Starbucks Philippines Strategic Analysis

Topics: Coffee, Revenue, Starbucks Pages: 5 (1334 words) Published: November 15, 2012
1- Introduction
* In 1971
Starbucks opened operations in Seattle’s Pike PlaceMarkets with the future aim of providing coffee to a number of restaurants and surrounding bars. With the recruitment of HowardSchultz who led the marketing and retail efforts of Starbucks.

* In 1982
, the company took a change in direction through the views of Schultz, who after visiting Italy tried to adapt the same principles in order to a strong bar culture. Schultz then utilized Starbucks ability to provide quality coffee beans and opened up a new store called IlGiornale, which brewed coffee from these particular beans. * In 1987

, Giornale had decided to take over the assets of Starbucksand also, further changed its name to Starbucks Corporation. By theend of the year, Starbucks had increased the number of stores to 17and furthered its location span by entering Chicago and Vancouver. * In 1990

, the company took further steps forward with expansion of the Seattle headquarters and an increase in resources with theopening of a new roasting plant. Relationships and other ventures alsotook off during the early nineties as the company looked todevelopment organizations to further its progress.

*In 1995
, the company really established its name with the openingof the 676th store as well as increasing the products in store with theaddition of compact discs a result of a previously popular experimentwith ‘in-house’ music. * In 1996

, the company kept on stretching its reach by entering intothe market of Japan, Singapore and Hawaii. This was achieved through joint ventures including the one formed with Sazaby Inc., whichpushed through the development of coffee houses in Japan. 3

*By the year 2000
, things had progressed so far that 3,300 stores were already opened, the company had ventured into countries ranging from England to Australia & China.* By last quarter of 2008

, total international stores became 5113store & 11567store in United States. 2-

Current situation
The current international situation for Starbucks seems to be anemerging part of their business and the reorganization of this is proved by their aim to become a leading global company through making a difference in people’s lives all around the world. This goal is quite closeto being achieved as proved the Starbucks current locations ininternational markets and the successfulness of these ventures. Thecurrent countries in which Starbucks are located in are: Australia,Bahrain, Canada, Hong Kong, Israel, Japan, Kuwait, Lebanon,Malaysia, New Zealand, Oman, Peoples Republic of China, Philippines,Qatar, Saudi Arabia, Singapore, South Korea, Switzerland, Taiwan,Thailand, United Arab Emirates, Egypt, United Kingdom, and theUnited States.

2.1 Current performance
Overall, the aim of becoming a worldwide global brand seems to beworking in favor of the company and is helping it to attract theattention of many major companies who would like to share apartnership. This is all positive news for the company because itprovides a strong basis for future development of internationalmarkets, which further strengthens the mission to become one of theleading specialty coffee retailers in the world. 4

However, the net revenues increased 3 percent to $2.5 billion for thefourth quarter of 2008, compared to $2.4 billion for the fourth quarterof 2007. For the 13-week period ended September 28, 2008,Starbucks reported net income of $5.4 million, which included $105.1million of restructuring charges and other transformation strategycosts. Net income was $158.5 million for the same period a year ago.The company actions announced in July of 2008 to close approximately600 company-operated stores in the U.S. and 61 company-operatedstores in Australia, and reduce approximately 1,000 open and filledpositions within its leadership structure and non-store organization. 2.2

Strategic posture
“To inspire and nurture the human spirit— one person, one cup,and one neighborhood...
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