...Identify the Resources, Capabilities and Distinctive Competencies of Starbucks. The resource and capabilities of Starbucks can be identify and separate to tangible and intangible resource. 2 kinds of tangible resource can be analysis as below : A ) Manpower : Base on the rapidly expanded since 1990s until now, Starbucks was accumulated thousands of well-trained employee. From level of direct counter service staff, baristas until managerial level, they are a very strong resource team owned by Starbucks. Especially their existing CEO Howard Schultz, he is one of the most successful CEO in the worldwide, was create a new coffeehouse format and implement for whole Starbucks retail store, and finally got a astounding performance and rapidly expanding for Starbucks retail store in United States and worldwide. B) Retail Store : Since 1990s , Starbucks was rapidly expanding and built up a enormous amount of retail store in the worldwide. In the same time, base on their sophisticated location strategy, many premium locations was occupied by their retail stores. The location strategic for retail store become their another main asset and resource to continue expanding, or at least maintain a leading position in coffeehouse market. For intangible resource and capabilities portion, the continuous growth for brand equity is Starbucks’s one of the most valuable resource and capabilities while facing many imitators appear in the coffeehouse market. The unique Starbucks Experience concept...
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...Mohamed Kaba 15/01/2013 THE IMPACT OF CRISIS IN EUROPE ON BUSINESS ORGANISATIONS A crisis could be defined as anything that knows a decline during a long or short period. In here we are meaning a decrease in the economic and financial activity of a country. An economic crisis could be first caused by subprime banking. For example, in authors view, the financial crisis (2008) was primarily driven by two factors. First, investor‘s and financial institutions generally did not expect that real estate prices would fall dramatically. This dramatic fall in real estate prices led to large defaults on sub-prime mortgages and large falls in value in securitizations of subprime mortgages. The second factor is that many financial institutions were operating with extremely high levels of leverage and held large investments in subprime securitization, so that significant unexpected losses on these investments could quickly lead market participants to question their solvency, which led to cash hoarding by these institutions, to fire sales of assets to bring about decrease in leverage and to a contraction in their willingness to lend which has affected the economic growth then. Political reasons are also factor of crisis. For example the rejection...
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...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 for competitors to imitate. For example, Microsoft has expertise in many IT-based innovations and technologies. Customers perceive many benefits in relation to Microsoft's products. For a variety of reasons including unique skills, it is difficult for competitors to imitate Microsoft's core competences. When trying to identify a core competence, it is often...
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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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...Case Assignment Starbucks Submitted to Tahmina Akhter Lecturer Department of Finance University of Dhaka Sl. No | Name | ID | 01. | Farzana Nasreen | 15-004 | 02. | Sumaiya Akter | 15-018 | 03. | Pramita Saha | 15-030 | 04. | Mohammad Nayem Uddin | 15-086 | 05. | Fahmina Tasmin Munia | 15-144 | 06. | Md. Musfiqul Islam | 15-136 | Course: Strategic Management & Ethics (F-410) Date of Submission: 16 September, 2012 Summary Starbucks, the ubiquitous coffee retailer earned high profit and is forecasted to grow. The resources and capabilities that have provided Starbuck distinctive competencies are its unique business model of making the store as a third place between home and work, its ability to own its own stores throughout the world, a strong brand name, decision making based on the ideas provided by employees, for which Starbuck started selling experience through selling ‘third place’, superior customer services, hiring and training process for employees, progressive compensation policy even to the part time employees like stock option plan grants and medical benefits which was unique in the industry, retaining its customer at higher rate. Starbucks’ these distinctive competencies helped it to differentiate its products from those of rivals and thus achieve higher profitability. 1. Identify the resources, capabilities, and distinctive competencies of Starbucks. Ans: Resources refer to assets of a company. Assets can be of two kinds- tangible and intangible...
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...STARBUCKS In 2006, Starbucks, the ubiquitous coffee retailer, closed a decade of astounding financial performance. Sales had increased from $697 million to $7.8 billion and net profits from 436 million to $540 million. In 2006, Starbucks was earning a ROI of 25.5% which was impressive by any measure, and the company was forecasted to continue growing earnings and maintain high profits through the end of the decade. How did this come about? Thirty years ago, Starbucks was a single store in Seattle’s Pike Place Market selling premium roasted coffee. Today, it is a global roaster and retailer of coffee with more than 12000 retail stores, some 3000 of which are to be found in 40 countries outside the US. Starbucks Corporation set out on its current course in the 1980s when the company’s director of marketing, Howard Schultz, came back from a trip to Italy enchanted with the Italian coffeehouse experience. Schultz, who later became CEO , persuaded the company’s owne, teas r’s owners to experiment with the coffeehouse format – and the Starbucks experience was born. Schultz’s basic insight was that people lacked a “third place” between home and work where they could have their own personal time out, meet friends, relax and have a sense of gathering. The business model evolved out of this was to sell the company’s own premium roasted coffee, along with freshly brewed espresso style coffee beverages, a variety of pastries, coffee accessories, teas and other products, in a coffeehouse settings...
