...An: Howard Schultz, Chairman and CEO der Starbucks Corporation Datum: August 1997 Betreff: Marktanalyse und Strategieempfehlung für Starbucks Corporation Executive Summary Starbucks ist Marktführer im Bereich des Specialty Coffee auf dem nordamerikanischen Markt. Obwohl das Unternehmen schnelles und kontinuierliches Wachstum aufweist, herrscht Unsicherheit hinsichtlich der momentanen Wachstumsstrategie und der zur Verfügung stehenden Optionen für die Zukunft. Im Folgenden wird die Attraktivität der Specialty Coffee Branche analysiert und die Unternehmensressourcen untersucht. Es wird sich zeigen, dass die Branche eine nur mittlere Attraktivität aufweist, das Unternehmen aber über teilweise sehr gute Ressourcen verfügt. Mithilfe von Produktneueinführungen soll es gelingen, innerhalb der nächsten 3 Jahre die Marktführerposition weiter auszubauen und die Umsätze deutlich zu steigern. Analyse Branchendefinition: Nachfolgend wird der amerikanische Markt für Specialty Coffee im Jahr 1997 analyiert. Externe Analyse: Mithilfe des Five-Forces-Modells von M. Porter werden die Haupteigenschaften dieser Branche untersucht. Die Rivalität in der Branche lässt sich als relativ hoch einstufen. Zwar macht der Verkauf von Specialty Coffee 1997 knapp 40% des gesamten Kaffeeverkaufs aus und das Wachstum in der Branche soll bis 2000 auf gut 50% weiter ansteigen. Weiter sind niedrige Austrittsbarrieren zu erkennen, da viele Unternehmen häufig über nur wenige Anlagen bzw. über keine Immobilien...
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...Topic 3 Jieni Peng 2/15/2015 http://blogs.wsj.com/pharmalot/2015/02/12/sanofi-shrinks-cancer-research-and-revamps-rd-cutting-100-jobs/?KEYWORDS=changes+in+organization 1. Sanofi, a drug company, is having issues trying to change the company. The change involves the company eliminating 100 research and development jobs in Massachusetts by trying to shrink its oncology unit and moving it into the Genzyme unit. This change is due to the company struggling to strengthen its diabetes business as well as trying to find a new chief executive. The former chief executive lowered sales outlook after unexpected pricing discounts arose. This caused the board members to become unhappy because of a lack of communication of the chief executive informing them of his decision. This is causing the current chairman to try to shift resources away from cancer research by performing damage control and trying to refocus the company as quickly as possible. Meanwhile, the board is struggling to find a replacement CEO with various pharmaceutical executives declining the position. The struggle that Sanofi is encountering in trying to implement their major change programs signals a failure in creating a powerful enough coalition program. In order for a major renewal program to be successful the chairman plus another group must come together and develop a strong commitment in creating a strong renewal program and implementing it properly. Sanofi lacked this communication with their former CEO and the...
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...Strategic Analysis of Starbucks Mission Statements Arleen Steevensz University of Redlands Strategy Capstone MGMT 697 Murad A. Zikri 1/18/2014 Introduction Starbucks is the worlds largest coffee shop chain company and continues its aggressive growth through international expansion and new product development. But at the beginning of this century affected by the economic downturn Starbucks financial growth of same-store sales and margins showed a 70% decline in net income and had experienced its first ever decline in quarterly sales (Grant, Robert Contemporary Strategy Analysis 2010). This paper will look at Starbucks’ mission statement and guiding principles to assess if their strategies during this downturn were still aligned with these principles and if these principles aided in its recovery. Starbucks Mission Statement and Principles Mission statements are always present based, talking about why a company or person exists and what they want to achieve in the here and now. (www.wisegeek.com). Starbucks mission statement from 1990 to October 2008 stated “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.” The six principles to help achieve their goals and governed their decision making process were 1. Provide a great work environment and treat each other with respect and dignity. 2. Embrace diversity as an essential component in the...
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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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...How Starbucks' Growth Destroyed Brand Value Cenk Kazanci Southern State University Abstract In February 2007, a leaked internal memo written by founder Howard Schultz showed that he recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special. Either you have to cut price (and that implies a commensurate cut in the cost structure) or you have to cut distribution to restore the exclusivity of the brand. Expect the 600 store closings to be the first of a series of downsizing announcements. Sometimes, in the world of marketing, less is more. How Starbucks' Growth Destroyed Brand Value Schultz sought, admirably, to bring good coffee and the Italian coffee house experience to the American mass market. Wall Street bought into the vision of Starbucks as the “third place” after home and work. New store openings and new product launches fueled the stock price. But sooner or later chasing quarterly earnings growth targets undermined the Starbucks brand in three...
