...A - Starbucks in US: strategies and core competencies GROUP 6 Exercise A - Starbucks in US: strategies and core competencies GROUP 6 Thijs Bavelaar - 091698 Carlijn Swagemakers - 120014 Sam Verlaat - 111449 Bas Vliegen - 122959 Thijs Bavelaar - 091698 Carlijn Swagemakers - 120014 Sam Verlaat - 111449 Bas Vliegen - 122959 Executive summary Within this report the Starbuck’s Corporation is being analyzed, in this way the company can be positioned on how they are performing within the competitive set. Through research Starbucks’ core competencies are found, and on elaborated. Those competencies are researched in the competitive set with the main competitors of Starbucks’ as well, via basic benchmarking there has been determined where Starbucks is within the market. Table of Contents Introduction 4 Core competencies 5 Key competitors 9 Competitive advantages 11 Communication within organization 12 Competency - strategy matrix 13 Conclusion and recommendations 14 Bibliography 15 Appendices 19 Appendix 1: Value chain analysis 19 Appendix 2: SWOT analysis 22 Appendix 3: Functional analysis 25 Appendix 4: VRIO analysis 26 Introduction The purpose of this paper is to analyze both Starbucks’ strategies and core competencies, and use this analysis to assess the degree of synergy between the two. First, the core competencies of Starbucks, specified to the US, are identified and presented with the use of a value chain analysis, SWOT...
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...Summary about the Starbucks Company ➢ In 2006, Starbucks made an outstanding financial performance which was an increase of sale from $697 million to $7.8 billion and ROIC was 25.5%. ➢ Thirty years ago, it was a single store and now it has more than 12,000 retail stores. ➢ After returning of the Howard Schultz as a CEO of the Starbucks adopted a new business model. ➢ The CEO felt that people lacked a Third Place where they could pass leisure with friends along with a relaxed, informal, and comfortable atmosphere. ➢ To make distinctive competencies he took differentiation strategy including service oriented mission & acquiring vision. ➢ The company continued to devote considerable attention to the design of its store and also focused on the superior customer service in stores. ➢ Employees were hired & Attendance on employee training program was compulsory in addition to progressive compensation policies, stock option. ➢ Starbucks planned to own all of the franchised stored and captured the premium places of Country so that the competitors could not imitate their strategy. ➢ Expecting 50% of all new stores to be outside, Its long term goal is to have 40,000 stores worldwide. SWOT Analysis: Strengths: • Starbucks has its stores in 40 countries around the world. • Starbucks were very much innovative • Starbucks provide superior customer service...
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...twitterTwitter Share on linkedinLinkedin Share on google_followGoogle * Lesson Store * Courses * Training * News Blog * Search * Newsletter * Contact Us * About Us * Home Core Competences * Lesson * Exercise * Answer Marketing and Core Competences A core competence is the result of a specific unique set of skills or production techniques that deliver value to the customer. Such competences give an organization access to a wide variety of markets. Hamel and Prahalad (1990) refer to a number of organizations and their products to support their concept including NEC, Honda and Canon. Core competences are interesting from a traditional marketing point of view since it could be argued that they take a product or production orientation rather than a market orientation. If you focus on production techniques and skills then aren't you looking at your business from an internal point of view? The answer is yes. However, the core competences give a business a competitive advantage in a number of markets, markets where customers perceive a benefit from the product. So if needs are being met better than the competition, there is an argument that core competences are indeed market-oriented. There are at least three tests of a core competence. Three tests of core competence. * Provides potential access to a wide variety of markets. * Should make a significant contribution to the perceived customer benefits of the end product. * Should be difficult...
