...Starbucks Case Study 1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. I think that Starbucks has maintained more controllable elements in the global marketplace than uncontrollable. Although Starbucks purchases just 1.5% of the world’s coffee beans, in my opinion, they control the market. In the preceding five years, growers have produced an oversupply of coffee beans to meet demand, which means a drop in price. And so the market price has dropped to 50 cents a pound but growers claim if they make in returns less than 80 cents a pound, it costs more to grow they make to sell. But after watching the video provided with this assignment, I have come to the conclusion that I believe Starbucks purposely corners the market by paying upwards of $1.20 a pound for their coffee. They admit they pay above-price for their coffee beans. But that seems to me it drives up the price of coffee in other areas as well. Starbucks already has a high price for their products here in the US and if they are willing to pay their growers a higher price for beans, other growers may be forced to do the same with other coffee houses, say, like Peets. In turn, with those other coffee houses around the world being made to pay higher prices to growers, eventually those higher prices trickle down to the consumer at the register. And with the Starbucks name and image globally, along with the financial backing, the company is able to pay...
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...Starbucks Corporation: A Strategy Recommendation Elizabeth Joyner Capella University I. Introduction and History of Starbucks It all began in 1971 in a small storefront in Seattle, Washington’s Pike Place Market. This was the site of the very first Starbucks store where unlike how the store is set up now it was merely a roaster and retailer of whole bean coffee and teas. Ten years later in 1982, Howard Schultz joins the company as the director of retail operations and marketing. To further immerse himself into the coffee world he travels to Italy in 1983 and subsequently falls in love with the coffee bar experience. The following year, the very first Café Latte is served in downtown Seattle. In 1985 Schultz founds Il Giornale, a business that offers brewed coffees and espresso drinks made from Starbucks brand coffee beans. Two years after the founding of Il Giornale, Howard Schultz acquires the assets of Starbucks and changes the name of Il Giornale to Starbucks Corporation and opens up 17 Starbucks stores including stores in Chicago and Vancouver, Canada. The statement, “Our Mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation), the popular coffee chain became what it is today. II. History of the Internet and Social Media While Howard Schultz and the “big wigs” of the Starbucks Corporation are watering the new coffeehouse idea and growing Starbucks into the conglomerate that...
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...are related to their business strategy because they will be able to be more efficient and maintain high levels of customer service, while keeping costs low (e.g. avoiding pakages to go to wrong locations). 3 What business objectives do UPS’s information systems address? This UPS's information system addresses as objectives: operational excellence, customer and supplier intimacy and, finally, a competitive advantage. 4 What would happen if these systems were not available? If these systems were not available, UPS would not be able to be so efficient, it would not serve customers that well, it would not be so productive and consequently, it would not be that competitive. Q2: FEDEX 1 List the Business Processes displayed in the Video? When a package arrives at the hub, it is placed in a conveyor belt. Then, it is scanned and measured by a light curtain. When it is scanned, it tells tons of information: who shipped the package, how much does the package weight, what is the destination, etc. After that scan, the package leaves the primary matrix and it will be sorted at least two more times, before it makes its way into an outbound container and,...
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...foreign direct investment in the last 25 years has been phenomenal. FDI can take the form of a foreign firm buying a firm in a different country, or deciding to invest in a different country by building operations there. With FDI, a firm has a significant ownership in a foreign operation and the potential to affect managerial decisions of the operation. The goal of our coverage of FDI is to understand the pattern of FDI that occurs between countries, and why firms undertake FDI and become multinational in their operations as well as why firms undertake FDI rather than simply exporting products or licensing their know-how. The opening case describes the international growth of Starbucks. The closing case explores Cemex’s foreign investments. OUTLINE OF CHAPTER 7: FOREIGN DIRECT INVESTMENT Opening Case: Starbucks’ Foreign Direct Investment Introduction Foreign Direct Investment in the World Economy Trends in FDI The Direction of FDI The Form of FDI: Acquisitions versus Greenfield Investments The Shift to Services Country Focus: Foreign Direct Investment in China Theories of Foreign Direct Investment Why Foreign Direct Investment? The Pattern of Foreign...
