...The case of Starbucks Paul G. Patterson *, Jane Scott, Mark D. Uncles School of Marketing, Australian School of Business, University of NSW, Sydney, NSW 2052, Australia a r t i c l e i n f o a b s t r a c t The astounding growth and expansion of Starbucks is outlined, both on a global scale and within Australia. The focus then shifts to the abrupt closure of three-quarters of the Australian stores in mid 2008. Several reasons for these closures are described and examined, including that: Starbucks overestimated their points of differentiation and the perceived value of their supplementary services; their service standards declined; they ignored some golden rules of international marketing; they expanded too quickly and forced themselves upon an unwilling public; they entered late into a highly competitive market; they failed to communicate the brand; and their business model was unsustainable. Key lessons that may go beyond the specifics of the Starbucks case are the importance of: undertaking market research and taking note of it; thinking globally but acting locally; establishing a differential advantage and then striving to sustain it; not losing sight of what makes a brand successful in the first place; and the necessity of having a sustainable business model. Ó 2009 Australian and New Zealand Marketing Academy. Published by Elsevier Ltd. All rights reserved. Keywords: Service brands Service quality Global branding International business Starbucks Coffee 1...
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...Starbucks Shared Planet - Our Responsibility MY CUSTOMIZED REPORT CREATED AT WWW.STARBUCKS.COM/SHAREDPLANET ©2009 Starbucks Coffee Company. All rights reserved. https://test.starbucks.com/SHAREDPLANET/customGRPage.aspx (1 of 108)6/1/2010 2:23:02 PM Starbucks Shared Planet - Our Responsibility Mission Statement Our Starbucks Mission To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. Here are the principles of how we live that every day Our Coffee It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. Our Customers When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers— even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. Our Stores When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment...
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...RUNNING HEAD: Strategic Plan I Strategic Plan, Part I: Conceptualizing a Business University of Phoenix December 13, 2011 In today’s world a lot of things are a necessity, there is no question that coffee shops are very popular. Most people enjoy a fresh brew of coffee in the morning, whereas, others like to have during lunch or dinner. Either way people are fond of coffee shops. People like to sip on coffee or tea while enduring a sociable conversation with family and friends. Also most students meet with their classmates at coffee shops to brainstorm to solve homework problems and to bring new ideas to the table. For many, coffee shops are a place to relax, letting go of the stress endured during work hours. In this paper an analysis of Brew House’s strategic plan will be explained. A description of Brew House’s mission, values, and vision will be determined. The products or services, and customers will also be defined. Brew House Brew House is a coffee shop opening in downtown Houston, on Main Street. The coffee shop is on a well-known trafficked street. Brew House is surrounded by upscale housing lofts, office businesses, hotels, bars, and metro rail to capture the attention of constructor workers, businessmen, bus riders, and students of University of Houston. Mission Brew House’s mission is to provide its targeted consumers with a fresh hot cup of gourmet coffee before, during, or after work...
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...Starbucks Coffee Brand Audit Simon Mc Nally Simon Mc Nally Table of Contents Starbucks Brand Audit May 10th 2010 Company Analysis ..................................................................................................................................3 Market Analysis ......................................................................................................................................3 Brand Analysis ........................................................................................................................................4 Consumer Analysis .................................................................................................................................5 Competitor Analysis...............................................................................................................................6 Strategy .....................................................................................................................................................7 Key Fact .............................................................................................................................................................. 7 Target Group ..................................................................................................................................................... 7 Proposition...............
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...ΔΙΟΙΚΗΤΙΚΗ ΠΕΡΙΛΗΨΗ Στην παρούσα εργασία γίνεται ένας κριτικός σχολιαμός για τη διεθνή αλυσίδα Starbucks. Για το σκοπό αυτό θα γίνει μια σύντομη παρουσίαση της επιχείρησης, της θέσης της στην αγορά και των δραστηριοτήτων της. Έπειτα θα αναλυθεί το κλαδικό πλαίσιο μέσα στο οποίο λειτουργεί, αναλύοντας τόσο εσωτερικά όσο και εξωτερικά στοιχεία αυτού, θα ακολουθήσει η ανάοτυκη κάποιων βασικών στρατηγικών θεμάτων, συμπεριλαμβανομένης της αποδοτικότητας του έτους 2009 και των επιλογών ανάπτυξης της εταιρίας. Τέλος, βάσει των στοιχείων που θα αναλυθούν και της γενικότερης γνώσης, παρουσιάζονται ορισμένες προτάσεις σχετικά με το μέλλον των Starbucks και της ανάπτυξης αυτών ΠΕΡΙΕΧΟΜΕΝΑ 1.Επιχείρηση..............................................................................................................................2 θέση στην αγορά διαχρονική εξέλιξη πόρων / πωλήσεων χαρτοφυλάκιο δραστηριοτήτων βάσεις συγκριτικού πλεονεκτήματος χρημ. δεδομένα θετικά / αρνητικά στοιχεία 2.Το κλαδικό πλαίσιο..................................................................................................................4 Η αγορά / ιδιαιτερότητες διεθνοποίηση ευκαιρίες,απειλές,τάσεις 3.Βασικά στρατηγικά θέματα......................................................................................................6 στόχοι επιλογές ανάπτυξης αποδοτικότητα 2009 καθορισμός μελλοντικής στρατηγικής 4. Προτάσεις........................................................
