...Ryan Montez Position Paper Cerritos College BA 118 – Retail Management Instructor: Petros Keshishyan Date: 05/18/2014 What is Starbucks’ retail strategy? What is its target market, and how does it try to develop an advantage over its competitors? Starbucks’ retail strategy is to give customers a “Legendary Experience” that creates a welcoming environment and makes customers want to return each day. Customers go to Starbucks for not only their coffee and tea, but to interact with other customers and the baristas behind the bar. This environment gives Starbucks the advantage over their competitors. Starbucks has created an environment for their customers to escape the daily grind and have social interactions with others in the community. Starbucks’ target market is…EVERYONE! Starbucks has turned into a “one stop shop”, compared to their original formats, and has such a large variety of options that there is something for everyone. Describe Starbucks’ retail mix: location, merchandise assortment, pricing, advertising and promotion, store design and visual merchandising, customer service, and personal selling. How does its retail mix support its strategy? Starbucks loves to saturate markets with stores very close to each other, even though it may seem like poor planning and will increase cannibalization it actually helps the company grow. Howard Schultz’s idea is to increase market share over saturating markets rather than have a competitor take up market share...
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...STARBUCKS A Fortune 500 Company Business Management Issues BUS-285 Prepared by: Student Name For Mr. Jessie Bellflowers Instructor A research paper presented to Fayetteville Technical Community college in partial fulfillment of the requirements for the Business Management Issues Capstone Course. Fayetteville Technical Community College July 20, 2014 TABLE OF CONTENTS Title Page 1 Table of Contents 2 I. Executive Summary 3 II. Company Overview 4 III. Strategic Analysis 8 IV. Strategic Effectiveness Analysis 11 V. Conclusion 14 VI. References 15 EXECUTIVE SUMMARY Starbucks has been one of most popular coffeehouses in the world. They started their business as just a coffee-bean retailer. This didn’t last long. Howard Schultz...
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...Strategic Initiative Paper: Starbucks Starbucks Corporation (Starbucks) is known as one of the selling leaders of roasted and specialty coffee in the retail industry. Starbucks has been focusing on creating a detailed strategic and financial plan that will aid the company in surpassing its competitors. The purpose of this paper is to investigate Starbuck’s actions upon creation of strategic and financial plans, the strategic initiatives associated with this plans, and the impact initiatives have on cost and sales as well as associated risks. Strategic Planning Process and Strategic Initiative In 1971 the birth of Starbucks began, three partners Jerry Baldwin, Zev Siegel and Gordon Bowker opened the first location in Pikes Place Market in Seattle with $1350 a piece and an additional $5,000 borrowed from a bank making their initial investment $9,050. In 1981 Howard Schultz joined the team during their first encounter Baldwin told Schultz, “We don’t manage to business to maximize anything other than the bean” the Part of Starbucks Strategic plan was once it turned public in 1992 was to grown the number of locations from 165 in 1992 to 1,381 by 1997. Part of Starbucks strategy was to place the first location a large city and then branch out from there until eventually now where there are Starbucks everywhere. The rapid growth Starbucks created a new position of zone vice presidents, the zone vice presidents became responsible for the overall operations of the area, it recruit...
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...RESEARCH (Starbucks) CLIENTS INDUSTRY 1. Industry Growth Specialty coffee is one of the fastest growing food service markets globally, with a net income of approximately $9.6 billion in 2004 in the U.S. alone, due to the explosion of cafes and gourmet retailers in the 1990s (The Gale Group). 2. Economic Impacts • Exchange Rates - The falling dollar rates compared to other currencies which was caused partly by weaker monetary policy will affect imports. Most of Starbucks vital supplies such as coffee beans, sugar and milk will be affected because they are imported thus incurring higher cost due to weak dollar. This raises a question as to whether the company will pass the extra cost to consumer and risk making its coffee even more expensive. • Income Distribution - After the economic crises of 2007 that led to job losses, unemployment figures rose (to 2.5million in Britain 2010 ² Office for National Statistics). This affected income disparity which became unequal. Hence people that were previously able to afford Starbucks expensive specialty coffee now saw it as a luxury thus leading to low sales in some locations. This in effect affects the company’s expansion plan. In this case economic influences has an unfavourable impact. 3. Social Influences • Changing Tastes - The changing taste in America indicates that people are consuming more specialty coffee which amounted to about $1.3 billion in imports (Restaurant Hospitality). This influences Starbucks...
