...Introduction: Before we begin to show our analysis and delve into the depths of the work, which we researched for Starbucks. We first need to have a clear understanding as to what the purpose of the assignment is, and also what is being asked of us. The title of the group project reads: “International issues and evaluation of strategic options.” Therefore we needed to focus particularly on the international issues surrounding Starbucks and also the strategic options, with which it has at its disposal. For us to successfully analyse the Starbucks case, thorough research was carried out in these areas. A number of sources were offered for us to explore in relation to the case. We chose the following, as we believed they possessed the most relevant information. The Financial Times, Harvard Business Review, Mc Kinsey Quarterly and we also referred to our core textbook: Exploring Corporate Strategy. With regards to the international context surrounding Starbucks we looked at different areas, which we believed, were of the most importance e.g. what issues Starbucks faces on an international scale and also what Starbucks can do strategically to change for the benefit of the company. We looked at the work of one theorist in particular Michael Porter and ways in which his concepts and theories could be applied to this particular case study. We chose to adopt the infamous Porter’s Diamond as a theoretical framework for our analysis. If this model is applied to a company in the correct...
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...Strategic Management Starbuck’s Coffee Strategic Management Executive Summary: Starbucks could be an international company operative within the low retail market since 1972. The corporate, that has positioned itself as a merchandiser of premium low merchandise, has greatly swollen its market position and presence within the past 20 years. Despite a positive market outlook, Starbucks is in would like of strategic content because the company faces to not be underestimated challenges within the short- to medium-term. Those challenges emanate from established competitors like some others fast food companies internationally defy Starbuck’s market leadership position by driving aggressive low-pricing methods in established and rising markets. Moreover, new trends within the low business have spread out new segments with high growth potentials. Starbucks remains unsure however tackle new segments and what impact trends may wear its product portfolio. This report is supposed to be a strategic scout that aims at illuminating totally different strategic alternatives within the lightweight of the numerous opportunities and threats that lie ahead. The report will provide recommendation on a way to utilize internal strengths to maximize opportunities and the way to attenuate weaknesses to avoid threats. (Lee, Ristic and Franke, 2014) Question No. 1 Which of porter's competitive strategies is Starbucks using? Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation"...
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...via Online Assignment System (OAS). 5. Students are highly encouraged to passage their TMAs to the Turnitin system before submission, to encourage honest academic writing and it is not mandatory except for Project courses. …2/- TMA1 BMG 2 303/05 Part A (40 marks) Case Study Read the case study “Rebuilding Competitive Advantage at Starbucks ” from WOU website, Library, MyDigitalLibrary, E-course reserves, BMG303/05, Strategic Management, Unit 1, TMA 1. Question 1 (a) Describe Starbucks’ value-creating strategy in 1980s. [8 marks] (b) What was Starbucks’ competitive advantage before 2008 and how was it achieved? [12 marks] Question 2 (a) Why did Starbucks lose the competitive advantage in 2008? [5 marks] (b) Discuss four (4) changes implemented by Starbucks to regain its competitive advantages in 2010. [15 marks] ..3/- TMA1 BMG 3 303/05 Part B ( 60 marks) Essay Questions Question 1 Examine your current organisation (or previously employed organisation) and answer the following questions: (a) What are your organisation’s competitive advantages? Justify your answer. [15 marks] (b) What are your organisation’s above- average returns? Justify your answer [15 marks] Question 2 Perform Porter’s five forces analysis on the local car manufacturers in Malaysia. [30 marks] End of TMA...
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...www.antiessays.com/free-essays/154307.html Starbucks was founded in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker as a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. In 1980 Zev Siegl sold out to pursue other ventures. By that time Starbucks was the largest roaster in Washington with six retail outlets (Anonymous, 2010). In 1981 the small coffee company caught the attention of Howard Schultz who joined Starbucks as director of retail operations and marketing. It was Howard’s concept to create a coffee house type "culture" based on the Italian model of espresso bars. He convinced the founders of Starbucks to test the coffeehouse concept in 1984 in downtown Seattle, where the first Starbucks Caffè Latte was served (Company, Starbucks Basic Timeline, 2010). From there, Starbucks began its initial growth outside of the Seattle area with the opening of stores in Chicago and Vancouver British Columbia followed by the opening of the first store outside North America in Japan in 1996, leading to its current status with over 16,000 stores in over 50 countries. Along the way, Starbucks created numerous opportunities for success starting with its offer of full health benefits to full- and part-time employees and then becoming the first privately owned U.S. company to offer a stock option program that includes part-time employees followed by an initial public offering (IPO), with common stock being traded...
