Starbuck
Starbuck 's Strategy and Internal Initiatives to Return to Profitable Growth
Table of Contents
1. EXECUTIVE SUMMARY
Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in more than 50 countries. Since 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 and annual sales of about $10 million. During the recession in 2008 and 2009, sales at company owned Starbucks stores open 13 months or longer declined an average from 3% to 5%. Starbucks purchases and roasts high-quality 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. Starbucks also sell coffee and tea products and license the trademarks through other channels such as licensed retail stores, and through certain of their licensees and equity investees, they produce and sell a variety of ready-to-drink beverages. All channels outside the company-operated retail stores are collectively known as specialty operations. In addition to their flagship Starbucks brand, their portfolio includes brands such as Tazo Tea, Seattle’s Best Coffee, and Starbucks VIA Ready Brew. Starbucks has three reportable operating segments such as United States, International, and Global Consumer Products Group (CPG). The US and International segments both include Company-operated retail stores and certain components of specialty operations. The CPG segment includes packaged coffee and tea, and other branded products sold worldwide through channels such as grocery stores, warehouse clubs and convenience stores, and US foodservice accounts. CPG operates a significant portion of its business through licensing arrangements and joint ventures with large consumer products business partners.
Table of Contents
1. EXECUTIVE SUMMARY
Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in more than 50 countries. Since 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 and annual sales of about $10 million. During the recession in 2008 and 2009, sales at company owned Starbucks stores open 13 months or longer declined an average from 3% to 5%. Starbucks purchases and roasts high-quality 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. Starbucks also sell coffee and tea products and license the trademarks through other channels such as licensed retail stores, and through certain of their licensees and equity investees, they produce and sell a variety of ready-to-drink beverages. All channels outside the company-operated retail stores are collectively known as specialty operations. In addition to their flagship Starbucks brand, their portfolio includes brands such as Tazo Tea, Seattle’s Best Coffee, and Starbucks VIA Ready Brew. Starbucks has three reportable operating segments such as United States, International, and Global Consumer Products Group (CPG). The US and International segments both include Company-operated retail stores and certain components of specialty operations. The CPG segment includes packaged coffee and tea, and other branded products sold worldwide through channels such as grocery stores, warehouse clubs and convenience stores, and US foodservice accounts. CPG operates a significant portion of its business through licensing arrangements and joint ventures with large consumer products business partners.
References: Thompson, Arthur A., Margaret A. Peteraf, John E. Gamble, and Dr. A.J. (Lonnie) Strickland. Cases for Crafting & Executing Strategy Vol. 1. New York: McGraw Hil, 2012. Print. Thompson, Arthur A.. Crafting and executing strategy: concepts and readings.. 18th ed. New York: McGraw-Hill/Irwin, 2012. Print. Starbucks 2009 annual report. (2009, November 20). Retrieved from http://media.corporate-ir.net/media_files/irol/99/99518/SBUX_AR.pdf