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...MANAGEMENT AND LEADERSHIP PAPER – STARBUCKS Sheila D. Forte Professor Cedrina Charbonnet Management 330 How can we differentiate between management and leadership? The biggest difference between managers and leaders is the way they motivate the people who work or follow them, and this sets the tone for most other aspects of what they do. You have people that can do both the management and leadership aspects. We know the functions of management involves planning, organizing leading and controlling. Leading has a profound effect on manager’s ability to govern as well as plan, organize and control. Basically leadership deals with interpersonal aspects of manager’s job; meanwhile, leadership deals with change, inspiration, motivation and influence (Management functions, n.d.). Leadership involves influencing others toward the attainment of organizational objectives. Effective leading requires the manager to motivate subordinates, communicate effectively, and effectively use power. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort toward the attainment of organizational objectives. To become effective at leading, managers must first understand their subordinates' personalities, values, attitudes, and emotions. (Management functions, n.d.). Comparing and contrasting the difference between management and leadership are as follows: management produces order, consistency, and predictability; leadership produces change and adaptability...
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...Starbucks Change in Strategy By Brandon L. Chow Dr. Darryl Mitry National University School of Business & Information Management October 22, 2008 Executive Summary The following report and presentation is an inside look at Starbucks Corporation’s strategy and how it is currently affecting their sales and the long-term results. This will be accomplished by exploring four concepts of strategic business, the process for crafting a strategy, components of a macro-environment, five forces of competition and a SWOT Analysis. Analyzing the information and making recommendations based on the information gathered will show how Starbucks should keep or change their strategic plans. Focusing on principle concepts will systematically uncover what Starbucks has done well in the past, what current areas could be improved, and if the new changes ultimately weaken Starbuck’s market share in the long term or strengthen them. OVERVIEW Starbucks Corporation: Starbucks is constantly reinventing their stores to keep and attract customers. With coffee houses popping up in every nook and cranny, Starbucks has to be fresh and innovative. New technology that allows coffee customers to download the music playing in Starbucks stores to their iPhones is just the start of a wave of options for impulse purchases. Starbucks has roasters and brands of specialty coffee operating in North America, Latin...
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...Position History Starbucks was started in 1971 in Seattle’s Pike Place Market. Today, Starbucks operates in over 50 countries around the world, and they have more than 15,000 stores. Since 1971, Starbucks has continued to build themselves bigger and bigger, and as a result they are the largest and most well-known coffee shop in the world. Starbucks really started to take off after their current CEO, president, and Chairman Howard Schulz bought Starbucks in 1987. He was determined to make Starbucks into a “place for conversation and community”, and he strived to make Starbucks more similar to coffee shops that he visited in Italy, by making there be more of a friendly and inviting atmosphere. (Starbucks.com) Starbucks Today Starbucks, because of one of Schulz’s intiatives, has been doing better than Wall Street expected them to do, and this has mainly been because Starbucks has been cutting its costs where it can and closed 676 stores in the United States. (Steverman) In addition to closing down stores, Schulz has also been striving to get in better touch with Starbucks’s mission. Starbucks’ mission is: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” (Starbucks.com) Many people felt that Starbucks had begun to lose its personal feel, so Schulz has been working to increase customer satisfaction by improving beverage taste, the speed of service provided, and the friendliness of Starbucks employees. (Steverman) While there...
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...from the novel, Moby Dick, and nestled in Seattle’s Pike Place Market, Starbucks welcomed customers in for some of the world’s most delicious fresh-roasted coffees. Current chairman, president, and CEO, Howard Schultz, enjoyed his first coffee at Starbucks so much that he joined the company in 1982. He soon envisioned incorporating the Italian Coffeehouse ambiance into the Starbucks experience. After leaving Starbucks for a brief time, Schultz returned and purchased the company in 1987. Bringing his vision to life, Schultz created a cozy atmosphere of social gathering and conversation. Schultz later retired in 2000, but after watching the company suffer financially, he returned in 2008 and restored the company to the industry leader it is today. Starbucks now serves its specialty coffees and food products at 23,187 stores in 64 countries. This analysis offers insight into the fundamentals of the company by providing the necessary information to understand Starbucks’ current financial and strategic position in relation to its competitors as well as key issues requiring attention. Key Problems and Issues Dissatisfaction among employees regarding current wages, work hours, and dress code Competition offering lower priced substitute products Competition offering free Wi-Fi in an attempt to create better social atmosphere Global competition i.e., Japan’s Mt. Rainier with Starbucks-like logo Ability to continue evolving strategy to stay ahead of the...
