...ANALYSIS OF STARBUCKS CASE Laurent Werro, Nikola Volchkov, Yuki Toyoshima, Jérôme Jayet Starbucks is a company that was founded in 1971 in Seattle by Gerald Baldwin, Gordon Bowker and Ziev Siegl. It is a specialized coffee roaster and distributor. The Company now operates in four areas: Americas which includes the US, Canada, and Latin America; Europe, Middle East, and Africa (EMEA); China/Asia Pacific (CAP). (1) GROWTH AND SUCCESS FACTORS Starbucks pays attention to product quality and shop atmosphere. They brought back the trend of coffee drinking and they also created a social trend. People come to Starbucks for different reasons but most important for high quality coffee. The comfortable atmosphere while drinking a high quality coffee created a gathered spot for customers where they enjoyed meeting a friend, read a book or work. All these factors created a unique "Starbucks experience". By doing so they earned the customers loyalty, some of them were visiting bars up to 18 times a month (2). They also created a partnership with the coffee growers and worked directly with them to ensure the highest quality of their products. Starbucks international rapid expansion is due to joint ventures with local partners and licensing agreements. Starbucks decided to set some criteria to their partners in order to keep the Starbucks experience across the globe. “Starbucks brand is built on passion and you can easily feel the passion of our partners in any of our international stores”...
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...1. Nike: From Sweatshops to Leadership in Employment Practices 2. Starbuck’ mission: Social responsibility and brand strength 3. New Belgium Breweries: Ethical and Environmental Responsibilities You will be required to answer to the end of case questions. I expect personal opinion, don’t try to copy from a template somewhere Test 2: StarBuck Case 2 Starbucks’ Mission: Social Responsibility and Brand Strength Case Notes for Instructors: Students will likely have strong opinions regarding Starbucks. Many may be committed patrons who view Starbucks as a socially responsible company committed to green practices and free-trade coffee. Others might dislike Starbucks because it is a large chain that pushes out smaller local competitors. Another possible reason students may be opposed to Starbucks are its prices, which are higher than many of its competitors. Starbucks seems to be able to justify its higher prices because the company sells more than just coffee—it sells an experience. Starbucks patrons can order specialty drinks and hang out in what founder Howard Schultz envisioned to be the “third place” to be after home and work. Love it or hate it, Starbucks has been very successful at branding. Starbucks has had a profound influence on the U.S. coffee market. Before Starbucks came onto the scene, people perceived coffee as an uninteresting product largely consumed by older people in the United States. It did not have the “cool” factor or the cache that it does...
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...Project Starbucks Corporation is an American Coffee Company located out of Seattle, Washington. It was founded in 1971 by Zev Siegl, Gordon Bawker and Jerry Baldwin who were three friends who met while attending the University of San Francisco. Starbucks Corporation is located in 65 countries from Asia-Pacific to the Middle East, Africa, Europe and of course America. They have 21,366 stores worldwide and that number will continue to grow as Starbucks continuously expands. The first store, Pikes Place opened and sold coffee to espresso bars as well as restaurants. In the mid 80’s, Howard Schultz who is now the CEO and Chairman of Starbucks, but at the time was the director of retail operations and marketing came up with the idea of turning the company into a coffee house. In the 90’s, Starbucks grew as the coffee house idea was starting to take off. Then the Millenium came and Starbucks really gained ground and has not looked back since. Starbucks Corporation sells as well as licenses the rights to distribute and produce many different items provided on a daily basis in the Starbucks shops. They license their trademark through licensed stores as well as grocery and national food service accounts. According to Starbucks; “It roasts, markets and retails specialty coffee. It offers several blends of coffee, handcrafted beverages, merchandise, and food items. Starbucks also offers a range of consumer products in coffee and tea, readymade drinks, and Starbucks ice cream...
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...[pic] ASSIGNMENT SUBMISSION FORM Treat this as the first page of your assignment Course Name: Competitive Strategy Assignment Title: Project – Globalization Problems faced by Starbucks – Focus on Europe (Let us not waste paper, please continue writing your assignment from below) Table of Contents Executive Summary 3 Industry structure – Porter five forces analysis 4 Company background 5 Globalization strategy [1995-2008] 9 Performance in EMEA 11 Findings and analysis 13 References 27 Executive Summary This study is focused on Starbucks, the world’s largest coffeehouse company. The company has the knack of finding the magic formula for every aspect – be it customer satisfaction, innovative marketing or smart partnerships. Given the brilliant performance that Starbucks found in the US, success should have been a foregone conclusion in other geographies as well. Despite all the positives, it could not replicate the same degree of success in Europe as it enjoyed in the US. This study has analyzed the factors which might be held accountable. The aggressive policy of opening stores worldwide to achieve inimitability of its business model, loss of control over the cost of operations, the stock market’s notional correlation of success with number of stores, over-reliance on Seattle management causing a lack of decentralization of key decision-making power...
