...Case Report 1: Starbucks Customer Service What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? There were several factors that contributed to the extraordinary success of Starbucks in the early 1990’s. First, the long-term vision was to create a coffee chain that would become America’s “third place”. People needed a third place outside of home and work where they could sit, relax, and enjoy their time alone or with others. Second, as soon as Howard Schultz took over as the Starbucks Owner, he began opening several new stores in key locations throughout Chicago and the northwest. Soon after, Shultz decided to take the company public. Doing so boosted the company tremendously in the right direction by raising $25 million and allowing even more stores to be opened. Lastly, despite great success, Starbucks spent nothing on advertising freeing up even more money towards other company resources at the time. These factors were of key importance in boosting Starbucks success in the 1990’s. Most importantly, Starbucks had a compelling value proposition for the company that created and developed the brand image of Starbucks. It was best explained by its “live coffee” theme that expressed the importance of keeping the coffee culture alive and creating an attractive experience that people could inject into their busy everyday lives. The...
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...Brand Management Brand Value Chain - The below diagram is a typical model of brand value chain. It follows the process of developing a brand. There are two lines in this model, first line shows the various stages of developing the value of company and the second line consists of the multipliers which strengthen the relationship between the stages. Generally there are four value stages and three multipliers in a brand value chain model but for explaining the case of Starbucks we have excluded the fourth stage and the subsequent multiplier. Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share * Expansion Success * Cost Structure * Profitability * Awareness * Attitude * Association * Attachment * Activity * Competitive Reactions * Channel Support * Customer Size & Profile Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share *...
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...Starbucks Global Responsibility Report Starbucks focuses on many different facets with their global responsibility. They have tactics at the store level specifically relating to environmental efforts. At this level Starbucks has developed green building and energy and water conservation strategies. Recycling is also very important to Starbucks and they have been working diligently to make their packaging more broadly recyclable. Not only has Starbucks been working on their side in making materials more recyclable, they have also been working to develop improvements with local recycling infrastructures. Starbucks continues to encourage reusable cups by providing a discount of 10 cents on each drink purchase where the customer’s reusable cup is filled instead of a recyclable Starbucks cup. In 2009, an LED lighting initiative was developed and they have already converted over 7,000 stores which has resulted in a decrease in energy consumption by 3.3%. Water use has been reduced by 25% by eliminating dipper wells and replacing with manually operated versions. Starbuck has joined the U.S. Green Building Council and is trying to reach the goal that all of their stores will be built to achieve LEED (Leadership in Energy and Environmental Design). Currently they have six stores that have been built or renovated to achieve LEED standards. Inside these stores customers will find reused and recycled materials and local sourced elements, as well as innovative features to conserve...
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...Starbucks Coffee Company Starbucks has grown into a common household name with storefronts all over the world. Currently, there are more than 17,000 coffee shops in more than fifty countries. Starbucks not only offers their customers coffee, but coffee beans, accessories, teas, brewers, music and food; all of which contribute to their financial success. Starbucks storefronts are now seen inside grocery stores as well, allowing the shopper browse the aisles while sipping a caffeinated beverage. Starbucks also draws its followers and loyal customers by promoting themselves as being an environmental conscious company. Their goal is to have 100% recyclable or reusable cups by 2015. Starbucks is in the process of reducing their carbon footprint through water conservation and green construction. All of these factors have made Starbucks the largest coffee corporation in the world. Their efforts include cups made of recycled goods, and they even offer a plastic reusable cup for only a dollar, that can be used thirty times on average. They also recycle plastic and paper products and waste separately. SBUX: Total Assets, Recent Annual Reporting and Cash/ Cash Equivalent Total assets at the end of Starbucks most recent annual reporting period is $8,219.2 million at the end of “September 30, 2012, which was a growth of $858.8 million from October 2nd, 2011. This included $1,188.6 million cash and cash equivalents at the end of September 30th, 2012 (Starbucks Investor Relations, 2012)...
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...Howard Schultz faces threats to himself and Starbucks, but has managed to retain great customer service, leadership skills, and his unique management skills. Starbucks is one of the fastest growing companies in the world. The owner of Starbucks, Howard Schultz, has expanded the company through his vision of superior customer service. The core strength behind Starbucks’ brand is the quality of its products due to its ability to continuously innovate. One of the threats Starbucks faces is the significant number of competitors. The competitors vary from Mc Donald’s, Dunkin’ Donuts, and independent coffee shops; making it much harder for Schultz to keep its customers. Another threat is the loss of sales due to similar products like Mc Donald’s launching their new espresso and coffee products at a much lower price. Schultz also faces the threat of increasing prices which can lead many customers to decrease their spending and switch to alternative products. Schultz himself has gotten a lot of backlash for his views on gay marriage, gun control, and making education affordable. This may in turn hurt Schultz public image. However, all these threats have not faced Schultz unique managerial skills. Schultz has implemented a maverick managerial style to guide the business and the employees to engage in the execution of his vision. The main principle guiding Schultz’s management is in order for employees to love what they do, the company must love them. He believes it is essential to...
