...Identify the Resources, Capabilities and Distinctive Competencies of Starbucks. The resource and capabilities of Starbucks can be identify and separate to tangible and intangible resource. 2 kinds of tangible resource can be analysis as below : A ) Manpower : Base on the rapidly expanded since 1990s until now, Starbucks was accumulated thousands of well-trained employee. From level of direct counter service staff, baristas until managerial level, they are a very strong resource team owned by Starbucks. Especially their existing CEO Howard Schultz, he is one of the most successful CEO in the worldwide, was create a new coffeehouse format and implement for whole Starbucks retail store, and finally got a astounding performance and rapidly expanding for Starbucks retail store in United States and worldwide. B) Retail Store : Since 1990s , Starbucks was rapidly expanding and built up a enormous amount of retail store in the worldwide. In the same time, base on their sophisticated location strategy, many premium locations was occupied by their retail stores. The location strategic for retail store become their another main asset and resource to continue expanding, or at least maintain a leading position in coffeehouse market. For intangible resource and capabilities portion, the continuous growth for brand equity is Starbucks’s one of the most valuable resource and capabilities while facing many imitators appear in the coffeehouse market. The unique Starbucks Experience concept...
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...The resource and capabilities of Starbucks can be identify and separate to tangible and intangible resource. 2 kinds of tangible resource can be analysis as below : A ) Manpower : Base on the rapidly expanded since 1990s until now, Starbucks was accumulated thousands of well-trained employee. From level of direct counter service staff, baristas until managerial level, they are a very strong resource team owned by Starbucks. Especially their existing CEO Howard Schultz, he is one of the most successful CEO in the worldwide, was create a new coffeehouse format and implement for whole Starbucks retail store, and finally got a astounding performance and rapidly expanding for Starbucks retail store in United States and worldwide. B) Retail Store : Since 1990s , Starbucks was rapidly expanding and built up a enormous amount of retail store in the worldwide. In the same time, base on their sophisticated location strategy, many premium locations was occupied by their retail stores. The location strategic for retail store become their another main asset and resource to continue expanding, or at least maintain a leading position in coffeehouse market. For intangible resource and capabilities portion, the continuous growth for brand equity is Starbucks’s one of the most valuable resource and capabilities while facing many imitators appear in the coffeehouse market. The unique Starbucks Experience concept, with an innovative product display and cozy atmosphere, free Wi-fi service...
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...2-B So what are the critical HR issues with regard to Starbuck’ international goals? What are the key questions that must be asked once research has determined that the market is going to be profitable in a particular country? In terms of the HR domains discussed in Chapter 1, what answers are required before getting too far along in plans to open another location? Write down what you regard as the top five most important questions for which you need answers. Select a country that you believe would be a good opportunity for a Starbucks location. Then think about the variables you considered in selecting that country. Write down these variables. Starbucks is a company that has been founded, establishes, and altered based upon the United States of America standards. They have grown internationally in over fifteen locations. The growth of their company internationally is due to their specific business strategies and international partners. The three business strategies that Starbucks has is; Joint Ventures, Licenses, and company-owned operations. All three of these strategies benefit Starbucks in more than one way. It allows the company to keep growth within the company under a strong brand. It allows the company to cut cost for expansion, and it also helps the company to make sure all business ventures they embark upon are ones that will ultimately benefit the company. The most important strategy Starbucks has is Joint Venture. This particular strategy encompasses...
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...job but most importantly allows them to see what they’re applying for. Additionally, it is also significant as it allows a variety of people to look at what Starbucks have to advertise, therefore attracting potential candidates suitable for the job. By having a job advertisement allows different people to apply for the job and also provides contact details if somebody is interested in applying for the vacancy available. For starbucks, in their job advertisement they provide information such as; part time or full time work hours needed to work, salary, the role of the job and also contact details for further details and how to apply for the job. The job advertisement is easy to read and user-friendly as it is detailed and describes every aspect of the job. Also, this includes the location of the job, this is significant because it is important to know where the job is based so that you’re not applying for a job that isn’t too far away. This also provides you with the salary that you will be paid, hours of work and the closing date of when the application is closed. These are significant because applicants need to know when to do the application by and also would be interested I the amount they will be paid and how many hours the job requires as this is important to see whether the job suits them and their needs. Starbucks Job Vacancy/Advertisement: Job description: It is significant to have a job description as this allows people who want to apply for the job an opportunity...
