...24/05/2010 | | | | “Making your organisation fit for purpose” Starbucks Coffe Company is the world leading brand in roasting and distributing coffee. The company owns now more than 15 000 coffee shops around the globe: it is settled in North America, Latin America, Europe, Middle-East and Asia. The diversity and depth of its offer (from smooth to extra roasted coffee, African, Arabian or Latin, and all the muffins, cookies and sandwiches) allow them to count on an international exposure that has last for many years. Still, their business tends to be flattening. And the number of competitors in their core-business market, even if the competition stays way back them, is growing constantly. Considering these facts, the objective of Starbucks is to strengthen its leadership on the market. We were then approached by Starbucks in this particular goal. In this folder, you will find an entire analysis of the external environment of Starbucks Coffee Company: the macro-environment, the competitors and market and the stakeholders’ expectations will lead to being aware of opportunities and threats. Then, we went on the study of the internal capabilities: the resources and competences, the sustained competitive advantage and the diagnosis of strategic capability that will permit us to define Starbucks’ strengths and weaknesses. [Thus, owing to the results obtained, we endeavour to recommend Starbucks some new and relevant elements for the future strategic direction of the...
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...Starbucks WEEK 2 Starbucks New Market Entrance Starbucks strategic goal is to increase market share of the non-coffee drinker; they have begun by introducing an extension of a product line targeted to this segment. To ensure market growth, Starbucks has repositioned one of its current products, the Frappuccino line, this product has been extended to include 3 new flavors; Double Chocolate Chip Crème, Vanilla Bean Crème, and Strawberries & Crème, introduced throughout the summer months. Faced with the challenge of entering a new competitive market Starbucks must compete to retain brand recognition of its primary products, yet increase awareness of its new product line. Situation Analysis Company Starbucks is the leading retailer for roaster and brand specialty coffee in the world (See Figure 1). It has over 7,500 stores, which are located in the United States, Canada, Europe, Asia and the Middle East . Besides high quality coffee drinks, Starbucks sells bottled coffee drinks, such as Frappuccino® and Starbucks DoubleShot™. Starbucks revenue is growing by 20% a year and is opening approximately three stores every day. Starbucks is capable of managing its successful operations by having steady market growth. It achieved this by financing through their cash flow instead of franchising, selling stock or increasing their financial leverage . Its strategy to success is “blanket an area completely.” This approach is to “cuts down on delivery and management costs, shortens customer...
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...Starbucks Market Segmentation Market segmentation is a common marketing process that divides a large group of an audience into a certain criteria with consumers that have similar needs, according to the online Business Dictionary (WebFinance, 2013). Once a market segment is developed, companies can use the marketing mix to individually approach the most profitable markets with messages specifically designed for them. This makes marketing investments more efficient. If successful, the benefits are higher profit margins, possible market share and revenue growth (Tobak, 2008). Starbucks uses demographic segmentation markets by: age, gender, income, ethnic background, and family life cycle; as well as geographic segmentation markets by: region of a country or the world, market size, market density, or climate; and psychographic segmentation, which can link with demographics. The company positions the business as a highly respected brand, and as such, that can distinguish their products from competition, which gives them an advantage. Starbucks practices a concentrated targeting strategy by focusing only one segment, which is the gourmet coffee drinker. This is how Starbucks defined its niche and labels the company as a high quality product. After establishing their niche, Starbucks continually expanses its product line to their specific segment more enthusiastic (Cachola, 2012). According to the article: “Starbucks and McDonald’s Winning Strategy” by Panos Mourdoukoutas, it...