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...VIEWPOINT Core Competence, Distinctive Competence, and Competitive Advantage: What Is the Difference? ANN MOONEY STEVENS INSTITUTE OF TECHNOLOGY HOBOKEN, NEW JERSEY ABSTRACT. Core competence, distinctive competence, and competitive advantage ABSTRACT. are 3 of the most important business concepts that managers, researchers, and educators rely on for decision making, pedagogy, and research. However, little attention has been paid to defining these concepts. As a result, they have become buzzwords that are used so frequently that their meanings are often taken for granted but are not fully understood. In this article, the author reviews the evolution of these concepts in business literature and provides comprehensive definitions, conceptual models, and examples to help clarify and distinguish the concepts so that failures of communication can be avoided. Keywords: competencies, competitive advantage, strategy Copyright © 2007 Heldref Publications 110 Journal of Education for Business S R ince its genesis in the mid-20th century, the study of business disciplines has become an established academic discipline. The proliferation of business curricula, journals, and academic and professional associations is evidence of a dramatic growth in business education. Although the growth has improved the understanding of business and informed business practices, with growth comes various problems. For example, business practitioners, researchers...
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...chapter 4 Closing Case: Starbucks In 2006, Starbucks’, the ubiquitous coffee retailer, closed a decade of astounding financial performance. Sales had increased from $697 million to $7.8 billion and net profits from $36 million to $540 million. In 2006, Starbucks’ was earning a return on invested capital of 25.5%, which was impressive by any measure, and the company was forecasted to continue growing earnings and maintain high profits through to the end of the decade. How did this come about? Thirty years ago Starbucks was a single store in Seattle’s Pike Place Market selling premium roasted coffee. Today it is a global roaster and retailer of coffee with more than 12,000 retail stores, some 3,000 of which are to be found in 40 countries outside the United States. Starbucks Corporation set out on its current course in the 1980s when the company’s director of marketing, Howard Schultz, came back from a trip to Italy enchanted with the Italian coffeehouse experience. Schultz, who later became CEO, persuaded the company’s owners to experiment with the coffeehouse format—and the Starbucks experience was born. Schultz’s basic insight was that people lacked a “third place” between home and work where they could have their own personal time out, meet with friends, relax, and have a sense of gathering. The business model that evolved out of this was to sell the company’s own premium roasted coffee, along with freshly brewed espresso-style coffee beverages, a variety of...
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...Chapter 1 - Overview of Marketing Marketing: is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. * Simply stated, Marketing is all about satisfying needs Inertia to Passion- Peoples feelings for a certain brand fall between inertia (people who dont care) to passion(people who care way to much) An example of this people writing reviews that are happy or angry are very passionate Economies of scale- The more we make of an item the lower the cost per item will be Understand Marketing mix (4 P’s)/Marketing mix from customer perspective (4 Cs) * Product- Product variety, quality, design, (feat, brand name, packaging,sizing, services, warranties, returns) * Promotion- Sales promotion(sample displays), advertising, personal selling, public relations(press releases), direct marketing(telemarketing) * Price- List price, discounts, allowances, payment period, credit terms * Place (distribution)- channels, coverage, locations, inventory, transport The Four C’s * Customer Solution (Product) * Cost to Customer (Price) * Communication (Promotion) * Convenience (Place) Exchange: the process by which some transfer of value occurs between a buyer and a seller (trade currency) Needs: the recognition of any difference between a consumer actual state and some ideal or desired state Want: the...
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...Part Market-Driven Strategy 1 Chapter 1 Market-Driven Strategy The market and competitive challenges confronting executives around the world are complex and rapidly changing. Market and industry boundaries are often difficult to define because of the entry of new and unfamiliar forms of competition. Customers’ demands for superior value from the products they purchase are unprecedented, as they become yet more knowledgeable about products (goods and services) and more sophisticated in the judgments they make. External influences from diverse pressure groups and lobbyists have escalated dramatically in country after country. Major change initiatives are under way in industries ranging from aerospace to telecommunications. Innovative business models that question the traditional roles of an industry are defining a new agenda for business and marketing strategy development. Companies are adopting market-driven strategies guided by the logic that all business strategy decisions should start with a clear understanding of markets, customers, and competitors.1 Increasingly it is clear that enhancements in customer value provide a primary route to achieving superior shareholder value.2 Consider, for example, Southwest Airlines’ market-driven strategy that has achieved a strong market position for the U.S. domestic carrier. The airline’s growth and financial performance are impressive. Although Southwest is the fourth largest U.S. airline, its market capitalization is greater...
