...Industry Analysis Group Project Industry Analysis Group Project Starbucks Corporation is an American Coffee Company located out of Seattle, Washington. It was founded in 1971 by Zev Siegl, Gordon Bawker and Jerry Baldwin who were three friends who met while attending the University of San Francisco. Starbucks Corporation is located in 65 countries from Asia-Pacific to the Middle East, Africa, Europe and of course America. They have 21,366 stores worldwide and that number will continue to grow as Starbucks continuously expands. The first store, Pikes Place opened and sold coffee to espresso bars as well as restaurants. In the mid 80’s, Howard Schultz who is now the CEO and Chairman of Starbucks, but at the time was the director of retail operations and marketing came up with the idea of turning the company into a coffee house. In the 90’s, Starbucks grew as the coffee house idea was starting to take off. Then the Millenium came and Starbucks really gained ground and has not looked back since. Starbucks Corporation sells as well as licenses the rights to distribute and produce many different items provided on a daily basis in the Starbucks shops. They license their trademark through licensed stores as well as grocery and national food service accounts. According to Starbucks; “It roasts, markets and retails specialty coffee. It offers several blends of coffee, handcrafted beverages, merchandise, and food items. Starbucks also offers a range of consumer products...
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...Industry and Strategy Analysis Porters five forces are an effective tool to assess the attractiveness of an industry, thus an indicator of future profits. Here is an analysis of the coffee shop industry. Power of buyers There is no, or very limited switching cost for customers, and there is an abundance of other substituting products that the ones offered by Starbucks. Even though this is a threatening fact for Starbucks business, this is what makes them unique buy offering the "Starbucks experience". This have shaped their success. However coffees addictive nature can also result in less rational decision which can overrule the need for a "Starbucks experience". Taking the arguments above into consideration, the buyers power is considered high. The threat of substitute products and services for Starbucks is substantial. Specifically, substitutes for Starbucks Coffee might include drinks like tea, juices, soft drinks, water and energy drinks, whereas pubs and bars can be highlighted as substitute places for customers to meet someone and spend their times outside home and work environments. However, Coffee is an important part of many people's lives and habits why coffee might be considered to be hard to substitute. Also Starbucks has shown their strengths in innovating related products why they are able to cover most related products in their product portfolio. Consequently, the threat of substitutes are considered moderately low. Suppliers power are considered relatively...
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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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...Marketing Plan for Starbucks Coffee BMM 364 Assessment-Part A Written by: Tianyi Wang (WAN12383771) Written for: Leo Billington 2012/10/19 * Table of Contents 1.0 Executive Summary 3 2.0 Introduction 4 3.0 Current External Marketing Situation 4 3.1 External/General Environment analysis and Trends 4 1 Demographic Segment 4 2 Economic Segment 5 3 Political/Legal Segment 6 4 Social-Cultural Segment 6 5 Technological Segment 8 3.2 Detailed Market Analysis and Projected Demand 8 1. Market Size 8 2. Market Growth Rate 9 3.3 Industry Analysis Including Porter’s Five Forces 9 1. Threat of New Entrants 9 2. Bargaining Power of Supplies 10 3. Bargaining Power of Customers 10 4. Power of Substitutes 11 5. Intensity of Rivalry 11 3.4 Competitors Analysis 11 4.0 Current Internal Analysis 12 4.1 SWOT of the Business and the Product/Service 12 1. Strengths 12 2. Weaknesses 13 3. Opportunities 13 4. Threats 14 4.2 Issues and Risk Analysis 14 1. Strategic Risk 15 2. Operational Risk 15 3. Political Risk 15 4. Country Risk 15 5. Technological Risk 16 6 Environmental Risk 16 4.3 Ethical and Corporate Socially Responsible Behavior 16 5.0 Identify a Commercially Viable Market Opportunity 17 5.1 Market Opportunity Including Potential Segments of the Market and Justification 17 5.2 Define the Value Provided 17 5.3 Positioning statement 18 6.0 Marketing Plan Objectives 19 7.0 Conclusion...