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...Economics & Institutions TReNDS Martin Pitek MGMT - 7730 March 20, 2009 Starbucks Coffee Table of Contents Introduction 3 Product Analysis 3 Product Overview 3 Market Structure 4 Competition 5 Dunkin Donuts 7 Krispy Kreme 3 McDonalds 8 Panera Bread 8 Elasticity Estimates Pricing Strategy 10 Forecast 12 Determants of Demand 13 Forecast Model 15 Forecast Error! Bookmark not defined. Summary 15 Works Cited Introduction With the economy in trouble, the stock market tanking it is important to start your day with a good cup of coffee to take on these challenges. Can Starbuck’s sustain it business model and place in the market? The paper examines Starbucks business and it respective practices. In 1971, the original Starbucks opened in Pike Place Market in Seattle, Washington by three partners named Jerry Baldwin, Zev Siegal, and Gordon Bowker. Their focus was to sell coffee beans and equipment. They purchased green coffee beans from Peet’s, a specialty coffee roaster and retailer, during their first year of operation. Later, they began buying coffee beans directly from the growers. In 1983, an entrepreneur by the name of Howard Schultz joined the company; Schultz felt that the company should sell coffee and espresso drinks as well as coffee beans. The partners felt that selling coffee and espresso...
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...Summary about the Starbucks Company ➢ In 2006, Starbucks made an outstanding financial performance which was an increase of sale from $697 million to $7.8 billion and ROIC was 25.5%. ➢ Thirty years ago, it was a single store and now it has more than 12,000 retail stores. ➢ After returning of the Howard Schultz as a CEO of the Starbucks adopted a new business model. ➢ The CEO felt that people lacked a Third Place where they could pass leisure with friends along with a relaxed, informal, and comfortable atmosphere. ➢ To make distinctive competencies he took differentiation strategy including service oriented mission & acquiring vision. ➢ The company continued to devote considerable attention to the design of its store and also focused on the superior customer service in stores. ➢ Employees were hired & Attendance on employee training program was compulsory in addition to progressive compensation policies, stock option. ➢ Starbucks planned to own all of the franchised stored and captured the premium places of Country so that the competitors could not imitate their strategy. ➢ Expecting 50% of all new stores to be outside, Its long term goal is to have 40,000 stores worldwide. SWOT Analysis: Strengths: • Starbucks has its stores in 40 countries around the world. • Starbucks were very much innovative • Starbucks provide superior customer service...
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...Strategic Planning of Starbucks (Past Decisions, Current situation and Future Options) [pic] Student ID number: F1005899 Full name: Namrataben Govindbhai Panchasara Intake and group number: 8 Module Name: Strategic Planning Assignment Type: Individual Assignment Date: 04/11/2011 Executive Summery This report aims to strategically based evaluate Starbucks past and current situation and future position of this largely successful company. The analysis uses Michael five forces analysis, Starbucks’ Original Generic Strategy, Company success factor, SWOT, PEST and recommendation for future that Starbucks can organised Reward program Organised, Becoming more Environment Friendly, CD Burning, Install free wireless internet and Rent out meeting space, Increase connection with customers, Continually improve the coffee. At last conclusion and i use book of Michal Porter and some others and electronic articles and websites. Index |No. |Index |Page No. | |1. |Executive Summery |2 | |2. |Introduction of the company |4 ...
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...Strategic Marketing Plan for the Starbucks Coffee Company Table of Contents Introduction and background 3 Company mission, company objectives 3 Market definition and product or brand background 4 Evaluation of results and conclusion about problem 5 Situational Analysis 5 Internal analysis 5 Customer analysis 7 Industry analysis 8 Competitor analysis 11 Distribution and supplier analysis 11 SWOT analysis – Confrontation Matrix 12 Choice of option 13 Marketing objectives/ expected results 13 Marketing strategy 13 Target audiences 14 Brand and product position 14 Decisions regarding marketing mix elements 15 Objectives for marketing mix elements 15 Strategies and tactics for marketing mix elements 15 Financial indicators and budges 16 Evaluation criteria 16 Sources 16 Introduction and background Company mission, company objectives The first Starbucks café was opened in 1971 in Seattle’s historic Pike Place Market. It was only a small café, but it offered some of the world’s finest fresh-roasted whole bean coffees. The company’s name derives from Moby Dick, the novel was written by the American author Herman Melville in 1851. Starbuck is the first mate on a whaling ship named ‘Pequod’, he is an intelligent Quaker (religious group) and he is from Nantucket. The name evoked the romance of the high seas and the seafaring tradition of the early coffee traders. Starbucks chairman, president and chief...
