...bought in any coffee shops, cafes, restaurants and even sold by vending machines. Besides that, Singapore is one of the highest coffee-consuming countries in the world which is meant that 4.4kg of coffee per year (280 cups of coffee) (Channel NewsAsia, July 14, 2013). For coffee lovers, Starbucks is a famous name. It is because of the high quality of coffee bean used and the environment that lets customers enjoy the coffee. So, Starbucks is always the first choice of many people. The purpose of this report is to investigate about how Starbucks can expand their market in Singapore. This report will provide the background of the company and country. A SWOT analysis, PEST analysis and Porter’s 5 forces also will be provided in this report. Lastly, this report will give the recommendation and conclusion. 2. Company Background Starbucks is mainly famous for selling coffee, but it also sells other hot and cold beverages, pastries, sandwiches and other snacks. Today, Starbucks is the top largest coffee chain in the world which has more than 19000 branches in more than 60 countries (Hawthorn, October 30, 2013). Singapore is the third international country outside North American to introduce the Starbucks (Our heritage, 2011). 3. Country Background Singapore is a prosperous developing country. It is one of the commercial hubs in the world. Although it is a small country, it has education, healthcare, government transparency and economic competitiveness which are placed with the...
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...Marketing Plan for Starbucks Coffee BMM 364 Assessment-Part A Written by: Tianyi Wang (WAN12383771) Written for: Leo Billington 2012/10/19 * Table of Contents 1.0 Executive Summary 3 2.0 Introduction 4 3.0 Current External Marketing Situation 4 3.1 External/General Environment analysis and Trends 4 1 Demographic Segment 4 2 Economic Segment 5 3 Political/Legal Segment 6 4 Social-Cultural Segment 6 5 Technological Segment 8 3.2 Detailed Market Analysis and Projected Demand 8 1. Market Size 8 2. Market Growth Rate 9 3.3 Industry Analysis Including Porter’s Five Forces 9 1. Threat of New Entrants 9 2. Bargaining Power of Supplies 10 3. Bargaining Power of Customers 10 4. Power of Substitutes 11 5. Intensity of Rivalry 11 3.4 Competitors Analysis 11 4.0 Current Internal Analysis 12 4.1 SWOT of the Business and the Product/Service 12 1. Strengths 12 2. Weaknesses 13 3. Opportunities 13 4. Threats 14 4.2 Issues and Risk Analysis 14 1. Strategic Risk 15 2. Operational Risk 15 3. Political Risk 15 4. Country Risk 15 5. Technological Risk 16 6 Environmental Risk 16 4.3 Ethical and Corporate Socially Responsible Behavior 16 5.0 Identify a Commercially Viable Market Opportunity 17 5.1 Market Opportunity Including Potential Segments of the Market and Justification 17 5.2 Define the Value Provided 17 5.3 Positioning statement 18 6.0 Marketing Plan Objectives 19 7.0 Conclusion...
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...School of Business A350A0050 Business Research Methods Case Starbucks stock value 2006-2010 ”Fall and rise” Contents Introduction 3 Theoretical framework 5 SWOT 5 Strategic Formulation 6 Porters 5 forces model 8 Problem analysis – Case Starbucks 9 Factors leading to the decline in stock price between 2006-2009 9 Starbucks analysis using the 5 forces model 10 Rivalry among existing competitors 10 Threat of substitution 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...
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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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...Seguir, Ervin Francis B.MKAC 401 STEP Analysis: Starbucks STEP Positive Negative Socio-Cultural Forces: 1. Consumer Preferences 2. Filipinos love to follow the trend 3. People Love to Socialize 4. Some people are conscious about their health 5. People want a better working environment • It serves as an opportunity for Starbucks to diversify its products. One of the things the company does is by letting costumers customize their own beverage in order to meet their preferences. • One example of a trend is the demand for planners during Holiday seasons. People go to Starbucks to buy their products and collect stickers in order to get a planner. This influences more and more people to do the same just to follow this trend. This causes Starbucks to raise revenues and provide quality service to its customers. • This is positive because Starbucks does not just sell coffee, but also to provide an environment where people can meet with their friends and family. • This gives Starbucks an opportunity to decide on new products as a large number of customers are looking for healthy alternatives for cakes and other pastries, which have an association with coffee. • People want to find alternative places to perform their work, conduct meetings and other business endeavors. Starbucks’ stores are designed for a better and a more relaxing working environment so that people may work and...
