Products

About

©2018 StudyMode.com

Starbucks Presentation

Topics: Starbucks, Corporation, Coffee Pages: 11 (1495 words) Published: May 3, 2011
GLOBAL MANAGEMENT - CASE STUDY Starbucks International Operations a presentation 1

GLOBAL MANAGEMENT - CASE STUDY Starbucks International Operations a presentation 1

First store opened in Seatle in 1971 165 Outlet in 1992 when company issued its initial shares of public stocks generates $4 billion per year in revenue Serves more than 33 million customer each week Partners with Albertson’s, Barnes & Nobles, Hyatt, Kraft, Marriot, Pepsi, United Airlines

STARBUCKS facts and figures
2

First store opened in Seatle in 1971 165 Outlet in when For Year 2002...... 13101992 initial company issued its Stores in more than public stocks shares of 30 generates $4 countries around the billion per year in revenue world Serves more than 33 million customer each week Partners with Albertson’s, Barnes & Nobles, Hyatt, Kraft, Marriot, Pepsi, United Airlines

STARBUCKS facts and figures
2

Country Japan Taiwan China South Korea Arab Emirat Lebanon Spain Indonesia New Zealand Hawai

Store 397 99 88 53 23 11 5 5 34 30

1,500

1,125

750

375

0

1,310 First store opened in Seatle in 1971 165 Outlet in 1992 when company issued its initial 929 shares of public stocks generates $4 billion per year in revenue 524 Serves more than 33 million customer each week 278 Partners with Albertson’s, Barnes & Nobles, Hyatt, Kraft, 128 Marriot, Pepsi, United Airlines 17 5 1995 1996 1997 1998 1999 2000 2001 2002

STARBUCKS facts and figures
2

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 standard of excellence to the purchasing, roasting, and fresh delivery of our coffee Develop enthusiastically satisfied customers all of the time Contribute that profitability is essential to our future success

STARBUCKS business philosophy

3

Customer Service Excellence Product Quality Accessibility Emerging Corporate Responsibility Financial Resources Brand Recognition

STARBUCKS success factor

3

A new Starbucks open in restroom of existing Starbucks.......!!!

Headline in The Onion, a Satirical Publication

STARBUCKS business model

3

Cluster Strategy Disadvantage : the new stores will often canibalize one another’s business and capture about 30 % of the sales of a nearby starbucks Advantage : cut down on delivery and management , shortens customer lines, increases foot traffic in an area, brand awareness.

STARBUCKS business model

3

STARBUCKS business model

3

STARBUCKS business model

3

STARBUCKS business model

3

STARBUCKS expansion strategy
4

LICENSING

Advantage • low development cost and risk. • fast market access • Avoids regulations and tariffs Disadvantage • Lack of control over the licence ‘s activities and performance

STARBUCKS expansion strategy
4

Advantage • insider access to market • share cost and risk • leverage partner’s skill base technology • local contact Disadvantage • Lack of controll over technology • Inability to engage in global strategic coordination • Inability to realize location and experience economic

JOINT VENTURE STARBUCKS expansion strategy
4

WHOLLY OWNED SUBSIDIARIES

Advantage • Protection of technology and skill base • Full authority of revenue and controll

Disadvantage • High cost and risk

STARBUCKS expansion strategy
4

Country

Partner

Agreement

Ownership

Stores 2002

Stores 2003

Australia Japan China (Beijing) Germany Thailand Middle East Indonesia Spain M.H.Alshaya Co PT.Mitra A Sazaby Inc Mei Da Coffee KarstadtQuelle

Majority Own JV-public Licence JV JV Majority Owned Licence Licence JV JV wholly owned

90% 40% 5% 19,5% 97%

29 357 26 25 0 26 65

60 570 45 45 21 37 98

China (Shanghai) President Coffee

WHOLLY Grup Vids OWNED President Coffee Taiwan SUBSIDIARIES United Kingdom Source : Merryl Lynch

Advantage 0 5 • Protection of 18% 13 technology and skill 2...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Coffee and Starbucks Essay

