...1. Introduction Starbucks distinguishes itself by focusing on creating and sustaining its own ‘coffee culture’. It has long been known as a ‘third place’ other than home and workplace. It serves not only quality coffee products but distinctive customer experience. With considerable research on the strategic positioning of Starbucks, this paper will introduce the history and the present of Starbucks as well as its corporate achievements before analyzing its brand value and strategic positioning, with focus on its competition and marketing strategies. Subsequently, the influences of external factors on Starbucks will be examined through PEST analysis and Porter's Five Forces Model analysis. Next parts will be concerned with the question of how Starbucks boost the value of its strategic position. Finally, the paper will be reviewed and the comments on the sustainability of Starbucks’ strategic positioning provided. （不需要改） 2. Basic facts regarding Starbucks 2.1 Developmental History In 1971, a business called Starbucks that sold coffee and other spices was set up by several people whose names have long been basically forgotten. Howard Schultz, the most important figure in Starbucks’ history, became part of Starbucks in 1982. In a business trip to Italy, he was inspired by some famous Italian coffee brands to the idea that the lucrative coffeehouses could cultivate a sense of emotional and cultural attachment among customers. In 1986, he managed to raise sufficient venture capital...
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...Faculty of Business, Brock University | Starbucks Strategic Analysis | MGMT 4P90: Strategic Management | | Submitted by: | Amar Mohla | Akshat Kaushal | Tania RahmanVijay Bhullar | Presented to: Professor Peter Yannopoulos, PH.DMarch 28th, 2012 | | | ------------------------------------------------- Michael Porter’s 5 Forces Analysis Michael Porter uses the 5 forces model to analyze the industry environment. His ideas on competitive strategy are the most pervasive analytical tool used in strategic management (Henry, 2011). The five forces is used to capture the variation of competition, to determine whether a firm outside an industry should enter the industry, to see barriers to entry, to determine attractiveness of firm and to determine where the organization stands in relation to their industry. These five forces also help increase awareness of a trend towards suppliers and buyers bargaining power as well. Unlike SWOT analysis which is company specific explained in the next portion of this project, Porter’s five forces framework is industry focused. Furthermore, the five variables in the porter analysis are the industry suppliers, buyers, potential new entrants, substitute products and competition among existing firms. This section provides a thorough examination of the five forces affecting Starbucks’ coffee industry environment. Potential for new entrants The first force in Porter’s model analyzes potential new entrants which may impact...
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...Starbucks’ Strategy 1. Suggest the key elements of Starbucks’ Organizational Culture that contribute to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture. Organizational culture has a significant impact on the overall performance of a company. Organizational culture is “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments” (Barney, 1986). In this paper, I will examine the elements of Starbucks’ organizational culture that contributed to its success in a global economy, assess the effectiveness of its management decisions in providing innovative offerings for its customers, determine one key management competency, and speculate on whether the company would achieve long-term sustainability as a global leader in the coffee industry without the organization’s CEO, Howard Shultz. In the case of the success of Starbucks, its organizational culture has been driven and empowered by the founder and CEO, Howard Schultz. Howard wanted to expand the company and when he visited Italy prior to the overhaul of the original Starbucks he wanted to mirror the concepts of the coffeehouses in Italy. The key aspect to realize here is that organizational culture affects performance. Howard Schultz became the CEO of Starbucks in 1987. As an entrepreneur, he was influential in convincing investors to believe in his vision...
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...Starbucks’ Strategy Charlene McMickens Modern Management Dr. Christopher McGrath February 3, 2016 Introduction Organizational culture is the set of key values, beliefs, understandings, and norms shared by members of an organization (Daft, 2012). In this paper, I will examine the elements of Starbucks’ organizational culture that contributed to its success in a global economy and look into management’s role with creating and sustaining the organizational culture. I will next assess the effectiveness of the company’s management decisions in providing innovative offerings for its customers. Then I will look into determining one key management competency and indicate one way the competency is a good fit for the organizational culture. Lastly, I will evaluate Starbuck’s ability to achieve long-term sustainability as a global leader in the coffee industry without the organization’s CEO, Howard Schultz. Starbuck’s is a multinational company famously known for its coffee. Starbucks offers some of the world’s finest grown fresh roasted whole bean coffee. The company first opened in 1971, at the historic Pike Place Market in Seattle as one storefront. The Starbucks’ name is from the first mate in Moby Dick. In 1981, now CEO Howard Schultz first walked into a Starbucks store, his first cup of coffee had him intrigued and he joined it a year later. Starbucks maintains its great success by standing by its mission statement “to inspire and nurture the human spirit, - one person, one...