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...1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? Panera Bread is a company with unique and effective concept and strategy which has given them a competitive advantage over its competitors in the submarket industry. Panera Bread’s strategy includes providing specialty bakery and café experience to urban workers and suburban dwellers. They specialize in fresh baked bread that made with quality and detail, made to order sandwiches, custom roasted coffees and other café beverage. Panera Bread has distinctive style to its menu, café design, inviting ambience with the decoration of its café locations. Panera offers their customers the chance to come in the café to order breakfast, lunch, daytime and the “chill out”- time between the breakfast and lunch and between lunch and dinner. Panera Bread’s growth strategy was by opening both company-owned and franchised Panera Bread locations, the franchising has been a key competent of the company’s efforts to broaden it markets penetration. In class, we discussed different generic competitive strategies that company employ. Panera Bread’s strategies can be categories under the Best-Cost Provider strategy. Panera Bread provide a fairly common café beverages around the country, but the have manage to offer their products at lower cost to it...
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... Almost 400 of its 1,027 bakeries are company-operated and the remainders are franchisees. Panera Bread’s core competencies are in their market niche, offering a premium specialty bakery and café experience to urban workers and suburban dwellers. Penera’s focus is offering their customers a quick service meal and a more aesthetically pleasing dining experience than offered by traditional fast food restaurants. By providing top-notch service, they knew customers would pass up their competitors in outlets of other easy casual restaurants to dine at the nearest Panera Bread. SWOT, and financial analysis conducted indicate that the company is doing well even though profitability is slowing down and has the potential to rapidly expand. Looking at house the company markets itself and how it function among its competitors there is a discrepancy there fore a clear definition of their strategy in necessary. What is Panera Bread's strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve Panera Bread’s strategy is to provide a premium specialty bakery and cafe experience to urban workers and suburban dwellers This strategy is most closely aligned with a broad differentiation strategy, or being unique in ways that a broad range of consumers find appealing. Prior to taking the Panera concept nationwide...
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...models of analysis to understand their business environment? Discuss using appropriate examples. Organizations can use one business analysis model to analyse a section of its business or combine this with other business models to help them in the strategic planning process to gain a competitive advantage in today’s fast changing markets. SWOT and TOWS are acronyms for strengths, weaknesses, opportunities and threats. SWOT (internal-external) provides a checklist of strengths, weaknesses to minimize, uncover opportunities to take advantage of and identify threats to avoid. Whereas the TOWs matrix is (external-internal) matching internal strengths and weaknesses with external opportunities and threats provides a more in depth look at your company’s standing in its current market and gives an understanding of your competitors. External Opportunities (O) External Threats (T) Internal Strengths (S) (SO) Maxi-Maxi Strategy Use strengths to create opportunities (ST) Maxi-Mini Strategy Use strengths to minimise threats Internal Weaknesses (W) (WO) Mini-Maxi Strategy Minimize weaknesses to take advantage of opportunities (WT) Mini-Mini Strategy DEFENSIVE Minimize weaknesses and avoid threats It is important to use verifiable statements such as “Opportunities to save $10M in changing supplier” rather than “Opportunities to save will be good if we change supplier”. If the business is small it is important to know the risks and limitations in using SWOT. Prune long...
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...External Analysis of Starbucks 1 RUNNING HEAD: STARBUCKS External Environmental Analysis of 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 ...................................................................
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...3 The Product 3 Consumer Product Classification 3 Target Market 3 Competitive Situation Analysis 4 Analysis of Competition using Porter’s 5 Forces Model 4 SWOT Analysis 4 Strengths 5 Weaknesses 5 Opportunities 5 Threats 6 Market Objectives 6 Product Objective 6 Price Objective 6 Place Objective 6 Promotion Objective 7 Marketing Strategies 7 Product Strategies 7 Price Strategies 7 Place Strategies 7 Promotion Strategies 7 Tactics and Action Plan 8 Product Action Plan 8 Price Action Plan 8 Place Action Plan 8 Promotion Action Plan 8 Monitoring Procedures 9 Introduction Throughout most of the 90s and early 2000s, Starbucks has expanded its vast empire and tightened its stranglehold on the brewed coffee and coffee drink marketplace. New Wave Coffee Company looks to make a name for itself with lower prices, quality over quantity, and by setting itself apart by become the premier destination for coffee. Mission Statement “World class customer service and world class products at a world class price while constantly serving the community.” The Product Through the Local Brew Initiative, New Wave Coffee Company purchases and distributes locally grown coffee beans and brews with a proceed going back to the local farmers. Due to the locality to each New Wave Coffee Company store, they are able to charge a fraction of what Starbucks and other places charge, while also giving back to each individual community. Consumer Product...
