...Starbucks Coffee Executive Summary STARBUCKS COFFEE COMPANY EXECUTIVE SUMMARY Starbucks Coffee Company is North America's leading roaster and retailer of specialty coffees. Headquartered in Seattle, WA, Starbucks has 931 retails stores and 75 major airport locations. The Company's objective is to establish Starbucks as the most recognized and respected brand of coffee in the world. To achieve this goal, the Company will continue to rapidly expand its retail operations, grow its mail order and specialty sales operations, and selectively pursue other opportunities to leverage and grow the Starbucks brand through the introduction of new products and the development of new distribution channels. Employees are one of the most important resources to Starbucks. If the company is to prosper, the employees must be treated well. All employees are eligible for Starbucks' health care and benefits package, as well as a starting wage above the minimum. Starbucks' strong commitment to the environment is guided by an environment committee. The Company endeavors to offer an environmentally safe product, as it believes that the welfare of people, plant and product are linked. Starbucks prides itself on being a "good citizen" locally and in the various coffee producing countries. They make significant contributions to local charities that focus on children, the environment, the homeless, and AIDS research/support. Financially, Starbucks has had solid earnings and returns. While still in the...
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...STARBUCKS IN 2012 EVOLVING INTO DYNAMIC GLOBAL ORGANIZATIONS INTERNATIONAL BUSINESS POLICIES & STRATEGIES FALL QUARTER 2014 MARIA FERNANDA SVENSON CASTELLO SUMARY 1 – EXECUTIVE SUMMARY Executive Summary Is Starbucks, the famous coffee brand name, a global premium coffee? The answer that cannot be denied is YES. However, another question raised up is: “How did Starbucks get it?” To find out the answer for the second question, we have to look at its strategy. First and foremost, it is claimed that Starbucks has used broad differentiation strategy. From the beginning, Schultz chose top quality, fresh-roasted, whole-bean coffee as the company’s differentiating feature and bedrock value. After 1983 trip to Milan, recreating the authentic Italian coffee bar culture in the U.S was the additional differentiating factor. The ideas of how to design stores were started in 1991 that Starbucks formed a project team called “stores of the future” to in charge of bring out new ideas to decorate each Starbucks stores. They came up with 4 stores designs that each has its own color combination, lighting scheme and component materials. Schultz’s ambition was to create a “third place” that everybody can feel comfortable to meet friends, family … and it also has to be environmental friendly. Moreover, in this period of time, Schultz started to expand Starbuck’s products offering in order to make the products more accessible to customers and also to entered new market segments...
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...Strategic Audit of Starbucks Traci Hall Jones College Business Policy and Administration Professor E. Smith June 20, 2011 I. Current Situation A. Current Performance Starbucks is the fastest growing food chain and shows no signs of slowing down. it plans to boost earnings by 20% to 25% annually over the next three to five years and to bring its number of storefronts to 40,000 worldwide which is 10,000 more than McDonald’s. Starbucks is conservative in how it finances its goals. Operating cash flow from existing stores pays for new-store development. So far, the return on new stores has been excellent. Increasing same-store sales has been a tougher order, though, and Chairman Howard Schultz has expressed worries that moves to improve same-store sales with automatic equipment and off-brand merchandise could be turning consumers off. The return on investment (ROI) for Starbucks in 2010 was 22.50%. The market share was $27.33 billion while the profitability was at 30.4% (Donald, 2007). B. Strategic Posture Starbucks has an impressive mission statement because it addresses their product as a whole and their mission for different relationships. “The Starbucks Mission Statement-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...
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...Final Strategic Plan: Starbucks Debbie Pryer, MGT578 Strategy Formulation and Implementation University of Phoenix Table of Contents Executive Summary 3 Company Background 4 Vision Statement 4 Recommended Vision Statement 5 Mission Statement 5 Values Statement 7 Environmental Analysis 7 Long Term Objectives 14 Strategic Analysis and Choice 15 Plan Goals and Implementation 18 Financial Projections and Analysis 20 Critical Success Factors 24 Controls and Evaluation 25 Conclusion 26 References 28 Executive Summary Starbucks Coffee Company, Seattle, Washington, is in an enviable position – high growth, few competitors, strong financials, loyal customers, talented management and employees, and brand recognition – so why create a strategic plan? The company faces many threats and opportunities, and if Starbucks wants to continue its success story, a strategic plan will help them continue to achieve stellar results. Starbucks’ vision is to have coffeehouses in every neighborhood around the world, and will continue to grow by finding and delivering the world’s best coffee to the world’s best customers without compromising our world-class principles. An internal analysis shows Starbucks has more strengths than weaknesses, while an external analysis points to several threats and many obvious opportunities. The key is in choosing the right strategies to minimize threats and maximize opportunities. Starbucks should focus on the following three strategies:...