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...Strategic Planning of Starbucks (Past Decisions, Current situation and Future Options) [pic] Student ID number: F1005899 Full name: Namrataben Govindbhai Panchasara Intake and group number: 8 Module Name: Strategic Planning Assignment Type: Individual Assignment Date: 04/11/2011 Executive Summery This report aims to 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 ...
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...Report to: Starbucks Corporation Abstract In this essay, an analysis will be provided to show the relative importance of each of the Porter’s Five Forces for the strategic position of Starbucks - an American global coffee company, in its coffee house industry compared to that of Costa Coffee and Café Nero Introduction Starbucks as a global coffee company has strong position in its industry, there are however variable external factors like environment, technical and economic changes which affect the strategic position of Starbucks. Data is collected and presented in the following paragraphs based on the model of Porter’s Five Forces. 1. Intensity of competitive rivalry Table 1 Company 2011 Sales (million) Starbucks £398 Costa £377 Café Nero £436 BBC News (2011) The intensity of competitive rivalry is high in the coffeehouse market. In the UK, Costa and Café Nero not only suit better the tastes of local UK people, but also have the financial resources and position to leverage their strengths to threaten Starbucks. From the Allegra Strategies Project Cafe UK report, Nero is the dominant player in the UK market among the top coffee shops in UK and enjoys the highest sales volume. (see table 1) Despite Starbucks’ as an iconic global brand, there is a slowdown in its expansion. (Bakery Info, 2009) There is also little scope for product differentiation of coffee, retailers focus on boosting spending of customers by offering food alongside drinks. Starbucks targets...
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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 – Strategy of a global brand * Table of Contents 1 Preface 2 2 The McKinsey-7S-Model 2 2.1 Strategy 3 2.2 Structure 3 2.3 System 3 2.4 Skills 4 2.5 Shared Values 4 2.6 Staff 5 2.7 Style 5 3 The Five Forces Model 5 3.1 Bargaining power of buyers 6 3.2 Bargaining power of suppliers 6 3.3 Threat of new entrants 7 3.4 Threat of Substitute products 7 3.5 Rivalry among competing firms 7 4 PEST Analysis 8 4.1 Political Influences 8 4.2 Economic Influences 8 4.3 Social Influences 8 4.4 Technological Influences 9 5 SWOT Analysis 9 5.1 Strengths 9 5.2 Weaknesses 10 5.3 Opportunities 10 5.4 Threats 10 6 Entry Strategies for new markets 11 6.1 Establishing a subsidiary 11 6.2 Arrange joint ventures 11 6.3 Licensing 11 7 Conclusion 12 8 Reference List 13 Preface The following analysis of Starbucks will focus on how internal as well as external factors influence this company. Internal factors will be highlighted by the McKinsey-7S-Model. External analysis will conclude Porter’s Five Forces model to outline the threats Starbucks faces in its industry. The SWOT Analysis will show Strengths, Weaknesses, Opportunities, and Threats to Starbucks business model. Furthermore the PEST Analysis will give explanation how external factors influence the company. Finally this paper will outline what strategies Starbucks uses to penetrate markets in new countries. The McKinsey-7S-Model Because...
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...Abiola Idowu Ashford University BUS640 Operations Management September 26, 2011 Introduction: Porter’s model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment, especially competitive strategy should be based on the understanding of an industry’s structure and the way they change. Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porter’s model supports the analysis of the driving forces in an industry. Based on the information derived from the five forces analysis, management can decide how to influence or to exploit particular characteristics of their industry. The five competitive forces are typically described as follows: bargaining power of suppliers, the term 'suppliers' comprises of all sources for inputs that are needed in order to provide goods or services, supplier bargaining power is likely to be high when the market is dominated by a few large suppliers rather than a fragmented source of supply, there are no substitutes for the particular input, the suppliers, customers are fragmented so their bargaining power is low, the switching costs from one supplier to another are high there is the...
