...The Global Rise of STARBUCKS from casual coffee drink to a Gourmet Beverage Andrew W. Knowles DeVry University Professor: Michelle Lawson Management 303 SWOT Analysis Abstract As we trace the halls of “father time” there we come across a company that may not have the rich history of serving North America and the rest of the world for over 100 years. Or cannot be traced back to the establishment of our constitution, providing a strong wake up call to our founding fathers as they crafted the declaration of independence during the 1800’s. But what we find in history is a company that took its humble beginnings at Pike’s Place and crafted a casual drink into the world’s most recognizable brand. Whose customer base are loyal to the brand, and whose logo stands apart from all others. It has weathered the storms of a down economy, poor management, competition, weaknesses and threats to define its own brand and category. CEO Howard Schultz said “Starbucks is committed to evolving and enhancing our customer experience with innovative and wholesome food offerings”. Starbucks History Starbucks opened its first store in 1971 in Seattle’s Pike’s Place Market. At its inception it was a retailer of whole bean, ground coffee, tea and spices. Today that one store has blossomed to over 20,000 stores in 65 countries brewing the best coffee arguably by many of its loyal customers. Starbucks got its name from the first mate in the Herman Melville’s Moby Dick story, and its logo from...
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...Swot Analysis- Starbucks Co. SWOT Analysis Strengths Starbucks Corporation is a very profitable organization, generating revenue of about $7.8 billion in 2006. During the same year, revenue from company-operated retail locations accounted for 85% of the company’s total revenue. • Starbucks has an established a logo, developed their brand, trademarks, copyrights, and a webpage. • It is a global coffee brand that consists of about 9,000 locations all over the world, including in the United States • The company’s goal is to build a strong relationship with their customers by greeting them or with nice gestures, which made their customers feel important. This is why Starbucks has chosen to invest in in-house training and retention for their employees. As a result, the company has become one of the most stable and customer-oriented employees to serve their daily customers. • Besides building strong relationships with their customers, Starbucks has written policies to encourage open communication between employees and managers. The working relationship helps to motivate the employees to be more efficient in performing the job duties. • Starbucks improved their technology by using software developed by a stuffing management technology system called Taleo. With this technology, Starbucks has the ability to maintain a database of hundreds of thousands of candidates that applied for jobs. This technology helped the company to increase its efficiency in screening...
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...Background + Category Starbucks Corporation is an American coffee company. It falls under the restaurant category. It operates as a marketer, roaster, coffeehouse chain and it is the world’s leading specialty coffee retailer. It retail products includes more than 30 types of the world’s top coffee beans, handmade espresso coffee, a variety of hot and cold beverages, fresh food and delicious pastries, coffee machines, coffee mugs and other merchandise. The first Starbucks was founded in 1971; it was a single store in Seattle, Washington. It did not sell brewed coffee and espresso, but only coffee beans. In 1983, Howard Schultz, a former employee of Starbucks traveled to Italy and attracted by Italian coffee bars and the romance of the coffee...
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...Strategy Analysis MGMT 562 Rusty Gates Margaret Hogan Liberty McCarty Anita Ramachandran Tony Reed TABLE OF CONTENTS Executive Summary…………………………………………………………….3 Introduction……………………………………………………………………..4 External Analysis……………………………………………………………….5 Suppliers………………………………………………………...…….5 Customers………………………………………………………..……5 Competitors…………………………………………………………...6 New Entrants………………………………………………………….7 Substitutes……………………………………………………………..7 Opportunities and Threats……………………………………………..8 Internal Analysis………………………………………………………………..8 Strengths………………………………………………………………8 Weaknesses…………………………………………………………...9 Value Chain, VRIO Framework, Core Competencies……………….10 Key Strategies………………………………………………………………….11 Investment Recommendation………………………………………………….12 References…………………………………………………………………….13 2 Executive Summary Starbucks Coffee Company, founded in 1971 is headquartered in Seattle, WA and operates in 37 countries around the world. The backbone of Starbuck’s business is its company-operated retail stores. Starbucks has employed a strong differentiation strategy in order to turn a traditional $.50 commodity into a $4 experience. This following report provides an analysis of the strategies used by Starbucks to stay on top of its growing and volatile industry. Starbucks’ governing principles are based on three strategic stances: the third place experience, creating a human connection, and providing a quality everyday experience for customers. The specific strategies used by Starbucks include:...