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...Final Project: Company Analysis Company: Starbucks Corporation Critical Thinking Question: Can Starbucks meet its projected ultimate growth? Bruce Harris BMGT 327-01 Organizational Theory and Behavior Dr. Susan Eisner Winter 2005 Semester Tuesday January 25, 2005 To: Professor S. Eisner From: Bruce Harris Date: Tuesday, January 25, 2005 Re: Final Project (Option 2) – Company Analysis – Starbucks Corp. Introduction: Starbucks Corp. has had a substantial impact on the way Americans socialize, relax, reward themselves, and meet to conduct business. This effect and the efficiency with which it was accomplished reflect the high performance of the company. With annual revenue growth consistently topping 20%, it is quite clear that the company is doing something right. This memo will examine 3 concepts that have impacted the company’s high performance. It will then evaluate and discuss a critical question about the future performance of Starbucks. Relationship of topic to this course – 3 course terms relevant to company’s performance: 1. Employee involvement is characterized by decision-making power delegated to employees at all levels within a company. A high level of employee involvement is termed “empowerment,” and is present when employees are given the latitude to make decisions that affect them and their work. Studies have found that empowerment has a substantial positive impact on productivity and worker satisfaction. 2. Social Responsibility refers to the obligation...
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...Executive Summary Starbucks PROC 5850 Procurement / Logistics Executive Summary DRAFT 1 Introduction Starbucks began in Seattle Washington in 1971. Today, in 2012 there are 17,000 stores in 55 Countries and their mantra is Ethical Sourcing. Ethical Sourcing includes Coffee Farm Support, Tea, and Cocoa and Store products. There store product include beverages, pastries, whole coffee beans, and coffee-related retail items. These are considered “specialty items” (Store Products). Overarching responsibility includes Community, Ethical Sourcing, Environment, Diversity and Wellness. Global Responsibility includes an “All Hands” year in review on-line. Ethical Sourcing includes Coffee, Tea and Farmer support. Cost Sharing (Operations), provides discounts on wholesale prices. Contracts Starbucks Ethical practices when sourcing: Starbucks uses long-term contacts providing teaching and support to the farmers for the best quality organic beans. These agreements are usually fixed commitment; mixed long-term and flexible contacts for one time harvesting -- overages of beans are purchased from a farmer to avoid the bull-whip effect. (e.g., floods, freezes, drought or other catastrophic events). The farmers store the beans. Global Responsibility includes ethical sourcing of coffee, Tea and Farmer support. Environment stewardship means to recycle everything by establishing wells for farmers, and providing or conserving energy as needed; including...
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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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...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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...Abstract In this paper there will be a discussion concerning the problems that the Starbucks Coffee Company has had to deal with when they expanded their business operations to different parts of the world. Because of the cultural differences both from within the company and the customers there were various issues that had to be dealt with before the company could successfully manage the coffee shops internationally. There will also be a brief discussion about why some people do not acknowledge other people’s cultural differences and how this could effect someone’s’ ability to effectively communicate with other people when dealing with a multinational corporation such as Starbucks Starbuck’s worldwide corporate agenda is to be known as the leader in coffee selling and to be the number one name for coffee in all of their targeted expansion goals. They have a plan to do this by selling only quality coffee and other premium goods and service (Benzaken, 2007) Today Starbucks is a household name globally, but it has not always been that way they had some initial problems when they first started to go global, as many companies have experienced. Starbucks went into a joint venture with Japan and later they extended their business into Europe and then eventually into the Middle East (Benzaken, 2007). The socio economical atmosphere in the coffee business is a lot different in other countries for instance; the coffee consumption tendencies are so dissimilar...
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...Analysis for Starbucks Coffee Company Political: •High taxation imposed on farmers in those countries producing the coffee bean will usually mean Starbucks pay a higher price for the coffee they purchase. Any fluctuations in taxation levels in the industry are almost certainly ultimately passed on to the consumer. •Trade issues will affect Starbucks predominantly when exporting and importing goods. When another country’s government imposes a tariff it not only results in an efficiency loss for Starbucks but large income transfers can become inconsistent with equity. This extra charge can turn a bargain into a rip-off. Also, since 9/11, trade relations have been adversely affected between the USA and some other countries. •Starbucks should thoroughly investigate the political stability of any country they plan to expand to. Changes in government can lead to changes in taxation and legislation. The American elections may have an effect on Starbucks as new legislation or new or existing government may bring in taxes. Also, those countries in political turmoil or civil war (e.g. Zimbabwe at present) should be approached with great caution when considering new ventures. •The international economy must be brought into consideration as it can affect Starbucks’ sales and markets. The aftermath of 9/11 was an example of an economic downturn that affected the world market. •A reduction in licensing and permit costs in those countries producing the coffee bean for Starbucks would lower...