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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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...Assignment 1: Strategy Analysis- Starbucks Introduction One of the most competitive industries in the world is the food and beverages companies. Being one of the shopping and tourist capitals in the world, Hong Kong has many competing companies in these industries. The coffee market in Hong Kong has been markedly flourishing in the past decades leading to the sprout of the number of coffee shops in the country. the sprout of the number of coffee shops in the city. The coffee drinking culture in the said country has been one of the most eclectic from ‘gourmet’ to the local blends served in coffee houses. In Hong Kong, there exist different competing coffee shops and this includes Starbucks Coffee shops. It can be said that this type of industries can be considered to have a strong competition in the market. Primarily, of this paper is to analyse the strategies used by Starbucks through SWOT Analysis and Porter’s Five Forces Model. From this analysis, optimistic and pessimistic scenario for the next ten years will be considered. Company Overview Starbucks Coffee is known as one of the fastest growing brands in the international level, the company made its debut in May 2000 as it opened its first store in Hong Kong at launched at Central's Exchange Square. The second store was opened at Hysan Avenue in Causeway Bay (Ho, 2002). At the end of 2000, Starbucks had already nine coffee houses in Hong Kong and continue to grow in the...
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...Strategic Plan Overview The Human Resources department at Starbucks is not known as Human Resources, instead, it is known as Partner Resources. The Partner resources department operates out of their support center. The support center is more commonly known in business as a corporate office, however Starbucks prefers to call it a support center because they support their retail partners from there. Partner Resources at Starbucks operates in groups like any other human resource department. They have staffing, learning and development, compensation and benefits, organizational development and partner services. The Human Resource department at Starbucks is call Partner services because they work together as partners instead of colleagues. They all have the same common goal of being a strategic partner to Starbucks no matter the role the person is in. The Partner Resource team meets together monthly to share ideas and things to make the company better (Starbucks, 2015). The future of Starbucks looks very bright. Starbucks started 40 years ago and Howard S., Starbucks chairman, president and chief executive officer states what the future will look like. ‘As we look forward to Starbucks next chapter, we see a world in which we are a vital part of over 16,000 neighborhoods around the world, in more than 50 countries, forming connections with millions of customers every day in our stores, in grocery aisles, at home and at work. Starbucks will continue to offer the highest-quality coffee, but...
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............................5 2. External Analysis ...................................................................................................5 2.1 Wider Macro-Environmental Analysis ............................................................5 2.2 Industry analysis .............................................................................................7 2.3 Industry Life cycle ..........................................................................................9 2.4 Competitor Analysis ..................................................................................... 10 2.5 Industry‟s Critical Success Factors ................................................................ 10 2.6 Opportunities & Threats................................................................................ 11 3. Internal Analysis .................................................................................................. 11 3.1 Starbucks‟s Strengths & Weaknesses ............................................................ 11 3.2 Evaluation of Starbucks‟ Main Capabilities .................................................. 12 3.3 Value Chain Analysis ................................................................................... 13 3.4 Starbucks‟ Main Internal Capabilities against industry‟s Critical Success Factors ......................................................................................................... 14 4. Starbucks‟ Current „Issue & Challenges‟ Diagnosis...
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...STARBUCKS AS AN INTERNATIONAL BUSINESS 3 Abstract The researcher examines a detailed synopsis of the specialty coffee industry and the role that Starbucks plays in it. Starbucks is in a growth market, and it has a good relative overall position. The researcher will examine the business structure of Starbucks and the future implications of its current business strategies. By examining the strategic imperatives such as how to expand abroad and understanding the international context, the researcher will determine strong and weak business strategies of the company. Starbucks has overcome organizational and managerial implications that will serve as a strong model for international businesses. The researcher will then give strategy and implementation recommendations on how Starbucks can grow as an international business. STARBUCKS AS AN INTERNATIONAL BUSINESS 4 An Analysis of Starbucks as a Company and an International Business Introduction Millions of people all over the world walk into Starbucks every day for their cup of coffee, but it is more than the overpriced coffee that brings people in day after day to the Starbucks stores across the world. Starbucks offers an upbeat environment and friendly and helpful staff to assist customers in any question or problem they might have with the coffee or service. People buy Starbucks for what it represents and the status symbol that comes along with it. Although various business...