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...Strategic Management & Business Policy Week Two Assignment: Starbucks From its humble beginning to multi-billion dollar corporation, Starbucks has had its fair share of ups and downs. Many of which can be associated with the constant changes in public demand. By utilizing the SWOT, the company was able to not only tackle each of the obstacles it in countered, it managed to strengthen organization and stay ahead of the competition. SWOT is an acronym that stands for a company’s strengths, weaknesses, opportunities, and threats analysis. This analysis tool is used by the strategic business unit (SBU) to identify the company’s internal strengthens and weaknesses, as well as external opportunity or threats the company may encounter in the future (Marcus 2011). Companies use their strength to take advantage of the market and use it to increase their net earnings. By identifying weaknesses within the company, SBU is able to allocate resources to the under performing areas to improve productivity and income. Opportunities can sometimes be confused as threats, as there is usually some form of risk involved. This type of cautious business practice can hinder a company from reaching its full potential; it might also cause the firm to go out of business. In its infancy Starbucks was already ahead of its competition, created by three men with a passion for fine coffee and tea, the business offered the public a chance to experience coffee at its finest. At the time most coffee had...
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...Video Case 6.1 Starbucks: Staying Local While Going Global Through Marketing Research. Questions 1. The SBDC National Information Clearinghouse provides information for the Small Business Development Center Network and America's small business community. Euro monitor International is a marketing intelligence firm that provides data to industry, business intelligence reports, and market research. USDA objective is to maintain a model for environmental concerns, food production, and a healthy and safe food supply. www.Starbucks.com the company’s website offer information on their products and services. Google –Coffee related information such as coffee consumption, coffee shops, etc. 2. Consumers are looking for a place where they can socialize and relax and enjoy the experience of the coffee house and smell the aroma of the rich coffee bean as if they were in Milan where Howard Schultz experienced the interaction between the coffee houses patrons and the quality of relationships that were established with the people and their love of coffee. Starbuck consumers are looking the three P’s in their coffee house experience: People- the connection the baristas has established with their customers. Place - the aroma from the coffee bean drifting throughout the establishment, and the overall design layout of the physical. Product – the food, beverages, and merchandise offered for sale. Starbucks can determine the answers to these questions by using...
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...Video Case 2.1 Starbucks: Staying Local While Going Global Through Marketing Research 1. Students should search an Internet database using the key words “coffee”, “coffee shops”, “coffee consumption”, etc. to identify the relevant data. They should also visit Starbucks’ web site (http://www.starbucks.com). 2. Starbucks can determine the answers to such questions by conducting qualitative research. Both focus groups and depth interviews can be useful. Focus groups can generate new insights and ideas, while depth interviews can uncover hidden motives, values, and beliefs. Using qualitative research, the company found that consumers are looking for a coffee house experience that elevates coffee drinking to an art form and coffee houses to the place where Americans choose to relax and socialize. Through extensive marketing research studies, Starbucks created a place where you can meet and drink good coffee that did not resemble work or home, but fell somewhere in between. 3. Personal interviews at representative coffee shop locations of Starbucks and other chains could be used to determine the image coffee drinkers have of Starbucks and other coffee shop chains. This method offers several advantages: complex questions can be asked; it is very good for the use of physical stimuli; very good sample control; high quantity of data; and very good response rate. 4. Personal observation method could be used at a sample of Starbucks coffee shops where the new coffee is...
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...Video Case 2.1 Starbucks: Staying Local While Going Global Through Marketing Research 1. Students should search an Internet database using the key words “coffee”, “coffee shops”, “coffee consumption”, etc. to identify the relevant data. They should also visit Starbucks’ web site (http://www.starbucks.com). 2. Starbucks can determine the answers to such questions by conducting qualitative research. Both focus groups and depth interviews can be useful. Focus groups can generate new insights and ideas, while depth interviews can uncover hidden motives, values, and beliefs. Using qualitative research, the company found that consumers are looking for a coffee house experience that elevates coffee drinking to an art form and coffee houses to the place where Americans choose to relax and socialize. Through extensive marketing research studies, Starbucks created a place where you can meet and drink good coffee that did not resemble work or home, but fell somewhere in between. 3. Personal interviews at representative coffee shop locations of Starbucks and other chains could be used to determine the image coffee drinkers have of Starbucks and other coffee shop chains. This method offers several advantages: complex questions can be asked; it is very good for the use of physical stimuli; very good sample control; high quantity of data; and very good response rate. 4. Personal observation method could be used at a sample of Starbucks coffee shops where the new coffee is...
