...Written Communications McCafe Experience vs. Starbucks Experience In the past, McDonalds has tried to steal customers away from various competitors by marketing similar products that seem to be of similar quality but are cheaper, mass produced, knock-offs of the original. Once again McDonalds Corporation is trying to steal customers from other business and this time their target is Starbucks Coffee. McDonalds has failed to capture the atmosphere of Starbucks cafés, quality of beverage preparations and quality of coffee beans. McCafe is a poor attempt to usurp Starbucks from it’s rightful place as the world’s finest purveyor of coffee. McDonalds McCafe’s experience is a two dimensional, superficial, photo copy “like” rip-off of what has made Starbucks a special place. In the corner at some McDonalds you may find some overstuffed modern furniture, some bistro tables and chairs and walls clad with trendy looking artwork. There may also be a Starbuck’s look-alike pastry case filled with McGoodies. However, a few feet away there are still the institutional, resin seating areas filled with burger gobbling parents, and play areas rampant with their sugar laced, manic children, screaming with glee because this “is their kind of place.” There too, the atmosphere is enhanced by the aroma of over processed meat sizzling and greasy potatoes browning in overworked deep fryers. McWiFi is available if you want to surf the internet, but only if you can endure being there. ...
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...Assignment 2/2 | An analysis on the external environment and its impact on Starbucks | | 5/25/2014 | While planning for the future direction of the business, Starbucks has to consider many factors. One of these is the external environment in which it does so, something which Starbucks has a limited extent of control over. The impact of the external environment is divided into three major categories: Economical, Socio-cultural and Technological. Through the study of their impacts, opportunities and threats are then identified and recommendations presented which best prepare Starbucks to meet them. | Table of Contents 1 Introduction 1 1.1 Starbucks 1 1.2 Core operations 1 2 Impact of external environments 2 2.1 Economical and Globalization Impact 2 2.2 Socio-cultural Impact 2 2.3 Technological Impact 3 3 Opportunities and Threats 4 3.1 Economic and Globalisation 4 3.2 Socio-cultural 6 3.3 Technological 8 4 Recommendations 10 4.1 Increased Range of Product Offering 10 4.2 Latte Art 10 4.3 Business Diversification 10 Bibliography 12 1 2 Introduction In order to determine their future plans, companies must first be able to understand not only their internal position, but also their external environment and how it affects their potential growth. This paper seeks to discuss the impacts that the external environment has on Starbucks, a world renowned coffeehouse chain, and provide holistic recommendations to...
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...There are several barriers facing Starbucks as they try to “teach” people to change their consumption habits from tea to coffee. Firstly, tea is one of the common beverages in China. According to the history, China peoples start to drink tea before four thousand years ago. In China, tea has become a unique cultural phenomenon. The Chinese view tea to be both medicinal and beneficial whereas coffee does not have the same value to the Chinese. Other than that, having a cup of tea after meal will help to digestion. When feel upset, Chinese also believe a cup of tea will help to quiet down the mind. Moreover, when a Chinese family have guess come to their house, the owner will always treat the guess a cup of tea and can enhance the friendship. But to the coffee, Chinese do not get the benefits of drinking coffee and believe coffee are does not have the same value compare with tea. It will become one of the barriers facing Starbucks as they try to “teach” Chinese to change their view towards the coffee. In addition to this, one has to take into consideration the vast area of china. China consists of 1.3 billion of peoples. Even china is keep improving and economic start to growth up, but china is still having largely rural areas and lots of lower income family. Other than that, they have less familiarity with coffee and don’t have as much money spend on the more expensive beverage. Therefore, it will be other barriers to the Starbucks who want try to “teach” people to change their...
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...Abstract In continuation with my Business Analysis on Starbucks this week, I will review the strategic initiative that Starbucks has taken to adapt in the changing market. I will examine how the recent economic trend as affected the business, how they used or could use a strategy for adapting to the changing market with the recession going on. I introduce tactics that Starbucks has implemented or could implement to achieve their goals. I will also include a section on how their human resources management plays an important role in making sure Starbucks achieves their goals. In the end I will make my final decision whether or not, I want to invest my money into Starbucks Corporation. There will be a review on the analysis from my last two papers that I did and will show support for my conclusion. Business Analysis Part III Because of the recession Starbucks has had to make many changes to keep itself in the competitive market while trying to retain the authenticity of its brand. The Corporation has had to make some adjustments to its upscale formula to address a growing demand for a high quality product at an affordable price. Starbucks has to conform to keep their existing customers by outlining a twofold growth strategy, first to focus on profits in their existing stores and by making a new strategic investment in key initiatives (Barnes, 2011). Starbucks prides itself by offering more than just a cup of coffee, they...
