...Starbucks 1. Internal strengths and weaknesses: One internal primary strength of Starbucks include having high visibility locations. Starbucks are located in almost every mall, near schools and office areas to attract customers. Sometimes, there are even multiple Starbucks branches in one area. Around DLSU-M, there are already three Starbucks. This 2013, they are even planning to expand more. Another internal strength of Starbucks include having an established logo and developed brand. Most people would recognize the Starbucks logo without needing the word Starbucks attached to it or some could already visualize their logo by just hearing or reading the word Starbucks. In addition to this, they already have cultivated their copyrights, trademarks, website and patents. Moreover, they have a good working environment with their valued and motivated employees as another strength. My friend who used to work as a barista in Starbucks had a pleasant experience as their employee. One can tell that Starbucks employees are very upbeat as soon as one enters their coffee shop. Furthermore, another internal strength of Starbucks is that their customers are very loyal to them. I am a very loyal consumer to them. Amongst all the coffee shops, I prefer Starbucks because they serve excellent sandwiches and pastries plus their ambience is good for studying. Their products are consistently delicious and innovative. Also, according to my research, they have good relationships with their suppliers...
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...facebookFacebook Share on twitterTwitter Share on linkedinLinkedin Share on google_followGoogle * Lesson Store * Courses * Training * News Blog * Search * Newsletter * Contact Us * About Us * Home Core Competences * Lesson * Exercise * Answer Marketing and Core Competences A core competence is the result of a specific unique set of skills or production techniques that deliver value to the customer. Such competences give an organization access to a wide variety of markets. Hamel and Prahalad (1990) refer to a number of organizations and their products to support their concept including NEC, Honda and Canon. Core competences are interesting from a traditional marketing point of view since it could be argued that they take a product or production orientation rather than a market orientation. If you focus on production techniques and skills then aren't you looking at your business from an internal point of view? The answer is yes. However, the core competences give a business a competitive advantage in a number of markets, markets where customers perceive a benefit from the product. So if needs are being met better than the competition, there is an argument that core competences are indeed market-oriented. There are at least three tests of a core competence. Three tests of core competence. * Provides potential access to a wide variety of markets. * Should make a significant contribution to the perceived customer benefits of the end product. * Should...
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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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...Starbucks Coffee Company I. Current Performance Company Overview: Starbucks is the most well known specialty coffee company around the world. Starbucks operates over 11,000 stores throughout 36 countries. Also, the company has about 10,000 employees. The company has shown horizontal integration in the last few decades into the Japan market which has shown to be extremely successful. The next project for the company is to expand their market further into India. There are also some concerns for the company. One thing that is well known is that Starbucks is heavily dependent on one product which is their coffee. If something goes wrong with one of their suppliers and their ability to roast coffee around the world, Starbucks could be facing some serious problems very quickly. Current Objectives for International Expansion: -Be the first to enter international market such as India to gain a head start over competitors. - Build on growing desire for Western brands. - Take advantage of higher coffee consumption rates in different countries. II. External Factor Analysis External factors | Weight | Rating | Score | Opportunities | | | | Expansion into economy level market | .2 | 4.5 | .9 | New products | .1 | 4 | .4 | Expansion into India | .2 | 4 | .8 | Threats | | | | Consumer Trends focusing moving away from caffeine into other healthy substitute products | .3 | 5 | 1.5 | Increased competition/ new competitors | .1 | 3.5 | .35 | Dependence...
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...ANALYSIS OF STARBUCKS CASE Laurent Werro, Nikola Volchkov, Yuki Toyoshima, Jérôme Jayet Starbucks is a company that was founded in 1971 in Seattle by Gerald Baldwin, Gordon Bowker and Ziev Siegl. It is a specialized coffee roaster and distributor. The Company now operates in four areas: Americas which includes the US, Canada, and Latin America; Europe, Middle East, and Africa (EMEA); China/Asia Pacific (CAP). (1) GROWTH AND SUCCESS FACTORS Starbucks pays attention to product quality and shop atmosphere. They brought back the trend of coffee drinking and they also created a social trend. People come to Starbucks for different reasons but most important for high quality coffee. The comfortable atmosphere while drinking a high quality coffee created a gathered spot for customers where they enjoyed meeting a friend, read a book or work. All these factors created a unique "Starbucks experience". By doing so they earned the customers loyalty, some of them were visiting bars up to 18 times a month (2). They also created a partnership with the coffee growers and worked directly with them to ensure the highest quality of their products. Starbucks international rapid expansion is due to joint ventures with local partners and licensing agreements. Starbucks decided to set some criteria to their partners in order to keep the Starbucks experience across the globe. “Starbucks brand is built on passion and you can easily feel the passion of our partners in any of our international stores”...