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...Xiaochen Li Business Development of Peet's Coffee & Tea Kaldi, who discovered coffee in folklore, could have never imagined that, after hundreds of years, his bright red berries would become one of the most popular drinks in the world. America consumes about one-quarter of the world's coffee market. According to the National Coffee Association, the total number of U.S. daily coffee drinkers is over one hundred million (“Coffee”). As a result, the growth of the coffee business is rapid, and the competition between each company is intense. The competition emerged large numbers of successful entrepreneurs of the coffee business in the United States. Alfred Peet, the founder of Peet’s Coffee & Tea has been regarded as an outstanding representative of a successful entrepreneur in the coffee business. Alfred Peet was born in Netherland and worked as a tea taster before he immigrated to the United States in 1955 (“Alfred”). He decided to provide high quality coffee since he started his business in Berkeley, California in 1966 (“Alfred”). After years of development and successful operation strategies, Peet’s Coffee & Tea achieved great success and won a good reputation from customers, coffee suppliers, and employees. As an entrepreneur, Peet had to take risks from every decision and changed the company's strategy when the market adjusted; furthermore, his persistent insistence on the quality of product and a good work environment make him admired. Base on those characters...
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...Summary Starbucks is one of the largest chains of coffee shops in the world, started their business in the early 80s as a tiny chain of Seattle coffee shops, grew rapidly in the 90s and now owns 5,689 coffee shops in 28 countries. This chain of coffee shops is very well managed by a well seasoned management team popularly known as H2O, because of Howard Schultz (Chairman and Chief Global Strategist), Howard Behar ( Head of North American Operations), and Orion Smith (CEO). Although, the company has expanded enormously, since it went public in 1991 but has also encountered a number of problems. The problem it faced had it mounted in home and abroad. The company had its success through the baby boomers in the 90s, but now the Generation X is not liking the environment of the shop and the young generation feel out of place in the coffee shop, above all the price of coffee seems to be little expensive to them. The Starbucks did not have much competition like Mc Donald’s and the likes in the initial days but now they have competitors such as Tully’s coffee shop. They also had problems of employees’discontentment. The expensive and aggressive marketing strategy has given Starbucks market dominancy. They earn $181.2 million in the year 2000, sales were still growing but it started growing in a decreasing rate, because their aggressive strategy and attitude towards competitors not only they grew rivalry with local business people but they lost customer. It was difficult for...
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...Case 1-1 Starbucks – Going Global Fast Sept. 23, 2012 Question#1 - Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. The controllable elements of marketing decisions for Starbucks include product, price, promotions, distribution and research. The uncontrollable elements of marketing decisions facing Starbucks include competition, politics, laws, consumer behaviors and level of technology. (Philip Cateora, 2010) Starbucks is one of the largest chains of coffee shops in the world. The Starbucks name and image connect with millions of consumers around the globe. Up until recently, it was one of the top fastest-growing brands in annual BusinessWeek surveys of the top 100 global brands. Starbucks grew from 17 coffee shops in Seattle 15 years ago to over 16,000 outlets in 50 countries. (Philip Cateora, International Marketing, 2010) Starbucks dominates the segment as it spreads its stores into more and more markets and moves its brand into supermarkets, offices, hotels, airports, and other venues. (Business, 2001) Starbucks has managed to remain nearly debt free by relying on mystique and word of mouth, whether here or overseas, the company saves a bundle on marketing costs. Starbucks spends just $30 million annually on advertising, or roughly 1 percent of revenues, usually just for new flavors of coffee drinks in the summer and product launches, such as its new in-store Web service. Most consumer companies their...
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...considered by an organization when developing strategies. Political From the discussions of Thomson, Shah and Thomas (2006), the withdrawal of the USA from the International Coffee agreement that set limits of coffee exported could have a major impact on Starbucks operations. Furthermore, political stability in coffee producing regions like Zimbabwe will have huge impact on Starbucks operations as farmers can be able to concentrate on producing quality coffee beans. Economical High inflation rates in the countries where Starbucks have established presence might result to low sales as potential customers might not afford to regularly buy coffee. Since Starbucks exports coffee from various countries, fluctuating exchange rates might result to reduction in profit margins. Finally, slow economic growth rate in countries where Starbucks has established presence as already highlighted might result to low consumer purchasing power implying decrease in demand for coffee. Social Since coffee is now accepted throughout the society, it is now easy for Starbucks to sell coffee in various regions than it was in the past when the company was established. Technological The advancement of Information Technology means that Starbucks can be able to make use the technology to achieve efficiency in the corporation’s operations. In addition, advanced technology can be used to improve Starbuck’s Research and Development team. Legal Three Year Strategic Proposal 7 Health and safety...
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