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...Starbucks Corporation Table of Contents Introduction Organizational Goals Symptoms of the Problem Diagnosis of the Problem SWOT Analysis Recommendations I. Introduction: In 1971, in Seattle, Washington, three entrepreneurs started the Starbucks Corporation. The primary business at this time was the selling of premium whole bean coffee in a single Seattle store. At the time, coffee consumption in the U.S. was on the decline and market dominance was established by the large supermarket brands. However, companies such as Starbucks, who began selling high quality specialty coffee, began to establish a following of loyal coffee enthusiasts. This niche market enabled Starbucks to expand into five stores that sold coffee beans, a roasting facility, and a wholesale business that served local restaurants. At this time, Starbucks did not serve coffee and would not be recognized as the company they are today. In 1982, Howard Schultz joined the organization as the manager of retail marketing and attempted to implement new ideas and a new business model for the organization. Schultz was inspired by the Espresso bars of Europe and saw the potential for establishing this type of European coffee culture in the U.S. market. Schultz’s idea was soundly rejected by the original owners and he left the organization and established a chain of coffee houses, themed after Italian café’s and they sold brewed Starbucks coffee. In 1987, Schultz bought Starbucks from the...
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...Starbucks’ Strategy and Internal Initiatives to Return to Profitable Growth Arthur A. Thompson The University of Alabama ince its founding in 1987 as a modest nine-store operation in Seattle, Washington, Starbucks had become the world’s premier roaster and retailer of specialty coffees, with 8,812 company-owned stores and 7,852 licensed stores in more than 50 countries as of April 2010 and annual sales of about $10 billion. But the company’s 2008–2009 fiscal years were challenging. Sales at company-owned Starbucks stores open 13 months or longer declined an average of 3 percent in 2008 and another 5 percent in 2009. Company-wide revenues declined from $10.4 billion in fiscal year 2008 to $9.8 billion in fiscal year 2009. During fiscal 2009, Starbucks closed 800 underperforming company-operated stores in the United States and an additional 100 stores in other countries, restructured its entire operations in Australia (including the closure of 61 stores), and reduced the number of planned new store openings by more than 200. Starbucks’ global workforce was trimmed by about 6,700 employees. The company’s cost-reduction and laborefficiency initiatives resulted in savings of about $580 million. Exhibit 1 shows the performance of Starbucks’ company-operated retail stores for the most recent five fiscal years. In his November 2009 letter to company shareholders, Howard Schultz, Starbucks’ founder, chairman of the board, and chief executive officer, said: Two years ago, I expressed...
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...appraising employees. Job Design: The job design of an organization includes the job analysis, job description and the job specification. As described in “The Five Functions of Effective Management”, the purpose of a job design is “organizing tasks, duties, and responsibilities into a productive unit of work” (As quoted by Baack, 2011, Section 4.2). Analyzing the job requires the human resource department to identify these tasks, delegate who will execute them, and to match the employee to the task. Human Resources collaborate with Dunkin’ Donuts department mangers to figure out what will work in the organization design. Often times, this will mean comparing the company with other similar quick service restaurants such as Krispy Kreme or Starbucks to see what works and what does not. During this process, experimentation and reflective planning takes place. This entails possibly using a tool like the Dictionary of Occupational Titles provided by the U.S. Department of Labor (Baack, 2011, Section 4.2). It also means experimenting with different techniques and seeing what works…trial...
