...Competition Starbucks is the unquestionable market leader in the U.S. and is in the early stages of an international expansion plan that could lead to more revenue coming from international than domestic locations within the decade (www.beta.fool.com). Starbucks has significant strengths in coffee business. It is the current market leader with over 17000 stores worldwide. It has no debt and uses internal cash flow for expansion. Also since all of its stores are company-owned, it is able to maintain the image and quality. It also spends very less amount on advertising and marketing, and relies primarily on the word of mouth. Starbucks also has strong brand recognition by consumers. It is known for its high quality products and its consumer friendly environment. Labor, Demand, Supply, Relations and Unions It is important for Starbucks to analyze it suppliers for different reasons. First a powerful supplier can negotiate for higher price and insist on more favorable terms, forcing down profitability margins. Suppliers are not just the manufacturers of the raw materials but also all the manpower that are part of the distribution chain which includes the store front employees. To minimize the power of the supplier and the buyers the company will have to aggressively differentiate its strategy to be put competitors against each other, instead of buyers viewing the product as a commodity it will been seen as a powerful brand (Margretta, 2012). Starbucks can ...
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...Summary II. EXECUTIVE SUMMARY: 4 III. COMPANY BACKGROUND: 5 IV. SITUATION ANALYSIS 5 A. External Audit 5 1. Industry Overview and Analysis 5 2. PESTLE 6 3. 5 Forces of Porter: 7 B. Internal Audit: 8 1. Marketing Systems 8 2. Marketing Activities 11 C. Portfolio Analysis: 13 1. Ansoff Matrix 14 2. BCG Matrix 15 3. McKinsey: 16 D. Competitive Advantage: 17 E. Analysis Conclusion: 17 V. MARKETING STRATEGY: 18 A. Where do we want to be? 18 B. Segmentation, Targeting and Positioning: 18 1. Segmentation: 18 2. Targeting: 19 3. Positioning: 19 C. Competitive Strategy 20 D. Marketing Mix: 21 1. Product 22 2. Price 22 3. Place: 23 4. Promotion 23 5. People 24 6. Physical Evidence 24 7. Process 25 VI. IMPLEMENTATION: 26 A. Product development and diversification 26 B. Price 27 C. Internationalization and distribution networks: 28 D. Promotion: 28 E. People: 28 F. Budget: 29 VII. CONTROL AND MONITORING: 30 VIII. APPENDIXES 31 EXECUTIVE SUMMARY: Starbucks Corporation, currently the global leader in the coffee business, started off as a coffee bean roaster and retailer in 1971 in Seattle. Since then the firm has established 20,891 stores across 64 countries under the leadership of Howard Schultz. In the last decade, Starbucks has resorted to aggressive expansion making it the leader on the coffee shop market. However, increased domestic competition, recession and rise...
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...Impact of Change at Starbucks Mark Louden Cardinal Stritch Managing Change MGT 545 Scott Braught August 12, 2013 Impact of Change at Starbucks Executive Summary There is something about Starbucks that goes beyond caffeine. Starbucks has used their multi-cultural diversity to turn challenges into opportunities for success. Corporations such as Starbucks use Performance Management Systems (PMS) to monitor progress towards achieving a set of specific objectives and goals. Organizations commonly identify evaluating performance as the most demanding. Leaders are apprehensive discussing and providing feedback on behaviors because the process uses too much time supervising employee’s job tasks. The best way to keep these challenges from weakening a performance management operation is to meet the issues directly. This paper will identify, analyze and assess the impact of organizational change at Starbucks to enhance the customer experience as well as offer some recommendations for continued success. Introduction Starbucks has experienced phenomenal growth since 1992 and has become one of the greatest retail stories in recent history. The company currently occupies all fifty states and forty three countries with over 16,000 stores (Starbucks, 2013). Starbucks just celebrated its 42nd year in existence on March, 8, 2013. Eric Conger is the entrepreneur behind Starbucks who created a model coffee shop with a passion for superior coffee. The company’s goals grew...
