...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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...has become a $70 billion annual global sales commodity (First Research, Industry Overview). Business continues to boom and coffee manufacturers are able to broaden their revenues by reaching new segments and geographic areas through creative marketing initiatives. According to First Research (8/12/2013), the US US coffee and tea manufacturing industry includes about 300 companies with an annual combined revenue of almost $12 billion. That equates to less than one third of the global annual sales. With Starbucks corralling the majority of the upscale retail coffee consumers; Dunkin’ Donuts, the blue-collar, no-frills brand coffee drinker; Green Mountain Coffee Roasters (GMCR) went looking for a way to capture the self-serve specialty coffee consumer in North America and Canada. This customer tends to be a gourmet beverage drinker who doesn’t compromise on taste but likes quickness and convenience. The GMCR state of the art eCommerce portal allows customers to create the ultimate coffee experience in the home, in the office, and in food service environments. GMCR is so committed to the outstanding coffee experience that they purchase some of the highest quality Arabica beans available from the world’s coffee producing regions and match it with the appropriate process to optimize the coffee’s taste and aroma. From a small café in Waitsfield, Vermont to a recognized leader in specialty coffee and brewing platforms, GMCR is now leading the way to the successful marketing of expanding...
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...Keurig The word Keurig derives from the Dutch word meaning excellence. Keurig, Incorporated began with the company’s inception in 1992 (Kerin & Peterson, 2007). Gourmet coffee is a growing trend throughout the world. Keurig Incorporated was founded on the inspiration that coffee lovers should be able to brew and enjoy once perfect cup of coffee at a time (Kerin & Peterson). Excellence had been the guiding principle behind the development of its products and services. With gourmet coffee houses popping up in many areas, consumers were spending at least $1.50 more for one cup of gourmet coffee. Keurig’s launch of the single cup brewing system in the office coffee service market in the late 1990’s had benefited from coffee drinkers consistent increase of sophisticated drinks. In 2002 Keurig became the leading name in office coffee service by shipping over 33,000 units. In February 2003 Keurig was ready to launch their new B100 system targeting the at home segment all in hopes of gaining the same success Keurig found in the office coffee service, in a more competitive market (Kerin & Peterson, 2007). With the competition entering the single cup brewing market, Keurig had to think fast if they wanted to succeed in the Home market (Kerin & Peterson, 2007). Nick Lazaris, President, Chief Executive Officer and Director of Keurig, had to make the decision as to proceed with a two Keurig-Cup (K-Cup) strategy; this decision had the potential to...
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...Written Analysis and Evaluation of TABLE OF CONTENTS 1. Title Page…………………………………………………………………….page 1 2. Table of Contents……………………………………………………………page 2 3. History and Background……………...…………………………………..pages 3-5 4. Products and Services………………...…………………………………..pages 6-7 5. Financial Summary………………….……………………………………pages 8-9 History and Background Kirk Perron, the founder of Jamba Juice, had a desire of self-business since he was very young. At the age of 16 he started to work at Vons, bagging groceries, and ultimately he became assistant manager at Safeway. This process helped him to gain 10 years of valuable retail experience. At the age of 25, he stop his day job and worked late night stocking groceries and started working out and bicycling during the day. Usually after exercising, he would buy a smoothie, which was healthier than frozen drinks. This eventually put the ideas in his mind to open his own smoothie store. Kirk Perron started to gather his people to help him launch the business. He met his director of research and developer, Joe Vergara, at Safeway store who already was involved in the juice bar business, Kevin Peters who became director of partnership development, and Linda Ozawa the head of marketing. One of the obstacles that Kirk Perron faced at the start of the business was the fact that he could not convince the bank to get loan. Therefore, he had to sell his apartment and borrow money from his mother and his friend...
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...OD Implemented in Starbucks 1 ORGANIZATION DEVELOPMENT IMPLEMENTED IN STARBUCKS INDIRAN MBS141104 LEE YEW HOONG MBS141102 CHONG KUEN SOON MBS1133 CHIA WI PEAW MBS141106 MOHD FAIZAL MBS141114 SEM I 2015/2016 UBSE1123 – Session 01 International Business School, UTM Lecturer Name: Dr Harcharanjit Singh Submission Date: 05th Dec 2015 OD Implemented in Starbucks 2 Table of Contents 1.0 Introduction ............................................................................................................................... 3 1.1 Problem Statement ............................................................................................................... 3 1.2 Challenges ............................................................................................................................ 4 1.3 Opportunities ........................................................................................................................ 5 2.0 Industry Background ................................................................................................................. 5 2.1 Relevant to Issue .................................................................................................................. 6 3.0 Organization Background ......................................................................................................... 7 3.1 Historical Background .............................................................................
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...mall in both new and existing markets, increase their product development process, and cater to customers’ need to eventually improve their financial position and dominate market share. |Section |Product/Service Description, Situation Analysis | |1 | | Trinh’s Coffee House (TCH) will produce and market a line of specialty coffees that will appeal to those consumers interested in something unique in there mornings, afternoons or nights. The shop will have a friendly welcoming environment where guest can socialize and also relax. The customer will have a chance to use their personal laptops inside the shop. Customers will be...