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...appraising employees. Job Design: The job design of an organization includes the job analysis, job description and the job specification. As described in “The Five Functions of Effective Management”, the purpose of a job design is “organizing tasks, duties, and responsibilities into a productive unit of work” (As quoted by Baack, 2011, Section 4.2). Analyzing the job requires the human resource department to identify these tasks, delegate who will execute them, and to match the employee to the task. Human Resources collaborate with Dunkin’ Donuts department mangers to figure out what will work in the organization design. Often times, this will mean comparing the company with other similar quick service restaurants such as Krispy Kreme or Starbucks to see what works and what does not. During this process, experimentation and reflective planning takes place. This entails possibly using a tool like the Dictionary of Occupational Titles provided by the U.S. Department of Labor (Baack, 2011, Section 4.2). It also means experimenting with different techniques and seeing what...
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.................................................................................................... 24 Abstract The Broadway Café was first established in 1952 by my grandfather. The Broadway Café immediately became the hotspot, but over time lost business due to its lack of ability to compete with competitors in the 21st century. I have recently inherited the Broadway Café and have transformed it into the business it should be in the 21st century. I started the café off with a competitive advantage where it can level with competitors around the area. The café has affordable and reasonable prices for the customers which puts the café at a cost leadership advantage and as well as a differentiation advantage with its unforgettable recipes that my grandfather has kept all these years. The Broadway Café has managed to stay at a competitive advantage by implementing...
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...Running head: CAREERS IN LODGING AND FOOD AND BEVERAGE 1 Principles of Hospitality & Tourism Management Careers in Lodging and Food and Beverage Industries November 17, 2013 Careers in Lodging and Food and Beverage Industries The American Hotel & Lodging Association, AH&LA is an association that represents the lodging industry, as well as its stakeholders ("American hotel &," ), whereas the National Restaurant Association, NRA, is the association that represents the restaurant industry (Gray, 2009). They both provide a host of services to aid in the development, organization, operation and success of the many restaurants or lodging companies they serve. They also provide thousands of jobs to people as well and the outlook of jobs looks more promising, which will be discussed later in this paper. According to the U.S. Industry Report in October 2013, service industries such as lodging and restaurant industries are experiencing growth in revenues which will in turn promote more non-management and management jobs (Hodges, 2013). The AH&LA and NRA’s web sites are portals to many of the jobs that are available. On the AH&LA’s website, there are over 70 categories of management jobs and search results yield 13,330 opportunities nationally and internally. Some of the management categories include Chef, Administrative, Events, Operations, Entertainment, Customer Service, Food and Beverage, Gaming, Hotel, Restaurant, Unit, Kitchen,...
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...Case 29 Starbucks’ Global Quest in 2006: Is the Best Yet to Come? Arthur A. Thompson The University of Alabama Amit J. Shah Frostburg State University Thomas F. Hawk Frostburg State University n early 2006, Howard Schultz, Starbucks’ founder, chairman of the board, and global strategist, could look with satisfaction on the company’s phenomenal growth and market success. Since 1987, Starbucks had transformed itself from a modest nine-store operation in the Pacific Northwest into a powerhouse multinational enterprise with 10,241 store locations, including some 2,900 stores in 30 foreign countries (see Exhibit 1). During Starbucks’ early years when coffee was a 50-cent morning habit at local diners and fast-food establishments, skeptics had ridiculed the notion of $3 coffee as a yuppie fad. But the popularity of Starbucks’ Italianstyle coffees, espresso beverages, teas, pastries, and confections had made Starbucks one of the great retailing stories of recent history and the world’s biggest specialty coffee chain. In 2003, Starbucks made the Fortune 500, prompting Schultz to remark, “It would be arrogant to sit here and say that 10 years ago we thought we would be on the Fortune 500. But we dreamed from day one and we dreamed big.”1 Having positioned Starbucks as the dominant retailer, roaster, and brand of specialty coffees and coffee drinks in North America and spawned the creation of the specialty coffee industry, management’s long-term objective was now to establish...