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...SWOT Analysis Strengths Starbucks Corporation is a very profitable organization, generating revenue of about $7.8 billion in 2006. During the same year, revenue from company-operated retail locations accounted for 85% of the company’s total revenue. • Starbucks has an established a logo, developed their brand, trademarks, copyrights, and a webpage. • It is a global coffee brand that consists of about 9,000 locations all over the world, including in the United States • The company’s goal is to build a strong relationship with their customers by greeting them or with nice gestures, which made their customers feel important. This is why Starbucks has chosen to invest in in-house training and retention for their employees. As a result, the company has become one of the most stable and customer-oriented employees to serve their daily customers. • Besides building strong relationships with their customers, Starbucks has written policies to encourage open communication between employees and managers. The working relationship helps to motivate the employees to be more efficient in performing the job duties. • Starbucks improved their technology by using software developed by a stuffing management technology system called Taleo. With this technology, Starbucks has the ability to maintain a database of hundreds of thousands of candidates that applied for jobs. This technology helped the company to increase its efficiency in screening out the potential...
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...Starbucks is a leading company and a niche in the coffee business, especially popular in the United States, Canada and Japan. Since inception in 1985, its growth has been attributed to its national and global expansion strategies, innovative product development and increasing sales in current markets (Starbucks Corporation, 2009, p.1). According to the 2009 annual report (Starbucks Corporation, 2009, p.2), the company’s 16,635 stores in over 50 countries generated $9.8 billion in revenue, a figure indicating a negative growth in sales. As a result, current restructuring efforts by CEO Howard Shultz aimed at increasing revenue to $23 billion by 2012 (Helm, 2007, para.4) have necessitated an evaluation of the business model and growth strategy. In this report, we will perform a SWOT analysis on Starbucks, followed by recommendations that can be implemented to improve the sales and strategies of the firm. 1.1 S.W.O.T Analysis Strengths * Starbucks has developed to outshine other coffee retailers in the market through its outstanding financial performance, and the ability to maintain its high end standards of offering premium and exotic coffee beverages. * They have managed to develop a “Starbucks culture” amongst customers by creating an atmosphere that makes the customers feel sophisticated, welcomed and more knowledgeable of their product information. When the customers feel that they are of top priority, it also helps to create a strong sense of loyalty...
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...External environment analysis (Indian Coffee Market) Opportunities: 1. Market development In 2006, India was ranked as the fourth-largest economy in the world in terms of purchasing power parity and the tenth-most-industrialized country in the world. Since 1996, coffee consumption witnessed a steady rise reaching 85,000 tons in 2005. According to the statistics show that, although tea is famous in India, but also the world's fifth largest coffee exporter. All these facts prove the Indian coffee market has the potential for Starbucks to explore. 2. Political effects The Indian economy has been experiencing more stability as far as the Government and political scene is concerned. There had been reduced internal turmoil resulting from political influences and this has created a better working environment for industries and business in India. 3. Lifestyle trend Similar to China, India is also a mainly tea drinking country. However, Indians regard drinking coffee and experimented with various flavors as a fashion statement. It’s more like a lifestyle attitude, which is just accord with Starbuck’s concept of ‘selling a experience’. Threats: 1. Competitor intentions There are many competitors in the Indian coffee market as case stated. All these competitors entered Indian market before Starbucks, thus they have established a certain degree of basis already. Besides the coffee market, Starbucks also has to compete with other traditional...
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...Starbucks 1. Internal strengths and weaknesses: One internal primary strength of Starbucks include having high visibility locations. Starbucks are located in almost every mall, near schools and office areas to attract customers. Sometimes, there are even multiple Starbucks branches in one area. Around DLSU-M, there are already three Starbucks. This 2013, they are even planning to expand more. Another internal strength of Starbucks include having an established logo and developed brand. Most people would recognize the Starbucks logo without needing the word Starbucks attached to it or some could already visualize their logo by just hearing or reading the word Starbucks. In addition to this, they already have cultivated their copyrights, trademarks, website and patents. Moreover, they have a good working environment with their valued and motivated employees as another strength. My friend who used to work as a barista in Starbucks had a pleasant experience as their employee. One can tell that Starbucks employees are very upbeat as soon as one enters their coffee shop. Furthermore, another internal strength of Starbucks is that their customers are very loyal to them. I am a very loyal consumer to them. Amongst all the coffee shops, I prefer Starbucks because they serve excellent sandwiches and pastries plus their ambience is good for studying. Their products are consistently delicious and innovative. Also, according to my research, they have good relationships with their suppliers...