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...The case offers executives and students an opportunity to examine in depth how Schultz and his team saved Starbucks from near-collapse, by both executing a deep, comprehensive return to its core values and, at the same time, investing in a range of new products, customer experiences and organizational capabilities designed to make the company fit for enduring success in a turbulent global economy. Set against the backdrop of the Great Recession, the case also considers the impact of unprecedented important shifts in consumer spending and confidence as well as new competitive forces on Starbucks' transformation. The case concludes by examining Schultz's own leadership journey, the lessons he learned personally during Starbucks transformation, and how he is using these lessons-within Starbucks and on the national stage-to redefine the roles and responsibilities of a public corporation in the 21st century. Based on extensive interviews conducted with Schultz and other Starbucks executives conducted from 2011 to 2014, the case offers a range of vital lessons on leadership, organizational transformation, restructuring, strategy, innovation, entrepreneurial vision, and customer service. Identifying symptoms and problems Analysis of the environment (where applicable) Analysis of the organization Balancing is, cans and musts; What is the current strategy and how is it executed? The strategic problems. What should change? Developing recommendations Decisions and implementation ...
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...The industry of premium coffee production has had a shadow cast over it by the coffee juggernaut, Starbucks. As any American who has been out of their home in the last fifteen years knows, Starbucks has virtually taken over the coffee retail business all over the US. It would prove quite difficult to go to any relatively large city or town and not see at least two Starbucks retail stores or find their products in the local grocery store. With such a formidable competitor present in the industry, it seems improbable that any other producer of premium coffee would be able to compete. A small, Vermont based coffee brewer by the name of Green Mountain Coffee Roasters (GMCR) has managed to carve out a piece of the market for itself and has begun spreading all over the northeast United States. Originating in 1981, Green Mountain Coffee was originally supplied to customers of a small café but once word spread of their high quality coffee beans and unique selection and roasting process, their product began to spread to different venues. Restaurant and hotel demand boost Green Mountain into the wholesale industry. Within the next fifteen years they had opened twelve company stores that were responsible for ten percent of their income. However, they noticed a steady decline in the returns they were seeing from these retail stores and decided to close its stores; a risky move considering that they had always been an important means of providing samples of their product to the consumer. Despite...
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...The industry of premium coffee production has had a shadow cast over it by the coffee juggernaut, Starbucks. As any American who has been out of their home in the last fifteen years knows, Starbucks has virtually taken over the coffee retail business all over the US. It would prove quite difficult to go to any relatively large city or town and not see at least two Starbucks retail stores or find their products in the local grocery store. With such a formidable competitor present in the industry, it seems improbable that any other producer of premium coffee would be able to compete. A small, Vermont based coffee brewer by the name of Green Mountain Coffee Roasters (GMCR) has managed to carve out a piece of the market for itself and has begun spreading all over the northeast United States. Originating in 1981, Green Mountain Coffee was originally supplied to customers of a small café but once word spread of their high quality coffee beans and unique selection and roasting process, their product began to spread to different venues. Restaurant and hotel demand boost Green Mountain into the wholesale industry. Within the next fifteen years they had opened twelve company stores that were responsible for ten percent of their income. However, they noticed a steady decline in the returns they were seeing from these retail stores and decided to close its stores; a risky move considering that they had always been an important means of providing samples of their product to the consumer. Despite...
