...[pic] ASSIGNMENT SUBMISSION FORM Treat this as the first page of your assignment Course Name: Competitive Strategy Assignment Title: Project – Globalization Problems faced by Starbucks – Focus on Europe (Let us not waste paper, please continue writing your assignment from below) Table of Contents Executive Summary 3 Industry structure – Porter five forces analysis 4 Company background 5 Globalization strategy [1995-2008] 9 Performance in EMEA 11 Findings and analysis 13 References 27 Executive Summary This study is focused on Starbucks, the world’s largest coffeehouse company. The company has the knack of finding the magic formula for every aspect – be it customer satisfaction, innovative marketing or smart partnerships. Given the brilliant performance that Starbucks found in the US, success should have been a foregone conclusion in other geographies as well. Despite all the positives, it could not replicate the same degree of success in Europe as it enjoyed in the US. This study has analyzed the factors which might be held accountable. The aggressive policy of opening stores worldwide to achieve inimitability of its business model, loss of control over the cost of operations, the stock market’s notional correlation of success with number of stores, over-reliance on Seattle management causing a lack of decentralization of key decision-making power...
Words: 4723 - Pages: 19
...The case of Starbucks Paul G. Patterson *, Jane Scott, Mark D. Uncles School of Marketing, Australian School of Business, University of NSW, Sydney, NSW 2052, Australia a r t i c l e i n f o a b s t r a c t The astounding growth and expansion of Starbucks is outlined, both on a global scale and within Australia. The focus then shifts to the abrupt closure of three-quarters of the Australian stores in mid 2008. Several reasons for these closures are described and examined, including that: Starbucks overestimated their points of differentiation and the perceived value of their supplementary services; their service standards declined; they ignored some golden rules of international marketing; they expanded too quickly and forced themselves upon an unwilling public; they entered late into a highly competitive market; they failed to communicate the brand; and their business model was unsustainable. Key lessons that may go beyond the specifics of the Starbucks case are the importance of: undertaking market research and taking note of it; thinking globally but acting locally; establishing a differential advantage and then striving to sustain it; not losing sight of what makes a brand successful in the first place; and the necessity of having a sustainable business model. Ó 2009 Australian and New Zealand Marketing Academy. Published by Elsevier Ltd. All rights reserved. Keywords: Service brands Service quality Global branding International business Starbucks Coffee 1...
Words: 8036 - Pages: 33
...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 ...................................................................
Words: 20339 - Pages: 82
...Carolin Wiese Samuel Weimer Nicole Schröder Date: 11th June 2010 Executive Summary In the following, two companies and their strategic positions within the coffee consumer goods industry will be described. The focus lies on Nestlé and its competitor Kraft Foods. As coffee is one of the most popular products worldwide, this is a very demanding business. It is necessary to provide high quality products, especially when working in the more affluent segments like Nestlé and Kraft Food do. Several political, economic, social, technical, environmental and legal aspects have an impact on the industry branch they are operating in. In addition, there is not only a differentiation in Robusta and Arabica coffee, but also in filter coffee, portioned and non-portioned soluble coffee. To satisfy the diverging needs of all customers, different strategies are applied to gain more market share. In this report it is examined how those companies operate in the specific business context, what they have in common and where they differ. Furthermore, an analysis of the industry attractiveness, of the market segmentation and value chain and an overview of resources and capabilities are part of this paper. After intense research we were able to draw conclusions about their strategic positions and what Nestlé could do to improve its strategic position. 2 Table of Content Executive Summary 2 1 Introduction 4 2 Nestlé S.A. versus Kraft Foods, Inc. 4 ...
