...Starbucks Page 1 Starbucks Is the Best Yet to Come Yetta Woolridge Instructor: Kyle Gunther Class: BUS 402 May 20, 2012 Starbucks Page 2 Starbucks was established in 1971 when an English teacher, history teacher and writer started Starbucks coffee, tea, and spice in Pikes place market in Seattle. Since then Starbucks has achieved an impressive rate of growth and plans to continue growing expecting a growth of about twenty percent annually for the next years but how will they accomplish one can best understand this by with the upcoming years to best understand a careful SWOT analysis must be made to best understand the strengths, weakness opportunities, and threats to be able to determine the best way to obtain success. SWOT analysis is a useful technique for understanding Starbucks strengths and weaknesses, and for identifying both the opportunities open to and the threats the company might face (Marcus 2011 Pg. 59). Starbucks has been establishing as the premier purveyor of the finest coffee in the world while maintaining uncompromising principles as they grow (Starbucks 2008). Starbucks strength is not only in great leader but has also has certain guidelines of which they contribute their major success these include providing great work environment for the employees. Employees are a great part of the company as they are the representation of such. Over the years, Starbucks has transitioned customers into the coffee house culture. It offers its customers a third...
Words: 1364 - Pages: 6
...loyal to starbucks through Loyalty programs, with a majority of 63% saying they would return just for the rewards program (Horn, 2013) * Digital storefront promotion for teas proved to be successful (Laird, 2011) * Partnership with evergreen encourages Canadians to “go green” (Starbucks Encourages Canadians to Pledge to do some Green, 2010) * Partnership with AT&T Inc. to include free and paid wireless internet coffee shops in the united states (Associated press, 2008) * Partnership with Bell Canada to include free wireless internet in over 650 locations in Canada (Laird, 2008) * Leads specialist coffee shop sales in most countries (Starbucks Corp. (food), 2012) Weaknesses * Share price fell by 43% due to commercializing the business (Passikoff, 2008) * Price senstaive customers choosing other places to get their coffee (Starbucks Corp. (food), 2012) * Overall weak performance in the UK (Starbucks Corp. (food), 2012) * Starbucks cut back on new store openings in the United states (Janet, 2007) * Risky TV camping (Kang, 2007) * Competition from McDonald’s and Dunkin Donuts caused profits to decline in the United States (Lynn, 2008) * Overpriced coffee causes consumers to not purchase during recession. (Bryson, 2009) Threats * Fast food places moving into the coffee market segment provides a threat for Starbucks (Starbucks Corp. (food), 2012) * Starbucks holds 0.7% of market share for coffee (Starbucks Corp. (food)...
Words: 1381 - Pages: 6
...\ Starbuck’s Quest 2006 A SWOT analysis address the components of the organization’s environment which is internal strengths and weaknesses, and external opportunities and threats. Strength we capitalize on them and Weaknesses we shore up. As for opportunities we invest in, and threats we identify. Data that are used for Internal components are customer feedback , employee information , Capabilities, Resources, Processes. Data that are used for external components are secondary data, environment, industry , competitive ,customer feedback primary. The reason behind achieving these organizational components are to achieve ideas which result in organizational goal statement. Goal statement are derived by (Opportunities +threats), strengths-weaknesses, Strength vs opportunities. One great example of a mega organization that we can use the SWOT analysis on is “Starbucks Global Quest 2006”. Starbucks was established in 1971 in Seattle, Washington. This company is famous for its quality fresh roasted coffee and friendly atmosphere. The company sits on over 9,000 stores worldwide. It’s product lines include beverages (coffee, Tazo tea, soda, juices),pastries, whole coffee beans, coffee-related hardware and equipment, merchandise (mug, CDs) In 1971 Starbucks Coffee, Tea, and Spice store (coffee bean roasting) opened in Seattle’s Pike Place Market. 1982 A man called Howard Schultz joined Starbucks. 1986 Howard Schultz established “Il Giornale Coffee...
Words: 1028 - Pages: 5
...Case 29 Starbucks’ Global Quest in 2006: Is the Best Yet to Come? Arthur A. Thompson The University of Alabama Amit J. Shah Frostburg State University Thomas F. Hawk Frostburg State University n early 2006, Howard Schultz, Starbucks’ founder, chairman of the board, and global strategist, could look with satisfaction on the company’s phenomenal growth and market success. Since 1987, Starbucks had transformed itself from a modest nine-store operation in the Pacific Northwest into a powerhouse multinational enterprise with 10,241 store locations, including some 2,900 stores in 30 foreign countries (see Exhibit 1). During Starbucks’ early years when coffee was a 50-cent morning habit at local diners and fast-food establishments, skeptics had ridiculed the notion of $3 coffee as a yuppie fad. But the popularity of Starbucks’ Italianstyle coffees, espresso beverages, teas, pastries, and confections had made Starbucks one of the great retailing stories of recent history and the world’s biggest specialty coffee chain. In 2003, Starbucks made the Fortune 500, prompting Schultz to remark, “It would be arrogant to sit here and say that 10 years ago we thought we would be on the Fortune 500. But we dreamed from day one and we dreamed big.”1 Having positioned Starbucks as the dominant retailer, roaster, and brand of specialty coffees and coffee drinks in North America and spawned the creation of the specialty coffee industry, management’s long-term objective was now to establish...