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...Amanda Fevurly 19 January 2016 FINA 375 Jiri Tresl Integrative Case 1.1- Starbucks While coffee is a simple product, the “Starbucks Experience” that is mentioned several times throughout the case is exactly what creates value for their customers and makes their company successful. Their strategy includes creating a home away from home included as a part of their day-to-day routine that reflects the personalities of their consumers and community. Consumers are willing to pay more for Starbucks because they have a greater perceived value through experience. Regarding Porter’s Five Forces, Starbucks confronts a variety of challenges that has presented difficulties specifically from 2007 to 2010. Starting with the competitive rivalry and competition, Starbucks faces many direct and indirect competitors. Facing competitors such as fast food companies like McDonalds, Donut shops like Krispy Kreme or Dunkin’ Donuts, fast-casual restaurant like Panera, and the thousands of local coffee shops pose as rivals to Starbucks. As one of its most important concerns, Starbucks faces fierce competition in the global market place. Next, the threat of new entrants in the coffee market exists at a high level but does not necessarily propose a significant effect on Starbucks because of economies of scale. While there are not necessarily entry barriers, Starbucks has created a brand that would be very costly and difficult to develop from scratch giving them a strong sustainable competitive advantage...
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...Case Study Report COMPANY NAME/WEBSITE/INDUSTRY Green Mountain Coffee Roasters (GMCR) Maker of specialty coffee and coffee makers ~www.gmcr.com and Keurig Inc. (Proprietary company of GMCR) Maker of the Single cup brewing system in North America BACKGROUND/HISTORY GMCR is a specialty coffee company based in Waterbury, Vermont. This company went public in September 1993. Green Mountain Coffee Roasters began in 1981 as a small café in Vermont. The demand grew with requests being made by local restaurants. The company then moved its headquarters to Waterbury Vermont which makes up the 90,000 square foot roasting and distribution facility. GMCR primary business is as quoted by the president and CEO Lawrence J. Blanford, GMCR’s strategy of aligning with the strongest coffee brands to support a range of consumer choice and taste profiles in an innovative Keurig Brewing System. Keurig was launched in 1990 by Peter Dragone and John Sylvan. These two individuals built Keurig on the bases that coffee should always be served fresh and fast. Their endearing concept was “Why do we brew coffee by the pot when people drink it by the cup? Henceforth this revolutionary idea brought about the Keurig K~Cup portion pack. Then in 1994 Keurig secured a patent and then created a prototype. It was not until some investors came along with money and demanded that Nick Lazaris, a veteran executive, be brought on to assisting them in creating a model. After eight years of development...
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...A Coffee Story: Starbucks When customers are deciding where they want to buy their hot coffee, many different product attributes will be factored when making their decision. Product attributes may include different price points depending on the size of the hot coffee, and the quality of the coffee. The functionality of the hot coffee store with having a fast service is one attribute customers seek because many customers are buying on their way to work. Customers are looking for a combination of attributes to create a great value for the price. A recent study suggests that consumers purchasing decisions are made based on the perception of product value rather than price. “There is a price-value formula consumers use to calculate brand differences and to decide which brands to buy. Shopper consciousness has shifted from just trying to ferret out deals to looking for brands that provide value”. (Agriculture and Agri-foods Canada, 2010) The study also suggests that with created value, consumers will likely remain loyal to those hot coffee stores. For many hot coffee drinkers it is the quality of the hot coffee that they are looking for when making a purchasing decision. Customers are looking to the hot coffee chain that has their favorite blends or flavors to choose from. Innovations in the hot coffee market have created new customers to the market who wouldn’t normally consider coffee as their beverage of choice. “Products such as iced coffees have captured the interest...
