...Overview: * Starbucks is a global coffee shop chain and it's headquarter is based in Seattle – U.S. It is considered the largest coffee shop company in the whole world. * It was established by 3 partners (Gerald Baldwin, Gordon Bowker and Ziev Siegl) Seattle – U.S. in 1971. In 1982 Schultz joined the team. Years later, the founders agreed to sell Starbucks to Schultz who took the company public. * The idea behind Starbucks was to make the coffee shop a "third place" beside home and work. * Starbucks operates 16,635 stores in 50 different countries. 11,068 of them are located in U.S. The company's product lines are the following: * Beverages (coffee – juice – tea) * Merchandises (mugs..) * Whole coffee beans * Pastries Starbucks strategy: * providing high quality products * Create profitability * Maximizing market penetration * Offering attractive and comfortable atmosphere The questions: Q1) What factors accounted for the extraordinary success of Starbucks in the early 1990s? The factors accounted for the success of Starbucks in the early 1990’s are: 1. Atmosphere: Starbucks is a coffee shop but the purpose behind it is not just offering coffee, instead providing the customers with a comfortable environment. Customers can relax, enjoy a cup of coffee or whatever Starbucks offers and read the newspaper or simply meet friends. This will result in customers staying more and more inside the coffee shop and makes them...
Words: 2305 - Pages: 10
...Q#1 Marketing has been described as being both an "art" and a "science." Discuss the differences and similarities between these two marketing thrusts. Provide your theoretical response and a "real-life" example where you have seen both processes work effectively at creating customer value and loyalty Marketing is defined as the science and art of exploring, shaping and fulfilling the need of the customers. As it is manifested in the definition that Marketing is a blend of Science and Art; therefore, it can be inferred that both the terms have a strong connection with it. Science is the study of theories and phenomena related to the physical world based on systematic experiments and observation while Arts is the practical reflection of human’s creativity and imagination. Marketing if taken as a science means considering all relevant variables and forecast that are crucial for the marketing or business on rational, systematic pattern. In contrast, when it is taken as Arts it is considered as the idea, soul, essence, spirit and the metaphysical characteristics of business that is actually helping it to thrive and prosper. For Instance, before launching a new product, all the necessary research is carried out on rational grounds. All the variables like market trend, number of competitors, price, product placement, marketing strategy and tactical plan are evaluated systematically. The use of historical data or past performance is also used in doing this. In a word; it involves...
Words: 1398 - Pages: 6
...Starbucks Shared Planet - Our Responsibility MY CUSTOMIZED REPORT CREATED AT WWW.STARBUCKS.COM/SHAREDPLANET ©2009 Starbucks Coffee Company. All rights reserved. https://test.starbucks.com/SHAREDPLANET/customGRPage.aspx (1 of 108)6/1/2010 2:23:02 PM Starbucks Shared Planet - Our Responsibility Mission Statement Our Starbucks Mission 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 with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. 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. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. Our Stores When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment...
Words: 31736 - Pages: 127
...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 Penetration: differentiation and...
Words: 6290 - Pages: 26
...Starbucks has been opening its doors to millions of people for coffee, but it is more than the overpriced coffee that brings people in day after day. Starbucks offers a unique ambiance, friendly and helpful baristas to assist customers in any concerns they might have with the coffee or service. People buy Starbucks for what it represents and the status symbol that comes along with it. What makes Starbucks unique from its competitors and how does its marketing strategy tick? Background It all started when Gerald Baldwin, Gordon Bowker, and Ziev Siegl opened its first Seattle coffee shop in 1971. Since then, Starbucks Coffee Company established itself as the leader in the coffee industry with continuous market growth and expansion. With 17, 003 stores in 58 countries, the company’s main objective is to establish Starbucks as the “most recognized and respected brand in the world.” (Starbucks, 2011) Currently, Starbucks is relying on retail expansion, product innovation, and service innovation to achieve a long-term goal once set by current chairman Howard Schultz: “The idea was to create a chain of coffeehouses that would become America’s “third place.” At the time, most Americans had two places in their lives – home and work. But I believed that people needed another place, a place where they could go to relax and enjoy others, or just be by themselves. I envisioned a place that would be separate from home or work, a place that would...