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...Starbucks Annual Report and SEC Filings Shawn Casto, Jessica Ferraro, Leslie Haynes Samantha Eason, Cyntia Portal UOP Finance for Business FIN/370 Dr. Dana Williams February 15, 2014 Starbucks Annual Report and SEC Filings Starbucks first opened their doors in 1971, and since then they have felt a responsibility to make a positive impact one person, one cup, and one neighborhood at a time. Starbucks has grown to now more than 18,000 in over 60 countries; they recognize that commitment to corporate citizenship is also a business imperative. Each Starbucks is part of the fabric of the neighborhood it serves, as a gathering place and a place to connect. Our evaluation and analysis of the company’s growth over the past two years will give you a clear picture of the biggest international coffee corporation performance. Ethical business-making is something Starbucks considers one of the main and most valuable traits of the global brand, as it not only benefits the business in the long-term, but employees, partners and consumers as well. These practices are discussed with employees extensively. As instructed by Starbucks' Business Ethics and Compliance Booklet, commonly reviewed by new employees, "Starbucks is committed to full compliance with the laws, rules and regulations of the countries in which it operates. You must comply with all applicable laws, rules and regulations when performing your duties" (Starbucks, 2011). These guidelines are carried out by Starbucks...
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...STARBUCKS CORPORATION: SERVING MORE THAN COFFEE Wake up and smell the coffee—Starbucks is everywhere! As the world’s No. 1 specialty coffee retailer, Starbucks serves more than 25 million customers in its stores every week. The concept of Starbucks goes far beyond being a coffeehouse or coffee brand. It represents the dream of its founder, Howard Schultz, who wanted to take the experience of an Italian—specifically, Milan— espresso bar to every corner of every city block in the world. So what is the Starbucks experience? According to the company: You get more than the finest coffee when you visit Starbucks. You get great people, first-rate music, a comfortable and upbeat meeting place, and sound advice on brewing excellent coffee at home. At home you’re part of a family. At work you’re part of a company. And somewhere in between there’s a place where you can sit back and be yourself. That’s what a Starbucks store is to many of its customers—a kind of “third place” where they can escape, reflect, read, chat, or listen. But there is more; Starbucks has embraced corporate social responsibility like few other companies. A recent Starbucks Corporate Social Responsibility Annual Report described the company’s views on social responsibility: Starbucks defines corporate social responsibility as conducting our business in ways that produce social, environmental, and economic benefits to the communities in which we operate. In the end, it means being responsible...
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...and Compliance Paper Introduction Starbucks boasts that they serve the best coffee possible to meet their mission to inspire and nurture the human spirit, one person, one cup, and one neighborhood at a time. Starbucks has grown from one store in Seattle founded by two teachers and a writer in 1971 to more than 17,000 stores throughout the United States and overseas companies. Of these, 53% are directly owned by Starbucks and the rest in franchised contractor leases. This amazing feat brought three people together, each using $1,350, and borrowing $5,000 to make over a billion dollar per year successful business 40 years later. The name Starbucks was their original name in reference to the coffee-loving first mate in Moby Dick, and the design was from the two-tailed siren mermaid. Most recognize the Starbucks brand as a house-hold name and should also know that they are proud and committed to their coffee knowledge, customer service, and product expertise. They call their employees partners and offer Starbucks internal programs such as comprehensive health coverage and equity in the company. Every Starbuck’s employee knows he or she is a visual symbol of the company and needs to work as if each store was hid or her own. Starbucks also adheres to the requirements of the Security Exchange Commission (SEC), which is a publicly traded company known as SBUX. The aim of this paper is to discuss the roles of ethics and compliance of Starbucks, the procedures put in place to ensure...
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...Strategic Initiative Paper Iam Anonymous FIN/370 January 8, 2013 Dr. Finance Strategic Initiative Paper A business with a competitive edge, growth and financial stability is usually developed with the proper strategic and financial plans. This process starts by clearly defining your business goals, objectives and determining how much money it will take to accomplish them. In the process of Strategic and Financial planning certain steps or developed, implemented and followed through as an outline in determining the direction you want your business to go into as well as how the goals you have set, and who will be assigned to assist in monitoring the process and accomplishing those goals. Strategic planning is also a process of that involves investigating and assessing the competitions strengths, weaknesses, accomplishments and threats and applying them according to the plans of your business. Financial Planning is managing the finances over a period of time so that the business will and can continue to operate, Plans for the company and employees future. When the strategic plan is developed for the business having the adequate finances play the most important role in getting started, company and organization without the adequate funding and financial guidance, goal and plans set for the business are limited and will not be beneficial and could result in a failing company. Businesses that usually follow their business outline eliminate areas of inefficiencies...