Words: 18992 - Pages: 76
...Starbucks has a strategy in production to create the perfect coffee, which is done by its Employees/Baristas, in its outlets across the world. These Baristas are trained directly by Starbucks on multiple aspects from creating a coffee to promoting and selling it, in its originality, as it should be and also delivering it to make for a very good experience for the customer. Starbucks has its own university where there employees are trained, Starbucks is looking to leverage its brand value to be able to sell premium coffee beans and coffees, premium teas and a host of other merchandise items such as mugs, coffee machines etc., all of which are original to the label to the Starbucks coffees. Starbucks spends more on training and developing their Baristas then in marketing. Starbucks’ Strategy includes expanding their store internationally, as well as, domestically. They plan to continue tracking and recognizing their employees. The strategy also includes real estate and store design as well as planning and construction. Starbucks strategy includes expanding their domestic store in three years – have Starbucks coffee houses everywhere in the USA. The International Strategy, will continue as it has always been a company owned and operated or licensing. Starbucks is considering a new subsidiary internationally. Starbuck has a strategy, which includes expansion of stores, their original Product Line, and even coffee purchasing strategy. Starbucks main location where...
Words: 1246 - Pages: 5
...Starbucks Starbucks is an extremely well-known business, which most of us enjoy on any given day (some more than others). In my own opinion, Starbucks is highly successful company because they provide such a high quality product. All of their employees appear to be knowledgeable about their products and enjoy creating those products for customers. However, the prices tend to be on the high side, and I can only indulge on their coffees every now and then. Strengths Starbucks has many internal strengths, which are visible to the public. Starbucks values and appreciates its employees, unlike many other businesses. Howard Schultz fought to get all part-time employees the health benefits that full-time employees were receiving. This shows how much he valued his employees, and makes Starbucks a more desirable workplace. If you have ever been to a Starbucks, you are well aware of the type of atmosphere the company provides. This is a major strength for the business because there are not many other companies that provide this type of experience (at least in the U.S.A., in my opinion). The mere experience of being in a Starbucks café is unlike most other coffee shops. The positive treatment of their employees is detectable in the customer service and the quality of their products, and it keeps consumers coming back. Weaknesses Even though Starbucks has many strengths, they also have some weaknesses as well. One weakness would be the pricing of their products. Although their products...
Words: 1076 - Pages: 5
...27/05/2015 International Business Strategies TBS 984 Dr Alan Pomering T2, 2015 Week 1 Global Strategy: Preface Not a particular multinational enterprise (MNE) strategy, but “strategy around the globe” Most fundamentally about “strategy” before being “global” About entering foreign markets, but also how domestic firms strategise by competing against each other and dealing with foreign entrants 1 27/05/2015 Outline • A global global-strategy book • Why study global strategy? • What is strategy? • Fundamental questions in strategy • What is global strategy? • What is globalization? • Global strategy and globalization at a crossroads 3 Why Study Global Strategy? • Job and career aspiration opportunities • Awareness of what is going on in the world • Avoid downside risks of globalization 2 27/05/2015 Porters Critique Too Many Firms Pursue Best Practice and Seek Operational Effectiveness Through Benchmarking, TQM, JIT Etc. But This Is Not Strategy. Strategy Is About Being Different, Not Being ‘As Good As’. What is Strategy? • Origin-Greek word (strategos)-art of the general Sun Tzu, Chinese military strategist in 500 B.C. Modern-day application to business and competition dates to the 1960s • Plan versus Action - strategy is “explicit, rigorous formal planning” versus “a set of flexible, goal-oriented actions” • Strategy as Theory-how to compete successfully Firms have both intended...