Words: 3733 - Pages: 15
...Case Study of Starbucks in China 姓 名 （中文） 李佩琪 （拼音） LiPeiQi 学 号 20100301336 所在学院 国际商务英语学院 年级专业 国际商务管理 指导教师 侯香勤 职称 讲师 完成时间 2014 年 2 月 28 日 A Research on the Marketing Strategies of Coffee Chain Business --- A Case Study of Starbucks in China Li Peiqi School of English for International Business Abstract In this article, the writer summarizes the marketing strategies of Starbucks by applying the basic theories of marketing, the SWOT analysis method with the theory support from a lot of reading and information searching. This article argues that the factors which distinguish Starbucks from its competitors in the market positioning are: the pursuit of coffee quality, the well-trained staff, the enthusiasm for making the world better, the attention to it pays to the community and the environment, innovation and the one and only “Starbucks Experience”. Starbucks puts coffee business in primary place, its core competiveness is its culture and values. Since the company locates the business in inspiring human’s spiritual beauty, it is necessary for their marketing means to come from the mental and psychological level. One innovative side of this article is that in addition to using the most basic marketing theory to the analysis of Starbucks' marketing strategy, the writer analyzes the success factors of Starbucks’ marketing from...
Words: 6771 - Pages: 28
...Mid-Term Test Sonya R. Jones Instructor: Dr. Edward Sherbert Webster University November 17, 2013 How does global competition impact management activities? According to the Business Dictionary, “Global Competition is the existence of competing organizations that serve international customers. Access to global customers has increased through enhanced communications, improved shipping channels, reduction of barriers, and centralized finance authorities.” (Global Competition, 2013) In today’s marketplace, global competition is imperative as companies strive to remain economically front-runners. The growth and need of the products and/or services or even the need of supply and demand must be consistent and sustainable in order for companies to remain competitive. With the needs in the global marketplace, companies must be aligned with solid, effective management. Management, that is equipped with the knowledge base and clear understanding of both the market, internationally, and the importance of mobilizing their employees without any cause for interruption to the business. With the increased technological developments in communication and transportation, has increased management ability to facilitate and do business just about anywhere and at any time. “Globalization has changed the face of the workforce. Management in this new competitive landscape will need to attract and effectively manage a talent pool from all over the globe.” (Bateman & Snell, 2012) Toyota Tsusho...
Words: 3119 - Pages: 13
...1 million customers enjoy hot, delicious Domino’s pizza products on every inhabited continent on Earth” (Domino’s Pizza Inc., n.d.). Mission and Vision Statement “Exceptional franchisees and team members on a mission to be the best pizza delivery company in the world”. Domino’s Pizza is also committed to an inclusive culture that values the contributions of their customers, team members and suppliers. The Domino’s Pizza also provides product variety to meet all customer needs and team member and customers’ safety is their first priority out of all concern. They are also creating environment in which all team members feel valued. Shareholders The Domino’s Pizza ensures that their shareholders are concerned with making a profit by providing an outstanding customer service. Their employees are motivated and interested of adopting an ownership of work as they have been rewarded and appreciated depending on their work performance. Motivating team members to give their best isn’t always seems to be easier but it’s definitely worth the effort (Capko, 2010). Corporate and Social Responsibility The social responsibilities of business include the environmental protection, employee safety and morale and product safety for the customers. The manager must make sure these responsibilities while making a rational decision for the company. Domino’s Pizza Inc. is committed to delivering the highest standards of products, services and safety for team members, customers and communities...