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...Starbucks | Financial Statement Analysis | Final Project | | Ryan Goguen, Che-Wei Chang, Yu-Ching Lin | 2013/3/11 | [請在此處鍵入文件的摘要。摘要通常是文件內容的簡短綜覽。請在此處鍵入文件的摘要。摘要通常是文件內容的簡短綜覽。] | Starbucks—Background Information Starbucks (“The Company”) began with a single store in 1971 in Seattle’s Pike Place Market, serving whole bean and ground coffee, tea and spices. As of July 1, 2012, the world-renowned coffee shop brand operates nearly 18,000 retail stores in 60 countries. Gordon Bowker, one of three founders, initially named the Company “Peqoud” after the doomed whaleship in Herman Melville’s Moby-Dick. However, the partners rejected the name, and the founders later agreed upon the name “Starbucks” after the chief mate, also in Moby Dick. Today, with millions of customers served daily, Starbucks offers a wide range of products, including coffee, handcrafted beverages, merchandise and fresh food. The company handpicks its coffee from some of the finest coffee farms in Latin America, Africa and Asia. Its beverage menu consists of fresh-brewed coffee, hot and iced espresso beverages, Frappuccino coffee and non-coffee blended beverages, smoothies and Tazo teas. Through the Company’s entertainment division and Hear Music Brand, Starbucks also retail books, music and film. The Company not only prides itself in the quality products but also the physical stores, where the customers could enjoy their drinks with the company with soothing music playing in the background. Each store...
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...Financial Statement Analysis Paper Starbucks Coffee Company SUMMARY/INTRODUCTION Starbucks identifies itself as “the premier roaster, marketer and retailer of specialty coffee in the world” and fits squarely in the Coffee Shop industry. According to the IBISWorld Industry Report 72221b (Coffee & Snack Shops in the US), the “industry is composed of establishments that prepare or serve specialty snacks and nonalcoholic beverages including ice cream, frozen yogurt, cookies, donuts, bagels, coffee, juices, smoothies and sodas.” This fits the profile of Starbucks perfectly. Porter’s Five Forces: Supplier Power: Starbucks, for instance, identifies as being susceptible to supply of their coffee beans, such as weather, natural disasters, crop disease, general increase in farm inputs and costs of production, inventory levels, and political and economic conditions; all of these have a significant impact on crop pricing. Reliance on a singular bulk commodity, namely coffee beans, leads to high exposure should there be any roadblocks in supply come up. Many of these factors are out of companies’ control, such as material interruption in service providers and distribution channels, increased trade taxation, shipping embargoes or customs restrictions, or any natural disasters which may threaten the supply chain. (Information sourced from Starbucks Fiscal Report, 2014) Threat of Substitutes (High): Aside from heavy competition from storefront competitors, coffee snack shops...
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...company that I have chosen which is the Starbucks company. We will study the environmental analysis of Starbucks Company as well as the customer and competitor analysis. On top of that, we will also analyze the company’s industry analysis which includes the Porter Five Forces, PESTLE analysis and SWOT analysis to study the company’s position in the industry. Furthermore, this report will discuss the marketing objectives and marketing strategies of Starbucks Company and how the company uses the marketing plan to promote the company’s new product in order to grow their business. In the last part of this report, the company’s budgeting will be shown and the evaluation of control and mechanism will be clearly explained. Objectives The company’s objective is to establish Starbucks as the most recognized and respected brand in the world by providing and offering the best quality of coffee to a wide range of customers (Fellner, 2008). Mission The company’s mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks also wants to establish their brand as the premier and the finest coffee in the world while maintaining their uncompromising principles as they expand. On top of that, the company is passionate about ethically sourcing the finest coffee beans to improve the lives of people who grow them (Starbucks Coffee Company, 2013). Environment Analysis Company Analysis Starbucks Coffee is the largest coffeehouse company...