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............................................15 11. Peer Assessments .......................................................................19 1. Executive summary PepsiCo is one of the main players in the beverage markets. The Canadian drinks market exists 16.3% of carbonated soft drinks, PepsiCo is in this market the biggest in Canada, but they want more, even though PepsiCo had a market share of 45.3% in 2011, they feel the competition of Coca Cola (44.2% market share). PepsiCo is underperforming in comparison to its main competitor Coca Cola in the urban markets, like Toronto and Vancouver. PepsiCo started a marketing campaign in 2012 by reintroducing the Ultimate Taste Challenge (UTC), in which they focus especially on the Millennials between 16 and 25 years of age. Those Millennials get the change to do a blind test in comparing...
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...STARBUCKS By Patricia L. Boyd BA 2430 International Management Professor Jeff Walls January 30, 2011 Summary Three Seattle entrepreneurs started the Starbucks Corporation in 1971. Their prime product was the selling of whole bean coffee in one Seattle store. By 1982, this business had grown tremendously into five stores selling the coffee beans, a roasting facility, and a wholesale business for local restaurants. Howard Schultz, a marketer, was recruited to be the manager of retail and marketing. He brought new ideas to the owners, but was turned down. Schultz in turn opened his own coffee bar in 1986 based on Italian coffee cafes, selling brewed Starbucks coffee. By 1987, Schultz had expanded to three coffee bars and bought Starbucks from the original owners for $4 million. He changed the name of his coffee bars from Il Giornale to Starbucks. His intention for the company was to grow slowly with a very solid foundation. He wanted to create a top-notch management by wooing top executives from other well-known corporations. For the first two years, Starbucks losses doubled as overhead and operating expenses increased with Starbucks' expansion. Schultz stood his ground and did not sacrifice long term integrity and values for short-term profit. By 1991, Starbucks' sale increased by 84% and the company was out of debt. Starbucks brought back founder Schultz to lead daily operations in 2008, closed hundreds of stores and cut jobs. It reemphasized training for...
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...Introduction Retailing in India is one of the pillars of its economy and accounts for 14 to 15% of its GDP The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4% of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians. Until 2011, Indian central government denied foreign direct investment (FDI) in multibrand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus. In January 2012, India approved...
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...various value chain activities that make up the marketing function and decide which of these must be performed on a global basis and which localised. This chapter covers product management, pricing, sales and distribution and customer relationship management. Global branding, which merits a separate treatment is covered in Chapter 8. Product management Should the same product be offered across overseas markets? Or should it be customized according to the specific needs of different markets? A globally standardised product can be made efficiently and priced low but may end up pleasing few customers. On the other hand, excessive customisation for different markets across the world may be too expensive. The trick, as in the case of other value chain activities, is to identify those elements of the product which can be standardised across markets and those which need to be customised. Thus, a standard core can be developed, around which customised features can be built to suit the requirements of different segments. Before we proceed further, it is important to emphasise that few products are offered in exactly the...
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...Our customers voted us the #1 Best Coffee in the annual Zagat ® survey. 1 4 2 We found a small way to make our Starbucks Cards even more convenient. 3 We made sure our customers will never be without great coffee. AUTHOR STARBUCKS CORPORATION TITLE ANNUAL REPORT YEAR FISCAL 2010 FISCAL 2010 FINANCIAL HIGHLIGHTS Net Revenues (in Billions) Comparable Store Sales Growth (Company-Operated Stores Open 13 Months or Longer) $10.4 $9.4 $10.7 $9.8 7% 7% 5% $7.8 –3% –6% 2006 2007 2008 2009 2010 2006 Operating Income (in Millions) & Operating Margin (in %) GAAP Non-GAAP GAAP Non-GAAP 2007 2008 2009 2010 Operating Income by Segment, Excluding Other United States $1,472* International Global CPG $53 $1,419 $1,054 13.8%* $894 11.5% $894* 18% 13.3% $843* 11.2% $332 $339 15% 9% 12% 73% 8.1%* 4.9% 2006 2007 2008 $562 $504 5.7% 2009 2010 2006 Earnings per Diluted Share GAAP 73% 9.2%* 2010 Operating Cash Flow & Capital Expenditures (in Millions) C ash from Operations Non-GAAP Capital Expenditures $1.28* $1,705 $0.04 $1.24 $0.87 $0.71** $0.71* $1,132 $0.80* $1,389 $1,331 $1,259 $1,080 $985 $0.28 $771 $0.28 $0.52 $446 $441 $0.43 2006 2007 2008 2009 2010 * Non-GAAP measure. Excludes $339, $332 and $53 million in pretax restructuring...
