...Courtney Parker c.energizerbunny@gmail.com Courtney Parker c.energizerbunny@gmail.com Abstract Case Analysis and Three year Plan for Starbucks Abstract Case Analysis and Three year Plan for Starbucks Module 7 Final project Case Analysis - Starbucks Module 7 Final project Case Analysis - Starbucks Courtney Parker Strategy Final Project Case Analysis – Starbucks For my case study I have chosen the corporation of Starbucks. The intention of this paper is to introduce the mission and vision statement of Starbucks along with a presentation and review of their code of ethics. These statements and the code of ethics will be compared to and evaluated with the second chapter recommendations and concepts within Strategic Management: Concepts and Cases by Fred R. David. Starbucks does not have a vision statement but rather a mission statement in conjunction with a value statement of sorts. Interestingly, Starbucks mission statement is fairly far removed from coffee, their main source of profit and business venture. It states: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks.com, 2013). While the statement is inspiring, as a mission statement it fails when held to the standards put forth by Fred David. Although the mission statement for Starbucks addresses some of these, it only lightly highlights some and completely misses others. According to Strategic Management Concepts and Cases, a mission statement must...
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...Future Financial Health Analysis: Starbucks S. Albright Grand Canyon University: FIN 504 March 5, 2016 Starbucks started back in 1971 in Seattle, Washington. Initially, Jerry Baldwin, Zev Siegl and Gordon Bowker sold only coffee beans and coffee making equipment (coffee .org). It wasn’t until the company was sold to its Director of Retail Operations, Howard Schultz, that Starbucks started selling coffee drinks and soon after, Schultz spread the chain of stores throughout the U.S. taking over many small coffee shops in the process (coffee .org) In the 1990’s Starbucks offered stock options to its employees and went public with an IPO which opened the door for higher earnings and more profitability (coffee.org). This analysis will discuss how a single coffee house in 1971 has grown to more than 22,000 stores in 66 countries in 2016. Starbucks’ goals, market strategies, revenue and financial outlook will be discussed. Strategies and Operating Characteristics According to the Global Responsibility Report (2015), Starbucks vision for the future and what will have the greatest potential for impact include working with farmers for ethically sourced coffee beans, pioneering sustainability economically, socially, and environmentally, and creating career opportunities for young people (2015). Starbucks Newsroom reported on March 18, 2015 that their seven strategies would grow market capital to $100 billion (2015). Revenues are currently at $16.4 billion and the U.S. comp growth...
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...ANALYSIS OF STARBUCKS CASE Laurent Werro, Nikola Volchkov, Yuki Toyoshima, Jérôme Jayet Starbucks is a company that was founded in 1971 in Seattle by Gerald Baldwin, Gordon Bowker and Ziev Siegl. It is a specialized coffee roaster and distributor. The Company now operates in four areas: Americas which includes the US, Canada, and Latin America; Europe, Middle East, and Africa (EMEA); China/Asia Pacific (CAP). (1) GROWTH AND SUCCESS FACTORS Starbucks pays attention to product quality and shop atmosphere. They brought back the trend of coffee drinking and they also created a social trend. People come to Starbucks for different reasons but most important for high quality coffee. The comfortable atmosphere while drinking a high quality coffee created a gathered spot for customers where they enjoyed meeting a friend, read a book or work. All these factors created a unique "Starbucks experience". By doing so they earned the customers loyalty, some of them were visiting bars up to 18 times a month (2). They also created a partnership with the coffee growers and worked directly with them to ensure the highest quality of their products. Starbucks international rapid expansion is due to joint ventures with local partners and licensing agreements. Starbucks decided to set some criteria to their partners in order to keep the Starbucks experience across the globe. “Starbucks brand is built on passion and you can easily feel the passion of our partners in any of our international stores”...