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...Executive Summary Starbucks PROC 5850 Procurement / Logistics Executive Summary DRAFT 1 Introduction Starbucks began in Seattle Washington in 1971. Today, in 2012 there are 17,000 stores in 55 Countries and their mantra is Ethical Sourcing. Ethical Sourcing includes Coffee Farm Support, Tea, and Cocoa and Store products. There store product include beverages, pastries, whole coffee beans, and coffee-related retail items. These are considered “specialty items” (Store Products). Overarching responsibility includes Community, Ethical Sourcing, Environment, Diversity and Wellness. Global Responsibility includes an “All Hands” year in review on-line. Ethical Sourcing includes Coffee, Tea and Farmer support. Cost Sharing (Operations), provides discounts on wholesale prices. Contracts Starbucks Ethical practices when sourcing: Starbucks uses long-term contacts providing teaching and support to the farmers for the best quality organic beans. These agreements are usually fixed commitment; mixed long-term and flexible contacts for one time harvesting -- overages of beans are purchased from a farmer to avoid the bull-whip effect. (e.g., floods, freezes, drought or other catastrophic events). The farmers store the beans. Global Responsibility includes ethical sourcing of coffee, Tea and Farmer support. Environment stewardship means to recycle everything by establishing wells for farmers, and providing or conserving energy as needed; including...
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...STARBUCKS A Fortune 500 Company Business Management Issues BUS-285 Prepared by: Student Name For Mr. Jessie Bellflowers Instructor A research paper presented to Fayetteville Technical Community college in partial fulfillment of the requirements for the Business Management Issues Capstone Course. Fayetteville Technical Community College July 20, 2014 TABLE OF CONTENTS Title Page 1 Table of Contents 2 I. Executive Summary 3 II. Company Overview 4 III. Strategic Analysis 8 IV. Strategic Effectiveness Analysis 11 V. Conclusion 14 VI. References 15 EXECUTIVE SUMMARY Starbucks has been one of most popular coffeehouses in the world. They started their business as just a coffee-bean retailer. This didn’t last long. Howard Schultz...
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...Executive Summary Starbucks is an international coffee corporation which is a special corporation. In the past 40 years, Starbucks gain a huge success. However, in the process of gainning success, Starbucks also faced a lots of challenges. So what the difficulties it suffered and how it solved the problems are very improtant to our corporation’s success. Introduction Starbucks is an international coffee corporation. When Howard Schultz, the chairman & CEO of Starbucks, attended the Commonwealth Club, he said that “ Starbucks is a special company, not a company better than other companies, but a company different from other companies.” Starbucks creates a third place between working place and home which can provide the sense of community and human connection in every Starbucks store. At the same time, Starbucks provides high quality coffee at high price, so the market target of Starbucks should be the middle-class. Background According to the Starbucks Offical Website we can know that the first Starbucks store was opened in Seattle at 1971s. At that time, Starbucks just sold coffee beacons and coffee equipment for people and only has four stores. In 1987s, Starbucks creates its coffee culture. In 1990s, Starbucks expanded beyond seattle and first to the rest of the America. In 1992s, the stock of Starbucks was traded on the NASDAQ National Market. In 2000s, Starbucks has 6,000 stores over 30 countires. In 2010s, Starbucks has 17,000 stores...
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...EXECUTIVE SUMMARY Starbucks Coffee Company is a retail leader in North America of specialized coffee blends that is headquartered in Seattle, WA. Starbucks has 931 leading retail stores across North America. The objective is to establish Starbucks as the most recognized brand of coffee retailers across the globe. To achieve our goal of bringing superior coffee and spreading the Starbucks name around the world, our goal is to expand our retail operations in other countries by aggressively pursuing other opportunities for growth such as mail order of our specialty goods which will be a new way of introducing new products to a global market. Our employees which we call “baristas” are the most important asset at Starbucks. If we want our company to prosper, we must treat our employees well by making health care benefits available and affordable and pay our employees a living wage which is higher than minimum wage. Starbucks has long held a strong commitment to preserving the environment. Starbucks offers products that are readily biodegradable which is environmentally safe. Starbucks prides itself on being a good global citizen in the way it treats its people locally in our retail stores and in the countries where our coffee beans are grown. The company makes large contributions each year to local charities that focus on children’s needs and welfare, environmental causes, the homeless and AIDS research and support. In the financial realm, Starbucks has consistently...