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...MARKETING STRATEGY IN ACTION STARBUCKS – 2006 Starbucks represents something beyond a cup of coffee. Howard Schultz NAME: Krishneel Krishna Reddy STUDENT ID: s11058534 UNIT: MG410 – Consumer Behaviour SEMESTER: Semester 2, 2014 Introduction and Overview Starbucks is undoubtedly the No. 1 brand coffeehouse chain in the world. Starbucks is an American company which was founded at Pike Place market in Seattle on March 30th, 1971. The founders of this coffee giant were Jerry Baldwin, Gordon Bowker and Zev Siegel. From humble beginnings in 1971 Starbucks today has 20,519 stores (as of March 30th, 2014) in over 65 countries. Starbucks this year has opened stores in Brunei and Columbia which just goes to show the massive reach of this coffeehouse chain. The mission of Starbucks is to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time [1]. Starbucks turned into a public company on June 26th, 1992 at a price of $17 per share and at the closing of the first day share prices rose to $21.50 per share. Starbucks is listed on NASDAQ, under the trading symbol of SBUX. From being a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in 1971, today Starbucks boasts more than 30 blend and single – origin premium coffees, handcrafted beverages (such as Frappuccino and Fresh food (such as baked pastries, salads etc). Starbucks brand portfolio includes Starbucks coffee, Seattle’s best coffee, Teavana...
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...Starbucks a Strategic Analysis Past Decisions and Future Options 4/17/2008 Brown University Economics Department Ryan C. Larson 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 .........................................
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...STARBUCKS STARBUCKS, One of the most well known and leading coffee supplier around the world. Starbucks began its business in 1971. Before that they are a roaster and retail seller of whole bean and ground coffee, tea. They have only one store at that moment which is located in Seattle's pike place market. At present starbucks serves millions of customers walking into their stores every day. The stores are presently in 17,000 locations in 50 countries (STARBUCKS 2013). Starbucks has revolutionised after HOWARD SCHULTZ became the director of retail operations. (Strategic development of starbucks) MISSION STATEMENT: "TO INSPIRE AND NURTURE THE HUMAN SPIRIT- ONE PERSON, ONE CUP AND ONE NEIGHBOUR AT A TIME". (Our starbucks mission statement 2013) STARBUCKS mission statement clearly depicts that they are not only giving importance of coffee, also to bestow the customer with rich experience. To enact these principles, Starbucks does everything in order to accomplish their aims and objectives. Starbucks treats their employees in prominent manner and respects them in each and every aspect. Starbucks always believes that they serve the customer with the best coffee possible. Starbucks does everything in a perfect and particular genre like buying coffee beans. They buy coffee beans by travelling personally to coffee farms in Latin America, Africa and Asia. After careful consideration and selecting the beans, the beans are then transported...
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...Roshan Thapa MGT 495-02 Starbucks Background/Problem statement Starbucks Corporation, an American company was founded in Seattle, WA. Starbucks is a premier roaster, marketer and retailer of specialty coffee around world. Starbucks has about 200,000 employees across 17,000 Starbucks –branded cafes in 40 countries. Starbucks had total revenue of $14.89 billion as of September 2013. The strategic issue of Starbucks is to attempts for massive expansion and creating a new value innovation. Porter’s Five Forces Model 1. Rivalry (High) * Many competitors in the market. * Saturated market as it is in maturity phase of life cycle. 2. Risk of Entry (Low) * High experience and scale needed. * Only few competitors have met economies of scale and operational efficiencies 3. Threats of substitutes (High) * Low switching cost. * Can be easily replaced by energy drinks. 4. Bargaining power of suppliers (Moderate) * Large percentage of any individual supplier’s sales. * Large number of alternative sources in market. 5. Bargaining powers of buyers (High) * There are not as many suppliers of equipment’s such as coffee machines as there are for coffee beans. * Low switching cost for buyers. Integration From the Porter’s Five Force it is clear that energy drinks can easily replace Starbucks, therefore Starbucks should build up the growth opportunities in products such as Tea, Fresh Juice, and energy drinks along the same...
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...Table of Contents No. | Topic | Page | 1.0 | Introduction | 2 | 2.0 | 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...
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