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Case #5 Starbucks – Raw material to end user value chain analysis
Construct a raw material to end user diagram showing Starbucks participation at various stages of the value chain as you analyze their business.

Farmer collector to the miller to the exporter to the importer specialty coffee seller

Beans Roasting – managing temperature , roast coffee along different roast curves built into proprietary computer software * Air-cooling coffee is vacuum-sealed in one way valve bag (ensures freshnes, prevents oxygen to enter
The retail store units, specialty sales and wholes channels, the mail order business and the grocery channel

Coffee mugs, grinders, coffee filters, storage containers,

Doppio – coffee cart

Dreyers’ ice cream
Whole bean
Frappuccino

Mail order Encore

KEY CHALLENGE – trying to concretely define its brand image
Competition exist in local markets despite the fact tht their national brand image is so much stronger – need to take advantage of their national presence – compete on their own brand recognition

Need to leverage their size more – should go into different distribution channels and leveraging the brand is the answer

Current strategic direction would allow it to sustain growth by continuing to develpoemtn of the starbucks brand image and by increasing its presence in different markets—evaluate new popportunities in its domestic and internaitnoal retail markets, new speicalt sales partners- penetrate in the grocery channel and the future portenital of its mail order business

Sugar, cocoa, chocolate liquor, potassium sorbate, vanillin, water, vanilla bean extra, dextrose, natural and articial flavor, caramel color, citric acid, xanthan gum, salt,

Ingredients: sugar, espresso, crème, cocoa, syrup, water, natural and artificial flavor, caramel color,

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