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...2010; Knight and Howes, 2003; Rasmussen and Nielsen, 2011). The reason is revealed by Migdadi (2009) and Politis (2005), in the new economy, the intangible resource, knowledge has become the foundation of organisational competitiveness compared to tangible assets. In other words, the traditional driving factors of production, including, land, labour and capital have turned into the secondary resources as knowledge become the primary source of power in production within the contemporary economy. The work of Rasmussen and Nielsen (2011) reveal that intangible resource is regarded as a typical feature of knowledge, which can build capabilities for both organisations and individuals, consequently, in this new economy, also can be called knowledge-based economy made knowledge become strategically important to provide sustain competitive advantage for enterprises, especially in high technology and bioengineering sectors (Niu, 2010). Knowledge therefore has emerged as a main source of power as well as core competency in today’s emerging economies. However, new possibilities and threads are constantly taken place to challenge the power of knowledge when organisations are under pressure to operate their business globally. As the result, with rapid and constant changed environment, it is important to developing “dynamic capabilities” (Teece et al., 1997), which means to active and conscious use of knowledge for organisations as they need to survive and succeed (Gao et al., 2008; Gold...
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...2010; Knight and Howes, 2003; Rasmussen and Nielsen, 2011). The reason is revealed by Migdadi (2009) and Politis (2005), in the new economy, the intangible resource, knowledge has become the foundation of organisational competitiveness compared to tangible assets. In other words, the traditional driving factors of production, including, land, labour and capital have turned into the secondary resources as knowledge become the primary source of power in production within the contemporary economy. The work of Rasmussen and Nielsen (2011) reveal that intangible resource is regarded as a typical feature of knowledge, which can build capabilities for both organisations and individuals, consequently, in this new economy, also can be called knowledge-based economy made knowledge become strategically important to provide sustain competitive advantage for enterprises, especially in high technology and bioengineering sectors (Niu, 2010). Knowledge therefore has emerged as a main source of power as well as core competency in today’s emerging economies. However, new possibilities and threads are constantly taken place to challenge the power of knowledge when organisations are under pressure to operate their business globally. As the result, with rapid and constant changed environment, it is important to developing “dynamic capabilities” (Teece et al., 1997), which means to active and conscious use of knowledge for organisations as they need to survive and succeed (Gao et al., 2008; Gold...
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...A Cure Of Growing Pains Costa Coffee Management Essay Nature Of The Change You Are Proposing : Evaluate existing managers against the competencies list. Design a development programme to enable management improve their performance. Brief Reasons For Your Proposal : Design a set of management competencies in order to be a benchmark against the competitor. Measure current managers against competencies order to identify areas of competence deficit. Use result to design a management training programme. Identified To Benefits And Beneficiaries: Organisation provide their employee complete training and development programme. which provide you extra carer designation of choice for the brightest school and university. Customer got benefits by doing business. Employee also beneficiaries to get good wages and also incentives through the organisation. Increasing Market Share. More efficiently manage the organisation. Destination of choice for universe school liver. An Increased motivation of managers through training and qualification. An Increase Leadership quality by Management theories and style. It also increased management skills of employee and the company over all get benefits through the high profits and Market shares. Company Managers got benefits and they have ability to extent their extra carer procreation. Description Of Focus Organisation Size Of The Organisation : Costa Coffee is the first UK coffee shop and almost number one chain to commit sourcing Rainforest...
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...1.)How has McDonald’s concept changed since the 1960s ? What environmental forces were behind these changes? By 1960, the company had more than one hundred restaurants. Kroc and the McDonalds owned some, but most were franchises. In addition to paying a franchise fee and part of their profits, franchisees also paid the company rent on the land where the stores sat. This income eventually earned more money for the McDonald's Corporation than selling food. During the 1960s, McDonald's saw many changes. Kroc became the sole owner in 1961, paying the McDonalds $2.7 million for their share of the business. The same year, the company opened "Hamburger University" at its Oak Brook, Illinois, headquarters to train employees. In 1962, McDonald's golden arches replaced Speedee as the restaurant's main symbol, and ads told customers to "Look for the golden arches." McDONALDS : MACRO ENVIRONMENT Organization’s decision making and performance and strategies are sometimes affected by some external factorsThe most common methods used for macro economic environment analysis is PESTanalysis. PEST anlayis do the environmental analysis from the following points of view:Source: Marketing Model, 2009.: Macro Environment and Marketing Mix3 A. Political factors Political factor mainly refers to government policy. For example, the degree of government’s intervention in an economy is a good example of political factor .According to Oxford University Press political factors mainly deals with...
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...'ve compiled a list below I wanted to share with you. The list includes 11 areas for leaders to focus their employer branding efforts on in 2011 based on some of the workforce changes we have encountered by the introduction of new technologies, global economic instability and the requirements of a modern workforce - one that is agile, adaptable and responsive to a constantly changing and highly competitive landscape. It's great to see many more companies appointing employer brand leaders in 2010 to drive their organisation's employer brand strategy. I expect this trend to continue in 2011. It is only with this focus will we see the continued evolution of the employer brand concept and employment offerings which on the whole, works towards achieving a much better match of the needs of employees with those of business. Here is my top 11 1) Establish a real-time career development for employees Today real-time career development can be facilitated with some imagination, technology devices, innovation and focus. Each morning when I wake up, I grab an expresso, my Ipad and find a quiet spot whether it be on the couch (winter) or on an outside table (summer!) and spend an hour on my own personal and career development. This usually involves: * Checking facebook, twitter and linkedin status updates, making comments and responding to overnight messages * Using the apps previously downloaded from publications such as New York Times, Wall Street Journal, International...
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