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...CSR: Starbucks Executive Summary Starbucks is a coffee house company that began in Seattle Washington in 1971. Their mission statement is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. They ensure that their mission statement is brought to fruition in ensuring that they provide quality coffee, treat each other and employees with respect, engage with their customers, endure that the stores are lively, welcome and part of the community so that all of this ensures success for the shareholders. Other areas that Starbucks engages in are with their commitments to a greener livelihood, global impacts and charitable contributions. In their ensuring a greener livelihood, they have implemented many cost saving devices and equipment in the stores. All of this will not only reduce cost, but reduce their footprint on the environment. Their global contributions consume not only economic engagements but also political engagements. They are part of the Coffee and Farmers Equity Practice. This is a relationship where they are ensuring the ethical practices of the coffee harvester’s as well as the harvest itself. They are also involved in many charitable agencies around the world, as their stores are placed around the globe. In an effort to continue their CSR within the organization, there are few areas that the company could then begin to evolve. Recommendations would be to engage the partners of the company in town hall like events. Other areas...
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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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...BRANDING How Starbucks’ Growth Destroyed Brand Value by John Quelch JULY 2, 2008 WHAT TO READ NEXT 10 Charts from 2013 That Changed the Way We Think Make Your Emotions Work for You in Negotiations The Real Problem with Pensions Starbucks announcement that it will close 600 stores in the US is a long-overdue admission that there are limits to growth. In February 2007, a leaked internal memo written by founder Howard Schultz showed that he recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special. Either you have to cut price (and that implies a commensurate cut in the cost structure) or you have to cut distribution to restore the exclusivity of the brand. Expect the 600 store closings to be the first of a series of downsizing announcements. Sometimes, in the world of marketing, less is more. Schultz sought, admirably, to bring good coffee and the Italian coffee house experience to the American mass market. Wall Street bought into the How Starbucks’ Growth Destroyed...
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...Starbucks case study by applying the Eclectic Theory and Friedman’s Nine Questions Introduction Starbucks is the most recognisable brand and well-known coffee shop in the world. Moreover, it started as a small coffee shop in Seattle and grew into the most successful global coffee company. This report describes international expansion and reasons of Starbucks’ success by applying the Eclectic Theory and Friedman’s Nine Questions. The Eclectic Theory The Eclectic Theory was created by John Dunning during the 1980s. The theory explains why companies choose to become multinationals and what advantages support to invest overseas. This model is called “OLI Framework,” and it determines Foreign Direct Investment (FDI). According to the theory, a company is ready to invest overseas when it has ownership, location and internalisation advantages compared with companies who operate on foreign markets. Ownership advantages are occurred by possessing tangible and intangible assets which are connected with many factors where knowledge, trademark, production techniques are significant. Starbucks’ ownership advantages include the following: - globally recognized trademark - unique flavours and aromas, and roasted techniques - reputation focusing on high quality customer service - flexible and clear corporate vision and goals that are developed by Schultz - large learning curve as a result of past successes and failures - highly-motivated training staff members that are...
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...Starbucks Corporation Table of Contents Introduction Organizational Goals Symptoms of the Problem Diagnosis of the Problem SWOT Analysis Recommendations I. Introduction: In 1971, in Seattle, Washington, three entrepreneurs started the Starbucks Corporation. The primary business at this time was the selling of premium whole bean coffee in a single Seattle store. At the time, coffee consumption in the U.S. was on the decline and market dominance was established by the large supermarket brands. However, companies such as Starbucks, who began selling high quality specialty coffee, began to establish a following of loyal coffee enthusiasts. This niche market enabled Starbucks to expand into five stores that sold coffee beans, a roasting facility, and a wholesale business that served local restaurants. At this time, Starbucks did not serve coffee and would not be recognized as the company they are today. In 1982, Howard Schultz joined the organization as the manager of retail marketing and attempted to implement new ideas and a new business model for the organization. Schultz was inspired by the Espresso bars of Europe and saw the potential for establishing this type of European coffee culture in the U.S. market. Schultz’s idea was soundly rejected by the original owners and he left the organization and established a chain of coffee houses, themed after Italian café’s and they sold brewed Starbucks coffee. In 1987, Schultz bought Starbucks from the...
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...Starbucks Coffee Company – February 2007 [i] A case originally written for JUAS2006 Seminar, November 2006, Pittsburgh, PA Latest major revision – July, 2008; minor revision in January, June & Dec 2010 Written by Robert S. Atkin © 2006-2013 Robert S. Atkin General Background Starbucks is a phenomenon – in just under three decades it has become an internationally visible brand literally defining an industry not only in the US, but in selected countries in the EU, the Middle East and Asia (Please see Exhibit 1. For additional information, please see the firm’s website or its SEC financial 10-K filings). For example, in the decade ending 2005, worldwide revenue increased about 15-fold to nearly 6.9B USD, while net income increased about 19 times to 494M USD. Most of this growth can be attributed to a dramatic increase in stores (both domestic and international), various product development and product mix changes (including improved food and music production [ii]), and price increases (two in US company-owned stores in the past year averaging 5 and 9 cents/drink in October 2006 and July 2007). A Starbucks affinity card was a significant growth driver in the past few years, but is not expected to be a major driver in the next few years. [iii] Begun as a local coffee shop in 1971, the company grew modestly in the Seattle area until the mid-1980’s when Howard Schultz joined the firm. Convinced by a trip to Italy in 1983 that coffee could become the center of a social...