    ...29th, 2010 Starbucks Sourcing Problems: Trying to Find a way to Protect the Environment while maintaining a high quality coffee bean Starbucks Coffee Corporation is facing some strategic decisions on its current policy with regard to partnering with NGOs. Starbucks has a long history of social involvement. “CSR originated in 1994 as the Environmental Affairs Department with a budget of $50,000; by 2002, the 14-member department had a budget of 6 million. (Austin & Reavis, 2004) Recently Starbucks completed a six year, $450,000 project with Conservation International; an NGO that's mission “is to conserve the earth's natural heritage and it's global biodiversity, as well as to demonstrate that human societies are able to live harmoniously with nature. (Austin & Reavis, 2004) At the time CI had a staff of 776, overseeing projects in more than 30 countries on four continents. Roughly two thirds of CI's staff worked in the field and 90% were citizens of those countries. (Austin & Reavis, 2004) Working with CI on the Chiapas Project, dedicated to working with coffee farmers to stop the destruction of rain-forests by farming and to promote shade-grown coffee which is sustainable, Starbucks has learned that it needs a clearer policy with regards to partnering with other NGOs in the future. Several challenges arose when Starbucks was working with CI on the Chiapas Project, and they both...

    Read More
    2474 Words 7 Pages
  • Essay about Starbucks Brand

    ...Starbucks Corporation: Managing a High Growth Brand 1 One of the main keys for success for Starbucks in building the brand is their focus on quality, starting by the quality of the whole bean, the freshly roasted gourmet beans, its packaging, transportation, until its brewing. This has served as a main differentiator between Starbucks and other brands. Starbucks has succeeded to position itself as a unique quality coffee provider. Starbucks also managed to build its brand with the perception of a “complete customer experience” by creating a look in their stores that emphasized on comfort in terms of design, colors, furniture, music and even service. The introduction of the coffee shop concept made it a “personal treat” for the customers and a “Third Place” after home and office. In addition to diversifying their offering to include brewing machines for the customer to get the same quality coffee brewed in its shops. Partnerships has also contributed to building Starbucks brand, those partnerships with reputable corporations like United Airlines, Pepsi, Kraft, Dryer’s and Capitol Record helped Starbucks to create a positive brand image in the market as it successfully managed to utilize the brand name of these well-known companies for promoting for itself as a brand. Those partnerships showed how Starbucks also cares for innovation by offering new...

    Read More
    1415 Words 5 Pages
  • Starbucks

    ...Starbucks Corporate Citizens of the World There is currently a robust and ongoing debate about whether a companies, especially a publicly traded companies, only goal should be profit. Making money for the shareholders used to be what business was about. Now, more and more people are starting to believe that companies should pay more attention to social and environmental concerns that effect not just the shareholders, but the stakeholders and even society as a whole. The practice of Corporate Social Responsibility, or CSR, believes that everything cannot be left up to the market. The market exists to make profits at all costs. So, there needs to be a mechanism in place where social causes and the environment are taken care of. In the age of social media, watchdog groups and the green movement, businesses and corporations have become extremely transparent. There are, and have been, superficial attempts by businesses to employ CSR as a way of mitigating the terrible effects that their business may have on the environment. The practice of CSR by industrial companies is in vogue these days because of the fact that they have contributed to polluting the environment. With growing public awareness and demand for true socially responsible businesses, it is little wonder that companies of today take CSR into account when planning future business operations. When you look at the research and metrics, it is becoming clear to most companies that CSR...

    Read More
    1464 Words 4 Pages
  • Coffee and Starbucks Essay

    ...Howard Schultz’s original strategic vision for Starbucks? Is his 2010 strategic vision for Starbucks. Has Starbuck’s strategy evolved as the strategic vision has evolved? Howard Schultz’s first strategic vision for Starbucks was the fortunate result of a company trip to Milan, Italy to attend an international housewares show. On this trip, he visited various espresso bars and was able to recognize how the customers in these bars were usually enjoying the ambiance and atmosphere of the bar with a freshly-brewed espresso, latte, or another delectable coffee treat, in hand, that was sold from the bar. Howard felt Starbucks should align their initial business model with that of the numerous espresso bars he visited while in Malian-through transforming Starbucks from an exclusive retailer of its coffee products, to providing and serving their coffee products in-house to their consumers with an expanded product line (lattes, espresso’s, etc.) in tow. In addition to the espresso bar vision for Starbucks, during his interview process with Starbucks, Howard expressed to the three original owners of Starbucks that he felt Starbucks has the potential to successfully expand beyond the metropolitan area of Seattle, a vision not seen nor shared by the owners at the time. As assumed, the current vision set in place for Starbucks has...

