...CASE STUDIES Starbucks case study Utilizing brand assets and capturing consumer trends in the Japanese RTD coffee market Reference Code: CSCM0242 Publication Date: March 2009 DATAMONITOR VIEW CATALYST Starbucks has established itself not only as a coffee shop chain, but also as a provider of ready-to-drink coffee drinks. Its partnership with Suntory in Japan has seen the success of the chilled cup coffee drink Discoveries, and the experience could provide insights on how the company can succeed in expanding into the growing global RTD coffee market. SUMMARY • Starbucks has been offering the “Starbucks experience” beyond coffee based drinks. Its brand image has helped the launch of its first bottled ready to drink coffee drink, Frappuccinos, in the US through the partnership with PepsiCo. During the economic downturn, offering Starbucks-branded drinks and products via multiple retail channels could help the company capture more consumption occasions and increase its revenue. • Starbucks teamed up with Suntory to launch the Discoveries series in the cut-throat RTD coffee market in Japan. First launched in 2005 and positioned as a premium chilled cup coffee drink, the series is ranked second in the sector, holding an 18% market share after three years. • Right positioning and product design that effectively reflect the positioning are key factors contributing to the achievement of the Discoveries series. Suntory’s know-how of the market, plus its marketing and distribution...
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...Re: The 2nd case STARBUCKS Brief: The case includes some proposals from the IFRS about the lease accounting and a response from the Starbucks in which the Starbucks expressed its negative attitude and its reasons why it oppose those proposals. Then, in this write-up, our group is going to analysis the influence of leases and lease accounting on Starbucks. The importance of lease on Starbucks From the case, we know that Starbucks leases retail stores, roasting and distribution facilities and office space etc. After an explicit analysis and detailed discussion, we also understand that these lease related activities and issues play a very important role in Starbucks’ business activities. After an introductory accounting course we had taken, we realize that leasing can reduce risk of obsolescence. With more leases, there will be little or no down payment. And these positive effects are preferred choices for managers, especially for the Starbucks’ managers who have a lot of leases activities. Actually lease makes Starbucks hold more available cash which could be invested to other aspects, allowing it to build up more stores and capturing the market rapidly. Thus, leases are important for Starbucks. The importance from lease accounting We already know that many of Starbucks’ business activities are leases, such as leasing retail stores, roasting and distribution facilities and office space etc, so it is better to use lease accounting to accomplish Starbucks’ financial analysis...
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...STARBUCKS (Case Study in HRM Trends) Submitted to: Mrs. C. Rodriguez Submitted by: Basilio, Erlyn Ruth Broniola, Ginalyn Beltran, Dickross Musni, Marionne I. Background Description The Starbucks Brief History Starbucks began in 1971. Back then, Starbucks was a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. In 1982, Howard Schultz joins Starbucks. While on a business trip in Italy, he visits Milan’s famous espresso bars. Impressed with their popularity and culture, he sees their potential in Seattle. So in 1990’s, Starbucks expands beyond Seattle, first of the United States, then the entire world. After becoming one of the first companies to offer stock option to its part-time employees, Starbucks becomes a publicly traded company. And today, Starbucks is privileged to connect with millions of customers every day with exceptional products and more than 17,003 retail stores in over 55 countries. Folklore Starbucks is named after the first mate in Herman Melville’s Moby Dick. Their logo is also inspired by the sea – Featuring a twin‐tailed siren from Greek mythology. Starbucks Mission To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks Products * Coffee: More than 30 blends and single‐origin premium Arabica coffees. * Handcrafted Beverages: Fresh‐brewed coffee, hot and iced espresso beverages, Frappuccino coffee...
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...August 27th, 2013 Case Analysis #1: Starbucks Corporation, April 2012 Starbucks is one of the world’s most recognized and loved brands. It is known in most parts of the world, leading it to become the largest supplier of coffee on the planet! Although it seems like Starbucks has always been on top of its game, that is certainly not the case. A brief history on the company provides some insight into its strengths and weaknesses over the company’s twenty-six year existence. Starbucks was started by Howard Schultz, a man who once visited a coffee shop and realized that the coffee he was drinking there was superior to any coffee he had experienced in the past. His subsequent visit to Milan inspired him to open his own coffee bar called Il Giornale, and by 1987, he decided to acquire the six Starbucks locations in the United States and merge them with the three locations of Il Giornale. Starbucks locations spread like wildfire over the next couple of decades, and the company raked in profits as a result. This expansion had a logic that involved a cluster system. This meant that a single metro area would have multiple Starbucks locations, and due to this, so residents could always have access to a convenient location, regardless of whether they were at work, home, or some other place. Starbucks, like most other global scaled companies, took a major downturn with the economic recession of 2008. It hit its peak stock price of forty dollars in October of 2006. The economic...