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...Report to: Starbucks Corporation Abstract In this essay, an analysis will be provided to show the relative importance of each of the Porter’s Five Forces for the strategic position of Starbucks - an American global coffee company, in its coffee house industry compared to that of Costa Coffee and Café Nero Introduction Starbucks as a global coffee company has strong position in its industry, there are however variable external factors like environment, technical and economic changes which affect the strategic position of Starbucks. Data is collected and presented in the following paragraphs based on the model of Porter’s Five Forces. 1. Intensity of competitive rivalry Table 1 Company 2011 Sales (million) Starbucks £398 Costa £377 Café Nero £436 BBC News (2011) The intensity of competitive rivalry is high in the coffeehouse market. In the UK, Costa and Café Nero not only suit better the tastes of local UK people, but also have the financial resources and position to leverage their strengths to threaten Starbucks. From the Allegra Strategies Project Cafe UK report, Nero is the dominant player in the UK market among the top coffee shops in UK and enjoys the highest sales volume. (see table 1) Despite Starbucks’ as an iconic global brand, there is a slowdown in its expansion. (Bakery Info, 2009) There is also little scope for product differentiation of coffee, retailers focus on boosting spending of customers by offering food alongside drinks. Starbucks targets...
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...Starbucks Annual Report and SEC Filings Shawn Casto, Jessica Ferraro, Leslie Haynes Samantha Eason, Cyntia Portal UOP Finance for Business FIN/370 Dr. Dana Williams February 15, 2014 Starbucks Annual Report and SEC Filings Starbucks first opened their doors in 1971, and since then they have felt a responsibility to make a positive impact one person, one cup, and one neighborhood at a time. Starbucks has grown to now more than 18,000 in over 60 countries; they recognize that commitment to corporate citizenship is also a business imperative. Each Starbucks is part of the fabric of the neighborhood it serves, as a gathering place and a place to connect. Our evaluation and analysis of the company’s growth over the past two years will give you a clear picture of the biggest international coffee corporation performance. Ethical business-making is something Starbucks considers one of the main and most valuable traits of the global brand, as it not only benefits the business in the long-term, but employees, partners and consumers as well. These practices are discussed with employees extensively. As instructed by Starbucks' Business Ethics and Compliance Booklet, commonly reviewed by new employees, "Starbucks is committed to full compliance with the laws, rules and regulations of the countries in which it operates. You must comply with all applicable laws, rules and regulations when performing your duties" (Starbucks, 2011). These guidelines are carried out by Starbucks...
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...! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Starbucks! Community Report William Poon! MGMT 192! Frank Theuerkorn! 21th October, 2013 ! ! Hazelnut Macchiato, Americano, Latte, Mocha -- whatever you call it, the beverages provide a feeling of comfort and warmth. On a global level, Starbucks is trying to advance on how they look at their community, which is not only where the stores are located, but in every inch of the world. From the 2012 Starbucks Global Responsibility Report, we have been told that Starbucks is trying to Mobilize their employees, which they call partners, as well as customers to contribute over a million hours of community service all over the globe per year by 2015. As they are engaging in the community, they are also planning the future. By creating the Youth Action program back in 2008, they have engaged over 50,000 young people for the past three years. In hopes to help the next generation and encouraging them to build successful and socially responsible business as well as a nonprofit organization. Additionally, Starbucks supports communities through “farmer loans” and “ethical sourcing programs”. “In Indonesia’s Aceh province, Starbucks has teamed with Save the Children to improve children’s health and education in coffee-growing communities through BLEND (Better Living, Education, Nutrition, and Development).” (Farming Communities - 2012 Starbucks G.R.R.) Since the BLEND project started in 2009 it has made a dramatic difference...
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...Starbucks inspection Quality, Service and Cleanliness check T: *1402030328 DD: 814 580 7272 Executive Summary There have been many complaints regarding our service, quality and cleanliness of our main franchise. I went to further analysis these complaints to find out whether they held any truth. My findings will be revealed within this report and I will detail my scores for each area that is believed to be suffering. As everyone within this company is well aware we do not accept second best or strive to meet average. We strive for excellence and we usually achieve this. In summary, my research concluded that we do not need to change a lot within this franchise. This store is flowing very well and the customers seem very happy. I did however see why there was reason to complain. At peak times our staff seems demanding and pushy, although they are just trying to achieve good work flow and speed. They tend to demand the customer orders quickly and do not pay enough attention to ones order because of they are thinking about the next order. The other issue of cleanliness is basically a non-issue, the place is immaculate and in tip top shape. Of course, I went to this site unannounced so they had no time to clean the place and I must say it looked very clean. To understand more of the problems and my suggestions please read on. Contents Executive Summary 2 Introduction 3 Complaints 3 Cleanliness 3 Service 4 Statistics 5 Complaints 5 Quality 5 Introduction Today...