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...TABLE OF CONTENTS EXECUTIVE SUMMARY 2 PROBLEM STAEMENT 3 SITUATION ANALYSIS 3 Background 3 Objectives and Goals 3 SWOT Analysis 4 MARKET ANALYSIS 4 Marketing Mix 4 COMPETITION ANALAYSIS 5 External Environment (PESTE) 5 CONSUMER ANALYSIS 6 Positioning Map 7 CASE KEYS 7 ALTERNATIVES – need more pros and cons 8 RECOMMENDATIONS 8 ACTION PLAN - TBD 9 CONTINGENCY PLAN -TBD 9 APPENDIX A – Competitor’s strength and weakness 10 APPENDIX B – Segmentation 11 REFERENCES 12 EXECUTIVE SUMMARY Founded 1971, Starbucks started off as a bean roasting company. After a visit to Italy by Howard Schultz, he was determined to open an Italian style espresso bar. For the next 20 years, after the name had been purchased by Howard in 1987, there was a vast growth and expansion. With little competition, Starbucks was able to open a total of 15,011 stores in globally in which two-thirds were in the USA. In 2007, Starbucks was hit with a financial crisis that plunged its shares around $19-$20. With a negative working capital caused by increase financial debt both short and long-term, the sharp expansion due to strategy shift may have caused targets in 2007 not to be met. As shareholders expectations were high, Shultz reclaimed is seat as CEO with intentions to steer the company back to focus on the customers and commitment to its community. During the years of great success for Starbucks, there was little competition globally. Its direct competition in Canada was Second...
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... Starbucks is known across the world, they have to deal with different cultures and work ethics. This is where the international operations is greatly needed, having this you know that when you walk in to Starbucks anywhere it will be the same. This is made possible with the use of departmentalization. The two that I found where geographical and functional. Geographical- With geographical departmentalization, this allows the company to deal with the "obese" size of the company. By having this in place this has given them presidents in Canada (President of Starbucks Canada), USA (President of Starbucks Coffee USA) and Internationally with the President of Starbucks coffee international and senior vice-president of coffee and global procurement. Functional- With this they can assign different jobs for to insure that everything that takes place is done to pure perfection. 3)What examples of the six organizational structural elements do you see discussed in the case? Describe. Departmentalization- As said in question 1, this helps the company decide which jobs and operations should be put together to work on. Ex. Audit and compliance. Decentralization- This is what makes Starbucks so successful. They try and get advice from all levels of employment and give the freedom to make there own decisions within the Starbucks rules. ...
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...uncontrollable elements that Starbucks has encountered in entering global markets. Solution: Controllable elements The controllable elements that Starbucks has encountered in its entry to global markets are: a) Strong competition The international coffee market is a very competitive market. There are increasing numbers of competitors, such as full service restaurants and other coffee shops, entering the growing specialist coffee market in recent years. ... should set up a plant in Asia which would cut down operating costs, thereby cutting down the prices and getting an edge over its competitors. b) Starbucks should expand its international market operations, so that they do not depend as much on the US market. c) Starbucks should customize to local needs (wherever required) and not only follow its traditional culture as not all countries would accept the American Culture. In my opinion, if the above three pronged growth strategy is followed, it would go a long way in improving Starbucks’ profitability in Japan. Starbucks Going Global Fast There are many topics that arise throughout the case with Starbucks Corporation. Starbucks Coffee is located worldwide and there are many different ways to look at this situation. The company offers a unique range of coffee, lattes, espressos, and café style drinks. The company intended to reach a specific target audience, but has ended up in many different markets and has been growing rapidly. Starbucks has greatly used the “youth appeal”...