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...Starbucks Coffee Company I. Current Performance Company Overview: Starbucks is the most well known specialty coffee company around the world. Starbucks operates over 11,000 stores throughout 36 countries. Also, the company has about 10,000 employees. The company has shown horizontal integration in the last few decades into the Japan market which has shown to be extremely successful. The next project for the company is to expand their market further into India. There are also some concerns for the company. One thing that is well known is that Starbucks is heavily dependent on one product which is their coffee. If something goes wrong with one of their suppliers and their ability to roast coffee around the world, Starbucks could be facing some serious problems very quickly. Current Objectives for International Expansion: -Be the first to enter international market such as India to gain a head start over competitors. - Build on growing desire for Western brands. - Take advantage of higher coffee consumption rates in different countries. II. External Factor Analysis External factors | Weight | Rating | Score | Opportunities | | | | Expansion into economy level market | .2 | 4.5 | .9 | New products | .1 | 4 | .4 | Expansion into India | .2 | 4 | .8 | Threats | | | | Consumer Trends focusing moving away from caffeine into other healthy substitute products | .3 | 5 | 1.5 | Increased competition/ new competitors | .1 | 3.5 | .35 | Dependence...
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...Seattle, Washington January 26, 2012 Dear Shareholders: You are cordially invited to attend the Starbucks Corporation 2012 Annual Meeting of Shareholders on March 21, 2012 at 10:00 a.m. (Pacific Time). The meeting will be held at Marion Oliver McCaw Hall at the Seattle Center, located on Mercer Street, between Third and Fourth Avenues, in Seattle, Washington. Directions to McCaw Hall and transportation information appear on the back cover of the notice of annual meeting and proxy statement. Under the Securities and Exchange Commission rules that allow companies to furnish proxy materials to shareholders over the Internet, Starbucks has elected to deliver our proxy materials to the majority of our shareholders over the Internet. This delivery process allows us to provide shareholders with the information they need, while at the same time conserving natural resources and lowering the cost of delivery. On January 26, 2012, we mailed to our shareholders a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access our proxy statement for our 2012 Annual Meeting of Shareholders and fiscal 2011 annual report to shareholders. The Notice also provides instructions on how to vote online or by telephone and includes instructions on how to receive a paper copy of the proxy materials by mail. The Notice will serve as an admission ticket for one shareholder to attend the 2012 Annual Meeting of Shareholders. On January 26, 2012, we also first...
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...Starbucks Coffee Company Linda Estes American InterContinental University Principles of Accounting I Dr. Felicia Olagbemi November 30, 2012 Abstract Many companies have to follows the regulation of GAAP that are set by FASB. Starbucks as adapts and agree to do what the GAAP principles and standards which can affect Starbuck dignity. I will introduce what Starbucks is all about where it started from, GAAP and description of the account principles, cost, revenue and matching for Starbucks Company. Show the application of GAAP in cost recording, revenue recognition, and the matching expenses and revenues. Basically show how Starbucks became a million dollar company. Give a description of their recent accounting standards and pronouncement of the company. Describes how the assertion of internal controls of the company financial statements. Starbucks Coffee Company Introduction/Background Information The founder and CEO of Starbucks Corporation is Howard Schultz. Howard Schultz is a man of vision who turned and unknown coffee company in Seattle Pike Place Market into a large global coffee and the most want and best respected brands to have. (Moe, m 2006) The first store open was in 1971. Starbucks got a new name in 1987 when Schultz Company, II Giornale brought Starbucks and change the name to Starbucks Corporation, at that time it was only 17 stores open. Today, with more than 17 thousands stores in 50 nations, Starbucks has the best roaster coffee and retailer of all...