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...Introduction The aims of this assignment is evaluate Starbuck’s internal and external environment and by doing so, provide strategic recommendations based on the analysis. The following table is a summary of the cooperation. Name | Starbucks Corporation | Industries served | Coffeehouses, Restaurants | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | Howard Schultz | Revenue | $ 14.9 Billion (2013) [25% Profit Gains] | Total no. of retail stores | 20,184 (2013) 13,279 in the United States | Employees | 200,000 (2013) | Main Competitors:Around the world | McDonald's Corp., Dunkin' Brands Group, Inc., Nestlé S.A., Green Mountain Coffee Roasters, Costa Coffee, Caribou Coffee Company | Starbuck’s Global Footprint Table 1 SOURCE: The Washington Post, (2013), A coffee giant’s global footprint [ONLINE]. Available at:http://apps.washingtonpost.com/g/page/world/a-coffee-giants-global-footprint/514/ [Accessed 12 March 14]. Starbucks’ External Environment Porter’s five forces Threat of new entrants: Medium-High New entrants could include local coffeehouses and companies like 7-eleven (more convenient than Starbucks) that offer new blends of coffee drinks. The entry barrier for the coffee industry is relatively low, even for premium coffee like Starbucks. Any large and well-funded company could be potential entrants. McDonalds, for instance, is able to quite easily add specialty coffee to their existing services and enter...
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...1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? Strategy was to aggressively expand its market presence across North America and improve the quality of the dining experience it provided to customers. From the five competitive strategies discussed in chapter 5 I would Best-Cost Provider strategy. Panera Bread provides common café beverages around the country. They do however manage to offer products at lower cost to it rivals and still give their customers more value for their money by incorporating good to excellent product qualities. Panera is striving for to achieve a type of competitive advantage that is a lower cost then its rivals with a market that targets a broad cross-section of buyers. 2. What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competencies? Strengths: • Attractive & appealing menu • Bread-baking expertise • Artisan breads are Panera’s signature product. • Nationwide leader in the bakery-café segment • High ratings in customer satisfaction • Solid brand name • Initial success in catering • Good franchisees higher sales in franchised stores compared to company-owned • Financial strength of the company able to grow without taking on...
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...STARBUCKS Student ID: 17834560 Subject: 2014-BUS5MMS(BU-2) - MGT AND MKT FOR SVC Submitted to: Dr. Navin Veerapa Submitted by: Ibrahim Gurgaij Date: 11, Sep 2014 Table of Contents ABSTRACT:- 4 I- INTRODUCTION OF THE COMPANY:- 4 Financial performance 5 II-MISSION STATEMENTS:- 5 III-SWOT ANALYSIS:- 6 INTERNAL ANALYSIS:- 7 Strengths 7 Experience:- 8 Brand name:- 8 Weakness 8 Dependency:- 8 Power of Substitutes 9 EXTERNAL ANASLYSIS 9 Opportunities 9 Brand Power:- 10 Customers 10 Threats 11 Rise in competition:- 11 Supplier situation 11 Ownership:- 11 IV-Competence based Strategy:- 12 V-CONCLUSION:- 13 STRATEGIC MANAGEMENT FACTORS:- 14 Marketing Mix is shown by this diagram:- 15 Product 15 Price 15 Place 16 Promotion 16 REFERENCES:- 18 ABSTRACT:- Starbucks cannot be termed as an ordinary coffee shop it represents a different culture and atmosphere beyond a cup of coffee. Starbucks is such a famous brand that it can be found in cities like Indonesia, Bali also. According to their CEO Howard Schultz their culture denotes the values of their company and share purpose like self esteem and self respect etc. For star bucks It is important to maintain their culture and also achieve their desirable levels of development and growth side by side. Their CEO tries to maintain the traditional way of making coffee mixed with new technology so that customers can...