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...Starbucks Coffee Company Background The first Starbucks opened in 1971 in Seattle's Historic Pike Place Market and it was belong to English teacher Jerry Baldwin, history teacher Zew Siegl, and writer Gordon Bowker. At first, they sell high-quality coffee beans and equipment. In 1982, the founders were joined by an entrepreneur named Howard Shultz who functioned as the firm's Director of Retail Operations and Marketing (Facts about Starbucks Coffee Company). While Howard Shultz on a trip to Italy, he found Italian "coffee culture". He believed the "coffee culture" could be reproduction in United States. In 1987, Shultz bring Italian “coffee culture” to United States. Starbucks was sweeping the whole of world. Until today, Starbucks have 17003 retail stores in 55 countries (Starbucks story as of October 2, 2011). Starbucks always give us promise- to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time (Facts about Starbucks Coffee Company). Starbucks coffee shops sales coffee; handcrafted beverages; merchandise; fresh food; consumer products; and brand portfolio ((Facts about Starbucks Coffee Company). Outline In the following instructing，it will talk about Starbucks quantity. Firstly, use the product life cycle to identify the product have the curve of the lifetime. Use product development, introduction, growth, maturity, and decline this five stage to make sure what stage the product in. Make sure have new product could replace it. Secondly...
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...person, one cup and one neighborhood at a time” 1, Starbucks is the world’s largest specialty coffee retailer. The company has more than 17,000 coffee shops in 50 countries 1, and offers a diverse product mix of premium coffee, handcrafted beverages, merchandise and fresh food. To achieve its market leader position, Starbucks has instituted the following strategies: Operations In 2012, Starbucks invested $25 million in mobile payments company Square and granted the company the exclusive rights to process credit and debit transactions at its retail locations. 2 This investment allowed Starbucks to reduce the fees charged for mobile network transactions.2 Starbucks has been expanding into other product areas through its acquisition of Evolution fresh juices, Refreshers energy drinks and the La Boulange bakery brand. 4 Of the more than 17,000 locations, Starbucks operates over 9,000 in approximately 10 countries, while licensing and franchising the balance worldwide.2 Most corporate owned stores are located in the United States. 2 Starbucks recently established regional presidents for the Americas, Asia, Europe, the Middle East, and Africa, effectively transitioning the company from a functional to a regional structure.3 With each regional president empowered to act as CEO of their respective region 3, the structure allows for the management of heterogeneous markets locally by a team with knowledge of the market. Starbucks has made efforts to increase engagement among staff...
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...| Introduction of Starbucks | 3 | 3.0 | Introduction of PEST analysis | 4 – 6 | | 3.1 Political-legal forces | | | 3.2 Economic forces | | | 3.3 Socio-cultural forces | | | 3.4 Technological forces | | 4.0 | PEST components of Starbucks | 7 – 8 | | 4.1 Political-legal component | | | 4.2 Economic component | | | 4.3 Socio-cultural component | | | 4.4 Technological component | | 5.0 | Conclusion | 9 | 6.0 | References | 10 – 11 | 7.0 | Appendixes | 12 | 1.0 Introduction First of all, I would like to thank my lecturer, Miss Kanchini who is providing adequate information about the task which given in this Business Management assignment. For a business to be succeed in the market, each of the business need to analyze their surrounding environment for the purpose of increasing their revenue and to be stayed longer in that particular market. There having two types of environment to be analyzed which are internal and external environment. Internal environment of a business is indicating the strengths and weaknesses of a business that must be identified to do some changes on weaknesses and strengthen the strengths owned. For the external environments which influence the long run decisions of an organization also needed to be analyzed especially for the bigger company so that the business will last longer in the market. There are several types of external environment such as PEST, PESTLE, and STEEPLE analysis. (Wheelen & Hunger...
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...24/05/2010 | | | | “Making your organisation fit for purpose” Starbucks Coffe Company is the world leading brand in roasting and distributing coffee. The company owns now more than 15 000 coffee shops around the globe: it is settled in North America, Latin America, Europe, Middle-East and Asia. The diversity and depth of its offer (from smooth to extra roasted coffee, African, Arabian or Latin, and all the muffins, cookies and sandwiches) allow them to count on an international exposure that has last for many years. Still, their business tends to be flattening. And the number of competitors in their core-business market, even if the competition stays way back them, is growing constantly. Considering these facts, the objective of Starbucks is to strengthen its leadership on the market. We were then approached by Starbucks in this particular goal. In this folder, you will find an entire analysis of the external environment of Starbucks Coffee Company: the macro-environment, the competitors and market and the stakeholders’ expectations will lead to being aware of opportunities and threats. Then, we went on the study of the internal capabilities: the resources and competences, the sustained competitive advantage and the diagnosis of strategic capability that will permit us to define Starbucks’ strengths and weaknesses. [Thus, owing to the results obtained, we endeavour to recommend Starbucks some new and relevant elements for the future strategic direction of the...