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...City college international faculty of university of sheffield 2013 STARBUCKS COFFEE STRATEGIC PLAN MODULE TITLE: Business Strategy Executive Summary The main purpose of the current paper was to develop strategic plan for Starbucks for the future and to analyze the alternative strategic directions compared with the existing strategy. The paper starts with brief description of the company profile and the product line that company successfully offers during their operations history. The second part of the strategic plan analyzes the external environment of the company by analyzing the industry current situation. From the Five forces model we able to move on to ascertain that the industry generally is attractive that lead to a growth of strategy. The external environment analysis identify that company faces a strong competition from competitors from other industries like case of McDonalds and Dunkin Donuts. Also, from the external analysis was identified the success factors of Starbucks that led them to leading position in the industry. The drivers of change are describing the external environment in which the company operates and to which factors company need to pay attention for the future avoidance of challenges. The third section of the assignment analyzes the internal environment of the company there is given high attraction to SWOT analysis in order to understand the company’s opportunities for growth and strengths that could increase the strategy’s success and...
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...School of Business A350A0050 Business Research Methods Case Starbucks stock value 2006-2010 ”Fall and rise” Contents Introduction 3 Theoretical framework 5 SWOT 5 Strategic Formulation 6 Porters 5 forces model 8 Problem analysis – Case Starbucks 9 Factors leading to the decline in stock price between 2006-2009 9 Starbucks analysis using the 5 forces model 10 Rivalry among existing competitors 10 Threat of substitution products and services 11 Bargaining power of suppliers 11 Bargaining power of buyers 13 Threat of new entrants 14 Summary of the five forces analysis 14 SWOT analysis 15 Strengths 15 Weaknesses 16 Opportunities 16 Threats 17 Customer Value, Satisfaction and Loyalty 18 Generic strategies from Starbucks’s point of view 18 Conclusions 20 References 21 Introduction In the year 2000, Howard Schultz, a long term director of Starbucks left his position as the CEO. Starbucks was on a steady course and had its stock price on the rise until the year 2006. (lähde haastattelu) The global financial crisis hit the coffee giant relatively harder than other companies in the business sector (lähde annual report 2010). In early 2008, due to the poor performance of Starbucks, Howard Schultz felt compelled to return in to the CEO’s position, as Schultz mentioned in his interview for Harvard Business Report in 2010 “The leadership had failed the 180,000 Starbucks people and their families.” (lähde haastattelu). The global financial...
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...Name: Janneza Roane Name of organization: Starbucks Corporation Environmental Analysis Starbucks Corporation was founded in 1971 in Seattle, WA, it is known as the premier roaster and retailer of specialty coffee in the world. It has since grown operating more than 21,000 stores in 65 countries with over 182,000 employees. Starbucks mission is to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time. Their product mix includes roasted and handcrafted high quality/premium priced coffees, tea, a variety of fresh food items and other beverages. They also sell a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and national foodservice accounts. Environmental analysis for Starbuck includes the economy, competition, technology and the political and social environments. Starbucks is usually known for "working for the environment" and they believe that their high prices are necessary for the quality of their products. The decline in sales has had a huge impact on the company revenue and production. Sales from stores have dropped drastically in the last couple years. Many would say that the countries financial crisis has made people think twice before purchasing a high priced coffee. The fact that Starbuck competitors may have a better deal in price has also played a part in their decline in sales. Starbucks’ biggest potential competitors are the fast-food leading corporations...
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