Words: 1317 - Pages: 6
...Content Page 1. Introduction………………….………………………………………….3 2. Company’s Overview…………….…………………………………....3 3. Change Analysis Model...……………………………………………..3 3.1 SWOT………………………………………………………………3 3.2 PESTEL…………………………………………………………….3 3.3 Type of Change…………………………………………………....6 4. Change Model……………………….…………………………………..6 4.1 Kurt Lewin’s 3 steps Model…………………………………….....6 4.2 John Kotter’s 8 step Model…………………………………….…7 5. Leadership Theories for Change Management……………………...7 5.1 Transactional …………………………….………………7 5.2 Transformational…………………………………….…...7 5.4 Relationship………………………………………………8 5.3 Contingency …………………………..………………….8 5.4 Situational………………………………………………....9 6. McKinsey’s 7S Model ………………………………………………..….9 7. Critical Analysis of Change and Leadership Theories……………… 10 8. Recommendations….…………………………………………………....11 9. References………………………………………………………………..13 10. Appendices……………………………………………………………..19 1. Introduction 1.1 Change and Change management Change is the need of all organization’s to remain in completion and satisfy the increasing demand of the clients and achieve the desire objectives of the firm. The need to change is driven by internal factors such rapid technology advances or innovations, or external factors such as competition or new legislations (Chahal and Price, 2006). According to (Jeff and Timothy, 2003), Change management is the implementation of systematic...
Words: 4602 - Pages: 19
...Devry BUSN319 Week 1 Discussion 1 & 2 Latest 2015 October http://homeworkgallery.com/index.php/product/busn-319-entire-course-2/ http://homeworkgallery.com/index.php/product/busn-319-entire-course-2/ Discussion 1 How do the goals set for the marketing program in the planning phase relate to the evaluation phase of the strategic marketing process? What would you do with the results of the evaluation if: a) you exceeded your goals? b) you fell short of your goals? Discussion 2 Environmental scanning is critical to acquire information on events occurring outside of the organization. For example, in 2009, the U.S. economy faltered and the unemployment rate rose. As a result, dollar (type) stores flourished. The poor economic trend actually became a huge opportunity for an entire retail segment. Select one of the five environmental forces (social, economic, technological, competitive, and regulatory), discuss an actual trend that fits into that particular environmental force, and provide an accompanying marketing opportunity Devry BUSN319 Week 2 Discussion 1 & 2 Latest 2015 October Discussion 1 The purchase decision process can vary greatly in terms of the time required from the moment a need is perceived until the actual purchase event. Provide an example of an item that may require a long time, and another that may progress relatively quickly through the purchase decision process. What may be some common characteristics among items that have a longer time...
Words: 2083 - Pages: 9
...tea. A quiet cafe revolution is sweeping urban India with the explosion of coffee bars. That is bad news for tea - still the favourite brew for a majority of Indians -which has been losing out to coffee in recent years. India is one of the world's largest exporters of tea and one of its biggest consumers. However, it is coffee drinking which is increasingly becoming a statement of young and upwardly mobile Indians. Moreover, coffee bars, an unheard of concept until a couple of years ago, are suddenly big business. Coffee is slowly but surely substituting tea. There is also rise in the consumption of coffee. The specialty coffee movement has gained much of its momentum through the efforts of companies like Barista, Café Coffee Day and Starbucks. Coffee shops in India were pioneered by Barista coffee house followed by Café Coffee Day and Barista was opened in India in 1999. In India CAFÉ COFFEE DAY and BARISTA are the most popular and well-known cafés. The college crowd rates them as one of the coolest hangouts. These companies sell similar product but their positioning and target audience are very different from each other. These players not only sell coffee and tea but also food and other merchandise items. Despite of serving to different audience, these players compete with themselves. Each player fights for its own share of market. They try to differentiate themselves by the way of product or price...