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...Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Morning Star Ratings Beta PEP NYSE Consumer Staples Beverages (NonAlcoholic) Income & Capital Appreciation $103.67 Billion $52.56-67.61 $64.28 16.34 13.81 $3.81 $5.50 3.00% **** .56 • • • • Broad portfolio in the soft drink, saltysnack market and beverages. Acquisition of bottlers will allow for cost savings and new business opportunities Opportunities for growth in healthy snack, and healthy drink markets; growth in emerging markets Commodity (raw materials) volatility, exchange rate risks Increased bad debt and higher interest rates No high prospects for growth Cons: Porter’s Five Forces: • • • • • Threat of Competition: Moderate Threat of New Entrants: Low Threat of Substitutes: Low to Moderate Power of Suppliers: Moderate Power of Buyers: High Brief Overview PepsiCo, Inc. operates four major businesses: Frito-Lay North America, 31% of sales; Quaker Foods NA, 4%; Latin American Foods, 13% of total revenue, PepsiCo America Beverages, 23% of revenue, Europe, 16% of total revenue, AMEA 13%. PepsiCo recently purchased two of its largest bottling companies for a combined total of $12.6 Billion.1 1 10K 2010 PORTFOLIO CONSIDERATIONS PepsiCo, a consumer staple equity, currently composes 3.39% of the equity value of the EIF portfolio. As a whole, consumer staples make up 11.00% of the equity portfolio of the EIF. 11% does meet our required consumer staples portfolio...
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...Journal of Business Studies Quarterly 2009, Vol. 1, No. 1, pp. 16-25 ISSN 2152- 1034 A Case Study on Classic Airlines: Practical Marketing Solutions Milaly Tokhi, San Jose State University Abstract In today’s competitive arena, organizations must use all possible means to maximize growth and profitability by focusing on strategic marketing. Classic Airlines has an opportunity to alter the landscape of the airlines industry. In order to succeed, Classic Airlines must be able to correctly forecast market potential and future demand, by establishing long-term marketing objectives. Key words: Marketing, business, organizations, cross-functional teams, environmental scanning. Classic Airlines Classic Airlines is facing an organizational issue. External and internal marketing programs have not been able to satisfy the needs and wants of the stakeholders. Target customers are looking at the services offered by other airlines to satisfy their wants and needs. This has resulted in poor sales and reduced profits for the company. The marketing plan of a firm “helps the firm connect with its customers” (Kerin et al., 2006). Therefore, Classic Airlines wants to develop an effective plan of action that will not only help attract and retain customers, but also boost sales and profits. The Situation Issue and Opportunity Identification Classic Airlines is a 25 year old company that commands a fleet of more than 375 jets that serve 240 cities with more than 2300 daily flights. The...
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...9.3 Place 19 9.4 Promotion 19 9.5 People 20 9.6 Processes 20 9.7 Physical evidence 20 10 Milestones and leaderships 20 11 References 23 12 TELESCOPIC OBSERVATIONS Strategic Framework 26 13 SWOT Strategic Framework 30 Executive summary Since Kone Corporation was founded, the company has experienced remarkable growth and performance, which it continues to enjoy to date. However, the recent global economic crisis has resulted in decline of business in traditional markets, which has hampered projected growth. Competition has also intensified in market which requires more effort and strategies to ensure that performance does not declines. Several strategies have been identified to ensure that the company maintains its position as a leader in the business. This includes, introduction of digital marketing, market expansion, and acquisitions (Kone, 2014a). Key issues Kone has a strong reputation as a leader in the industry as a leading manufacturer of elevators, automatic building doors, escalators, and integrated solutions. Its remarkable performance has also enabled it to build a strong financial foundation, which can...
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...Contents Product Statement 4 Analysis of the External Environment 5 Industry Trends 5 Competitive Trends 7 Brand Competitors 7 Product Competitors 7 Generic Competitors 10 Total Budget Competitors 10 Political Trends, Legal Trends and Regulatory Trends 11 Franchising 11 Food and Drug Administration 11 Technological Trends 13 Economic Trends 14 Cultural Trends 17 Analysis of the Customer Environment 19 Who 19 How many 20 What 21 Why and How 23 When 24 Why Non Customers 25 Where 26 Analysis of the Internal Environment 27 Marketing strategies 27 Target Market 27 Image 27 Marketing Programs 28 Advertising 28 Product and Service Offering 29 Distribution and Channel Programs 30 Pricing 30 Sales strategy and Sales force effectiveness 30 Marketing research /intelligence gathering efforts 30 Public relations/publicity 31 Financial Performance 32 Additional Company Characteristics 33 Technical Capabilities 33 Available Resources 33 Production Capacity 33 Career Opportunities 34 SWOT Analysis 35 Strengths 35 Weaknesses 37 Opportunities 38 Threats 39 Marketing Goals and Objectives 40 Goals 40 Objectives 40 Marketing Strategies 41 Target market 41 Value Proposition 42 Positioning Statement 42 Issues Analysis 43 Action Plans 45 Valpak Savings Coupons 45 Free Smoothie Sample at Gasparilla Distance Classic Race Expo 46 Customer Loyalty Card 47 University of South Florida Freshman...
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