Words: 1342 - Pages: 6
...Introduction Individuals have discovered numerous approaches to characterize what is quality. The absolute most well-known definitions for quality are recorded beneath. Every one of them are right, presently contain a key component of what quality intends to users of products and services which can be either a degree of excellence, conformance to requirements, totality of characteristics which act to satisfy a need, fitness for use, fitness for purpose, freedom from defects, or delighting customers thus this leads to the definition of quality management (Lifetime-reliability, 2015). Actually, Quality Management is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback. Quality prerequisites may be characterized independently for a specific organization or may be in adherence to set up benchmarks, for example, the International Organization for Standardization's ISO 9000 series (SearchCIO, 2015). The procedure of quality management is incorporated by making and implementing quality planning, quality assurance, quality control, and also quality improvement (Rijn, 2004). Additionally, discussing 'quality', it actually doesn’t happen by being fortunate. In any case, it needs planning. Nevertheless, Quality Planning and Quality assurance characterize the quality objectives that an organization would like to accomplish and how to keep up the nature...
Words: 2311 - Pages: 10
...Green Mountain Coffee Roasters, Inc. (GMCR) Prepared For Gary L. Payne, MBA Sam Houston State University Prepared By Eric Robinson Fall Semester 2013 Part I History The coffee and tea manufacturing industry has become a $70 billion annual global sales commodity (First Research, Industry Overview). Business continues to boom and coffee manufacturers are able to broaden their revenues by reaching new segments and geographic areas through creative marketing initiatives. According to First Research (8/12/2013), the US US coffee and tea manufacturing industry includes about 300 companies with an annual combined revenue of almost $12 billion. That equates to less than one third of the global annual sales. With Starbucks corralling the majority of the upscale retail coffee consumers; Dunkin’ Donuts, the blue-collar, no-frills brand coffee drinker; Green Mountain Coffee Roasters (GMCR) went looking for a way to capture the self-serve specialty coffee consumer in North America and Canada. This customer tends to be a gourmet beverage drinker who doesn’t compromise on taste but likes quickness and convenience. The GMCR state of the art eCommerce portal allows customers to create the ultimate coffee experience in the home, in the office, and in food service environments. GMCR is so committed to the outstanding coffee experience that they purchase some of the highest quality Arabica beans available from the world’s coffee producing regions and match it with the appropriate...
Words: 3533 - Pages: 15
...performance. 2. Develop an awareness of the four most reliablestrategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage. 3. Learn that business strategies evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. 4. Understand why a company’s strategy must underpinned by a business model that produces revenues sufficient to cover costs and earn a profit. 5. Gain awareness of the three tests that distinguish a winning strategy from a so-so or flawed strategy. 6. Learn why good strategy and good strategy execution are the most trustworthy signs of good management. 1-4 Chapter Roadmap What Do We Mean by “Strategy?” Strategy and the Quest for Competitive Advantage Identifying a Company’s Strategy Why a Company’s Strategy Evolves Over Time A Company’s Strategy Is Partly Proactive and Partly Reactive Strategy and Ethics: Passing the Test of Moral Scrutiny The Relationship Between a Company’s Strategy and Its Business Model What Makes a Strategy a Winner? Why Are Crafting and Executing Strategy Important? 1-5 Thinking Strategically: The Three Big Strategic Questions 1. What’s the company’s present situation?...
Words: 2370 - Pages: 10
...external and the internal environment’s to key people within the corporation. From my analysis we see how Howard Schultz CEO of Starbucks had a vision, he believed that Starbucks did not just sell a cup of coffee, rather than he had a desire to create customer intimacy, he wanted people coffee drinkers and non-coffee drinkers to fall in love with the place, he visioned an ambience that would attract coffee drinkers of all ages, to come and socialize, listen to soft music, admire their merchandize, and to create a great social meeting place. He used his quest for knowledge to push his product all over the world. He used demographics, he is seen clearly quoted in in one of the interviews in the Costco connection magazine dated April 2011, Volume 26 number 4, that “Our appetite for growth, for innovation and for transforming the company in many different ways probably has never been stronger”. He also scanned the environments of other countries likes Middle East, Asia, India. He knew that Japan was the third largest coffee beans importer; he used this to his advantage by tapping in to the Japanese market and adapting and catering to their taste buds. While in Dubai, I had visited a Starbucks, and it’s a complete different environment and it has adapted the culture of the locals, and has catered to their taste in every shape and form, The Starbucks in the middle east are huge, sophisticated and twice as much expensive as to the ones here, So Howard Schultz knew he can make more...
