...Analysis of international operations of Starbucks company. 1. Provide brief examples of strategies at the level of business unit implemented by this firm over last five years. Throughout the startup of Starbucks with the CEO, Shultz, the focus has always been on the people. The strongest strategy to surround himself with good people and not to compromise. This strong belief in his people and the promise of good benefits and stock programs, was a well calculated and well-reasoned business decision early on (www.umsl.edu). It was Shultz’s belief that it was better to give the employees a sense of loyalty so that they can train newcomers and become veterans who can train the next round of newcomers…thus saving the turnover that many of the fast restaurants and small shops experience. CEO Shultz’s belief to “Pour your heart into it…one cup at a time” brought in the introduction of lattes and cappuccinos. The business strategies for product branding and product differentiation, price competiveness, and offering the Starbucks store card that will allow for rewards for being a customer…all provided uniqueness and growth for the store. Increasing multiple stores in same communities created storefront advertising and brand awareness, while saving advertising costs elsewhere. Where most stores will segregate themselves from region to region, this strategy proved strong in putting the Starbucks presence around every corner. Core strengths carried on from earlier Starbucks business...
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...Services Marketing Starbucks : Delivering Customer Satisfaction Section B, Group 6 STARBUCKS: DELIVERING CUSTOMER SERVICE 2011048 Rahul Rajiv Sagrolikar 2011158 Lakshmi M 2011177 Umair Khalid Siddiqui 2011157 Kunjal Kiran Kapadia 2011238 Sumeet Raina Services Marketing Starbucks : Delivering Customer Satisfaction Section B, Group 6 What factors accounted for the extraordinary success of Starbuck's in the early 1990's? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? Starbucks initially used an aggressive generic strategy of focus to take advantage of this small portion of the overall coffee market and eventually transitioned into a strategy of differentiation. The first factor which aided their success was their first mover advantage. Starbucks’ aggressive expansion plan was more ambitious than any other specialty coffee retailer. In the first year of their expansion, fiscal year 1988, Starbucks more than doubled the 11 base stores they operated by opening 15 new stores in the Pacific Northwest. From there, they proceeded to open 20 stores in 1989, 30 stores in 1990, 32 stores in 1991 and 53 stores in 1992, for a total of 150 stores in a five-year period. In order to ensure a reputation for quality and customer service Starbucks, did not adopt franchising, instead maintaining company control of all new stores. Throughout the 1990s the proportion of the workforce who...
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...Byung-il Min D301 9:00-10:15 The Globalization of Starbucks Case Discussion Question 1. Where did the original idea for the Starbucks format come from? What lesson for international business can be drawn from this? -First of all, Starbucks’s strategy was to provide their own premium-roasted coffee and freshly brewed espresso-style coffee beverages, along with a variety of pastries, coffee accessories, teas, and other products. When they spread to Japan coffee market, they used Japan’s local retailer, Sazaby Inc. Even Starbucks joined with Japan Venture Company, they didn’t lose their own coffee shop style. Finally they could get the success in the Japan market. In the international business, companies who want to invest to other country have to research and get a lot of information because they don’t know about foreign rules and regulations of business. 2. What drove Starbucks to start expanding internationally? How is the company creating value for its shareholders by pursuing an international expansion strategy? -Starbucks expects the foreign opportunities. At the 1990’s, Asia didn’t have any coffee shop markets. Moreover, coffee culture is not friendly to Asian. Someone thought Starbucks’s adventure doesn’t achieve. However, Starbucks used the “Starbucks experience” in North America, which coffee stores became places for relaxation, chatting with friends, reading the newspapers, holding business meeting, or browsing the web. This experience smashes to Asian...
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...Starbucks: Internal assesssment of strategic variables CONTEXT: Starbucks was started in 1971 and is famous for its quality fresh-roasted coffee beans. An internal variable that Strabucks have is its resource and capabilty. It is a financially sound company which have a rapid pace of growth both domestically and internationally. The majority of their stores are located on the international market in over 62 countries contributing significantly to them being the market leader in the coffee industry. To be able to operate on such a global scale signifies strength of the company’s internal resources and capabilities. During the recession in 2008, their stock price went down significantly, but the profits were hardly affected. Starbucks also focus its resources on giving back to society as well; helping to improve social and economical conditions for small coffee farmers, provide financial help to community literacy in developing countries in which it operates and a major contributor of the Worldwide relief Development Organization. Its present consolidated revenues for quarter one of 2014 were $4.2 billion which is and increase of 12% over quarter one of 2013; this was due to 5% growth in global store sales. With the resources that Starbucks have had enabled them to expand globally on a rapid pace not to mention its manpower team (employees) whom is of utmost value to the organization making it what it is today. From initiation, the starbucks business culture have prevailed;...
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...CASO DE ESTUDIO: STARBUCKS A finales de 2002, Christine Day, vicepresidente de administración de Starbuks para USA, estaba sentada en la sala de conferencia del séptimo piso del edificio de Starbucks en Seattle y bebía su segunda taza de “toffee-nut latte”. La bebida, un café con sabor a nuez acaramelada con crema batida y espolvoreado de caramelo, era la costumbre tradicional de cada tarde para Christine Day desde que se introdujo el producto a principio de año. Mientras esperaba a sus colegas, Christine comenzó a reflexionar sobre la reciente performance de la empresa. Mientras otros negocios se tambaleaban desde la recesión posterior al 11 de Setiembre, Starbucks disfrutaba su undécimo año consecutivo de crecimiento del 5%, que hizo que su fundador y presidente Howard Schultz declarara: “Pienso que hemos demostrado que estamos en presencia de un producto a prueba de recesion”. Christine Day, no obstante, no era tan optimista. En parte porque la reciente investigación de mercado de Starbucks reveló algunos hallazgos no esperados. “Nosotros siempre hemos estado orgullosos en nuestro servicio al cliente”, dijo Christine Day, “Pero de acuerdo a los datos, no siempre conocemos las expectativas de ellos en el área de satisfacción del consumidor”. Como resultado de esta preocupación, Day y sus asociados han diseñado un plan para invertir u$s 40 millones anualmente en las 4500 tiendas de la empresa que implicaría adicionar 20 horas de trabajo por semana por tienda, con la idea...
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...CONTENTS 1.0 Methodology Section 1 2.0 Introduction 2.1 Company History and Background 2.2 Mission and Principle 3.0 Stakeholder Analysis 3.1 Ethical theory Section 2 4.0 Dilemmas 4.1 Starbucks Cup Recycling 4.2 Starbucks Coffee Bean 4.3 The Dorosin Issue 4.4 Breastfeeding in Starbucks 4.5 Financial Loss 4.6 Starbucks Water Waste Section 3 5.0 Best practice 5.1 Official Website / information 5.2 Stakeholders 5.3 Environment 5.4 CSR – Corporate Social Responsibility Section 4 6.0 Recommendations 1.0 Methodology In this report will show that the ethical issues facing by Starbucks and the solution which can help Starbucks overcome the issues of Starbucks facing. Except researched the official website of Starbucks, but also viewing external agencies and individuals, journals and text books. Based on these sources, so author will be able provide an overview with objectivity of Starbucks organization. Besides, author appoints a stakeholder analysis, appropriate theory for state the better ways for Starbucks organization. In the beginning, it will show the company history, background and principles of the Starbucks organization. Based on these information can be enhance reader more understanding the Starbucks organization and find out what has been done or done in future and why Starbucks make these decisions. 2.0 Introduction Business Ethics can be define as the examination of the variety of problems that can arise from the business...
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