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...Starbucks versus Dunkin Donuts – Ratios Analysis | | Starbucks Corporation targets product differentiation strategy, which appeals to coffee lovers. Their customers like the store’s atmosphere, friendly staff and welcoming interior. In addition, Starbuck is having success in the international market. So far, the corporation has opened coffeehouses in over 60 different countries, and customers know they can find Starbucks coffee house in the country they are visiting and buy their favorite coffee. Dunkin Donuts on the other hand is focusing on cost strategy. The company’s mission is to serve a good quality coffee drink and snacks at low cost. They are successful in cutting the costs by standardizing its products, and producing more items instead of buying them from the suppliers. Dunkin Donuts presence is more noticeable in the Northeast of US, but it is constantly growing and trying to expand to the different regions. In regards to the global expansion, the corporation has over 3000 stores in 32 countries. To compare and analyze Starbucks and Dunkin Donuts’ performance, I used 2012 Annual Reports from both companies and computed the necessary ratios. Both corporations performed very well in 2012. However, based on the calculations, Starbucks’ current, quick and debt ratios are much better than Dunkin Donuts. In addition, Starbucks return on assets and times interest earned, asset turnover and inventory turnover ratios have better results than Dunkin Donuts. Therefore...
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...[pic] content The first Starbucks opened in 1971 “Back then, the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) had first walked into a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a year later. A year later, in 1983, Howard traveled to Italy and became captivated with Italian coffee bars and the romance of the coffee experience. He had a vision to bring the Italian coffeehouse tradition back to the United States. A place for conversation and a sense of community. A third place between work and home. He left Starbucks for a short period of time to start his own Il Giornale coffeehouses and returned in August 1987 to purchase Starbucks with the help of local investors.” (Starbucks, 2012, para2) |Strength |Weakness | |Starbucks owns the most recognizable brand in the specialty coffee business |Starbucks products are more expensive than others competitor | |Starbucks offered some of the world’s finest fresh-roasted whole...
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...Starbucks Marketing Goals and Objectives Teneisha Gamble Grantham University BA440: Marketing Analysis Benjamin Brink 26 October 2014 Abstract Traditional, when you think of coffee it is brewed at home or at a restaurant. The beginning of Starbucks was an idea of three guys who wanted the European-style of whole bean coffee taste, unlike the traditional of Folgers’s and Maxwell House coffee. With the change of times Howard Schultz reinvent how Americans viewed coffee. Using the Italian coffee and barista idea, he incorporated the idea to what we call Starbucks. The vision of camaraderie between the customers, and the barista is what Starbucks was founded on. Launching a coffee shop like any other business there must be a plan and goal to market the product. Starbucks Marketing Goal and Objectives Starbucks was a vision of Howard Schultz who was the marketing director, until he bought out the company. Starbucks opened its’ doors in 1971, exceeding competitor Seattle’s Best which in 2003 the company acquired. In the beginning Starbucks used the word of mouth approach for advertisement...
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...This paper will discuss the strategy utilized by Starbucks, analyzing the market position, competitive advantage, external environment and will summarize the Porter’s Five Forces. Strategic issues faced by Starbucks will be discussed as well. Howard Schultz bought a Seattle coffee company in 1987 and converted the six coffee stores into an international brand today. Starbucks currently, a publicly owned company with more than 25, 000 employees and 5,689 stores in 28 countries. He is the man behind, and CEO of, Starbucks. Starbucks began as a small company who provided coffee to fine restaurants and espresso bars. It has since, over the last twenty-one years, become the largest retail coffee company in the world. Starbucks has seen its company grow from having a mere 17 stores in 1987 to having currently 5, 688 locations globally. This amazing expansion can be attributed to Howard Schultz, who bought the Starbucks name fifteen years ago. A large reason Starbucks has done so well for almost two decades can be attributed to changes of the coffee image among consumers. The recent popularity of specialty coffee is due to four new consumer trends: 1) the adoption of a healthier lifestyle, which led people to replace alcohol with coffee; 2) coffee bars had become a place where people could meet, and talk; 3) people developed a liking of affordable luxuries, and specialty coffee became the beverage to drink; and 4) consumers had become more aware about coffee, as its popularity...