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...Chelsi Fry I. Strategic Profile and Case Analysis PurposeIt is believed that Starbucks is not meeting our customers’ expectations in the area of customer satisfaction. It seems that some of the main concerns with customer satisfaction is improvements to our service and speed-of-service. When customers were asked the question, “Starbucks cares primarily about making money”, the answer “yes” went from 53% in 2000 to 61% in 2001. It became apparent that maybe we aren’t focusing on the right things if our customers believe we are only about making money. We’ve lost the connection between satisfying our customers and growing the business. | II. Situation Analysis - There are four types of individual analysis that must be conducted before any strategy can be considered for combating lower customer satisfaction rates. Furthermore, an analysis of these aspects may reveal a different strategic direction that should be taken. The four areas that will be analyzed to complete the situation analysis are the general environment, the competitive environment, an internal analysis, and an industry analysis. | General environmental analysisIs the company’s general demographics shifting? Starbucks’ market research team discovered that our customer base was evolving. There have been newer customers that are younger, less educated, and in a lower income bracket than most of our usual customers. However, our affluent, well-educated, white collar female between the ages of...
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...Starbucks: Case Analysis | An in depth analysis of The Starbucks Corporation | Prestige Worldwide | Executive Summary Starbucks Corporation has been brewing and selling specialty coffee, espresso based drinks, and other novelty items since there conception in 1971. CEO and President, Howard Shultz, has been leading and driving Starbucks to be the world’s best coffeehouse since he joined the company in 1982 as a director of retail and marketing. After becoming CEO in 1987, Shultz has driven Starbucks to be a tycoon in the specialty coffee industry with a large competitive advantage. Some of the problems that face Starbucks are their limited product line, highly priced menu, and speed of service. Also Starbucks had expanded globally an in the United States over the past years but has been forced to close down a large number of stores due to the lack of demand for specialty coffee in certain places. Companies like Dunkin Donuts and McDonalds also offer a larger variety of food at a lot cheaper of a price compared to Starbucks. All of these factors together can be harmful to the future of Starbucks if nothing is done about it. Starbucks has time and the power to take this information and implement successful strategies to reverse these paths they are heading down. First by implementing a value menu Starbucks can gain back the people that do not want to spend too much money on their morning cup of coffee. McDonalds stated “4 dollars for a cup of coffee is dumb” and...
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...Starbucks a Strategic Analysis Past Decisions and Future Options 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...
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...Starbucks Business Analysis . Abstract Starbucks went from just a hole in a wall shop to a world known company and culture. One would wonder how it occurred, if it was over night, and most importantly the business aspect sustaining a successful international business. At the end of the day Starbucks Co. is well known for their market in gourmet coffee. On the other hand, the market has plenty of competitors in coffee, but what makes Starbucks the number one specialty coffee retailer? The answer lies in every compartment that makes Starbucks Co. what it is. From the 87,000 possible drink combinations, to the provided healthcare insurance offered to employees including part-time. Starbucks is a force to be reckoned with, business aspect of their strengths, weaknesses and all in between is worth analyzing. Starbucks Corporation Business Description Starbucks is currently operating in 65 countries specializing in high quality coffee, tea, fresh food, and branded items. In whole the Starbucks Coffee brand is sold with a license and trademarks through other channels such as licensed stores, grocery, and national foodservice accounts (Starbucks SWOT analysis 2015, 2015). Starbucks Coffee brand sell goods and services under the following brands” Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos (Starbucks SWOT analysis 2015, 2015). Starbucks business objective is to thrive to be a recognized respected brand in the world. Brief History The...