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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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...MNGT2001 Business Strategy Starbucks Case Analysis Endang Abu Bakar 3171895 Dagamac Janelle Tan 3156283 Nguyen Dinh Duy 3158495 Le Duc Anh 3159239 Sutthisiriwattana Pimchanok 3175067 Ye Xintao 3156684 Tutor: Dr. Ha Huong Tutorial Group: A4 Table of content I. Introduction 1 II. Strategic Analysis 1 A. Macroenvironmental Analysis 1 1. Opportunities 2 2. Threats 2 B. Microenvironmental Analysis 2 C. Strategic Competitive Advantage 3 III. Strategic directions 3 A. Mission and Vision 4 B. Strategic Objectives 4 IV. Business Level Strategy 4 A. Differentiation 5 B. Market Penetration 5 C. Product Development 6 1. Seasonal Products 6 2. New Products 6 D. Other Strategies 7 V. International Strategy 7 VI. Strategic Implementation 7 A. General Perspectives 8 1. Strategy 8 2. System 8 B. Strategic Implementation Issues 8 1. Economic risk 8 2. Environmental risk 9 3. Global risk 9 VII. Strategic Evaluation 9 VIII. Recommendation 9 A. Financial 10 B. Customer 10 C. Internal processes 10 D. Learning and growth 10 VIII. Recommendation 11 IX. Conclusion 11 Reference 12 Appendix 13 I. Introduction Market conditions all over the world have fostered an evolution in modern business practice (Obstfeld...
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...This report presents a case study of Starbucks, the world-leading coffee chain. The information presented indicates how Starbucks performances while they were lunching the new product Via for entering the instant coffee. Also, the report shows how the Starbucks’s CEO, Mr. Schultz, made decisions to help Starbucks reverse the decline. At last, the report showed how the new product Via help Starbucks gain a competitive advantage in the instant coffee market and recover from their economy recession. Introduction The story of Starbucks coffee company began in 1971 when the first Starbucks store opened at Pike Place Market, which is Seattle's oldest farmer's market. Today, Starbucks coffee company is the world-leading coffee bean retailer and roaster. (www.starbucks.com). This report will consider the problems and issues which have occurred during the commercial expansion of Starbucks. Findings Visit the Starbucks website and comment on the company's performance in the most recent period compared to an earlier one. A piece of Starbucks news named "Starbucks drops its name and the word coffee from logo” was updated on BBC on 6th January 2011(www.bbc.co.uk), shows that Starbucks, in promulgating a new logo, is still intends to move beyond its core product. The new logo is still the firm's white on green image of a twin-tailed siren, however the words "Starbucks" and "coffee" have removed...
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...Starbucks a Strategic Analysis Past Decisions and Future Options 1 Contents Introduction ......................................................................................................................... 4 Michael Porter’s 5 Forces Analysis (Past) .......................................................................... 7 Industry Rivalry ............................................................................................................................ 8 Potential for new entrants ........................................................................................................ 10 Substitute Products ................................................................................................................... 12 Bargaining Power of Buyers ...................................................................................................... 13 Bargaining Power of Suppliers................................................................................................... 14 Summary: The Five Market Forces in Specialty Coffee in 1987 ..................................... 15 Specialty Coffee Industry Attractiveness.......................................................................... 16 Starbucks’ Original Generic Strategy ............................................................................... 19 Starbucks’ Success Factors ............................................................................................... 22 First-mover...
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...STARBUCKS IS COMING TO INDIA INTRODUCTION As we all may know, behind any successful achievement, there is a long story of withstanding hardship and endeavouring persistently behind any success. The Starbucks’ case of successfully bringing the brand into the Indian market is one example. This paper is to study the (3) reasons why Starbucks International decided to expand its market scale internationally and to figure out the initial criteria required for Indian Market. This is also to analyse appropriate circumstances at that time for Starbucks to be able to earn its foothold there provides us with valuable business guidance. Besides, this study by pointing out key factors which lead to Starbucks’ success in launching its brand in India demonstrates how Starbucks applied sustained competitive advantage and dealt with obstacles during the launching period, which created significant courage for Starbucks International to move next steps to fulfil its ambition for international expansion. COMPANY’S OVERVIEW Founded in 1971 in Seattle, Starbucks was started as a store to roast and sell coffee bean by three partners. Its name and logo were named after the famous novel Moby Dick. In 1987, Howard Schultz who is currently the company’s CEO acquired Starbucks and single-handedly converted it into a national, publicly owned company. Having more than 11,000 stores in 36 countries worldwide and over 10,000 employees in 2006 (Case Study), the company grew to about 17,000 stores (starbucks...
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