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...Introduction Starbucks started in 1971 as a single store in Seattle’s historic Pike Place Market. It offered fresh-roasted whole bean coffees in the store. There is a group of coffee lovers which shared a passion for quality coffee and exotic teas included English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker, they put investment and finally opened a store called “Starbucks Coffee, Tea, and Spice” in Seattle, WA. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) noticed that a little company in Seattle, WA, was placing orders of a certain coffeemaker, in larger volumes than the big US store Macy’s; he decided to pay them a visit to see what was going on. Gordon Bowker, the magic, mystery, and romance man, must have shared his passion for quality coffee and tea with Howard Schultz at this time, because he got hooked right away. This Starbucks store that Schultz visited was more than just a regular coffee shop; it had a soul, a passion and authenticity. People there were educated to quality coffee, and they in turn were educating their customers. Right after trying cup of Sumatra (one type of coffee), Howard was drawn into Starbucks and the seeds of the Starbucks Corporation were planted there: deep knowledge of the product and service, trust and credibility. Schultz understood that something is needed by Starbucks which is creating an atmosphere and bonding with customers around a cup of coffee. In 1980's,...
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...CONTENTS 1. Introduction ............................................................................................................5 2. External Analysis ...................................................................................................5 2.1 Wider Macro-Environmental Analysis ............................................................5 2.2 Industry analysis .............................................................................................7 2.3 Industry Life cycle ..........................................................................................9 2.4 Competitor Analysis ..................................................................................... 10 2.5 Industry‟s Critical Success Factors ................................................................ 10 2.6 Opportunities & Threats................................................................................ 11 3. Internal Analysis .................................................................................................. 11 3.1 Starbucks‟s Strengths & Weaknesses ............................................................ 11 3.2 Evaluation of Starbucks‟ Main Capabilities .................................................. 12 3.3 Value Chain Analysis ................................................................................... 13 3.4 Starbucks‟ Main Internal Capabilities against industry‟s Critical Success Factors .......................................................
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...Table of Contents Introduction 3 1.1 Brief Company Overview 3 1.2 Speciality Coffee Industry and Starbucks Coffee Supply Chain 3 1.4 Problem Definition 4 Literature Review 4 2.1 Current Situation of Starbucks and Older Supply Chain Method 4 2.2 Supply Chain Visibility 5 2.5 C.A.F.E (Coffee and Farmer Equity Practices) Practices 6 Findings 7 3.1 Starbucks’ Operations 7 3.1.1. Material Flow 7 3.1.2 Purchasing System 9 Discussion and Analysis 10 4.1 Starbucks’ 3PLs Strategy 10 4.2 Value Change Analysis 10 Conclusion 11 Appendix A 15 Appendix B 16 Appendix C 17 Appendix D 18 Appendix E 19 Appendix F 20 Appendix G 21 Appendix H 22 Appendix I 23 Introduction 1.1 Brief Company Overview Starbucks is the world’s #1 speciality coffee retailer with more than 20,000 stores n 65 countries (See Appendix G). It operates an estimate of 8,800 of its shops, while licensing and franchises operate the remainder of the stores. The company also owns Seattle’s Best Coffee, Torrefazione Italia coffee brands, Teavana, Tazo, Evolution Fresh, and La Boulange (SCC 2014). Starbucks offers consumers various products including: coffee, handcrafted beverages, merchandise, fresh food, and consumer products of coffee and tea and ready-to-drink (RTD) goods (SCC). 1.2 Speciality Coffee Industry and Starbucks Coffee Supply Chain The speciality coffee industry has seen drastic growth with increase in sales between the 1980s and 1990s. A great number of coffee specialists...
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...MBA6008 Organization Selected – Starbucks Company Analysis Abstract Starbucks is a publicly traded company that has been a main competitor in the coffee and in the special eatery industries. This document will give a brief description of the company, an Analysis of the economic implications of operating in global markets and different market and industry structures, and an assessment of the impact of ethical and regulatory considerations of Starbucks. It will analyze the macro and micro economic environments and then give a conclusion and recommendation of how the company can improve in the future. Introduction Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world. According to their 2012 Annual report, they have 18,066 stores in over 60 countries, including 12,903 in the United States, 1,324 in Canada, 989 in Japan, 851 in the People's Republic of China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 179 in Turkey, 171 in Thailand, and 167 in Germany. In addition, Starbucks is an active member of the World Cocoa Foundation (starbucks.com). Starbucks locations serve hot and cold beverages, whole-bean coffee, micro ground instant coffee, full-leaf teas, pastries, and snacks. They have over 30 blends and single...