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...Starbucks - Segmentation and Target Market Paper MKT 571 March 11, 2014 Starbucks - Segmentation and Target Market Paper Company History Starbucks Corporation is the largest coffeehouse company in the world. Offering the world’s finest fresh-roasted whole bean coffees, this global American company’s history began with the opening of a single store in Seattle Washington’s Historic Pike Place Market in 1971 (Starbucks Corporation, 2014). Inspired by a roasting entrepreneur Alfred Peet, the founders, English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker created the current Starbucks name and green and white Siern Greek Mythology logo (Madison, 2011). Inspired from early traditions in coffee trade and the first mate from the novel Moby Dick, the unusual company and logo emerged. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) first experienced coffee and was drawn to join Starbucks a year later. In 1983, after travels to Italy and becoming captivated by Italian coffee bars, Schultz brought back the Italian coffeehouse traditions to the United States (U.S.) (Starbucks Corporation, 2014). Schultz’s romance with the coffee experience had begun and within a few years he sought local investors and purchased Starbucks. Since Schultz’s purchase, Starbucks has partnered and dissolved its partnership with Kraft, added free Wi-Fi to their stores, placed product on supermarket shelves, partnered with Apple for an iTunes...
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...Organizational Research/ Analysis Paper Organizational Research/Analysis Paper: Starbucks In 1971 Starbucks was founded on a love for coffee. Three businessmen, Gordon Bowker, Jerry Baldwin, and Zev Siegl, had a desire to share that love with Seattle by opening a small coffee shop known as Starbucks Coffee, Tea & Spice. Ten years later Starbucks had grown to four retail stores located throughout the Seattle area. Whole bean coffee was sold at all four locations. Upon reaching 100 stores in 1992 the company went public. Starbucks grew at an exponential pace thereafter, into a successful, well-known international organization that helps roughly 35 million customers a week (Stanley, 2002). The purpose of this paper is to discuss and analyze Starbucks’ organizational structure, organizational behaviors in communication and ethical decision making, and organizational goals. Organizational structure “is depicted through its organizational chart and recognizes concepts of differentiation and integration” (Anthony, Gales & Hodge, 2003). It’s a “formal composition of task and reporting relationships that allows the company to control, coordinate, and motivate employees so a common goal can be achieved (Hitt, 2008). Starbucks uses a matrix configuration by combining divisional and functional structures. Because of the complexity of matrix structures, Starbucks is categorized as a mechanistic organization, which entails high vertical and horizontal complexity, high formalization...
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...http://homeworklance.com/downloads/acc-230-week-9-starbucks-financial-health-amaterial/ ACC 230 Week 9 Starbucks Financial Health Paper – (Material ) In 1985, Howard Schultz founded Starbucks. In Seattle Washington in a store called Giornale Coffee Company caught Howard’s attention; from that moment Howard had the idea of a Coffee Bar. Two years later, in 1987, Howard and other co-partners opened very first Coffee Bar and named it Starbucks. Starbucks headquarters are located in Seattle, Washington. (Business Week, 2000-2008). Howard Schultz is not only the founder of Starbucks; Howard is also the chairman, president and chief executive officer of Starbucks. Starbucks Corporation and subsidiaries purchase, roasts, and sells whole bean coffees to the consumer. Starbucks also sells a variety of fresh brewed coffees, espressos, specialty teas, and cold blended coffee drinks at their locations. Food items such as baked treats, sandwiches and fruit are also available for purchase at Starbucks. Starbucks also specialty coffee mugs, travel mugs and a line of coffee brewing accessories through company operated retail stores. Supermarkets and liquor stores also carry a line of Starbucks ready to drink beverages. Summary of Starbuck’s current financial performance. According to the Starbucks Income statement, the company has had a decrease in revenue and a pick up in cost of good sold. Although the gross profit margin dollars are more then the year 2007, the company has dropped...