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...Panera Bread Case 1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? Panera Bread utilizes a differentiated strategy. While it should be acknowledged that to some extent all firms in the quick service industry are cost leaders, within that category firms must differentiate themselves further. The food options and free Internet provide points of differentiation that can attract consumers. Panera targets a broad market with this differentiated strategy. The company is seeking to have a competitive advantage in product quality and customer experience within the framework of the quick service business. 2. What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competencies? Panera has a few strengths from which it can draw competitive advantage. The food is generally of good quality for the industry. Panera has good profitability for the industry, and this profitability has been stable over the past five years. In addition, there is good balance sheet strength, with strong liquidity and no long-term debt. Operationally, Panera is strong but nothing unusual for the industry. The major weakness for Panera is that it lacks economies of scale relative to other competitors in the...
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...While the purpose of marketing to create long-term and mutually beneficial exchange relationships between the buyers/consumers and the organisation remains unchanged, the function of marketing management has evolved to include strategic decision-making. Review and write a summary of the strategic marketing management process discussed in chapter one of the Kerin and Peterson text. The fundamental function of marketing is to create new customers and this can be accomplished by customizing the marketing mix to provide value to the customer, better than the competitor can. Marketing has evolved over the years and firms now strive to create long term relationships with its customers instead of just a one-time purchaser. The main difficulty that firms face is uncertainty arising due to constant changes in the external environment in which the firm operates in. “There is but one certainty regarding the times ahead, the times in which managers must work and perform. This certainty is that they will be turbulent times. In turbulent times, the first task of management is to make sure of the firm's capacity for survival; to make sure of its structural strength and soundness; and to make sure of its capacity to survive a blow, to adapt itself to sudden change, and to avail itself to sudden change and new opportunities.” [Drucker, 1974] Most established firms would have a Chief Marketing Officer (CMO) to head the marketing department, making day-to-day operations decisions as well as...
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...includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. The study of strategic management, therefore, emphasizes the monitoring and evaluating of external opportunities and threats in light of a corporation’s strengths and weaknesses. Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation. Its purpose is to identify strategic factors those external and internal elements that will determine the future of the corporation. The simplest way to conduct environmental scanning is through SWOT analysis. Which, SWOT is an acronym used to describe the Strengths, Weaknesses, Opportunities, and Threats, that are strategic factors for a specific company. The external environment consists of variables that are outside the organization and not typically within the short-run control of top management. These variables form the context within which the corporation exists. However, the internal environment of a corporation consists of variables that are within the organization itself and are not usually within the short-run control of top management. These variables form the context in which work is done. They include the corporation’s structure, culture, and resources. Which, the key strengths form a set of core competencies that the corporation can use to gain competitive advantage. Strategy formulation is the...
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...Table of Contents Introduction and Company Description Pg 2 Mission Statement Pg 2 Product Description and Classification Pg 2-3 Consumer Product Classification Pg 3 Target Market Pg 3 Analysis of the Competitive Environment Pg 3-4 SWOT Analysis Pg 4-5 SWOT Strengths and Support Pg 5 SWOT Core Competencies Pg 5 SWOT Weakness and Support Pg 5 SWOT Opportunites and Support Pg 5-6 SWOT Threats and Support Pg 6 Marketing Objectives Pg 6-7 Marketing Strategies and Explanation Pg 7-9 Tactics and Action Plan Pg 9-10 Monitoring Procedures Pg 10 Sources Pg 11 Introduction Company G is offering a Single Serve Coffee maker that is able to provide the consumer improve their lives by introducing convenience and reliability to its users. The Company has a reputation of bringing innovation into its electronics and small appliances. Company G strives to uphold its goal to provide a quality product while keeping affordability in mind. We strongly feel that this outstanding product will bring convenience into the homes of many. Mission Statement “ We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions.” Product Description This appliance is a representation of company G’s mission statement, “ We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions.” The appliance that Company G is offering is...
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