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...The strategic capabilities involves to what extent Starbucks is able to use it resources and competences wisely and which capabilities are creating a competitive advantage. First, a model is made to select the resources from the competences and the unique resources and threshold resources. From these the core competences can be created and implemented in the VRIN-model. Resources Competences Treshold capabilities Treshold resources ● Financial resources ● Suppliers ● Stores ● Equipment ● Staff ● Worldwide stores in more than 60 countries Treshold competences ● Always say yes to the customer ● Personal service Capabilities for competitive advantages Unique resources Tangible ● Coffee ● Located world wide ● Technological resources ( Starbucks app) Intangible ● Brand/Trademark ● Atmosphere ● Word to mouth(online) ● Schooling program ● Loyalty program Core competencies ● Most recognized brand in the coffeehouse industry ● Exceptional customer services achieved through employee motivation ● Focus on high product quality ● Customer loyalty ● High CSR image Table *.* Resources, capabilities and competences of Starbucks With the table above, the core competences can be put in the VRIN-model to see if they have a competitive advantage. Resources and capabilities of Starbucks Is it valuable? Is it rare? Is it hard/costly to imitate? Is it non-substitutable? Competitive implication Located World Wide ( stores in 60 countries)...
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...Case study Starbucks Starbucks was founded as a coffee house by Howard Shultz on 1985. Philosophy of Starbucks is corporate social Responsibility mean company has to build up ethical and environmental principle for the sourcing of the coffee bean. Not only Starbucks, all the organizations key factor are resources, capabilities and competencies Resources can divide in e to two categories tangible and intangible resources. Starbucks tangible are coffee beans, price, production equipment and more. First is the model of Starbucks, the company’s sell own premium roasted coffee along with freshly brewed espresso-style coffee beverage, variety of pastries, coffee accessories teas and other product in coffee house setting. Another reason is a design of the stores is create relaxed mood, informal and comfortable experience for customer. This approach said that Starbucks not only sell the coffee, in same time selling an experience to customer satisfaction. Although Starbuck charged a premium price for their coffee, it’s acceptable by the entire customer. A tangible resource are non physical entire create by employee and other staffs. Starbucks give important on customer high quality Starbucks developed employee by hiring and training programs that were best in restaurant service. Capabilities define as company’s skill at coordinating its resources and putting them in production use example in Starbucks all staff required to attend to teach them not only how to make coffee also service...
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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: Transformation and Renewal - Case Study Analysis 1. Starbucks’ decline was highly attributed to its rapid growth in the early 2000s. The accelerated number of stores being built created a number of problems including the saturation the Starbucks Experience it so highly valued as well as a drop in sales due to competition with existing Starbucks stores in any given area. This same-store sales being taken from one another gave Starbucks the feeling of “cannibalism” from within its own company. The desire to achieve high efficiency and reach financial goals led to the dilution of Starbucks’ ability to maintain its differentiation strategy through its most valuable resource, its reputation. The company lost control of its merchant narrative and its intimacy with its customers. Starbucks successful journey in becoming the market leader in the young sector is a result of Starbucks’ resources including its reputation, brand, financial resources, its highly organized and efficient senior leadership team, and differentiated product offering. These available resources Starbucks owns allowed them to give its customers a product and an experience not easily found or imitable elsewhere. It gained a loyal following that continues to grow today and has been seen to be the biggest contributors to Starbucks success today in maintaining its position as the largest specialty coffee retailer in the world. Starbucks’ capabilities include its ability to grow and...