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...1.0 INTRODUCTION Name : Starbucks Corporation (NASDAQ: SBUX) Headquarters : Seattle, Washington, U.S. Employees : 176,000 in 2008 Revenue for 2008 : US$10.383 billion CEO : Howard Schultz (Founder of Starbucks coffeehouse) Starbucks Corporation is an international coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks’ Italian style coffee, espresso beverages, teas, pastries and confections had made Starbucks one of the greatest retailing stories of recent history and world’s biggest specialty coffee chain. In 2003, Starbucks made the fortune 500. 1.1 BACKGROUND OF THE COMPANY 1.1.1 Era before Howard Schultz In 1971, three academics, English Teacher Jerry Baldwin, History Teacher Zel Siegel and writer Gordon Bowker opened Starbucks Coffee, Tea and Spice in Touristy Pikes Place Market in Seattle. The three were inspired...
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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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...com/od/retailbestpractices/ig/Company-MissionStatements/Starbucks-Coffee-Mission-Statement.htm) Strengths Strong Brand: Global presence: Starbucks are currently the largest chain in the coffeehouse industry. Operating with more than 20,000 stores in 62 countries gives the company a strong presence in the industry, arguably ahead of its competitors. Consistent messaging: Starbucks consistently communicates its vision as a ‘Third Place’ between home and work place through its communications, product and store development, and customer service. This coordinated effort has built Starbucks not only as a powerful brand for coffee, but also the coffee experience that extends beyond the coffee and cafe. Unique value proposition: By positioning itself as the ‘Third Place’ and offering a ‘coffee experience’, it also provides a somewhat unique value proposition to customers. Engaging and personalized communication and marketing: My Starbucks Idea – Starbucks’ own version of a social network where customers are asked to share their ideas. The brand has created a digital dialogue with its customers, enabling people to give their feedback and receive a response back from Starbucks addressing their concerns/comments. It also has over 705,000 followers on Twitter and over 5,428,000 fans on Facebook. The company also invites people to events. On YouTube it has 4800 people subscribers. (Noff 2010, http://thenextweb.com/2010/01/11/starbucks-formula-social-media-success/. accessed 15th Mar 2014)...
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...SWOT analyze………………………………..8 2.4 Types of marketing…………………………..10 3. Recommendation……………………………….18 Reference…………………………………………..19 1. Introduction I have done a marketing analysis on Starbucks. I will be looking into nature of business of Starbucks, customer perception, the different areas of marketing plan adopted by Starbucks The general areas are analyzing the current situation, the marketing targets, goals, mission and objective, the marketing mix (the “4Ps”) and implementing, controlling and reviewing the marketing process. To source for the information, I have gone down to a Starbucks outlet to do some research. I have also gone to the internet to find articles on Starbucks. Combining the information, I hope the report I have done is able to provide an overview analysis of Starbucks’ marketing plans. 2. Main body 2.1Nature of business Starbucks started operations in Seattle's Pike Place Markets, Washington in 1971. It was originally named as Starbucks Coffee, Tea and Spices and is later changed to Starbucks Coffee Company. In 1982, Howard Schultz joined the company and changed its strategic direction. He sets to establish Starbucks as The Third Place' - a place between work and home, committed to building trust with customers and contribute to community. Starbucks is a leading retailer of specialty coffee market, it offers quality coffee while conducting business that produces social, environmental and economic benefits. By offering the best roasted...
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