...External Analysis ...................................................................................................5 2.1 Wider Macro-Environmental Analysis ............................................................5 2.2 Industry analysis .............................................................................................7 2.3 Industry Life cycle ..........................................................................................9 2.4 Competitor Analysis ..................................................................................... 10 2.5 Industry‟s Critical Success Factors ................................................................ 10 2.6 Opportunities & Threats................................................................................ 11 3. Internal Analysis .................................................................................................. 11 3.1 Starbucks‟s Strengths & Weaknesses ............................................................ 11 3.2 Evaluation of Starbucks‟ Main Capabilities .................................................. 12 3.3 Value Chain Analysis ................................................................................... 13 3.4 Starbucks‟ Main Internal Capabilities against industry‟s Critical Success Factors ......................................................................................................... 14 4. Starbucks‟ Current „Issue & Challenges‟ Diagnosis ..................................
Words: 4800 - Pages: 20
...strategically based evaluate Starbucks past and current situation and future position of this largely successful company. The analysis uses Michael five forces analysis, Starbucks’ Original Generic Strategy, Company success factor, SWOT, PEST and recommendation for future that Starbucks can organised Reward program Organised, Becoming more Environment Friendly, CD Burning, Install free wireless internet and Rent out meeting space, Increase connection with customers, Continually improve the coffee. At last conclusion and i use book of Michal Porter and some others and electronic articles and websites. Index |No. |Index |Page No. | |1. |Executive Summery |2 | |2. |Introduction of the company |4 | |3. |Porters five force analysis (Past) |5 | |4. |Starbucks’ Original Generic Strategy (Past) |8 | |5. |Starbucks’ Success Factors...
Words: 5074 - Pages: 21
...City college international faculty of university of sheffield 2013 STARBUCKS COFFEE STRATEGIC PLAN MODULE TITLE: Business Strategy Executive Summary The main purpose of the current paper was to develop strategic plan for Starbucks for the future and to analyze the alternative strategic directions compared with the existing strategy. The paper starts with brief description of the company profile and the product line that company successfully offers during their operations history. The second part of the strategic plan analyzes the external environment of the company by analyzing the industry current situation. From the Five forces model we able to move on to ascertain that the industry generally is attractive that lead to a growth of strategy. The external environment analysis identify that company faces a strong competition from competitors from other industries like case of McDonalds and Dunkin Donuts. Also, from the external analysis was identified the success factors of Starbucks that led them to leading position in the industry. The drivers of change are describing the external environment in which the company operates and to which factors company need to pay attention for the future avoidance of challenges. The third section of the assignment analyzes the internal environment of the company there is given high attraction to SWOT analysis in order to understand the company’s opportunities for growth and strengths that could increase the strategy’s success and...
Words: 13370 - Pages: 54
...08’ 1 Contents Introduction ......................................................................................................................... 4 Michael Porter’s 5 Forces Analysis (Past) .......................................................................... 7 Industry Rivalry ............................................................................................................................ 8 Potential for new entrants ........................................................................................................ 10 Substitute Products ................................................................................................................... 12 Bargaining Power of Buyers ...................................................................................................... 13 Bargaining Power of Suppliers................................................................................................... 14 Summary: The Five Market Forces in Specialty Coffee in 1987 ..................................... 15 Specialty Coffee Industry Attractiveness.......................................................................... 16 Starbucks’ Original Generic Strategy ............................................................................... 19 Starbucks’ Success Factors ............................................................................................... 22 First-mover advantage ..................................................
Words: 22564 - Pages: 91
...Starbucks and the Lifecycle of Specialty Coffee: An Industry Evolving Introduction Today we stand witness to a new coffee era, one made up of Caffé Lattes, Espresso Macchiatos, Cappuccinos and Frappuccinos. Specialty Coffee is here to stay and no one will be more eager to tell you that than Howard Schultz, CEO of Starbucks, the world’s largest specialty coffee bar. The study of Starbucks Corporation leads one on a multifaceted journey through an organization’s insinuation into a culture, its dominance of a market and its creation of a brand synonymous with loyalty, integrity and longevity. Understanding Starbucks’ development into an international giant and the strategic approach they took to get there begins with the origins of coffee itself. Ever since it first spread through the Moslem world in the sixteenth century, coffee has played a pivotal role in society by providing meeting places for intellectuals from all sides of life to converge. As coffee was slowly introduced to the European world it was recognized for both its sociability and its taste. Soon Coffee houses were prevalent throughout Europe and were the natural locations for political, literary and societal debate. It crossed the Atlantic Ocean in the mid-seventeenth century and replaced beer as New York City’s favorite morning drink. It can be said that the Boston Tea Party was the beginning of not one but two major revolutions in America. The first was the revolt of the colonists against England...
