Starbuck

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Universiti Utara Malaysia

BPMN3023 STRATEGY MANAGEMENT
GROUP I
Lecturer’s Name: Mdm. Chong Yen Wan

Case 7: Starbucks Coffee Company; The Indian Dilemma

GROUP’S MEMBER|
Yap Ai Seok 127746|
Wong Qian Ying 127806|
Yeong Sook Cien 128090|
Chang Choo Woon 128176|
Tiu Siew Mei 128207|

Tables of Content
Current Situation3
* Current Performance
* Strategic Posture
Strategic Managers4
* Board Directors
* Top Management
SWOT Analysis
External Factor Analysis Summary (EFAS)6
Internal Factors Analysis Summary (IFAS) 9
Strategic Factor Analysis Summary (SFAS)11
TOWS Matrix13
Strategic Alternatives 15
Recommendation Strategy17
Implementation17
Evaluation and Control19
Consolidate Earning of Starbucks21

List of References22
Appendix

Introduction
Starbucks Corporation (Starbucks) is the roaster and retailer of specialty coffee in the world, operating in more than 50 countries. Starbucks purchases and roasts whole bean coffees and sells them, along with handcrafted coffee and tea beverages and a variety of fresh food items, through Company-operated retail stores. It also sells coffee and tea products and license its trademarks through other channels, such as licensed retail stores and, through certain of its licensees and equity investees. The Company produces and sells a variety of ready-to-drink beverages. In addition to its flagship Starbucks brand, its portfolio includes brands, such as Tazo Tea, Seattle's Best Coffee, and Starbucks VIA Ready Brew. Starbucks has three operating segments: United States (US), International, and Global Consumer Products Group (CPG).  Current Performance

Starbucks net earning for year 2010 is 945.6 million. It had obviously increased around 58.7% compared with year 2009. Starbucks has an annual turnover of US$9.77 billion and 129 thousand employees. Strategic Posture

Mission
Starbucks mission is  to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Objectives
-To maintain Starbucks standing as one of the most recognized and respected brands in the world. -To be the leading retailer and brand of coffee in each of Starbucks target markets by selling the finest quality coffee and related products, and by providing each customer a unique Starbucks Experience.

Startegies
Starbucks magnified their market share in limitation manner, by selectively opening additional stores in existing markets, opening stores in new market, and enlarge sales in existing stores. Besides, Starbucks focus on being an employer of choice. Nowadays, there is overload Starbucks store around the world. In this case, Starbucks had overall closed around 72 stores around the world. Starbucks focus on being an employer choice to maintain their high quality and superior customer services. Moreover, each Starbucks store varies its product mix depending upon the size of the store and its location. For instance, Starbucks stores in the US, they provided customers free access to wireless internet and drive-thru service.

Starbucks had launched a Starbucks Card program which designed to increase customer loyalty and the frequency of store visits by cardholders. Since January 2010, Starbucks customers in the US have earned free beverages through the My Starbucks Rewards program.

Policies
Starbucks highly emphasizes on its product quality

Corporate Governance
Board of Directors
1. HOWARD SCHULTZ, 55, is the founder of Starbucks and serves as our chairman, president and chief executive office. 2. BARBARA BASS, 58, has been a Starbucks director since January 1996. 3. WILLIAM W. BRADLEY, 65, has been a Starbucks director since June 2003. 4. MELLODY HOBSON, 39, has been a Starbucks director since February...
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