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...PURPOSE OF A SWOT ANALYSIS 1 The Purpose of a SWOT Analysis Charles Anderson Joyner III Grantham University PURPOSE OF A SWOT ANALYSIS 2 Abstract Every business to include the largest ones that control their areas of industry--has a limited supply of manpower, production capacity and capital. Evaluating the company’s strengths, weaknesses, opportunities, and threats helps it determine how to allocate these resources in a manner that will result in the highest possible potential for revenue growth and profitability. The management team examines where the company can compete most effectively. The company more times than not discovers competitive strengths that have not been fully utilized in the past in addition to critical areas that needs to be improved in order for the business to more effectively compete. A realistic assessment also prevents strategic blunders like entering a market with products that are clearly inferior to what well-entrenched competitors are offering. Continuous improvement in all areas of a company’s operations is an important aspect of staying ahead of competitors. Weaknesses and opportunities can--and must--be turned into future strengths. PURPOSE OF A SWOT ANALYSIS ...
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...organization. A tool used as a part of environmental scanning is the SWOT analysis which pinpoints the Strengths, Weaknesses, Opportunities and Threats of an organization. This paper will present a SWOT analysis of three companies from three different industries, Starbucks Coffee, southwest Airlines and Wendy’s Old Fashion Hamburgers. In addition to the SWOT analysis there will be information regarding the company’s competitive advantage, strategies used, how value is created by each company along with the measurements guidelines used to verify strategic measurements SWOT Analysis: Starbucks Coffee, Southwest Airlines & Wendy’s Starbucks Coffee, Southwest Airlines, and Wendy’s operate in three different industries, something each company has in common is utilizing as a tool the internal and external environments based on the SWOT analysis. Starbucks Coffee began as a single store in Seattle; now, the number one coffee chain in the world located in over 62 countries with 18,000 stores. In order for Starbucks to have its current success and continued success a SWOT analysis breaks down the favorable and unfavorable factors to determine the appropriate strategy to stay on top in the premiere coffee industry. The Strengths of Starbucks Coffee to name a few are the experience the customers have with Starbucks, a brand widely recognized valued over $4 billion along with being the largest coffee chain globally. Starbucks Weaknesses are expensive pricing of its products in addition...
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...Starbucks Business Analysis . Abstract Starbucks went from just a hole in a wall shop to a world known company and culture. One would wonder how it occurred, if it was over night, and most importantly the business aspect sustaining a successful international business. At the end of the day Starbucks Co. is well known for their market in gourmet coffee. On the other hand, the market has plenty of competitors in coffee, but what makes Starbucks the number one specialty coffee retailer? The answer lies in every compartment that makes Starbucks Co. what it is. From the 87,000 possible drink combinations, to the provided healthcare insurance offered to employees including part-time. Starbucks is a force to be reckoned with, business aspect of their strengths, weaknesses and all in between is worth analyzing. Starbucks Corporation Business Description Starbucks is currently operating in 65 countries specializing in high quality coffee, tea, fresh food, and branded items. In whole the Starbucks Coffee brand is sold with a license and trademarks through other channels such as licensed stores, grocery, and national foodservice accounts (Starbucks SWOT analysis 2015, 2015). Starbucks Coffee brand sell goods and services under the following brands” Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos (Starbucks SWOT analysis 2015, 2015). Starbucks business objective is to thrive to be a recognized respected brand in the world. Brief History The...