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...between the corporate brand and social responsibility. Specifically, Birkner claims that brands like Costco and Starbucks (which empower employees through benefit packages that contain healthcare and other elements) tangibly benefit by treating their employees well while other brands (notorious for cutting employee benefits) like The Home Depot and Wal-Mart experience the opposite. Birkner claims that employees that feel valued by their employers will perform better on the job. She goes on to state that treating employees well will attract skilled workforce talent, and that the employees of a company will become brand ambassadors by spreading their positive reflections of the company in response to being treated fairly by their employer. She notes that Costco has put no money into marketing the way it treats its employees, and yet it is well known that this wholesale giant is consistently rated close to the top for employee happiness and satisfaction. But Birkner’s claims are not just conjecture, she cites hard statistics from a 2014 study that back up her claims: 82% of consumers consider a company’s employee treatment and CSR practices in deciding where they will shop. Based on Birkner’s observations it is clear that there are benefits to treating employees well. The perceptions that one’s employees hold towards their employer are reflected outwards into the world. An unhappy employee will not exude the values that a company may want associated with their brand, and consequently...
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...Seattle is the place where Starbucks Coffee Company was headquartered. Starbucks have been the leading brand in the world with just one retail store at Seattle’s historic Pike Place Market. By selling the best quality coffee, providing high class customer service and related products, their main aim was to become the leading brand of finest coffee in market locally and internationally. Non retail channels such as United Airlines, Barnes, Marriot International and department stores were buying coffee and tea products from Starbucks as well. With not only selling of coffee, Starbucks had their own hand made beverages and a variety of sandwiches and salads in some markets. In relation to tea and coffee, items like coffee brewers, and espresso machines were included in Starbucks merchandise. These essay will first talks about Starbucks make or buy strategy. Following Starbucks make or buy strategy; we will look at their supplier selection and evaluation system. After looking at Starbucks supplier selection and evaluation system, we will be looking at Starbucks purchasing cost analysis. We will discuss possible issues Starbucks may face and come up with some recommendations to address these problems. Starbucks Make or Buy Strategy The current situation in Starbucks now is that they are buying their furniture from the company called Viesso. Viesso is well known for designing furniture for relaxation, working, studying, lounging, socializing and many more. Starbucks have been purchasing...
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...will present a financial analysis of Starbucks Corporation (SBUX). A full breakdown of the companies’ profile and ratio analysis will be provided and methods for improvements will also be provided. A full stock analysis will be included to anticipate Starbucks risks versus their returns on common stock and an estimation of the companies’ fundamental value. This report will also delve into the corporate governance of Starbucks as well as discuss the corporations’ corporate policies. By the end of this report a clear understanding of Starbucks Corporation and various brands under the monikers full financial status so that sound and viable investments decisions can be accurately made. Company Profile Starbucks Corporation retails, brews, markets, and develops a wide and various array of coffee and coffee based products worldwide. Starbucks operates in North and South America, Europe, The Middle East, Africa, and China. In addition to coffee products the company also produces a plethora of teas and bottled waters. Starbucks also provides fresh foods, pastries, and other edibles. The corporation has a partnership with Pepsi- Cola for them to license and sell Starbucks products. The companies’ products are offered through the Starbucks, Teavana, Tazo, Seattles Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks VIA, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries iced café Favorites brand names. The company currently operates...
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...Case abstract Starbucks was founded in Seattle in1971 as roaster and retailer of whole bean and ground coffee, tea and spices in a single store in Seattle’s Pike Place Market. It was named after the first mate in Herman Melville’s Moby Dick. It was incorporated under the law of the State of Washington in Olympia, Washington, on November 4,1985. It went public on June 26,1992 at a price of $17 per share and closed trading that first day at $21.50 per share. In 2011, Starbucks unveiled an alliance with India’s flagship conglomerate ,Tata Group. This alliance is to raise the profile and use of Indian premium Arabica beans in Starbucks stores elsewhere. Nowadays, Starbucks has become the largest coffee company in the world and its headquarter is located in Seattle, Washington. It has entered into a strategic partnership with the maker of Keurig brewers, Green Mountain Coffee Roasters in order to deliver coffee to the fast-growing single serve coffee market. Since the Starbucks VIA instant coffee are successful and popular among the coffee addicted customers, Starbucks now offer its VIA instant brew in its Chinese stores and other countries. Starbucks is opening more than 100 new stores in 2011 in Brazil, the second largest coffee-consuming country in the world. In early 2011, it has a total 16,635 stores in 50 countries, including 500 stores in Tokyo and 500 in London. Starbucks’s sales also had leap-frogged the company past Burger King and Wendy in early 2011. But , it was...
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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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