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...Klein Kelly Dunbar Senior Project 19 March 2013 Starbucks Starbucks could be called one of the largest success stories in American history. The company started from humble beginnings and worked its way to the top. Starting from a small building in Pike Place market in Seattle Washington, there are now more than 20,000 locations worldwide. The company’s mission and goals have allowed it to succeed in a fast pace world, and Starbuck’s loyal customers have stuck by their favorite brand through it all. The Starbucks experience is unique from all others. The history and progress of the company have contributed to the Starbucks lifestyle we all know today. In 1971 Jerry Baldwin, Zev Siegel, and Jordan Bowker pulled together $8,000 to open up the first Starbucks. Alfred Peet, their supplier of premium coffee beans and equipment helped inspire their venture (gourmet-coffee-zone 1). In 1982, Baldwin insisted on bringing Howard Shultz into the company as leader of the marketing department. After a trip to Italy, Shultz felt very inspired by the fashionable coffee houses and café culture he saw. Baldwin was not originally sold by the idea. He didn’t want selling coffee by the cup to distract from his whole coffee bean sales, but he let Howard test it out in a corner of one of the stores. Eventually Howard Shultz left Starbucks to start his own business. Selling his coffee by the cup was a big success. In 1987 he purchased Starbucks for 3.7 million dollars (gourmet-coffee-zone 1). Although...
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...Strategic Audit of Starbucks Traci Hall Jones College Business Policy and Administration Professor E. Smith June 20, 2011 I. Current Situation A. Current Performance Starbucks is the fastest growing food chain and shows no signs of slowing down. it plans to boost earnings by 20% to 25% annually over the next three to five years and to bring its number of storefronts to 40,000 worldwide which is 10,000 more than McDonald’s. Starbucks is conservative in how it finances its goals. Operating cash flow from existing stores pays for new-store development. So far, the return on new stores has been excellent. Increasing same-store sales has been a tougher order, though, and Chairman Howard Schultz has expressed worries that moves to improve same-store sales with automatic equipment and off-brand merchandise could be turning consumers off. The return on investment (ROI) for Starbucks in 2010 was 22.50%. The market share was $27.33 billion while the profitability was at 30.4% (Donald, 2007). B. Strategic Posture Starbucks has an impressive mission statement because it addresses their product as a whole and their mission for different relationships. “The Starbucks Mission Statement-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...
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...Introduction When we talk about the largest coffeehouse company, the first thing that comes to your mind is Starbucks. Starbucks Corporation was launched in 1971, it corporation is based in Seattle, Washington and has more than 16,000 outlets all over the world. Starbucks always believe that serving the best coffee is there aim, there coffee beans are grown under highest quality standards and sourced using ethical practices. Starbucks s not only limited to selling coffee but also sells verity of products, viz. coffee (more than 30 blends and single origin premium coffees), handcrafted beverages (Frappuccino, smoothies, Tazo tea, fresh brewed coffee), Merchandise (coffee and tea brewing equipment, mugs and accessories, packaged goods, music, books and gifts), Fresh Food (Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups) and Consumer Products (coffee and tea, ready to drink products and ice-creams). They also carry other brands under their trademark Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulange and Torrefazione Italia Coffee (Starbucks, 2012). Impact of Globalization and Technology The corporation I researched was Starbucks. Starbucks is a worldwide corporation that operates in around 62 countries around the world. Just like every other corporation that has sprung up exponentially as a global entity, Starbucks has gone above and beyond to adapt its operations to the needs of the specific countries. Provision of local...