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...Starbucks: Just Who is the Starbucks Customer? By now, you should be familiar with the Starbucks story. After a trip to Italy in the early 1980s, Howard Schultz was inspired to transform Starbucks—then just a handful of coffee shops in Seattle—into a chain of European-style coffeehouses. His vision wasn’t based on selling only gourmet coffees, espressos, and lattes, however. He wanted to provide customers with what he called a “third place”— a place away from home and work. As CEO of Starbucks, Schultz developed what became known as the Starbucks Experience, built around great coffee, personal service, and an inviting ambiance. WHAT GOES UP . . . It wasn’t long before Starbucks became a household word—a powerhouse premium brand in a category that previously consisted of only cheaper commodity products. In 20 years time, Schultz grew the company to almost 17,000 stores in dozens of countries. From 1995 to 2005, Starbucks added U.S. stores at an annual rate of 27 percent, far faster than the 17 percent annual growth of McDonald’s in its heyday. At one point, Starbucks opened over 3,300 locations in a single year—an average of 9 per day. In one stretch of crowded Manhattan, a person could get their caffeine fix at any of five Starbucks outlets in less than a block and a half. In fact, cramming so many stores so close together caused one satirical publication to run this headline: “A New Starbucks Opens in the Restroom of Existing Starbucks.” For many years, new store growth...
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...Memo of Starbucks Corp. Mission: Making Starbucks a high-level coffee bar using high quality beans and introduce an coffee culture experience. (Access-based positioning) Strategies are divided: A. Production: produce high quality, variety products coffee source: high quality and sustainability. 2.Craftsmanship: unique producing process including roasting and brewing,using exclusive machines and coffee brewers. 3. Variety of productions:quality coffee,a variety of hand-crafted beverages,Tazo teas,Ethos water,pastries and, in some markets,a selection of sandwiches and salads. Attributes of measurements: Certification of coffee beans, sales, customer flow Substitute attributes: Certification of coffee beans—the testing results of the soil in coffee plantation every year to guarantee the organic planting method B. Service: ‘Starbucks Experience’ Key words: humanity, standardization, good customer experience 1.Connect with, laugh with, and uplift the lives of customers Starbucks Entertainment: film, music, books, which be purchased at stores or online app store Stores are decorated full of humanity: making customers feel the sense of belonging and enjoyment Attributes of measurements: customer satisfaction Substitute attributes: customer satisfaction—customers’ average time of stay, regular customers（VIPs） C. Operation: diversified operation Key words: retail duplication, word of mouth marketing (WOM), digital marketing, social marketing, regular chain and market expansion. Retail...
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...Starbucks Coffee Company Teaching Note Overview The Starbucks Coffee Company case offers students an opportunity to explore the tradeoffs between a successful business strategy (in this case, its focus on the purchase of the highest quality coffee, which is at the heart of this business) and the company’s interest in maintaining and enhancing its reputation as a socially responsible company. The case focuses on the CEO, Orin Smith and his decision whether to purchase and offer fair trade coffee after being pressured by the Global Exchange, an NGO responsible in the 1990s for Nike’s difficulties in relation to unfair labor practices in developing nations. Questions to Begin the Case Discussion Students can approach this complicated case from many different angles, so questions should be tailored to the individual needs of the course you are teaching. Possible successful approaches include the following: 1. Focus on the factors in the environment affecting Starbuck’s decision. This allows you to explore comparison between Nike in the 1990s and Starbucks today. The company faces the risk of overexposure because of its incredible rate of growth. And, like WalMart, the company has been seen as a destroyer of smaller main street type businesses. It also represents American culture in distant lands in the same way that McDonalds did in the 1970s and 1980s. Its interest in presenting itself as a socially responsible company also makes it an easy target for antagonists like the Global...
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...STARBUCKS: JUST WHO IS THE STARBUCKS CUSTOMER? By Annie C. Rodriguez For MKT-301 Principles of Marketing Mr. M. Loizides Howard Schultz traveled to Italy in the early 1980’s and was inspired to transform Starbucks, what then was just a handful of Seattle coffee shops, to a European-style coffee houses. His vision was to provide customers with the “third place” to go to. A place where they could relax that was away from home and work. A place where you can get away from it all and just sink into your thoughts and relax your mind. He started and created what is known as the Starbucks Experience. His idea worked and after twenty years Starbucks is a household word and an icon in finely brewed coffee. However, what goes up will eventually come down and by 2008 the twenty percent annual growth dropped ten percent and store sales where decreasing by three percent. By the end of the year profits had dropped by fifty-three percent and the value of their stock was down to $10 a share. What was the problem? What caused such a decline in profits and company value? There were a lot of important facts in this case that are extremely relevant to this case that were presented to us. One of the first things that were presented was that after twenty years Starbucks boosted over 17,000 stores in dozens of countries, between the years of 1995 to 2005 they added US stores at an annual rate of 27%. They were opening 3,300 locations in one year which was averaged...
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