Words: 11935 - Pages: 48
...Panera Bread Company’s Vision and Mission Statement During 1999, Panera Bread sold the Au Bon restaurants and began focusing solely on the growth of the Panera Bread restaurants. As the company attempted to expand their operations across North America, their vision and mission statement became an even larger part of the operations. However, the statement is vague and offers little guidance to the employees of the company. “A loaf of bread in every arm” is not only next to impossible to achieve, but it also lacks specifics as to how the employees are to accomplish the company’s goals. In an attempt to clarify the statement, the company issued its “bread leadership goal,” which states “With a single goal of making great bread broadly available to consumers across America, Panera Bread freshly bakes more bread each day than any bakery-café concept in the country.” Although this statement is more specific, it still lacks the details on how the company is going to achieve the stated goals. What is the company doing to fulfill the statement and ensure there is a loaf of bread in every arm? The mission of Panera Bread states that the “Panera Cares community cafes exist to feed each and every person who walks through our doors with dignity regardless of their means.” The services that are offered in these cafes are attempting to fulfill the goal of getting a loaf of bread into every arm. Not only is the company tackling the issues of hunger, but they are also trying to maintain the...
Words: 4732 - Pages: 19
...Reflection Essay: A Summary of Essential Learning Outcomes in BUSN601 - Global Management Perspective JC American Military University Reflection Essay: A Summary of Essential Learning Outcomes in BUSN601 - Global Management Perspective There were a number of learning outcomes for BUSN601: Global Management Perspective. The topics for this course included: * developing Porter’s Five-Forces Model in a global strategy; * assessment and integration of business functions in an organization; * formulation of essential components of the strategic management process; * assessment of target markets and forecasting of the components of the marketing mix; * assessment of the importance of market research in developing a global initiative * Integrate e-business applications into your overall global initiative. * Appraise how employment law constrains choices for the organization * Relate how regulatory law affects an organization's decisions * Identify and incorporate the key elements of contracts. * Assess the influence of different cultural perspectives on global business operations. * Argue the influence of regional trading organizations on business opportunities and constraints In the following I discuss in summary perspective the key takeaways from this course as well as learning objectives I did not meet. Integrate Porter's Five-Forces Model into developing a solid global strategy. Porter’s five forces model of competitive...
Words: 4179 - Pages: 17
...Performance Measurement & Control | BHP Billiton & PotashCorp: Chinese distribution | Transfer Pricing | | Your Name | 1/17/2011 | | Contents Executive Summary 3 Introduction 4 Transfer Pricing 4 Transfer Pricing: Cost rates, dual rates & market prices 7 PotashCorp Transfer Pricing policy 9 Performance Management issues 12 Conclusions 14 References 15 Appendix 16 Executive Summary In the constantly improving transfer pricing laws of China and given the Chinese fertilizer market’s future potential, it is worth to enter the market with a BHP Billiton’s division established there. The planned imports from PotashCorp provide the possibility for the use of transfer pricing to improve tax efficiency and thus the benefit of the whole organization. If performance measurement tools are used, this may underestimate the performance of the division using most of the methods such as market price and dual cost. The cost plus method turns out to be more on the division’s side but as the Chinese prices are lower than that of the world, the conditions appear to be supporting the method as beneficial to the company as a whole while the division is able to generate revenues for company at a low tax. Performance measurement tools seem to be less beneficial for large divisions based organization, where differences in dynamics render the largely homogeneous performance measurement indicators unable to serve the intended purpose. Introduction ...
Words: 3832 - Pages: 16
...business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities. 1. Executive Summary 5 2. Company Description 6 2.1. Mission and Objective 6 2.2. Management Team 7 2.3. Location and Geography 7 2.4. Development Stage 9 2.5. Product and Services 9 2.6. Financial Status 10 3. Management and Organizational Structure 11 3.1. Overview 11 3.2. Management Team Background 11 3.3. Human Resources Management 12 3.4. Training Program 13 4. Industry Analysis 13 4.1. Size and Growth Trends 13 4.2. Maturity of the Industry 14 4.3. Vulnerability to Economic Factors 14 4.4. Seasonal Factors 15 4.5. Technological Factors 15 4.6. Regulatory Issues 15 4.7. Supply and Distribution 15 4.8. Financial Considerations 16 5. Target Market 16 5.1. Demographics 16 5.2. Geographic 18 ...