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...PLANET STARBUCKS TABLE OF CONTENTS 1 CONTENTS Background Problem Identification Main Issue Narrow SWOT analysis Functional Area Analysis Alternatives Recommendation Implementation PAGE 2 7 7 8 16 47 53 57 1 PLANET STARBUCKS (A) ‘Group B’ BACKGROUND About Starbucks: Starbucks is one of the finest coffee stores, popular among its customers for its aura with a very comfortable atmosphere to relax and the first rate music it plays. As in the 1990s, it is a store which has been almost everywhere throughout the United States and Canada. Starbucks was founded in Seattle by Gerald Baldwin, Gordon Bowker, and ZievSiegl in 1971. It started its operations as a gourmet coffee bean roaster and distributor. Howard Schultz joined the company as a member of their marketing team in 1982 and urged the partners to consider opening an Espresso bar alongside selling coffee. The company opened its first Espresso bar at its Seattle store. However, the partners didn‘t want to take the idea of expanding its Espresso bar line forward, as to them it resembled stepping into the fast-food business instead of focusing on their own business of roasting and distributing. In 1985, Howard Schultz opened Il Giornale after he left Starbucks. Il Giornale was an espresso bar that sold coffee and assorted coffee beverages made exclusively with Starbucks‘ beans. Two years later, Schultz bought the former Seattle Starbucks company, six stores and roasting plant, for $3.8 million. Schultz now was...
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...STARBUCKS OVERVIEW Starbucks’s is a dominating retailer around the world that provides great quality of coffee and other related products. In addition, Starbucks also wants its customers to enjoy the Starbucks experience, which will build customers’ loyalties as well. For now, Starbucks’ two primary strategies are expanding the global business to increase its market share in the world and boosting its sales in existing stores. Starbucks’s Company strategy is growth-oriented, which is illustrated by its commitment to deliver the best in class financial and operating results whilst investing in future growth. They have done this by building new stores across the country and expanding into international markets such as Africa, Asia, Middle East, and Europe. This qualifies them as focusing on international investments as well as in the US. This can be seen in their detailed financial data of the third quarter fiscal 2015 earnings report where Starbucks had a 4% increase in global transactions serving an additional 23 million customer just in the third quarter of this year over the past year. They have achieved this by renovating existing stores and deploying new technologies. STARBUCKS INCOME STATEMENT STARBUCKS Balance Sheet 2 Starbucks has a particularly good reputation as a corporate citizen and has earned its reputation by Ethical sourcing. Starbucks wants to pioneer a new approach to ethical sourcing by investing in coffee farmers and their Communities. They...
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...Introduction Starbucks is a famous coffeehouse. Until the mid-1980s it was only a provider of coffee to fine restaurants. Thereafter Howard Schultz, director of retail operations and marketing, was impressed of the popularity of coffee in Milan while he was in Europe . His idea was born. He wanted to bring the coffee bar culture to the Americans. So Starbucks started to realise his idea and so created a new trend. The clue is not only to sell coffee, but to sell an experience. Today Starbucks has got about 20 million customers each week in about 5500 coffeehouses all over the world . While haunting to increase sales more and more, Starbucks has got a special growth strategy. They open a lot of stores in a very short period of time, expanding numerous food offerings and also getting into new segments, for example supermarkets. They develop new products like bottled coffee or Starbucks-flavoured ice cream. In addition to that, Starbucks tests new coffeehouse concepts, for example with live music. Since a few years, Starbucks opens more and more stores outside America. The important question is, if Starbucks’ growth rate will continue within next years because on the one hand critics say that Starbucks grows too fast and is loosing the focus while on the other hand some critics compare Starbucks’ coffee with Mc Donald’s´ hamburger and believe that they will grow up more and more as the dominant player on this market . With the help of the SWOT analysis and the BCG matrix...
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...Customer Analysis Income Medium income: Considering the high quality of Starbucks coffee, they can’t just sell it for the cheapest price. The price of a cup of coffee from Starbucks is affordable for people with medium income. People with high income is partly included as focused customers of Starbucks, but those with high incomes are likely to find other places with the money they have. Thus, people with medium income, those who think the coffee is affordable, are the main customers. Occupation: Students: Especially university students come to Starbucks during their breaks, after school or for projects. As Starbucks serves customers with free wifi connection and a gathering place, it is a perfect place for university students. They can spend their spare time hanging out with their friends. Also, it can be a place for students to conduct group projects. White collar: They are the people who have enough money to buy the coffee. People working as white collars are the ones who can afford for a cup of coffee in Starbucks. These customers come before work in the morning, during lunch breaks or have short meetings in Starbucks. These people enjoy other things more than just coffee. Age: Men and women aged 20-40 account for about 49% of Starbucks’ total business. Also, Starbucks’ 40% of sales are by young adults who are aged 18 to 24. This is due to the fact that Starbucks positions itself as a place for university students to hang out, study and writing term...
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