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...on Starbucks’ Future Plans to Grow West Georgia Technical College 5/23/2015 Case 1: Howard Schultz on Starbucks’ Future Plans to Grow When Howard Schultz returned to the company as CEO in 2008 he realized there was a problem with the company's strategy in the recessionary environment. He uncovered major problems at Starbucks locations that had been open for less than 18 months. Schultz found out that many retailers we're managing their companies based on same store sales growth which focuses on sales of existing stores not new stores. This was making management compare themselves to other successful stores, and was causing them to find other ways to increase sales that were under minding the brands image and reputation. This is not a good strategy to have so Schultz stopped the reporting same store sales each month. To promote long-term growth Starbucks introduced new products and brands within its stores. Instead of selling their new products like VIA in grocery stores and drug stores they decided to sell it in its own stores first. Because of proving the success of the product first there was no need to pay stores to stock it on their shelves. This also helped new products prove their credibility among consumers. Starbucks also had a great success with its loyalty card program which accounts for one fifth of all store based transactions. This program encourages customers to purchase Starbucks products in grocery stores and drug stores by giving rewards. Starbucks also...
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...Managing Diverse Employee at Starbucks: Focusing on the ethic and Inclusion Abstract Workforce diversity is a reality of the modern times for every organization and managing it effectively can lead to a sustainable competitive advantage. The purpose of this paper is to discuss how managers lead diverse employees in a global environment and what makes this company so unique. Effective management of diversity is not only employing diverse employees, but learning to appreciate, respect and respond to the needs, value, and beliefs of diverse employee and provide a positive work environment. Therefore, we will analyze the general environment and task forces that affect the diversity, as well as the challenges faced by Starbuck managers when managing diverse employees. Besides, the impact of diversity on the company performance will be subject of analysis through a value driven perspective. Lastly, we will identify some of the best practices for effectively managing diversity and propose some recommendations. Introduction One of the greatest challenges for managers today is managing the increase of diversity in the workplace. Diversity is defined as” dissimilarities or differences among people due to age, gender, race, ethically, religion, sexual orientation, education any characteristic that are used to distinguish between people. According to the Thompson (2005), organization who limits the kinds of people they are willing to hire, are limiting also the talent pool from...
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...assignment is evaluate Starbuck’s internal and external environment and by doing so, provide strategic recommendations based on the analysis. The following table is a summary of the cooperation. Name | Starbucks Corporation | Industries served | Coffeehouses, Restaurants | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | Howard Schultz | Revenue | $ 14.9 Billion (2013) [25% Profit Gains] | Total no. of retail stores | 20,184 (2013) 13,279 in the United States | Employees | 200,000 (2013) | Main Competitors:Around the world | McDonald's Corp., Dunkin' Brands Group, Inc., Nestlé S.A., Green Mountain Coffee Roasters, Costa Coffee, Caribou Coffee Company | Starbuck’s Global Footprint Table 1 SOURCE: The Washington Post, (2013), A coffee giant’s global footprint [ONLINE]. Available at:http://apps.washingtonpost.com/g/page/world/a-coffee-giants-global-footprint/514/ [Accessed 12 March 14]. Starbucks’ External Environment Porter’s five forces Threat of new entrants: Medium-High New entrants could include local coffeehouses and companies like 7-eleven (more convenient than Starbucks) that offer new blends of coffee drinks. The entry barrier for the coffee industry is relatively low, even for premium coffee like Starbucks. Any large and well-funded company could be potential entrants. McDonalds, for instance, is able to quite easily add specialty coffee to their existing services and enter into the market. There is low product...
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...benchmark economic conditions that contribute to improve profitability, business growth and market size. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Financial release, 2007). Starbucks Corporation has established by purchasing high quality coffee beans and sells the customers along with a variety a specialty drinks and food that has met with an ever-increasing amount of success. Starbucks have succeeded several economic factors as well as price elasticity of demand. Price elasticity of demand can be determined by the percentage change in the quantity demanded with the percentage change in price. They should consider household income that people are willing to spend more on food and beverages when household income increases. Starbucks innovation in joint ventures has opened new markets and opportunities increasing product use among different demographics. Starbucks has proven to be highly innovative in business culture that offers prepaid cards, priced from $5 to $500. Joint ventures with Pepsi Company, Dreyer's Grand Ice Cream Inc and inspiring entertainment with the launch of "Hear Music" have developed Starbucks with great success. Starbucks has shown their values, leveraging market power, resources, and capabilities to achieve returns higher than...
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...VIEWPOINT Core Competence, Distinctive Competence, and Competitive Advantage: What Is the Difference? ANN MOONEY STEVENS INSTITUTE OF TECHNOLOGY HOBOKEN, NEW JERSEY ABSTRACT. Core competence, distinctive competence, and competitive advantage ABSTRACT. are 3 of the most important business concepts that managers, researchers, and educators rely on for decision making, pedagogy, and research. However, little attention has been paid to defining these concepts. As a result, they have become buzzwords that are used so frequently that their meanings are often taken for granted but are not fully understood. In this article, the author reviews the evolution of these concepts in business literature and provides comprehensive definitions, conceptual models, and examples to help clarify and distinguish the concepts so that failures of communication can be avoided. Keywords: competencies, competitive advantage, strategy Copyright © 2007 Heldref Publications 110 Journal of Education for Business S R ince its genesis in the mid-20th century, the study of business disciplines has become an established academic discipline. The proliferation of business curricula, journals, and academic and professional associations is evidence of a dramatic growth in business education. Although the growth has improved the understanding of business and informed business practices, with growth comes various problems. For example, business practitioners, researchers...