Words: 13005 - Pages: 53
...Abstract Neptune Gourmet Seafood is facing a problem with oversupply for existing demand. It can either decrease supply to match demand or increase demand to match supply. I recommend the latter. I further recommend the way to increase demand is for Neptune to increase its marketing efforts in its existing markets and to penetrate other markets it currently is not in. The Competitive Environment Neptune is a 40-year-old, $820,000,000 company, specializing in quality shell and non-shell seafood in a $20 million industry. It is North America¡¦s third-largest seafood producer, but that designation is misleading, because its revenues account for only 4.1% of the total market. As such it is but one of many firms operating in the seafood processing industry, one whose market structure could be termed monopolistic competition. The industry is not limited to North American firms such as Neptune, but also includes companies from China, Peru, Chile, and Japan, competition from which has pushed Neptune to upgrade its fishing fleet and which also has helped shrink the company¡¦s margins by 10%.. Neptune markets to the high end of the market, differentiating itself from the competition by its quality, selling its high-end brand at 25-30% above the rest of the market. Their years of ex perience coupled with the company¡¦s value development pose a threat to any new firm trying to enter the market. It is the only member company of the U.S. Association of Seafood Processors and Distributors...
Words: 3450 - Pages: 14
...Industry and McDonald’s The modern system of fast food franchising is believed to have started in the mid 1930’s when Howard Johnson franchised his second location to a friend as a means to expand operations during the Great Depression. In addition, the drive-thru concept brought explosive growth through delivering food-on-the go. “Fast Food” was added to the Merriam-Webster dictionary in 1951, and U.S. fast food companies are now franchised in over 100 countries. In the U.S. alone there are over 200,000 restaurant locations. Revenue has grown from $6 billion in 1970 to $160 billion in 2011, an 8.6% annualized rate (Sena, 2012). Fast food franchises focus on delivering high volume, low cost, and high speed products. Frequently, food is preheated or precooked and served to-go, though many locations also offer seating for onsite consumption. With all stands, kiosks, or sit-down locations, food is standardized and shipped from central distribution points. Consumers enjoy being able to get a familiar meal in each location, and menus and marketing are the same across all stores (Sena, 2012). McDonald’s (MCD) was founded in California in 1940 under the name “McDonald’s Bar-B-Q”. The original founders, Dick and Mac McDonald, reopened the restaurant in 1948 as a drive-in boasting burgers and shakes. In 1954, as the brothers were contemplating franchising, they met traveling salesman Ray Kroc. Kroc’s involvement signaled the beginning of MCD growth into a multinational powerhouse...
Words: 7209 - Pages: 29
...– creating a better tomorrow than today. Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. (PepsiCo, 2013) Purpose of study. The purpose of this study is to determine what makes PepsiCo successful. The downfalls of PepsiCo management will also be discovered and analyzed. The management team at PepsiCo has a deep desire to make the company a driving force in the industry by being socially and environmentally responsible. The focus on being socially and environmentally responsible is in the foundation for every business decision that is made. They made the commitment “to delivering sustained growth through empowered people acting...
Words: 2607 - Pages: 11
...where indicated, the work I am submitting in this assignment is my own work and has not been submitted for assessment in another unit.• This submission complies with Murdoch University's academic integrity commitments. I am aware that information about plagiarism and associated penalties can be found at http://www.murdoch.edu.au/teach/plagiarism/. If I have any doubts or queries about this, I am further aware that I can contact my Unit Coordinator prior to submitting the assignment.• I acknowledge that the assessor of this assignment may, for the purpose of assessing this assignment:o reproduce this assignment and provide a copy to another academic staff member; and/oro submit a copy of this assignment to a plagiarism-checking service. This web-based service may retain a copy of this work for the sole purpose of subsequent plagiarism checking, but has a legal agreement with the University that it will not share or reproduce it in any form.• I have retained a copy of this assignment.• I will retain a copy of the notification of receipt of this assignment. If you have not received a receipt within three days, please check with your Unit Coordinator. | I am aware that I am making this declaration by submitting this document electronically and by using my Murdoch ID and password it is deemed equivalent to executing this declaration with my written signature. | Optional Comments to Tutor: | In Foundation units, this completed...
Words: 10037 - Pages: 41