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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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...Organization Selected – Starbucks Company Analysis Abstract Starbucks is a publicly traded company that has been a main competitor in the coffee and in the special eatery industries. This document will give a brief description of the company, an Analysis of the economic implications of operating in global markets and different market and industry structures, and an assessment of the impact of ethical and regulatory considerations of Starbucks. It will analyze the macro and micro economic environments and then give a conclusion and recommendation of how the company can improve in the future. Introduction Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world. According to their 2012 Annual report, they have 18,066 stores in over 60 countries, including 12,903 in the United States, 1,324 in Canada, 989 in Japan, 851 in the People's Republic of China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 179 in Turkey, 171 in Thailand, and 167 in Germany. In addition, Starbucks is an active member of the World Cocoa Foundation (starbucks.com). Starbucks locations serve hot and cold beverages, whole-bean coffee, micro ground instant coffee, full-leaf teas, pastries, and snacks. They have over 30 blends and single origin premium...
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...120 Mr. Richard Simon April 2, 2012 Table of Contents Cover Page...............................................................................................................................................1 - 2 Table of Contents…………………………………………………………………………………………………………………………………….3 Introduction and History………………………………………………………………………………………………..………………....4 - 5 SWOT Analysis……………………………………………………………………………………………………………….………………….6 – 7 Business Articles………………………………………………………………………………………………………………………………………8 Target Market…………………………………………………………………………………………………………………………………9 – 10 Tim Horton’s merging with Wendy’s Inc………………………………………………………………………………………………..11 Tim Horton’s as a convenient product……………………………………………………………………………………..…………...12 Channel of Distributions …………………………………………………………………………………………………………..…………...13 Promotional Strategies……………………………………………………………………………………………………………….…….....14 Socially Responsible Behaviour……………………………………………………………………………………………………..15 – 20 Recommendations – Part A (SWOT) ……………………………………………………………………………………………..21 – 22 Recommendations – Part B …………………………………………………………………………………………………………. ..23 Recommendations – Part C……………………………………………………………………………………………………………24 – 25 Gross Annual Sales & Market Share………………………………………………………………………………………………26 – 27 Appendix 1 – Timeline……………………………………………………………………………………………………… …………………..28 Appendix 2 – Business Article 1 ……………………………………………………………………………………………………29 - 30 Appendix 3 – Business Article 2 ……………………………………………………………………………………………………………31 ...
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...and doughnut restaurant in Quincy, Massachusetts. In 1950, Rosenberg changed the name of his place to Dunkin’ Donuts. It took him only four years to open four additional locations in the greater Boston area, and the growing popularity of franchising convinced him that this was a terrific way to expand further and faster. His philosophy was a simple one: “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores.” Thanks to his efforts, Dunkin’ Donuts has become the world’s largest chain serving coffee and assorted baked goods – the menu has expanded from donuts alone to include bagels, muffins, and assorted breakfast sandwiches.”(1) The mission of Dunkin Donuts is: “Throughout our company’s planning, we always keep the customer’s interests in mind. We frequently refer to our mission statement: Increase Customer Satisfaction and Loyalty by providing the Fastest and most Accurate Service, the Freshest Products, in the Friendliest and Cleanest Environment. We accomplish this through teamwork, communication, honesty, fun and sharing experiences as we all grow together.” We always recite and practice our company slogan: F.F.A.C.T. • Friendly • Fresh • Accurate • Clean • Timely If we strive to achieve our mission statement, and company slogan, our solid management team should be well position for further growth within the QSR Industry. There are a few...
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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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...INTERNATIONAL MARKETING Case Study Report How Starbucks Corp. should improve its business Syndicate Group Number 1 24/08/2007 The following group assignment report was prepared for a business unit at Macquarie University, Sydney. The information given does not need to be correct. The suggestions given and conclusions drawn remain (as the whole report in itself does, too) the intellectual property of the authors. Do not use this report for plagiarism. Do not copy this report. Do not print this report. Do not hand this report in as your own! Authors and Copyright: Tanya Shahi Jorge Omar Martin Aufschläger Timo Schmerling Stefan Gassner tanyashahi@gmail.com canogeorge@hotmail.com martinaufschlaeger@gmail.com timo_schmerling@web.de mail@stefan-gassner.de 2 Case Study Report: Starbucks Corp. Table of Contents Table of Contents ....................................................................................................... 2 1. Introduction ............................................................................................................. 3 1.1 Company Profile ................................................................................................ 3 1.2 Case Summary.................................................................................................. 3 1.3 Current Situation ............................................................................................... 4 2. Deriving Key...
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...Sunday, October 21, 2012 Starbucks Coffee and Information Technology Starbucks Coffee Food Manufacturer • The idea of the siren used in the Starbucks logo originates from Herman Mellville’s Moby Dick • She is designed to mesmerize the coffee drinkers; to “lure them to the cup” • A slightly different logo was created for each coffee, and appeared beside it on the menu board as well as on the package of the coffee. Mission Statement Our 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...
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