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...Why Starbucks succeeds in China and others haven't By Shaun Rein, CNBC.com Contributor Updated 2/10/2012 3:03 PM • Comments • • • • [pic] • [pic] • [pic] About 14 years ago, I met an entrepreneur who wanted to open up coffee shops around China. I never thought the coffee business would work there. The Chinese would not easily give up their tea-drinking culture for a bitter, overpriced drink, I told him. • [pic] By Greg Baker, AP A worker cleans the sign outside one of the many Starbucks outlets in Beijing. Enlarge By Greg Baker, AP A worker cleans the sign outside one of the many Starbucks outlets in Beijing. Sponsored Links Starbucks has proven me wrong. Howard Schultz, the CEO of Starbucks (SBUX), announced that China will soon become its largest market outside the United States. It has opened over 500 outlets in the country, which are more profitable per outlet than in the U.S. even though sales per outlet lags its U.S. counterparts considerably, according to the chain's chief financial officer, Troy Alstead. What did Starbucks do to succeed in a market where so many other Western food and beverage brands such asDunkin Donuts, Krispy Kreme, and Burger King have failed to live up to their own expectations? What Starbucks did right in China is a textbook case study in how food brands can succeed despite rising labor and real estate costs and increased competition on the Mainland. • PHOTOS: 10 fake businesses...
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...course aims to provide a general understanding of the field of global risk analysis and management. More specifically, you will learn about the development of the risk assessment industry and the major approaches to risk assessment. You will also get acquainted with the various types of risk that international businesses face in their operations abroad, and the major strategies for risk mitigation and management. We will pay special attention to political risks (asset expropriation, contract repudiation, legal and regulatory risks), 1 societal risks (activism of international non-governmental organizations, reputation and public image issues), and everyday risks (corruption). Through a combination of readings, lectures, guest speakers, case discussions and risk assessment projects you will develop practical skills in evaluating and assessing risk, and will learn how to approach and manage risk on a global scale. Background on Your Professor Elena Iankova is an Adjunct Professor at Binghamton University’s School of Management and a retired Senior Lecturer in International Business at the Johnson Graduate School of Management, Cornell University. She joined the School of Management in 2007 and since then...
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...MULTIPLE CHOICE ANSWERS: 1. MARKETING CHANNELS 2. WHOLESALERS 3. ADVERTISING AGENCY 4. PUSH STRATEGY 5. PULL STRATEGY 6. ADVERTISING 7. SALES PROMOTION 8. CONTEST FOR SALES REPS 9. EVENTS EXPERIENCES 10. PUBLIC RELATIONS AND PUBLICITY 11. TELEVISION 12. PUFFERY 13. GOOD LOCAL MARKET COVERAGE 14. POOR REPRODUCTION QUALITY 15. HIGH COSTS 16. DIRECT 17. DIRECTMAILS PERMIT RAGET MARKET SELECTIVITY 18. INBOUND MARKETING 19. INITIATE CALLS TO PROSPECTS & CUSTOMERS 20. WORD OF MOUTH MARKETING IN YOUR OWN WORDS PLEASE LIST, DESCRIBE, AND EXPLAIN 4 SERVICE LEVELS OFFERED BY RETAILERS. * Self-Service Retailers: * This is where customers find their own products, compare them (prices, quality, size), and chooses the product. Stores that offer this service for example would be like Wal-Mart, Target, and HEB just to name a few. * Limited-Service Retailers: * In these types of retail stores more assistance is offered due to the simple fact that they offer goods that might need more explaining such as washers and driers, refrigerators and goods like that. These types of stores also offer credit and return services. Some examples of these types of stores are like Sears and Best Buy or Lowes when it comes to items where the buyer needs more information to compare and choose the item. * Full-Service Retailers: * These are retailers where the products are of higher end or specialty...
