Starbucks and Company

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Starbucks: A Strategic Change and Management Perspective

Master Thesis
Submitted in partial fulfilment of the requirements
for the degree of a
Master of Science in Management

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Table of Contents
List of Figures and Tables ............................................................................................... 4 Introduction ..................................................................................................................... 5 Research Methodology ................................................................................................... 7 Company Background and Overview .............................................................................. 8 The Starbucks Miracle................................................................................................... 11 Starbucks’ Basic Strategies........................................................................................... 13 Competence-Based Strategy.............................................................................. 13 Focus Strategy ................................................................................................... 14 Distribution and Location .................................................................................... 16 Summary ............................................................................................................ 16 The Starbucks Value Chain Analysis ............................................................................ 17 Online Survey on Starbucks.......................................................................................... 23 The Need for Strategic Change..................................................................................... 25 Porter Five Forces Analysis .......................................................................................... 27 Industry Competition ........................................................................................... 28 Threat of New Entrants ....................................................................................... 31 Threat of Substitute Products ............................................................................. 33 Buyer’s Bargaining Power .................................................................................. 34 Bargaining Power of Suppliers ........................................................................... 35 SWOT Analysis ............................................................................................................. 36 Strengths ....................................................................................................................... 37 Weaknesses ....................................................................................................... 37 Opportunities ...................................................................................................... 38 Threats ............................................................................................................... 39 Summary ............................................................................................................ 40 Recommended Strategies and Actions ......................................................................... 41 Formulate Strategic Marketing............................................................................ 41 Enhance Operations Management ..................................................................... 44 Improve Stock Market Standing.......................................................................... 45 Strategic Leadership Improvement ..................................................................... 46...
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