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...Starbucks Coffee Company Linda Estes American InterContinental University Principles of Accounting I Dr. Felicia Olagbemi November 30, 2012 Abstract Many companies have to follows the regulation of GAAP that are set by FASB. Starbucks as adapts and agree to do what the GAAP principles and standards which can affect Starbuck dignity. I will introduce what Starbucks is all about where it started from, GAAP and description of the account principles, cost, revenue and matching for Starbucks Company. Show the application of GAAP in cost recording, revenue recognition, and the matching expenses and revenues. Basically show how Starbucks became a million dollar company. Give a description of their recent accounting standards and pronouncement of the company. Describes how the assertion of internal controls of the company financial statements. Starbucks Coffee Company Introduction/Background Information The founder and CEO of Starbucks Corporation is Howard Schultz. Howard Schultz is a man of vision who turned and unknown coffee company in Seattle Pike Place Market into a large global coffee and the most want and best respected brands to have. (Moe, m 2006) The first store open was in 1971. Starbucks got a new name in 1987 when Schultz Company, II Giornale brought Starbucks and change the name to Starbucks Corporation, at that time it was only 17 stores open. Today, with more than 17 thousands stores in 50 nations, Starbucks has the best roaster coffee and retailer of all...
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...This paper analyzes the marketing of Starbucks coffee. The paper provides some background on Starbucks and then looks at the company's organizational mission and goals, organization strategy and objectives, marketing objectives, marketing strategy, target markets, personal selling strategy and sales promotion strategy. Outline: Background Organizational Mission and Goals Organization Strategy and Objectives Marketing Objectives Marketing Strategy Target Markets Personal Selling Strategy Sales Promotion Strategy * Description * From the Paper * Related Papers * Cite this Term Paper * Comment & Share From the Paper: "Starbucks today is the premiere specialty coffee retailer, operating more than 2,000 coffee shops in a variety of locations in Asia, Canada, the UK, and the United States, with stores in such locales as office buildings, shopping centers, airport terminals, and supermarkets. Starbucks sells coffee drinks and beans, fresh pastries, and other food items and beverages as well as mugs, coffeemakers, coffee grinders, and storage containers. The company also sells its beans to restaurants, airlines, and hotels, and it offers mail order and online catalogs. The company has expanded into coffee ice cream (with Dreyer's) and also makes Frappuccino, a bottled coffee drink (with PepsiCo). "Starbucks existed as a different sort of company before its present incarnation. It was a small company with only four stores when Howard Schultz...
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...Behavior and Communication Paper Amy Strohn 01/21/2013 Behavior and Communication Paper Starbucks is a corporation dedicated to providing quality coffee, a diverse work environment, and outstanding customer service. “We’re committed to upholding a culture where diversity is valued and respected” (Starbucks, 2012). Starbucks (2012) uses an equation to define diversity, Diversity = Inclusion + Equity + Accessibility. Starbucks (2012) defines inclusion as human connection, equity as fairness and justice, and accessibility as ease of use and barrier free. Diversity is a strategy in the organization. “Our company wide diversity strategy focuses on four areas” (Starbucks, 2012). Partners, customers, suppliers, and communities are all included in the diversity strategy. Starbucks considers its employees to be partners. The culture created by the diverse strategy creates an environment where partners from many different backgrounds come together to create and outstanding level of customer service. Each employee at Starbucks is given a Standards of Business conduct booklet. This booklet helps them integrate into the company and become more in tune with the Starbucks culture. Communication is vital to the success of any business and Starbucks promotes good communication internally as well as externally. Partners within the corporation are encouraged to ask questions and get help whenever needed. They are also encouraged to be vocal about any problems or...
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...SWOT Analysis: Starbucks Coffee Company Ravineel Chand MGT 450: Strategic Planning for Organizations (BII1607A) Professor John Bruning February 27th, 2016 Introduction SWOT Analysis is a useful technique utilized by organizations to understand the strength and weaknesses of the organization. Furthermore, it is also utilized to understand the opportunities which may be open to the organization and the potential threats that it may face. “Once a company has a firm understanding of where it stands financially, the next part of the internal assessment is conducting a SWOT analysis, which stands for a company’s strengths, weaknesses, opportunities, and threats.” (Abraham. S.C, 2012) Using a SWOT analysis allows organizations to carefully pinpoint where they stand against competition, where their weaknesses and strengths lie, and how to gain more opportunities within their respective markets. The purpose of this paper is to conduct a SWOT analysis of the Starbucks (SBUX) corporation This paper will also describe the history of the organization, its products and major competitors. History Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries...
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