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...Introduction Starbucks, known as one of the most popular coffee franchises in the world with over 17,000 stores in 49 different countries in present days was founded in year 1971. Starbucks Company has been loved by people for revolutionizing people’s leisure time with the quality of services and the quality of the products they provide, but the real key points to its success were different aspects they cared about including employee aspect, customer aspect, and even society aspect. When the company started to grow, they started to be responsible for such aspects other than just caring about the profit they can earn by increasing awareness of ethics in its business and launching Shared Planet website with three different goals in order to involve the company’s commitment to ethics and sustainability. Starbucks is a company which trying to stay close to us, hears us, and respond to the customers, employees, the public, and us. Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy? There are many different reasons why Starbucks has been so concerned with social responsibility. Firstly, human resources, teamwork and involvement can let the current employees and potential employees know that they are working in Starbucks for a good cause can encourage and motivate them to work better or wants to work for the company. Secondly, brand differentiation. Stating the company’s futuristic goals on either their official website...
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...| Starbucks the Coffee House of Choice Due to the fact that Starbucks is completely different than any other coffee shop in the world we must recognize that there is something vitally important and “American” about it. Although it is an American company Starbucks is very well known and can be recognized by people around the world. The CEO of Starbucks Howard Schultz was known to have said that their culture denotes the values of their company. Starbucks has revolutionized making coffee the “old fashion way with a twist. They have found a way to make coffee which is authentically delicious without making it too expensive or time consuming. They have done this so that they can attract new customers while keeping the old one’s coming back for more. General environment factors The Macro environment is factors that are associated with the economy of the country that business is taking place. Starbucks has been known to lower their prices in countries were the economy is on a down slope. For example when China was in a recession Starbucks lowered the price of their coffees so that they could remain in Business. They also found a way to lower the cost of the actual production. This enabled them to receive the loyalty of the Chinese Market while remaining afloat. Whenever a company does business in foreign land they have to make sure that they are appealing to the consumers in that land. Due to the fact that Starbucks is technologically savvy they made sure come up...
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...24/05/2010 | | | | “Making your organisation fit for purpose” Starbucks Coffe Company is the world leading brand in roasting and distributing coffee. The company owns now more than 15 000 coffee shops around the globe: it is settled in North America, Latin America, Europe, Middle-East and Asia. The diversity and depth of its offer (from smooth to extra roasted coffee, African, Arabian or Latin, and all the muffins, cookies and sandwiches) allow them to count on an international exposure that has last for many years. Still, their business tends to be flattening. And the number of competitors in their core-business market, even if the competition stays way back them, is growing constantly. Considering these facts, the objective of Starbucks is to strengthen its leadership on the market. We were then approached by Starbucks in this particular goal. In this folder, you will find an entire analysis of the external environment of Starbucks Coffee Company: the macro-environment, the competitors and market and the stakeholders’ expectations will lead to being aware of opportunities and threats. Then, we went on the study of the internal capabilities: the resources and competences, the sustained competitive advantage and the diagnosis of strategic capability that will permit us to define Starbucks’ strengths and weaknesses. [Thus, owing to the results obtained, we endeavour to recommend Starbucks some new and relevant elements for the future strategic direction of the...
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...can cause damage, that sometime can not be repaired (Bateman, T, Snell, S. 2009). Control mechanisms help managers to seek compliance with corporate goals, standards, values, and plans. Control Mechanisms Starbucks has many control mechanism, however the top four mechanisms are what drive the highly successful business. Budget control mechanisms are used to detect, and remove waste thus reducing store-opening cost. Financial controls are used to determine location of stores, and property leasing versus property ownership. Quality control is used to secure the most supreme coffee beans, market control is used for growth, and expansion strategies, and clan control which is used to create a partnership between employees and corporate. Starbucks employees are called partners which develop shared values and beliefs, culture, trust, and expectations. Starbuck’s uses these controls to manage the daily activities of their employees to the extent that they have become the number one coffee house in the world, both nationally, and soon to be internationally as they continue to expand in other countries. Starbucks organizational control is taught to managers around the globe, and to make sure that each person is conformed to company standards, Starbucks employs secret shoppers to go to stores, and act like regular customers. They then grade the service and report back to the hierarchy control. According to the Starbuck’s website; these controls are in place to...
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