Words: 10700 - Pages: 43
...STARBUCKS AS AN INTERNATIONAL BUSINESS 3 Abstract The researcher examines a detailed synopsis of the specialty coffee industry and the role that Starbucks plays in it. Starbucks is in a growth market, and it has a good relative overall position. The researcher will examine the business structure of Starbucks and the future implications of its current business strategies. By examining the strategic imperatives such as how to expand abroad and understanding the international context, the researcher will determine strong and weak business strategies of the company. Starbucks has overcome organizational and managerial implications that will serve as a strong model for international businesses. The researcher will then give strategy and implementation recommendations on how Starbucks can grow as an international business. STARBUCKS AS AN INTERNATIONAL BUSINESS 4 An Analysis of Starbucks as a Company and an International Business Introduction Millions of people all over the world walk into Starbucks every day for their cup of coffee, but it is more than the overpriced coffee that brings people in day after day to the Starbucks stores across the world. Starbucks offers an upbeat environment and friendly and helpful staff to assist customers in any question or problem they might have with the coffee or service. People buy Starbucks for what it represents and the status symbol that comes along with it. Although various business...
Words: 751 - Pages: 4
...products and services 11 Bargaining power of suppliers 11 Bargaining power of buyers 13 Threat of new entrants 14 Summary of the five forces analysis 14 SWOT analysis 15 Strengths 15 Weaknesses 16 Opportunities 16 Threats 17 Customer Value, Satisfaction and Loyalty 18 Generic strategies from Starbucks’s point of view 18 Conclusions 20 References 21 Introduction In the year 2000, Howard Schultz, a long term director of Starbucks left his position as the CEO. Starbucks was on a steady course and had its stock price on the rise until the year 2006. (lähde haastattelu) The global financial crisis hit the coffee giant relatively harder than other companies in the business sector (lähde annual report 2010). In early 2008, due to the poor performance of Starbucks, Howard Schultz felt compelled to return in to the CEO’s position, as Schultz mentioned in his interview for Harvard Business Report in 2010 “The leadership had failed the 180,000 Starbucks people and their families.” (lähde haastattelu). The global financial crisis in itself does not explain the poor performance of Starbucks, stock prices dropped below the NASDAQ index. Poor decision making in strategy and management caused the company to fall into a deeper crisis. Changes in consumer behavior that were caused by the global financial crisis came suddenly, and Starbucks did not adjust in such manners...
Words: 4559 - Pages: 19
...Starbucks and the Coffee Industry Harold Brown Strategic Management MGMT 4340 Dr. Nwabueze March 3, 2011 External Analysis of Starbucks 2 Contents 1.0.0. Executive Summary ...................................................................................................................... 5 2.0.0. Company History ................................................................................................................................ 8 2.1.0. Background ....................................................................................................................................... 12 Table 1: Starbucks Revenue Trends 2005-2010 ..................................................................................... 12 2.2.0. Purpose of This Study ....................................................................................................................... 14 3.0.0. External Analysis .............................................................................................................................. 15 Diagram 1: The Components of a Coffee Firm’s Macroenvironment .................................................... 16 3.1.0. General Environmental Analysis ...................................................................................................... 16 3.1.1. Demographic Segment ...................................................................................................................... 16 Table 2: Tracking Measures of Coffee Demographics...
Words: 20339 - Pages: 82
...Assignment 1: Strategy Analysis- Starbucks Introduction One of the most competitive industries in the world is the food and beverages companies. Being one of the shopping and tourist capitals in the world, Hong Kong has many competing companies in these industries. The coffee market in Hong Kong has been markedly flourishing in the past decades leading to the sprout of the number of coffee shops in the country. the sprout of the number of coffee shops in the city. The coffee drinking culture in the said country has been one of the most eclectic from ‘gourmet’ to the local blends served in coffee houses. In Hong Kong, there exist different competing coffee shops and this includes Starbucks Coffee shops. It can be said that this type of industries can be considered to have a strong competition in the market. Primarily, of this paper is to analyse the strategies used by Starbucks through SWOT Analysis and Porter’s Five Forces Model. From this analysis, optimistic and pessimistic scenario for the next ten years will be considered. Company Overview Starbucks Coffee is known as one of the fastest growing brands in the international level, the company made its debut in May 2000 as it opened its first store in Hong Kong at launched at Central's Exchange Square. The second store was opened at Hysan Avenue in Causeway Bay (Ho, 2002). At the end of 2000, Starbucks had already nine coffee houses in Hong Kong and continue to grow in the...
Words: 2648 - Pages: 11
...information and industry analysis ........................................................................ 4 Development and expansion strategies .................................................................................... 6 Internal environment analysis ................................................................................................... 8 SWOT analysis ............................................................................................................................ 9 Strengths .............................................................................................................. .... ............... 10 Weaknesses ............................................................................................................................... 11 Opportunities ............................................................................................................................ 11 Threats ....................................................................................................................... . ............. 11 Conclusion .................................................................................................................................. 12 References................................................................................................................................... 13 Introduction Starbucks Corporation is a multinational company that specializes in production and sales of coffee products including...