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...Starbucks inspection Quality, Service and Cleanliness check T: *1402030328 DD: 814 580 7272 Executive Summary There have been many complaints regarding our service, quality and cleanliness of our main franchise. I went to further analysis these complaints to find out whether they held any truth. My findings will be revealed within this report and I will detail my scores for each area that is believed to be suffering. As everyone within this company is well aware we do not accept second best or strive to meet average. We strive for excellence and we usually achieve this. In summary, my research concluded that we do not need to change a lot within this franchise. This store is flowing very well and the customers seem very happy. I did however see why there was reason to complain. At peak times our staff seems demanding and pushy, although they are just trying to achieve good work flow and speed. They tend to demand the customer orders quickly and do not pay enough attention to ones order because of they are thinking about the next order. The other issue of cleanliness is basically a non-issue, the place is immaculate and in tip top shape. Of course, I went to this site unannounced so they had no time to clean the place and I must say it looked very clean. To understand more of the problems and my suggestions please read on. Contents Executive Summary 2 Introduction 3 Complaints 3 Cleanliness 3 Service 4 Statistics 5 Complaints 5 Quality 5 Introduction Today...
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...Starbucks Entry Mode in India Executive Summary: The following report consists of the entry mode chosen by STARBUCKS to enter the Indian Market of Coffee House. This Report will give you a better understanding about an organization’s require to expand globally. Globalisation plays a very important role for any organization. It helps the company to expand over different areas and connect with different people. The report depicts about the entry mode chosen by STARBUCKS to invade the Indian market. It also briefs about the competitive Environment faced by STARBUCKS to gain the desired market share. It also consists of the Political, Economical, Social and Technological Analysis faced by STARBUCKS and the Corporate Strategy used to survive among the rivalry. This report clearly discusses the Strength, Weakness, Opportunities and Threats faced by STARBUCKS in the Indian Economy and how they have been successful to overcome them. Followed by the conclusion part which states how successful was the chosen entry mode and growth of STARBUCKS in its new market. Vanessasong.(2012).Retrieved from http://blogs.ubc.ca/vanessasong/2012/11/15/doesnt-matter-what-starbucks-sells-india-loves-it/ Table of Contents: Assignment Cover Sheet…………………………………………….………………………………………………………………………………1 Assignment 1 – Research Report…………………………………………….………..………………………………………….…………...2 Project Starbucks India...…………………………………………………………………………………………………………………………….3 Executive Summary……………………………………………………………………………………………………………………………………...
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...Executive Summary: Starbucks coffee is an American coffee company founded in the United States in 1971. They are best known for serving a wide range of Fresh‐brewed coffee, hot and iced espresso beverages, Frappuccino coffee, non‐ coffee blended beverages, smoothies and Tazo teas. They also have a wide variety of selection of food items that are packaged to choose from. Their head office is located in Toronto and currently has 5 key employees in the Human Resources Department that are managing the training of new hires. Their coffee has always been about quality and passion in making and serving its customer with a perfectly made beverage. Starbucks Mission is to inspire and nurture the human spirit one person, one cup and one neighbourhood at a time. To accomplish its mission, Starbucks has principles that guide all of its employees as they go about their daily business: * Our Coffee – It has always been, and will always be, about quality. * Our Partners – 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. * Our Stores – It’s about enjoyment at the speed of life – sometimes slow and savoured, sometimes faster. Always full of humanity. * Our Neighbourhood – We can be a force for positive action – bringing together our partners, customers, and the community to contribute...
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... TABLE OF CONTENTS Executive Summary…………………………………………………………….3 Introduction……………………………………………………………………..4 External Analysis……………………………………………………………….5 Suppliers………………………………………………………...…….5 Customers………………………………………………………..……5 Competitors…………………………………………………………...6 New Entrants………………………………………………………….7 Substitutes……………………………………………………………..7 Opportunities and Threats……………………………………………..8 Internal Analysis………………………………………………………………..8 Strengths………………………………………………………………8 Weaknesses…………………………………………………………...9 Value Chain, VRIO Framework, Core Competencies……………….10 Key Strategies………………………………………………………………….11 Investment Recommendation………………………………………………….12 References…………………………………………………………………….13 2 Executive Summary Starbucks Coffee Company, founded in 1971 is headquartered in Seattle, WA and operates in 37 countries around the world. The backbone of Starbuck’s business is its company-operated retail stores. Starbucks has employed a strong differentiation strategy in order to turn a traditional $.50 commodity into a $4 experience. This following report provides an analysis of the strategies used by Starbucks to stay on top of its growing and volatile industry. Starbucks’ governing principles are based on three strategic stances: the third place experience, creating a human connection, and providing a quality everyday experience for customers. The specific strategies used by Starbucks include: • Horizontal Integration: acquisitions of Seattle’s Best, Torrefazione Italia and Coffee People • Market...
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