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...be aware about ethical issues related to bribery. 4. From Frank’s point of view, there is a big advantage to him and to his company in providing bribes in form of entertainment to potential buyers. Acme Corporation is getting orders and in turn rewards Frank for his successful sales. There is also a big downside for such an unethical behavior. First of all, company is opening its self up to potential law suits, negative publicity and negative consumer reacton. Chapter 2. 1. In my opinion, there is an ethical issue with employer asking an employee to ignore personal or religious convictions. On the other hand, if the game with nude contents is properly labeled and marketed, there should not be any legal issues. In similar case in New York City, judge sided with taxi drivers who objected to display of adult entertainment advertisements on their cars. 2. Depending on the company policies, Karl should have an option to be moved to a different G rated project. If that is not possible and Karl’s convictions are strong enough, he can look for a new job. a....
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...Readings for this week to help with assignments: Change in Leaders One of the major reasons why organizations are unable to adapt to the fast-paced, changing environments of today is the lack of effective change leadership. Leaders who are successful in guiding their organizations through change are typically those who: * Embrace change in the environment as opportunities on which to capitalize. * Are vision artists—they can paint a picture of the future that is vibrant and clear to all * Have the ability to communicate to all levels of the organizations the values and attitudes that will promote change and adaptability. * Accept mistakes and the learned lessons they provide. * Are comfortable working in a world of uncertainty. In order to understand how to successfully lead change, it is essential to understand the types and process of change. Nahavandi (2012) proposed five different types of change. Type of change | Description | Planned | Planned change occurs when leaders respond to a specific problem or pressure with a conscious effort. | Unplanned | Unplanned change occurs without an intention to address a problem. It is random or sudden. | Evolutionary | Evolutionary change does not occur all at once. It is a gradual process. | Convergent | This type of change, while evolutionary, is a result of specific actions that leaders take. | Revolutionary or frame breaking | This type of change is typically rapid and dramatic. | Leaders play...
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...Starbucks Corporation in China Company overview Starbucks Corporation is one of the most famous coffee retailers in the world. According to Starbucks Corporation (2012), it runs over 55 countries in many regions including North America, Asia Pacific, Latin America and so forth. Starbucks headquarter is located in Seattle, Washington, USA. It has approximately 149,000 employees. According to Starbucks Corporation (2012), its company verified the income of 11,700.4 million dollars during the fiscal year of 2011, which is an increase 9.3% over the fiscal year of 2010. In addition, the net profit of the firm was 1,245.7 million dollars in fiscal year of 2011, which rose 31.7% over the fiscal year of 2010. This Company is considered as a great business, which grows rapidly in past two decades. To illustrate this, in 1987 Howard Shultz and David Olsen bought Starbucks Company, and then five year later, it expanded from 6 shops to 165 retail outlets in Pacific Northwest. In 2001, Starbucks has more than 7,500 retail stores (Harrison et al. 2005). Nowadays, this company operates more than 17,000 stores over 55 countries (Starbucks Corporation, 2012). In the past decades, Starbucks Company has expanded globally comprising open branches in Republic of China. Starbucks Company first opened in China, found in Shenzhen in 2002. It is held by Coffee Concepts, which is a joint venture between Starbucks Company and Maxim group from Hong Kong (Harrison et al. 2005). In order to acquire...
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...The B Café: J H S University Table of Contents Abstract ………………………………………………………….... 3 Part 1: Competitive Advantage ……………………………………. 4 Part 2: E-Business …………………………………………………. 10 Part 3: Supply Chain Management ………………………………. 14 Part 4: Customer Relationship Management …..………………….. 17 Part 5: System Development Life Cycle ..………………………….. 19 Web site Wish list ………………………………………………… 21 Remodel …………………………………………………………… 25 Menu ……………………………………………………………… 26 References …………………………………………………………. 27 Abstract The Broadway Café has been undergoing a particular decline in sales over the last five years. The Broadway Café was established in 1952 and has not achieved any changes since the doors opened. If the company was to make an about face and show some growth some immense changes need to take place. The Broadway Café will need to consider adapting Michael Porters’ Five Forces, as well as, establish which of the three strategies it will use to restore the company for the 21st century. There are more areas that will need to be looked into such, customer loyalty programs, employee concerns and maintaining a viable advantage over its competitors. The Broadway Café has to take to introduce information technology into daily operations and application programming interface in order to stay current in today’s market. An e-business strategy...
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