Institutions TReNDS Martin Pitek MGMT - 7730 March 20, 2009 Starbucks Coffee Table of Contents Introduction 3 Product Analysis 3 Product Overview 3 Market Structure 4 Competition 5 Dunkin Donuts 7 Krispy Kreme 3 McDonalds 8 Panera Bread 8 Elasticity Estimates Pricing Strategy 10 Forecast 12 Determants of Demand 13 Forecast Model 15 Forecast Error! Bookmark not defined. Summary 15 Works
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Market Demand and Elasticity Tank Up is a local quick mart gas station on Route 12, a fairly busy highway most days of the week. Tank Up is the last station eastbound just prior to the entrance ramp to the expressway. This location benefits Tank Up business because drivers often stop in to fill their gas tank and grab a cup of coffee before beginning their journey on the expressway. To increase profits, I am evaluating a price change for coffee. Historically Tank Up sells approximately 300 cups
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Institutions TReNDS Martin Pitek MGMT - 7730 March 20, 2009 Starbucks Coffee Table of Contents Introduction 3 Product Analysis 3 Product Overview 3 Market Structure 4 Competition 5 Dunkin Donuts 7 Krispy Kreme 3 McDonalds 8 Panera Bread 8 Elasticity Estimates Pricing Strategy 10 Forecast 12 Determants of Demand 13 Forecast Model 15 Forecast Error! Bookmark not defined. Summary 15 Works
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drink and it is coffee. Coffee is something I do not consume therefore I was interested in the trends and what made coffee so popular. I will be describing what occurs to make the demands of the good and its market and equilibrium prices, assuming the supply remains the same. I will then describe the change that has occurred with the supply of the product and its market and equilibrium prices, assuming demand remains the same. Lastly I will give my opinion on this products demand price if it is elastic
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the leading retailer in specialty coffee in the world, serving 50 million customers globally every day (Bussing-Burks, 2009). Starbucks is proposing a new delivery service to maximize profitability and increase its competitive advantage in the marketplace. There are different factors that affect demand, supply and equilibrium prices in the market. To be successful and have long-term profitability the strategic planning group must explore the price elasticity of demand, fixed cost and cost structure
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Coffee Blast People across the globe have a taste for the coffee. The trends and consumption of coffee depends on how much and how often the coffee product is needed or chosen by the consumer. The factors that influence the consumer decisions are enjoyment and price. The consumer factors can set precedent for product production. These factors are identified as economic consumption patterns. Economists identify these results and plug them into the supply of products and services, and the
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markets, and to the wonders of a market economy.” (p. 55). Company History Starbucks recognized that dream and used the ideology of “free market” to produce their reality. The story of Starbucks dates back to 1971 as a single storefront retailer of coffee in the “Pike’s Peak Place in
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The Coffee Crisis “In 2004, the governments of coffee producing countries were considering how to respond to the dramatic decline in coffee prices” known as the coffee crisis (Capella University, 2011, p. 1). This coffee crisis was a result of four main factors: (1) the breakdown of the International Coffee Agreement (ICA); (2) the increased supply of coffee resulting from Vietnam’s entry into the market and Brazil’s technological advancements; (3) inelasticity of demand for coffee; and (4)
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Business Economics GM545 Summer Session A July 2011 One Question One: Everyone’s Gasoline Problem Gas prices are constantly fluctuating with reviewing the text we see where the United States has depended on the Middle East to purchase the crude oil to manufacture the gas needed to fuel our cars. (Stone, 2007) It was evident that there were issues during the years of 2006 and 2007 when we seen the biggest rise in gas at that time there was not much we could do we needed to purchase the gas
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growth and market size. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Financial release, 2007). Starbucks Corporation has established by purchasing high quality coffee beans and sells the customers along with a variety a specialty drinks and food that has met with an ever-increasing
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