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...Observational Research Report YEUNG Ching Hei, ZHU Xiaoming Introduction The research was conducted from 12:38 pm to 1:38 pm on a Monday in the Starbucks coffee shop on HKUST campus. We basically observed inside the shop for one hour and recorded customers’ gender, age, companion and what products they bought. 86 customers’ behaviors were recorded. By analyzing the data, we find out some interesting phenomenon and therefore list out some suggestions to interested parties at the end of the report. Observations and Analysis Among the 86 consumers, 40 are under 30 years old, 39 aged 31 to 50, and 7 are older than 50. The temperature on the day of observation was 31 °C, but the hot drinks consumed were almost as much as the iced ones(29 cups of hot drinks versus 38 cups of iced drinks). Most of the young generation (20-30 years old) will buy the iced drinks, the other usually will choose hot drinks. It shows that drinking hot drink is the culture of the older generation which is independent of the weather. Also, the second possible reason behind is the use of air-conditioner. So that, most of the people do not rely on the drinks to cool down. Only limited amount of yogurt was offered daily, and the main consumer group of this specific product was found to be young females (5 out of 7 in their 20s and 2 others in their 30s). Yogurt attracts a lot of young generation because of its late arrival in Hong kong.It is alos recognized as a healthy food in Hong Kong. As most...
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...Final Project: Company Analysis Company: Starbucks Corporation Critical Thinking Question: Can Starbucks meet its projected ultimate growth? Bruce Harris BMGT 327-01 Organizational Theory and Behavior Dr. Susan Eisner Winter 2005 Semester Tuesday January 25, 2005 To: Professor S. Eisner From: Bruce Harris Date: Tuesday, January 25, 2005 Re: Final Project (Option 2) – Company Analysis – Starbucks Corp. Introduction: Starbucks Corp. has had a substantial impact on the way Americans socialize, relax, reward themselves, and meet to conduct business. This effect and the efficiency with which it was accomplished reflect the high performance of the company. With annual revenue growth consistently topping 20%, it is quite clear that the company is doing something right. This memo will examine 3 concepts that have impacted the company’s high performance. It will then evaluate and discuss a critical question about the future performance of Starbucks. Relationship of topic to this course – 3 course terms relevant to company’s performance: 1. Employee involvement is characterized by decision-making power delegated to employees at all levels within a company. A high level of employee involvement is termed “empowerment,” and is present when employees are given the latitude to make decisions that affect them and their work. Studies have found that empowerment has a substantial positive impact on productivity and worker satisfaction. 2. Social Responsibility refers to the obligation...
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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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...STARBUCKS CORPORATION: SERVING MORE THAN COFFEE Wake up and smell the coffee—Starbucks is everywhere! As the world’s No. 1 specialty coffee retailer, Starbucks serves more than 25 million customers in its stores every week. The concept of Starbucks goes far beyond being a coffeehouse or coffee brand. It represents the dream of its founder, Howard Schultz, who wanted to take the experience of an Italian—specifically, Milan— espresso bar to every corner of every city block in the world. So what is the Starbucks experience? According to the company: You get more than the finest coffee when you visit Starbucks. You get great people, first-rate music, a comfortable and upbeat meeting place, and sound advice on brewing excellent coffee at home. At home you’re part of a family. At work you’re part of a company. And somewhere in between there’s a place where you can sit back and be yourself. That’s what a Starbucks store is to many of its customers—a kind of “third place” where they can escape, reflect, read, chat, or listen. But there is more; Starbucks has embraced corporate social responsibility like few other companies. A recent Starbucks Corporate Social Responsibility Annual Report described the company’s views on social responsibility: Starbucks defines corporate social responsibility as conducting our business in ways that produce social, environmental, and economic benefits to the communities in which we operate. In the end, it means being responsible...
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...Starbucks Shared Planet - Our Responsibility MY CUSTOMIZED REPORT CREATED AT WWW.STARBUCKS.COM/SHAREDPLANET ©2009 Starbucks Coffee Company. All rights reserved. https://test.starbucks.com/SHAREDPLANET/customGRPage.aspx (1 of 108)6/1/2010 2:23:02 PM Starbucks Shared Planet - Our Responsibility Mission Statement Our Starbucks Mission To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. Here are the principles of how we live that every day Our Coffee It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. Our Customers When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers— even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. Our Stores When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment...
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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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