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...Introduction: Before we begin to show our analysis and delve into the depths of the work, which we researched for Starbucks. We first need to have a clear understanding as to what the purpose of the assignment is, and also what is being asked of us. The title of the group project reads: “International issues and evaluation of strategic options.” Therefore we needed to focus particularly on the international issues surrounding Starbucks and also the strategic options, with which it has at its disposal. For us to successfully analyse the Starbucks case, thorough research was carried out in these areas. A number of sources were offered for us to explore in relation to the case. We chose the following, as we believed they possessed the most relevant information. The Financial Times, Harvard Business Review, Mc Kinsey Quarterly and we also referred to our core textbook: Exploring Corporate Strategy. With regards to the international context surrounding Starbucks we looked at different areas, which we believed, were of the most importance e.g. what issues Starbucks faces on an international scale and also what Starbucks can do strategically to change for the benefit of the company. We looked at the work of one theorist in particular Michael Porter and ways in which his concepts and theories could be applied to this particular case study. We chose to adopt the infamous Porter’s Diamond as a theoretical framework for our analysis. If this model is applied to a company in...
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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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...Brief Introduction • Founded in 1971 by three coffee fanatics- Gerald Baldwin, Gordon Bowker & Ziev Siegl • Schultz joined the marketing team in 1982 • Later, the founders sold the entire business to Schultz • By 2002, it served 20 million unique customers in 5000 stores across the globe • Sales had a CAGR of 40%, while Net Earnings had a CAGR of 50% Key people in the CASE: * VP of Administration in North America: Christine Day * CEO: Orin Smith (A Harvard MBA who joined 1990) Chairman * Chief Global Strategist: Schultz CRM SECTION A 2 3. Problem Statement Starbucks failed to meet customer expectations and deliver satisfaction thereby losing customer loyalty whether to invest the $40 million dollars to enhance the labour in each store? If invested, how it will impact the sales and profitability? CRM SECTION A 3 4. Factors responsible for the early success of Starbucks Experiential Branding Strategy consisting of the three major components: • High quality coffee- It monitored roasting process to distribution around the world • Service- Provide intimate and uplifting experience each time • Atmosphere- Friendly environment with universal appeal, encouraged lounging and layouts Other factors that contributed the early success includes: • Attractive Market- Unexploited without strong competitors • Partner Satisfaction- High satisfaction rate(80-90%) & low turnover rate • Company’s Distribution strategy and location of stores- high traffic & high...
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...STARBUCKS: DELIVERING CUSTOMER SERVICE Brief Introduction • Founded in 1971 by three coffee fanatics- Gerald Baldwin, Gordon Bowker & Ziev Siegl • Schultz joined the marketing team in 1982 • Later, the founders sold the entire business to Schultz • By 2002, it served 20 million unique customers in 5000 stores across the globe • Sales had a CAGR of 40%, while Net Earnings had a CAGR of 50% Key people in the CASE: VP of Administration in North America: Christine Day CEO: Orin Smith (A Harvard MBA who joined 1990) Chairman & Chief Global Strategist: Schultz Problem Statement Starbucks failed to meet customer expectations and deliver satisfaction thereby losing customer loyalty whether to invest the $40 million dollars to enhance the labour in each store? If invested, how it will impact the sales and profitability? Factors responsible for the early success of Starbucks Experiential Branding Strategy consisting of the three major components: • High quality coffee- It monitored roasting process to distribution around the world • Service- Provide intimate and uplifting experience each time • Atmosphere- Friendly environment with universal appeal, encouraged lounging and layouts Other factors that contributed the early success includes: • Attractive Market- Unexploited without strong competitors • Partner Satisfaction- High satisfaction rate(80-90%) & low turnover rate • Company’s Distribution strategy and location of stores- high traffic & high visibility Core Value Proposition...
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...BTEC HND IN BUSINESS (FINANCE) ASSIGNMENT COVER SHEET | NAME OF STUDENT | | REGISTRATION NO. | | UNIT TITLE | Organisations and Behaviour | ASSIGNMENT TITLE | Starbucks | ASSIGNMENT NO | 2 of 2 (individual report) | NAME OF ASSESSOR | Mr. John Andre | SUBMISSION DEADLINE | To Be Announced | ------------------------------------------------- ------------------------------------------------- I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment. ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ________________________________ _________________________ ------------------------------------------------- ------------------------------------------------- Signature Date ------------------------------------------------- ----------------------------------------------------------------------------------------------------------------FOR OFFICIAL USE (Course Administrator) Assignment Received By: ...
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...Principal, MCHEMT No later than : 07/02/2011 Word Limit: 1500 words Assignment 01 Course Work Brief Starbucks Coffee Company was established in 1971 and has grown to be the leading retailer roaster and brand on specialty coffees in the world with 15,000 retail outlets across the world. Its common goal is to provide its customers with the finest product and customer experience whilst combining this with their business principles of which involve them incorporating social, environmental and economic responsibilities and benefits in the communities in which they do business. The company’s mission statement states ‘to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.’ They have sought throughout their history to achieve this goal through a number of intrinsic principles which incorporate respect, dignity, diversity, excellence, enthusiasm and desire to create an environment, a product and an unparalled customer experience. The foundations of Starbucks success has been built around an aggressive retailing strategy, Starbucks successfully entered the European market in May 1998 through the acquisition of 65 Seattle Coffee Company stores. The layout of Starbucks retail outlet is designed to create a comfortable laid back sociable but also private surroundings for consumers to relax and unwind. These values have seen the company...