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...Contents 1 Introduction 2 2 Starbucks Vision, Mission and Objectives 3 2.1 Vision statement 3 2.2 Mission Statement 3 2.3 Environmental Mission Statement 3 2.4 Objectives of Starbucks 3 3 Financial Analysis 3 3.1 Profitability and Revenue 3 3.2 Efficiency and Debt ratio 4 3.3 Product Mix Revenue 4 3.4 Global stores growth 4 3.5 Starbucks SWOT Analysis 5 3.5.1 Strengths 5 3.5.2 Weaknesses 5 3.5.3 Opportunities 5 3.5.4 Threats 6 3.6 Ansoff’s matrix analysis for Starbucks 6 4 Specialty Coffee Market Competition 7 4.1 Overview of Starbucks competitors 7 4.2 Financial analysis between Starbucks and Dunkin Donuts 7 4.3 Starbucks versus Dunkin Donuts strategies 8 5 Analysis of specialty coffee market 9 5.1 Industry overview 9 6 Future Market Challenges 10 6.1 Factors in favor of the industry 10 6.2 Challenges derived using Porter’s Five Forces 10 6.2.1. The Threat of Substitution 10 6.2.2. The Threat of New Entry 10 6.2.3. Competitive Rivalry 10 6.2.4. The Bargaining Power of Suppliers 10 6.2.5. The Bargaining Power of Buyers 11 6.3 Recommendation 11 6.4 Conclusion 11 Bibliographic 11 Appendix 11 Company Name : Starbucks Corporation (NASDAQ: SBUX) Headquarters : Seattle, Washington, U.S. Number of Employees : More than 200,000 employees Revenue (FY2013) : USD14.9 billion Total number of store : 19,767 stores in 62 countries worldwide Market Capital (FY2013) : USD41.44 billion Chief Executive Officer : Howard Schultz ...
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...Starbucks and the Lifecycle of Specialty Coffee: An Industry Evolving Introduction Today we stand witness to a new coffee era, one made up of Caffé Lattes, Espresso Macchiatos, Cappuccinos and Frappuccinos. Specialty Coffee is here to stay and no one will be more eager to tell you that than Howard Schultz, CEO of Starbucks, the world’s largest specialty coffee bar. The study of Starbucks Corporation leads one on a multifaceted journey through an organization’s insinuation into a culture, its dominance of a market and its creation of a brand synonymous with loyalty, integrity and longevity. Understanding Starbucks’ development into an international giant and the strategic approach they took to get there begins with the origins of coffee itself. Ever since it first spread through the Moslem world in the sixteenth century, coffee has played a pivotal role in society by providing meeting places for intellectuals from all sides of life to converge. As coffee was slowly introduced to the European world it was recognized for both its sociability and its taste. Soon Coffee houses were prevalent throughout Europe and were the natural locations for political, literary and societal debate. It crossed the Atlantic Ocean in the mid-seventeenth century and replaced beer as New York City’s favorite morning drink. It can be said that the Boston Tea Party was the beginning of not one but two major revolutions in America. The first was the revolt of the colonists against England, and the second...
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...Table Of Content Introduction Marketing mix is one of the most useful strategies for every company to look for to have a good business. Starbucks has analysed the marketing mix to develope their brand in many market mostly in the Western country. However, in Eastern one, specifically in Vietnam market, the marketing mix strategy have to be different. This report will talk about the individual elements of the extended marketing mix and how to use the marketing mix in different contexts of Starbucks Vietnam. Starbucks Vietnam Marketing Mix Report 1. The explaination of how Starbuck Vietnam developed products to sustain competitive advantage Product is something that sastisfies a set of want that customers have. In every companies as well as Starbucks Vietnam, when they want to develope new product, they have to follow the eight stages of new product development (NDP) process: Figure 1: New Product Development Process (adapted from learnmarketing.net: New Product Development (NPD), n.d) The first two stages are the idea generation and idea screening. When Starbucks wants to make new product, the company needs to have new idea and the idea needs to be sreen clearly. The idea of Starbucks Vietnam can come from many ways that are from their competitor, through the market analysis or from the holiday, season or popular event. As can be clearly seen that, through time to time, Starbucks has came up with many new idea to survive in Vietnam market. They analyse the coffee...
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...| Business Strategy | Assignement | 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...