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...------------------------------------------------- STARBUCKS MARKETING REPORT OF STARBUCKS Module code: D001 Module tutor: Moitaba Institution: Nottingham Trent International College Group: Group B T number: T0030643 Word count: 1679 words (-10/+10) 1: INTRODUCTION Starbucks Corporation, an American organization established in 1971 in Seattle, WA, is a head roaster, advertiser and retailer espresso (coffee) around world. Starbucks has around 182,000 representatives across over 19,767 organization worked and authorized stores in 62 nations. Their item blend incorporates roasted and carefully assembled high quality/premium valued espressos (coffee), an assortment of new nourishment things and different beverages. They likewise offer a variety of espresso (coffee) and tea items and permit their trademarks through different channels, for example, authorized stores, basic supply and national foodservice accounts. Starbucks additionally showcases its items blend with other brand names within its portfolio of organizations, which incorporate Teavana, Tazo, Seattle's Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo. Starbucks had all out income of $14.89 billion as of September 29th, 2013.2. (Starbucks annual report, 2013). This report will analyse on this business organisation (Starbucks) stating its PESTELE, SWOT analysis, customer analysis and proving recommendation according to the marketing analysis provided in this report. 2: MARKETING ENVIRONMENTAL ANALYSIS PESTEL...
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...SWOT Analysis: Starbucks Coffee Company Ravineel Chand MGT 450: Strategic Planning for Organizations (BII1607A) Professor John Bruning February 27th, 2016 Introduction SWOT Analysis is a useful technique utilized by organizations to understand the strength and weaknesses of the organization. Furthermore, it is also utilized to understand the opportunities which may be open to the organization and the potential threats that it may face. “Once a company has a firm understanding of where it stands financially, the next part of the internal assessment is conducting a SWOT analysis, which stands for a company’s strengths, weaknesses, opportunities, and threats.” (Abraham. S.C, 2012) Using a SWOT analysis allows organizations to carefully pinpoint where they stand against competition, where their weaknesses and strengths lie, and how to gain more opportunities within their respective markets. The purpose of this paper is to conduct a SWOT analysis of the Starbucks (SBUX) corporation This paper will also describe the history of the organization, its products and major competitors. History Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries...
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...5. 5. 2016 PESTLE Analysis of Starbucks What are you looking for? PEST ANALYSIS MARKETING SWOT ANALYSIS STEEP ANALYSIS BUSINESS PEST Analysis, PEST Examples GET MORE ANALYSIS Subscribe to our mailing list and get our articles and updates to your email inbox. Enter your name here PESTLE Analysis of Starbucks Jim Makos 1 Year Ago FACEBOOK 0 Comments PREV ARTICLE NEXT ARTICLE PESTLE is a strategic analysis tool. It is often seen as the most effective analytical tools to analyze the Enter your email here impacts of external issues. It is an extended version of PEST analysis. Other forms of this tool are PESTEL, SIGN UP NOW STEEP, and STEEPLE. The acronym PESTLE stands for 6 factors which affect the business. The factors are: We respect your privacy Political Economic http://pestleanalysis.com/pestleanalysisofstarbucks/ 1/9 5. 5. 2016 PESTLE Analysis of Starbucks Social Popular Recent Technological Legal Environmental In this article, I am discussing the PESTLE analysis of SWOT Analysis Examples for Every Business Situation December 30, 2013 Starbucks. The constant global economic recession has dented the macroeconomic environment which Starbucks operates in. The recession has hurt the consumer’s purchasing power. Recent market research re䈠ects that consumers have not cut down on their coffee...
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...Week Four Starbuck’s SWOT Analysis Karen Mueller Upper Iowa University Chris Worley 11/12/2014 A SWOT Analysis of Starbuck’s Organizational Introduction Starbucks got its start in 1971 by three academic teaching professionals. English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker, all three love coffee and decided to open Starbucks Coffee, Tea, and Spice in Pikes Place Market, Seattle Washington. The three partners shared a common love for fine coffees and exotic teas. They believed they could build a customer base in Seattle that would appreciate the best coffees. With this being the case, they borrowed the money and Starbucks’ was born. Since the first stores grand opening, Starbucks has made the fortune 500 list, they had a goal of opening 30,000 stores by 2013 and half of those are going to be outside the U.S. (Starbucks, 2014) Starbucks is the largest coffeehouse chain in the world with presence in 50 countries and about 15000 stores (Starbucks, 2014). The Seattle based company sells espresso based hot drinks; drip brewed coffee, coffee beans, snacks, Panini and pastry (Starbucks, 2014). The company also sells items such as tumblers and has an entertainment division which markets music, books and films. The company has diversified on its product range in order to gain a competitive advantage over other similar companies. According to Starbucks, (2014). Starbucks Corporation is a dealer in coffee retailing, its product is known as specialty...
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