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...Provide a brief overview of the Chairman’s and CEO’s reports. When CEO Howard Schultz returned to Starbuck’s in 2008, he had a plan. He returned hoping to keep the number one coffee specialty during the time of transformations during times of 2008-2011 increase record breaking sales. According to Mr. Schultz reports he stated that the previous fiscal year 2010 Starbuck’s revenue increased to a record breaking 10.7 billion dollars; Starbuck’s operating income increased by 857 million dollars from fiscal in 2009 to 1.4 billion dollars. Starbucks full year margin of 13.3 percent represented the highest full year consolidated margin in Starbuck’s history (Schultz, 2011). Mr. Schultz stated that while driving Starbuck’s key financial metrics cause it to reach the company’s record levels. In fiscal 2010, we built upon the nearly $600 million of cost savings in fiscal 2009 while driving many of the key financial metrics to record levels (Schultz, 2011). Starbucks improved the effectiveness and efficiency of their supply chain in world-class levels. In the U.S. alone, the business, operating income and revenues are growing again, with their store partners elevating the Starbuck’s Experience. Internationally, the foundation of the Starbuck’s brand still remains consistent in 2010 the ideas and leaderships in local markets helped deliver record breaking financial performance, which set the international business up to be a profitable growth engine (Schultz, 2011). Starbucks offered significant...
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...chosen: Starbucks [pic] 1. Brief introduction to the company and its supply chain. Company Profile In 1971, a humble coffee house was opened in Seattle by three person- Jerry Baldwin (English teacher), Zev Siegel (History teacher) and Gordon Bowker (writer). The coffee house was named “Starbucks Coffee, Tea, and Spice”, inspired by the Melville’s Classic Novel “Moby Dick”. The original logo of Starbucks was a two-tailed mermaid circled by the name “Starbucks Coffee Tea Spices”. The company expended slowly and by 1980s, it had a roasting plant and 4 retail stores. In 1987, the owners decided to sell the business. Howard Schultz bought the company and became the president and CEO. Since then, Schultz brought in the experienced person, Howard Behar and Orin Smith to build the company. (1) By 1991, the company had over 100 stores and went listed in 1992. By 2011, Starbucks Corporation has 17,009 stores; 8870 owned stores and 8139 licensed stores. As of December 28, 2014, the total stores worldwide reached 21,878 in 66 countries. Products of Services Starbucks offers variety of premium products that customers can enjoy in the stores, at home, at office and on the go. The products offered are categorized into Coffee, Handcrafted Beverages, Merchandise, Fresh Food and Consumer products. In Coffee category, there are more than 30 blends and single-origin premium coffees offered. In Handcrafted Beverages category, Starbucks provides...
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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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...Background: First established in 1971, but the real and actual Starbucks was created in 1987 when an ex employee bought the company after creating one by his own and persuading some investors to buy it. Howard Schultz was the entrepreneur that took the company since its start in Seattle to the actual global enterprise that is today. The innovation has been always in the way of Starbucks, even is seen on its logo that have changed trough the years to give the company an actual image; the first one had a twin-tailed mermaid, and have change to the actual logo know in the modern world. When the company started as Starbucks Corporation, had 17 stores and soon the company started to open more and more stores in the United States, but when the company opened the first store out the United States had already 1014 stores in America; the company also started to purchase companies in different countries in order to enter in new markets, a very well directed strategy of expansion. The rise of this company has been as successful that in the 90’s invested on the stock and had actions, which also gave them to the employees; this behavior was established by Howard Schultz, the owner and director, and he gave an explanation of his actions, he said: "He (my father) was beaten down, he wasn't respected," Schultz said. "He had no health insurance, and he had no workers' compensation when he got hurt on the job." So with Starbucks, Schultz "wanted to build the kind of company that my father...
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... * With an ambition to rank among the top three cafe chains in the world by 2018, the company nourished plans to establish new cafes across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia. At the same time CCD was also eyeing for foreign acquisitions. * In mid-2010, it acquired a Czech Republic based cafe chain Cafe Emporio as part of its broad acquisition plans. Initially providing a brief analysis of the Indian coffee industry, the case attempts at initiating a debate that whether Cafe Coffee Day should continue to expand its operations globally or not. * Whether the strategies it followed in India could be successful in international markets or it might have to face stiff competition from global coffee chains remain to be seen. Finally, whether it could cope up with the challenges that it might face in the process also posed apprehensions. SOLUTION AND RECOMMENDATIONS: Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL) * As very clearly mentioned in the case that Café coffee day had become an youth aggregator in Asia due to 3 A’s- Accessibility, affordability and acceptability but the same...
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