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...Starbucks History Starbucks Coffee Company (Starbucks) was founded in 1971 by Jerry Baldwin and Gordon Bowker. At the time, the concept of selling coffee drinks and fresh-roasted whole beans in a specialty store was revolutionary. Howard Shultz and David Olsen purchased Starbucks in 1987 for $3.8 million. By 2004, Starbucks has grown to more than eight thousand locations worldwide. Strategy Starbucks strategy is that they are absolutely dedicated to brewing the finest coffee in the world, while maintaining their incentives to grow. Starbucks believes that in order to build respect and confident with customers, they must build respect and confidence with the employees first. The company is not only about coffee, but also about the experience created in the stores and in the company. Also, Starbucks persists to be profitable and it is. They live by a strict, slow growth policy completely dominating a market before setting its sights further abroad. As a supplement tot the growth provided by new outlets, Starbucks tried out new concepts in their store but the management felt that it took away from their core business. In 1994, Starbucks introduced a drink called Frappuccino, a cold coffee drink. Through a joint venture with Pepsi, a grocery-store version was marketed. International expansion to Japan and the UK As Starbucks was reaching the point of saturation in North America, the firm set its sights on overseas expansion. In 1996, Starbucks opened its first Japanese...
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...Strategic Analysis of Starbucks Mission Statements Arleen Steevensz University of Redlands Strategy Capstone MGMT 697 Murad A. Zikri 1/18/2014 Introduction Starbucks is the worlds largest coffee shop chain company and continues its aggressive growth through international expansion and new product development. But at the beginning of this century affected by the economic downturn Starbucks financial growth of same-store sales and margins showed a 70% decline in net income and had experienced its first ever decline in quarterly sales (Grant, Robert Contemporary Strategy Analysis 2010). This paper will look at Starbucks’ mission statement and guiding principles to assess if their strategies during this downturn were still aligned with these principles and if these principles aided in its recovery. Starbucks Mission Statement and Principles Mission statements are always present based, talking about why a company or person exists and what they want to achieve in the here and now. (www.wisegeek.com). Starbucks mission statement from 1990 to October 2008 stated “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.” The six principles to help achieve their goals and governed their decision making process were 1. Provide a great work environment and treat each other with respect and dignity. 2. Embrace diversity as an essential component in the...
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...Strategy Analysis MGMT 562 Rusty Gates Margaret Hogan Liberty McCarty Anita Ramachandran Tony Reed 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:...
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...Table of Contents Introduction 3 Mission Statement 3 Product Description and Classification 3 Consumer Product Classification 4 Target Market 4 Competitive Situation Analysis 5 Analysis of Competition using Porter’s 5 Forces Model 5 SWOT Analysis 6 Strengths 7 Weaknesses 7 Opportunities 8 Threats 9 Market Objectives 9 Product Objective 9 Price Objective 9 Place Objective 9 Promotion Objective 9 Marketing Strategies 9 Product Strategies 9 Price Strategies 10 Place Strategies 10 Promotion Strategies 10 Tactics and Action Plan 11 Product Action Plan 11 Price Action Plan 11 Place Action Plan 12 Promotion Action Plan 12 Monitoring Procedures 12 Introduction Company G is a well-respected electronics company specializing in espresso makers for consumer use. The company is excited to bring to market its newest product The Whim. The Whim is a fully integratable espresso machine that allows its users to enjoy rich quality espresso and unique ascetically pleasing designs with an added benefit. The Whim connects to the consumers’ home Wi-Fi network and allows complete control of all customizable settings. The Whim’s functionality is controlled by the myWhim application available for most apple and android phones and tablets. Not only does it allow remote programming, but the Whim can auto order beans, filters as well as notify the user of maintenance required through the myWhim app. Mission Statement “We enable consumers...
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...External Analysis of Starbucks 1 RUNNING HEAD: STARBUCKS External Environmental Analysis of Starbucks and the Coffee Industry Harold Brown Strategic Management MGMT 4340 Dr. Nwabueze March 3, 2011 External Analysis of Starbucks 2 Contents 1.0.0. Executive Summary ...................................................................................................................... 5 2.0.0. Company History ................................................................................................................................ 8 2.1.0. Background ....................................................................................................................................... 12 Table 1: Starbucks Revenue Trends 2005-2010 ..................................................................................... 12 2.2.0. Purpose of This Study ....................................................................................................................... 14 3.0.0. External Analysis .............................................................................................................................. 15 Diagram 1: The Components of a Coffee Firm’s Macroenvironment .................................................... 16 3.1.0. General Environmental Analysis ...................................................................................................... 16 3.1.1. Demographic Segment ...................................................................
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