. That year, Neil H. Borden published an article entitled The Concept of Marketing Mix that detailed the actual concepts of a marketing mix strategy. His initial idea contained around thirteen different...
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...GOT MILK? IT’S GOOD FOR YOU UNLESS IT’S CONTAMINATED CASE STUDY/RESEARCH. Question 1: Explain why the supply chain can dramatically impact a company's base performance ANS: Supply chain management involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. The dozens of steps are required to achieve and carry out each of the above components. SCM software can enable an organization to generate efficiencies within these steps by automating and improving the information flows throughout and among the different supply chain components. If one member of the supply chain makes a reckless decision it can impact the entire supply chain. This is what happened with the china milk contamination and all of the players upstream and downstream in the supply chain from end consumer to the dairy farmers were impacted by one participants reckless decision. Question 2: list all the products that could possibly be affected by a problem in the U.S. Milk supply chain ANS: Products that could possibly be affected by a problem in the U.S. Milk supply chain are: -Milk -Cheese -Butter -Yogurt -Cottage cheese -Boxed Cereals -Cereal Bars -Sandwich Breads -Vegetarian Meat Products -If there were disruptions in the U.S. Milk supply the price of meat could also fall if dairy farmers were forced to slaughter the cattle for meat instead of milking them. Question 3: How can CRM help communicate...
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...Group 10 MARK247 Case: Starbucks Questions for Discussion 1. What factors accounted or the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? (team 9, 10 & 11) • Factors: It is own value, creating an uplifting experience every time customers walk through the door; located in high traffic, high visibility, retail centre. Innovation e.g. set up an espresso bar in their downtown Seattle shop. Specialty coffee, premium, 50% sales of beans. Relax consumer – intimacy – baristas, knowing customer’s name and drink hard skills & soft skill; atmosphere furnishing, music, aroma. • Value proposition: 1) coffee offering highest quality, lots of control over supply chain; 2) service customer intimacy, loyalty of customers, customizing drink in their way; 3) atmosphere providing an upscale yet inviting environment. • Tight value proposition for well defined market: customer patterns stay for a while (linger/ hangout), rituals: read magazine/ do puzzle, chat; established customers coffee fanatics, 24-44, white collar, well educated, affluent, female; brand perceptions/ image escape: a 3rd place, premium coffee, affordable luxury. • Brand image: sense of community, everywhere – the brand, good coffee on the run, place to meeting and move on, convenience oriented - on the way to work, accessible and consistent...
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...MCHEMT No later than : 07/02/2011 Word Limit: 1500 words Assignment 01 Course Work Brief Starbucks Coffee Company was established in 1971 and has grown to be the leading retailer roaster and brand on specialty coffees in the world with 15,000 retail outlets across the world. Its common goal is to provide its customers with the finest product and customer experience whilst combining this with their business principles of which involve them incorporating social, environmental and economic responsibilities and benefits in the communities in which they do business. The company’s mission statement states ‘to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.’ They have sought throughout their history to achieve this goal through a number of intrinsic principles which incorporate respect, dignity, diversity, excellence, enthusiasm and desire to create an environment, a product and an unparalled customer experience. The foundations of Starbucks success has been built around an aggressive retailing strategy, Starbucks successfully entered the European market in May 1998 through the acquisition of 65 Seattle Coffee Company stores. The layout of Starbucks retail outlet is designed to create a comfortable laid back sociable but also private surroundings for consumers to relax and unwind. These values have seen the company...
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...From Wikipedia, the free encyclopedia Starbucks Starbucks Starbucks Subsidiaries Starbucks Coffee Company Tazo Tea Company Seattle’s Best Coffee Torrefazione Italia Hear Music Ethos Water Starbucks.com Website Type Founded Founder(s) Headquarters Key people Public (NASDAQ: SBUX) In 1971 across from Pike Place Market in Seattle, Washington Zev Siegel, Jerry Baldwin and Gordon Bowker Seattle, Washington, USA Howard Schultz, Chairman, President and CEO Martin Coles, President, Starbucks International Troy Alstead, Chief Financial Officer Stephen Gillett, Chief Information Officer Restaurants Retail Coffee and Tea Retail Beverages Entertainment Whole Bean Coffee Boxed Tea Made-to-order beverages Bottled beverages Baked Goods Merchandise Frappuccino beverages Smoothies Coffee ▲ US$9.411 billion (2007) ▲ US$1.053 billion (2007) ▲ US$672.64 million (2007) US$5.343 billion (2007) US$2.284 billion (2007) 172,000 (2008)[1] Industry Products Starbucks Corporation (NASDAQ: SBUX) is an international coffee and coffeehouse chain based in Seattle, Washington, USA. Starbucks is the largest coffeehouse company in the world,[2] with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan.[3] Starbucks sells drip brewed coffee, espressobased hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand...
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