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...In the world, Starbucks is the only store open over the four continents of the world coffee brands. 星巴克从一件小咖啡屋成长为国际最著名的咖啡连锁店品牌的一个法门就是其灵活的经营智慧。 Grown from a small Starbucks coffee for the international brand the most famous coffee chain, a Famennian is its flexible business intelligence. 一。 One. 按照世界各地分歧的市场环境采纳灵活的投资与合作模式 Differences in accordance with market conditions around the world to adopt a flexible mode of investment and cooperation 按照美国星巴克总部在世界各地星巴克公司中所持股份的比例看，星巴克与世界各地的合作模式主要有四种环境： According to the U.S. headquarters of Starbucks Starbucks around the world in the proportion of shares held view, the Starbucks model of cooperation around the world, there are four environments: 1. 星巴克占 100% 股权，好比在英国，泰国和澳大利亚等地； Starbucks 100% stake, like in the UK, Thailand and Australia; 2. 星巴克占 50% 股权，好比在日本，韩国等地； Starbucks accounted for 50% stake, like in Japan, Korea and other places; 3. 星巴克占股权较少，一般在 5% 摆布，好比在中国的台湾，香港，夏威夷和增资之前的上海等地； Starbucks shares accounted for less than 5% general mercy, like in China, Taiwan, Hong Kong, Hawaii, and Shanghai, before the capital increase; 4. 星巴克不占股份，只是纯粹授权经营，好比在菲律宾，新加波，马来新亚和中国的厦门等地； Starbucks does not account for the shares, but simply authorized to operate, just like in the Philippines, Singapore, Malaysia and China, Xiamen, New Asia and other places; 这样做的好处是“他可以借别人的力量来帮它做很多工作，而且是同一个时间一起做。” The benefit of this is "He can take someone else's power to help it do a lot of work, and the same time together." 二。 Two. 以直营经营为主 Direct operating...
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...the Marketing Strategies of Coffee Chain Business- A Case Study of Starbucks in China 姓 名 （中文） 李佩琪 （拼音） LiPeiQi 学 号 20100301336 所在学院 国际商务英语学院 年级专业 国际商务管理 指导教师 侯香勤 职称 讲师 完成时间 2014 年 2 月 28 日 A Research on the Marketing Strategies of Coffee Chain Business --- A Case Study of Starbucks in China Li Peiqi School of English for International Business Abstract In this article, the writer summarizes the marketing strategies of Starbucks by applying the basic theories of marketing, the SWOT analysis method with the theory support from a lot of reading and information searching. This article argues that the factors which distinguish Starbucks from its competitors in the market positioning are: the pursuit of coffee quality, the well-trained staff, the enthusiasm for making the world better, the attention to it pays to the community and the environment, innovation and the one and only “Starbucks Experience”. Starbucks puts coffee business in primary place, its core competiveness is its culture and values. Since the company locates the business in inspiring human’s spiritual beauty, it is necessary for their marketing means to come from the mental and psychological level. One innovative side of this article is that in addition to using the most basic marketing theory to the analysis of Starbucks' marketing strategy, the writer analyzes...
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... Introduction Starbucks has been leading the coffee shop market in more than 40 years now. It has always been the place to find the world's best coffees. Its first store was founded at Pike Place Market in Seattle, Washington, United States. It has given a positive outcome so they serve consumers all over the world. The success of Starbucks coffee had come this far because they expand their operation and services and didn't limit their products. They sell not just coffee but tea, pastries, frappuccino, beverages and smoothies as well. Starbucks is the largest coffee house company in the world ahead of UK rival Costa Coffee, with 22, 551 stores in 65 countries and territories, including 12, 739 in Canada, 1,117 in Japan and 830 in the United Kingdom. From Starbuck' founding in 1971 as Seattle coffee bean roaster and retailer, the company has expanded rapidly. Between 1987 and 2007, Starbucks opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in early 1980's but lost money on its late 1989's expansion into the Midwest and British Columbia. Its fortune did not reverse until the fiscal year of 1989-1990, when it registered a small profit of $812, 000. By the time it expanded into California in 1991 it had become it trendy. The first store outside the United States or Canada opened in Tokyo in 1996, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net...