Words: 2862 - Pages: 12
... Executive Summary Starbucks Corporation has arguably been the most successful coffee chain in the past few decades, using their aggressive expansion strategies to push out much of its competition. Through its expansion, Starbucks has focused on creating a dense network of stores all around America, while also opening up new locations all around the world. By leading the retail coffee market, Starbucks is able to sell its coffee for a premium price and increase their profitability. Its success can be seen in the gradual rise of its stock prices from 1992 – 2007, reaching almost 6000% of their initial public offering 1 . Yet, in the recent year, the market has shown Starbucks to be in constant decline, as their stock has dropped about $15/share, a value they have been above since 2004. Also, looking at Starbucks’ SEC filings, we can see that its comparable store sales have decreased significantly in US markets since 2004. This has prompted Team Macchiato to evaluate Starbucks’ current strategies in addition to the retail coffee market as a whole. To evaluate the problem, one of the biggest questions to consider is to what extent is the “designer coffee” market just a fad. In other words, will the allure of gourmet Starbucks coffee be maintained or will more appealing options threaten the success of Starbucks’ primary product? If the designer coffee market is indeed a fad industry, we need to evaluate Starbucks’ possible options to avoid further decline. ...
Words: 6815 - Pages: 28
...specialty coffee in the world. It has since grown operating more than 21,000 stores in 65 countries with over 182,000 employees. Starbucks mission is to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time. Their product mix includes roasted and handcrafted high quality/premium priced coffees, tea, a variety of fresh food items and other beverages. They also sell a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and national foodservice accounts. Environmental analysis for Starbuck includes the economy, competition, technology and the political and social environments. Starbucks is usually known for "working for the environment" and they believe that their high prices are necessary for the quality of their products. The decline in sales has had a huge impact on the company revenue and production. Sales from stores have dropped drastically in the last couple years. Many would say that the countries financial crisis has made people think twice before purchasing a high priced coffee. The fact that Starbuck competitors may have a better deal in price has also played a part in their decline in sales. Starbucks’ biggest potential competitors are the fast-food leading corporations like McDonald and KFC. Both of them have the economic scale as they opened up stores in all over the world and had much more distribution centers. It is easy for them to launch into the coffee industry...
Words: 2416 - Pages: 10
... Executive Summary Starbucks Corporation has arguably been the most successful coffee chain in the past few decades, using their aggressive expansion strategies to push out much of its competition. Through its expansion, Starbucks has focused on creating a dense network of stores all around America, while also opening up new locations all around the world. By leading the retail coffee market, Starbucks is able to sell its coffee for a premium price and increase their profitability. Its success can be seen in the gradual rise of its stock prices from 1992 – 2007, reaching almost 6000% of their initial public offering 1 . Yet, in the recent year, the market has shown Starbucks to be in constant decline, as their stock has dropped about $15/share, a value they have been above since 2004. Also, looking at Starbucks’ SEC filings, we can see that its comparable store sales have decreased significantly in US markets since 2004. This has prompted Team Macchiato to evaluate Starbucks’ current strategies in addition to the retail coffee market as a whole. To evaluate the problem, one of the biggest questions to consider is to what extent is the “designer coffee” market just a fad. In other words, will the allure of gourmet Starbucks coffee be maintained or will more appealing options threaten the success of Starbucks’ primary product? If the designer coffee market is indeed a fad industry, we need to evaluate Starbucks’ possible options to avoid further decline. ...
Words: 6815 - Pages: 28
...Strategic Analysis of Nestlé and its Competitor Kraft Foods Course: International Business Strategy (IB BA) Professor Lewis University of Applied Sciences Dresden Project Members: Katerina Schneiderova Sandra Merkel Nicole Klötzer Carolin Wiese Samuel Weimer Nicole Schröder Date: 11th June 2010 Executive Summary In the following, two companies and their strategic positions within the coffee consumer goods industry will be described. The focus lies on Nestlé and its competitor Kraft Foods. As coffee is one of the most popular products worldwide, this is a very demanding business. It is necessary to provide high quality products, especially when working in the more affluent segments like Nestlé and Kraft Food do. Several political, economic, social, technical, environmental and legal aspects have an impact on the industry branch they are operating in. In addition, there is not only a differentiation in Robusta and Arabica coffee, but also in filter coffee, portioned and non-portioned soluble coffee. To satisfy the diverging needs of all customers, different strategies are applied to gain more market share. In this report it is examined how those companies operate in the specific business context, what they have in common and where they differ. Furthermore, an analysis of the industry attractiveness, of the market segmentation and value chain and an overview of resources and capabilities are part of this paper. After intense research...
Words: 11935 - Pages: 48
...Starbucks Industry Profile and Organization Analysis Spring 2013 MGMT-4900-01 Lindsay Holleman, Alex Lawson, Garrett Pinciotti, Russell Pellichino Starbucks |2 Table of Contents Section I Environmental Profile ........................................................................ 5 Current Environment .............................................................. 5 Future Environment ................................................................ 11 Assessment of Relevancy ...................................................... 13 Section II Industry Profile .................................................................................. 14 Historical Performance ...................................................................... 14 Fast Food Industry.................................................................. 14 Coffee and Snack Shop Industry ............................................ 17 Projected Performance...................................................................... 17 Fast Food Industry.................................................................. 18 Porter’s Five Forces .......................................................................... 19 Rivalry Among Competitors .................................................... 20 Potential Entry of New Competitors ........................................ 25 Potential Development of Substitute Products........................ 31 Bargaining Power of Buyers .....................................
Words: 27609 - Pages: 111