Words: 8301 - Pages: 34
...been possible. Also would like to pay my gratitude to the very cooperative group members Omer, Waqas and Zubair and also want to applaud our parents for their selfless efforts and cooperation. Executive Summary This report explains that what were the rise and fall of the Washington Mutual the 119 year old bank. How JP Morgan acquired this bank? How it got bankrupt? CONTENTS Acknowledgement 2 Executive Summary……………………………………………………………………………….2 History of WASHINGTON MUTUAL 4 Principle Line of Business...............................................................................................................5 Reasons of Rise of Washington Mutual…………………………………………………………...6 Reasons of fall of Washington Mutual……………………………………………………………8 Conclusion……………………………………………………………………………………….12 Recommendations…………………………………………………………………………..........13 References………………………………………………………………………………………..14 Washington Mutual Introduction of Washington Mutual Washington Mutual, Inc. is a savings bank holding company and the former owner of Washington Mutual Bank, which was the United States' largest savings and loan association. Washington Mutual was incorporated as the Washington National Building Loan and Investment Association on September 25, 1889, after the great Seattle fire...
Words: 3801 - Pages: 16
...OL500: Final Project Milestone # 3 Bank of America tries to charge debit card fees Introduction: The main purpose of the case study is to demonstrate organizational studies, organizational theories, and organizational behavior of Bank of America trying to charge $5 debit card fees. The case study will implant the systematic study and careful application of knowledge about how people –as individuals and as group will act upon this issue. Moreover, we will encompass the study of organization from multiple viewpoints, levels of analysis and methods may be used to resolve it through prediction and explanation of some hypothesis. Company profile: Bank of America was first opened on July 5, 1784 under the name of its earliest predecessor, the Massachusetts Bank (Bank of America). As the second of the original three banks in the late eighteenth century United States, Bank of America is the country's most extensive bank, with 6100 locations covering over thirty states coast to coast (Hoovers Online). Bank of America specializes in most banking services including checking and savings accounts, credit cards, loans, investment banking and brokerage, asset management, loans, line of credits, retirement accounts, roths, and mortgages. With such excellent customer service, Bank of America has a very large customer base consisting of all different logistics of people. The Company Organizational Structure: Organizational structure is a concept in the field of Organizational studies...
Words: 2686 - Pages: 11
...CONSUMER FOODSERVICE IN MALAYSIA Euromonitor International October 2012 CONSUMER FOODSERVICE IN MALAYSIA Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Malaysians Spend More on Foodservice .................................................................................. 1 Increases in Prices Hit Consumers ........................................................................................... 1 Multinational Brands Maintain the Top Positions, But Local Companies Progress Well ........... 1 Increasing Trend of Dining Out ................................................................................................. 1 Positive Outlook for Multinational and Local Foodservice Companies...................................... 2 Key Trends and Developments .................................................................................................... 2 Rising Prices Affect Consumer Confidence .............................................................................. 2 Government and Private Sector Inject Growth Into Foodservice .............................................. 3 Healthier Choices for Consumers in Restaurants ..................................................................... 5 Foodservice Companies Compete for Customers Through Online Coupon Giveaways........... 6 Tackling Halal Issues in 2011 ....................
Words: 11310 - Pages: 46
...Globalization PART ONE Planet Starbucks T hirty years ago Starbucks was a single store in Seattle’s Pike Place Market selling premium roasted coffee. Today it is a global roaster and retailer of coffee with more than 7,600 retail stores, some 2,000 of which are to be found in 34 countries outside the United States. Starbucks Corporation set out on its current course in the 1980s when the company’s director of marketing, Howard Schultz, came back from a trip to Italy enchanted with the Italian coffeehouse experience. Schultz, who later became CEO, persuaded the company’s owners to experiment with the coffeehouse format—and the Starbucks experience was born. The basic strategy was to sell the company’s own premium roasted coffee, along with freshly brewed espresso-style coffee beverages, a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting. The company also stressed providing superior customer service. Reasoning that motivated employees provide the best customer service, Starbucks executives devoted much attention to employee hiring and training programs and progressive compensation policies that gave even part-time employees stock option grants and medical benefits. The formula met with spectacular success in the United States, where Starbucks went from obscurity to one of the best known brands in the country in a decade. In 1995, with almost 700 stores across the United States, Starbucks began exploring foreign opportunities...
