Starbucks Case Study

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Maastricht School of Management, MSM
Maastricht, the Netherlands
Regional IT Institute, RITI
Cairo, Egypt

RITI/MSM Cairo Outreach Program

Master of Business Administration

Assignment/Paper Title:Strategic Report on StarBucks Case 7

Presented by:Alyaa M. Awad
Yasser Moustafa Mohamed
MBA#:41, 42, 43,28

Course Title:Advanced Strategy
Module:Focus
Instructor:Dr. Sanya Elgelaly
Course Delivery Date:May 2008

Date of Submission: 14th June, 2008

Strategic Audit of
Starbucks
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I. Overview
THE STARBUCKS STORY
Starbucks Coffee Company was founded in 1971, opening its first store in Seattle’s Pike Place Market. Starbucks, named after the first mate in Herman Melville’s Moby Dick, is the world’s leading retailer, roaster and brand of specialty coffee with millions of customer visits per week at stores in North America, Europe, Middle East, Latin America and the Pacific Rim. When Howard Schultz first joined the company in the early 1980s, Starbucks was already a highly respected local roaster and retailer of whole bean and ground coffees. A business trip to Italy opened Schultz’s eyes to the rich tradition of the espresso beverage. Espresso drinks became an essential element of Schultz’s vision. He purchased Starbucks with the support of local investors in 1987. In addition to well-situated stores, Starbucks sells coffee, tea, food and entertainment products through its specialty operations. Starbucks stores may be found in urban and suburban areas, as well as many rural communities worldwide. An expanded number of Drive Thru and Off-Highway stores also provide a convenient alternative for customers. In addition to company-operated stores, Starbucks works with certain carefully chosen businesses to operate licensed stores in a variety of venues. Since 1991 Starbucks® coffee has been available at licensed airport stores and travel plazas operated by HMSHost in the U.S. Licensed and Foodservice stores can also be found on college campuses through licensing agreements with Aramark, Sodexho and Compass. Thanks to these licensing agreements, customers can enjoy their Starbucks in select supermarkets, hotels and military bases throughout North America, and in foodservice venues around the world. Coffee aficionados can also find Starbucks® coffee in a variety of places, including United Airlines, Horizon Air, Seattle’s Key Arena and Safeco Field, Chicago’s Wrigley Field, University of Washington athletic venues, the Experience Music Project interactive museum, Hyatt Hotels, Barnes & Noble bookstores in the U.S. and Chapters and Indigo bookstores in Canada. II. Current Situation

A. Current Performance

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B. Strategic Posture
Mission:
Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. Environmental Mission Statement:
Starbucks is committed to a role of environmental leadership in all facets of our business Strategy:
➢ Store Growth Strategy during 2008, at declining rate relative to prior years ➢ Restructuring Company entertainment business to focus on digital strategy and core content with music and books.

Objectives:
➢ Transforming Starbucks for the future by aggressively pursuing initiatives that will position it to capture the long-term opportunity. ➢ Strengthen business model, maintain position as one of the worlds’ most recognized and respected brands. ➢ Increase shareholder value in a way that is sustainable and in-line with what is expected.

Polices:
➢ Provide a great work environment and treat each other with respect and dignity. ➢ Embrace diversity as an essential component in the way we do business. ➢ Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of coffee. ➢ Develop enthusiastically satisfied customers all of the time. ➢ Contribute positively to...
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