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...STARBUCKS – EARLY 2005 AHMAD RIDZUAN BIN AB WAHAB – KLCP 121012 MUHAMAD SYUKUR SABARI- KLCP 121010 Starbucks-Early 2005. Question: 1: What is Starbuck’s product? Starbuck main speciality are blend and single origin coffee, handcrafted espresso and blended beverages, Tazo teas, frappuccino coffee drinks and Starbuck double shot. Apart from that, they also offer fresh bake pastries, super premium ice-cream, chocolate, sandwiches and salad. They also offer to their customer Starbucks Barista home espresso machine, coffee brewers and grinders. Coffee mugs, accessories, compact disc and also assorted gift also available to their customers. 2. What changes in society have helped Starbuck be successful? i-Trend and pattern coffee consumptions within society. Increasing trend of young generation aged between 25-29 years old to consume lot of coffee drinks outside from home. The biggest proportion is consumer who drinks coffee at workplace. There also a trend people who consume coffee outside from office hours and usually they hang out at Starbucks outlet for personal time out or relax with friends. There was a tendency that the consumer now shifted their drinks preference which is previously beer to coffee. Instead spending their leisure time at bar, now change at Starbucks outlet. ii-Economic stability, social life style and pay rise. Increase in coffee consumption among working customers would suggest good economic condition and better pay considering Starbucks...
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...Chapter 9 Assignment: Starbucks vs. McDonald’s Strategies | 1. How does Starbucks enter foreign markets? Do you agree with its rapid growth strategy? (Consider what has happened to the number of stores and locations during the last few years in answering this question). Consider where Starbucks is located, and markets that will be advantageous to Starbucks in the future in answering this question. Discuss how Starbucks entry approach is different/similar from strategies that McDonald’s uses to enter foreign markets. Are both companies currently competing head-to-head in certain markets? Explain. Be specific in your explanation and consider recent press releases and information from annual reports in responding to these questions. (9 points) Starbucks expands into global markets through joint ventures. A joint venture is, “an agreement under which two or more partners own or control a business” (Luthans & Doh, 2012 p. 625). Two businesses partners come together to pursue the same goal and opportunity. Starbucks entered a joint venture with Tata Global Beverages to begin opening and operating Starbucks cafes throughout India. An article titled Strategies for Researching Global Markets says, “In the U.S. close to two-thirds of Starbucks cafes are owned by Starbucks while outside the U.S. about two-thirds of their stores are partnerships” (Virginia’s Community Colleges, p. 1). We agree that Starbucks rapid growth strategy to join international joint ventures is...
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...Organisation name: Starbucks Corporation Starbucks Corporation Report on the new strategy for Starbucks Corporation Terms of reference To investigate on the new strategy and to make appropriate recommendations as requested by the management consultant on the 23 September 2015 Procedure 1) Research has been done on the internet to justify the new strategy from 1 October 2015 to 22 October 2015. Findings 3.1 Alternative strategies relating to market entry/ substantive growth/ limited growth/ retrenchment for your customer. A limited growth strategy is a safer and smarter way to do business as aggressive growth strategy requires a large amount of risk such as entering new geographical markets. Limited growth is a lower risk mode of growth as it needs less start-up funds which include advertising and promotion. (Sherman, 2015) The strategy proposed was the implementation of Starbucks happy hour to give customers a promotion of half price on all drinks when they buy any tumbler or mug with the exception of the $1 reusable cup available in the US and Canada (Kosh, 2013). The promotion in this case will focus on the Starbucks goal to get 5 percent of beverages made in stores to be made in personal tumblers. Previously, Starbucks created a goal to achieve 25 percent of customers using their tumblers for beverages made in their store and will not be able to achieve this goal based on previous records (Starbucks Coffee Company, 2015). This promotion will then only qualify...
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...Abstract This paper explores the global strategies of McDonald’s Corporation and Starbucks Corporation. An overview of the company histories is included along with the basic business philosophies. The focus of the paper is on the marketing strategies, both domestic and international, examining the marketing mix for each company. The four P’s of marketing are detailed with examples of how each company uses them to their advantage. The reasons for the successful global expansion of both companies are incorporated into the compiled information. A Look at the Global Marketing Strategies of McDonald’s and Starbucks McDonalds and Starbucks are two domestic companies that are very successful. Both have emerged first as leaders in their respective markets domestically, and because of that success have been able to grow and expanded into countries all over the world. This paper will examine these two companies from a global perspective in order to evaluate their marketing strategies, with a particular emphasis on how successful they have been in foreign markets. The paper will focus on how each company has applied the four P’s of price, product, place and promotion in their marketing mix, detailing how they are used gain an advantage in their respective markets. Finally, the paper will evaluate the success of these organizations in developing niches in their markets as compared to their competition. The first company examined is McDonald’s Corporation or McDonald’s as the...
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