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...JUNE 6, 2008 NANCY F. KOEHN MARYA BESHAROV KATHERINE MILLER Starbucks Coffee Company in the 21st Century On the morning of March 19, 2008, 6,000 Starbucks shareholders gathered at McCaw Hall in Seattle for the coffee company’s annual meeting. The first in line appeared outside the building’s glass-fronted façade while it was still dark, and before long, the performance hall was packed.1 As the crowd streamed inside, one team of Starbucks employees handed out cups of hot coffee, while another wrote down shareholders’ comments about the company on stacks of white cards.2 From the early morning Seattle skyline to the crew of green-aproned workers, the annual ritual was steeped in Starbucks tradition. But for the iconic coffee company, this had been no ordinary year. Starbucks got its start as a Seattle-based coffee roaster in 1971. At this time, the larger coffee market was dominated by supermarket brands such as Folgers and Maxwell House, and per-capita coffee consumption in the U.S. was on the decline.3 During the next two decades, however, sellers of specialty, high-quality coffee beans began to attract a niche following.4 In 1987, entrepreneur Howard Schultz bought Starbucks with an eye toward introducing European-style coffee culture to the American market. Under Schultz’s aegis, Starbucks spread the gospel of high-quality, customized coffee drinks to urban areas around the country. The enthusiasm of Starbucks customers helped the company grow its revenues from about $10...
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...Business Ethics and Compliance Standards of Business Conduct Dear Fellow Partner: Starbucks is the premier roaster and retailer of specialty coffee in the world and has become a truly global brand. From the beginning, we have recognized that you, our partners, are critical to our continued success. Starbucks reputation for the finest coffee in the world, legendary customer service and the highest integrity is the direct result of our collective efforts. We are all caretakers of Starbucks reputation. How we conduct our business and how we treat others—our fellow partners, customers, communities, suppliers and shareholders—will continue to determine how the world views Starbucks. “ tarbucks reputation for the finest coffee S in the world, legendary customer service and the highest integrity is the direct result of our collective efforts.” Each of us is personally responsible for supporting our core values, which require compliance with the law as well as ethical conduct. We have issued the Standards of Business Conduct to restate our longstanding commitment to uphold that responsibility and to provide guidance to our partners. As we move forward, the Standards will help ensure that our values continue to be reflected in each Starbucks store and business activity. A commitment to integrity, acting honestly and ethically, and complying with the letter and intent of the law are critical to our continued success. Thank you for your partnership...
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...Partner: Starbucks is the premier roaster and retailer of specialty coffee in the world and has become a truly global brand. From the beginning, we have recognized that you, our partners, are critical to our continued success. Starbucks reputation for the finest coffee in the world, legendary customer service and the highest integrity is the direct result of our collective efforts. We are all caretakers of Starbucks reputation. How we conduct our business and how we treat others—our fellow partners, customers, communities, suppliers and shareholders—will continue to determine how the world views Starbucks. “ tarbucksreputationforthefinestcoffee S intheworld,legendarycustomerservice andthehighestintegrityisthedirectresult ofourcollectiveefforts.” Each of us is personally responsible for supporting our core values, which require compliance with the law as well as ethical conduct. We have issued the Standards of Business Conduct to restate our longstanding commitment to uphold that responsibility and to provide guidance to our partners. As we move forward, the Standards will help ensure that our values continue to be reflected in each Starbucks store and business activity. A commitment to integrity, acting honestly and ethically, and complying with the letter and intent of the law are critical to our continued success. Thank you for your partnership. Warm regards, Howard Schultz chairman, president and chief executive officer Our Starbucks Mission ...
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...COMPANY DESCRIPTION Starbucks is the largest coffeehouse company in the world. It was founded by three very unusual entrepreneurs, an English teacher Jerry Baldwin, History teacher Zev Siegel and a Writer Gordon Bawker. They came with this brilliant idea of getting into the coffee business inspired by an entrepreneur who sold high quality coffee beans and equipments, named Alfred Peet. The first Starbucks store was opened in Pike Market Place in Seattle on March 30, 1971. It is a for profit company. In the 1990’s the company grew at a very fast pace. Studies show that Starbucks opened a new store every working day. From one store by its founders Starbucks grew to more than 8,000 stores in the United States itself and over 4000 stores around the world today. All this was due to the marketing strategies after Howard Schultz took over the company in 1982 as a marketing executive. His experiment to open a coffee bar in downtown Seattle made the mark for the company. First the espresso coffee bars were named Il Giornale used Starbucks high-quality coffee beans to make their coffee. The espresso coffee bars didn’t take time to gain popularity, with backing of local investors; Il Giornal acquired Starbucks assets and changed its name to Starbucks. It offers a very wide variety of products other than coffee beans and coffee beverages. The varieties include handicraft beverages, merchandise, fresh food, Starbucks entertainment, Starbucks card and Global consumer...
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