Words: 24447 - Pages: 98
...Business Strategy Analysis: McDonald’s Corporation is the world’s largest fast-food chain in the restaurant industry, serving on average 69 million customers a day. Their stores are corporate or franchised owned, with franchising being highly beneficial to their success by producing 32% of their total revenue. McDonald’s is in a highly competitive industry with market saturation because of low barriers to enter. The industry competes on price, quality, and service. McDonald’s faces competition with full-service restaurants and fast-food restaurants in the area. Their main competitors are Burger King, YUM! Brands, and Wendy’s International. The industry has faced scrutiny on the quality of their products because of a more health concise society. McDonald’s strategy for success is based off of cost efficiency, product development, and marketing and promotions. These factors help form the strong brand that McDonald’s is today. Since their establishment with Ray Kroc, they have focused on driving their success from the 3-legged stool principal representing: McDonald’s employees, the owner/operators, and their suppliers. The stool needs all three to have a good balance in order to function, without either one of the legs success cannot be achieved. All three of them work together to create new products, to reduce costs, and to achieve outstanding customer service. There is commitment in helping all three legs of the stool to succeed. The suppliers play a key role by providing high...
Words: 5685 - Pages: 23
...Duhi_9781400069286_2p_all_r1.j.indd iv 10/17/11 12:01 PM To Oliver, John Harry, John and Doris, and, everlastingly, to Liz Duhi_9781400069286_2p_all_r1.j.indd v 10/17/11 12:01 PM Duhi_9781400069286_2p_all_r1.j.indd vi 10/17/11 12:01 PM CONTENTS PROLOGUE The Habit Cure GGG xi PA R T O N E The Habits of Individuals 1. THE HABIT LOOP How Habits Work 3 31 60 2. THE CRAVING BRAIN How to Create New Habits 3. THE GOLDEN RULE OF HABIT CHANGE Why Transformation Occurs GGG PA R T T W O The Habits of Successful Organizations 4. KEYSTONE HABITS, OR THE BALLAD OF PAUL O’NEILL Which Habits Matter Most 97 Duhi_9781400069286_2p_all_r1.j.indd vii 10/17/11 12:01 PM viii G Contents 5. STARBUCKS AND THE HABIT OF SUCCESS When Willpower...
Words: 124310 - Pages: 498
...2 Communities are often what shape and instill a sense of belonging for people. One such community is Northridge, which is a neighborhood located in the San Fernando Valley and is part of Los Angeles County. According to available data, there are 52,776 residents in Northridge, and diversity is a key element. A snapshot of Northridge can be seen as 49.5% whites, hispanics/latinos 50.8%, Asians 14.5%, African Americans 5.4% and others 4.6%. Along those lines, 7.6% are nonEnglish speaking and a large percentage of these residents speak languages other than English in the home. Families (married with children) make up 24.1% of households with single parents accounting for 11.8% of the residents (Lacounty.gov). Summary of Tools Population Economic Status Assessment. The median household income for Northridge in 2013 was $81,511, which is relatively high compared to the median income for California which is $61,632 (Northridge Neighborhood). While the median income is high, one source of data states 20% one in five residents of Los Angeles County receive public assistance (L.A. Times. 20% in Los Angeles County Receive Public Aid). While specific data could not be obtained for Northridge, in Los Angeles County (2011 Census) the birthrate was 130,312 and the death rate came in at 57,988, which means Los Angeles County as whole and its neighborhoods are growing both in population and diversity. In regards to health related deaths, ...
Words: 4217 - Pages: 17