Words: 1419 - Pages: 6
...Development Analysis Two Mini Cases 1 21 June 2012 Final Project: Development Analysis Two Mini Case Studies DeVry University Professor Mozinski, BUS412 Business Policy Development Analysis Two Mini Cases 2 Mini Case 1: Bikes for the World (BfW) Challenge or Problem: The Bikes for the World organization was formed to offer valid solutions to the transportation problems facing the poor around the world. Lack of affordable and eco-friendly transportation system led founder Keith Oberg to create BfW. Oberg states he did so in order to solve two problems: to help address the developing world’s lack of affordable, eco-friendly transportation, and to help find a better use for the glut of unwanted bikes in the United States (Thompson, 2010). (Pictured above a young boy from Nyariga, Ghana receives a Bikes for the World bicycle. Photo courtesy of the Shape Lives Foundation) Oberg’s mission was simply to “assist poor people overseas to become more productive through providing affordable bicycles for personal transport to work, school, and health services. Secondarily, provide satisfying community service opportunities to Americans—collecting bikes and spare parts--towards realizing this primary goal of helping others overseas” (BfW, 2012). Through a goal to achieve a sustained impact both here and abroad BfW has partnered with over 600 volunteers, donors, and agencies worldwide who all share a common concern for reducing waste and helping the poor earn, learn,...
Words: 2568 - Pages: 11
... Introduction Starbucks has been leading the coffee shop market in more than 40 years now. It has always been the place to find the world's best coffees. Its first store was founded at Pike Place Market in Seattle, Washington, United States. It has given a positive outcome so they serve consumers all over the world. The success of Starbucks coffee had come this far because they expand their operation and services and didn't limit their products. They sell not just coffee but tea, pastries, frappuccino, beverages and smoothies as well. Starbucks is the largest coffee house company in the world ahead of UK rival Costa Coffee, with 22, 551 stores in 65 countries and territories, including 12, 739 in Canada, 1,117 in Japan and 830 in the United Kingdom. From Starbuck' founding in 1971 as Seattle coffee bean roaster and retailer, the company has expanded rapidly. Between 1987 and 2007, Starbucks opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in early 1980's but lost money on its late 1989's expansion into the Midwest and British Columbia. Its fortune did not reverse until the fiscal year of 1989-1990, when it registered a small profit of $812, 000. By the time it expanded into California in 1991 it had become it trendy. The first store outside the United States or Canada opened in Tokyo in 1996, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net...
Words: 9092 - Pages: 37
...Starbucks Corporation: An Extensive Analysis By: Muhammad Almuhanna Andre Johnson-Payne Jessica Pope Natalie Schiefer Jordan Sprague Management 429 – Dr. Yu Liu April 16, 2012 Table of Contents Brief Introduction & Key Issues 3-4 External Analysis 4-5 Internal Analysis 5-7 Analysis of Business Level Strategy 7-8 Analysis of Corporate Level Strategy 9-11 Recommendations 11 References 12 Appendix 13 Brief Introduction & Key Issues Starbucks opened their first location in Seattle, Washington in 1971. Since then, the company’s main focus has been to ethically source and roast the highest quality Arabica coffee beans in the world. The company’s mission is “to inspire and nurture the human spirit, one person, one cup and one neighborhood at a time.” They achieve this by having more than 17,000 locations around the globe and being the world’s largest premium specialty coffee retailer (Starbucks Corporation, 2012). Starbucks was founded by three acquaintances: an English teacher, a history teacher, and a writer. The three were inspired by entrepreneur Alfred Peet, Dutch American entrepreneur and the founder of Peet's Coffee and Tea in Berkeley, California. The name Starbucks is taken from Moby Dick, after the name Pequod was rejected by one of the cofounders. Therefore, the company was named after the chief mate on the Pequod, Starbuck. Their logo is inspired by the sea featuring a twin tailed siren from Greek myths (Starbucks Corporation...
Words: 5844 - Pages: 24
...Unit II Case Study Charles Dearth Columbia Southern University Doctor Jernigan Strengths McDonald’s continued to grow financially in 2013. Their global comparable sales increased 0.2%, their system wide sales were up by 3%, and they increased their operating income by 3%. McDonald’s also invested approximately $2.8 billion in new and existing establishments. Existing markets included places such as the United States, France, and Germany. New markets included such places as China, Brazil, and India (McDonald’s Corporation Annual Report, 2013). Even though they continued to grow, their performance fell short of their high expectations for the past year. Challenging conditions such as a flat or contracting informal eating out category in most of their major markets had a direct impact on their performance results (McDonald’s Corporation Annual Report, 2013). However, taking a look at restaurant companies ranked by sales, McDonald’s Corporation shows the highest price per share of stocks at $94.38. Compare this to Yum at $76.25 per share, and Starbucks at $93.61 per share (Yahoo Finance, 2015). According to McDonald’s Corporation Annual Report, 2013, McDonald’s continues to monitor developments related to environmental matters. According to an article written by Evangelia, more companies are using environmentalism as a marketing tool (Evangelia, 2014). McDonald’s plans to maintain the preservation of the environment in two key ways: one by implementing more energy efficient...
Words: 1052 - Pages: 5