    Read More
    1091 Words 4 Pages
  • Essay on Case Starbucks

    ...Case Starbucks -week 1- 1. How well is Starbucks performing? Starbucks: the world’s biggest supplier of coffee drinks; but as any thing in life, Starbucks had its ups and downs. There’s an old saying that it is not about how you fall, it is about how you get up, and Starbucks has not disappointed when it came to getting back on its horse. The particular down began in 2000, when founder Howard Schultz stepped down from the CEO position and the company took a wrong turn. In numbers, Starbucks shares closed in March 2009 at $10; Schultz’s return in 2008 led to a formidable growth, currently a share being transacted at $71. The shares have got 7 times more valuable in 4 years, that should put nothing but a smile on the shareholders’ face, but that is not the only way of seeing how well a company is performing. From a financial point of view, I have used the McKinsey valuation framework to identify the enterprise value: Rate of Invested Capital (ROIC) = Operating income / (Equity (average) + Debt) = 1728.5 / [(3674.7+4384) / 2 + 549.5] = 37.74% Net margin = Net income / Sales = 1245.7 / 11700.4 = 10.64% These numbers show us that the enterprise’s value is growing, and taking into account the economic situation, the company scored a good profit. After all, there is more to business than making money, and Starbucks...

    Read More
    990 Words 3 Pages
  • Case Study for Starbucks Essay

    ...Evaluation of Starbucks social responsibility strategy? Is it sincere? In assessing Starbucks Social responsibility strategy, one would have to look at certain key elements of the strategy and what makes it a good strategy, a great strategy or even a poor strategy. One would have to ask question such as; * When was the social responsibility strategy adopted? * Did the social responsibility strategy contribute to Starbucks success? * Has the strategy been used to defeat more resourceful competitors? * Are there any faults in the strategy? One of the main areas of corporate social responsibility (CSR) has been the ability for an organization to better the people and the community in which its business is located. In Starbucks CSR strategy, the focus has not been entirely on the shareholders but has encompassed the contractual stakeholders (employees, suppliers) and non-contractual stakeholders (community). The strategy Starbucks took was to treat all the stakeholders involved with Starbucks equally. With its employees, Starbucks offered medical-aid for part-time employees, Dental and vision care, Life insurance as well as a 401K retirement saving plan- in which the company matched savings from 25% - 150% based on length of service on employees contribution. It also offered its employees stock options plan, for the employees to invest in...

    Read More
    1575 Words 5 Pages
  • Research Proposal of Starbucks Essay

    ...Research Proposal 1.The Starbucks “Sing Your Own Song Event” 2. The purpose is to answers the central question: How can music contribute to conveying Starbucks’ experience to the Dutch consumer? 3.(a) What is the new concept to be tested? (b) How can music contribute to conveying Starbucks’ experience to the Dutch consumer? (c) Why do people avoid the Starbucks brand? (d) Why do people have an unfavourable attitude towards Starbucks, so much so that they avoid the brand? (e) What and Why Starbucks brand has been know all over the world? 4. The research undertaken will be from the Constructivist epistemology with an Interpretist theoretical view. The reason underlying this is that the Constructivist epistemology views reality (of which there are multiple) as being constructed by human interaction. It is shaped by social conventions, process and culture (Crotty, 1998). The Interpretist view leads itself well here because the goal is understand the meaning within a social context (Orlikowski and Baroudi (1991). In this case the research is to uncover the reasons behind the social phenomenon “brand avoidance” within the Starbuck context. As brands are “bundles of meaning” (Lee, 2007) and this research is within a social context which has been constructed by human process, qualitative research will be used to provide rich and...

    Read More
    1843 Words 6 Pages
  • Starbucks Marketing Audit Essay

    ... ------------------------------------------------- a) External Marketing Audit In this external audit, Starbucks is looking at its macro and micro external environment. Macro Environment includes: * Economic-Demographic * Technology * Culture * Political and Legal * Markets * Competitors Micro Environment includes: * Market Force * Market and customers * Competitors * Distributions * Dealers * Suppliers * Facilitators MACRO ENVIORNMENT Economic-Demographic Starbucks’ approach to expansion goes beyond the traditionally accepted methods. Their unique approach to expansion goes beyond the traditionally accepted methods. Starbucks has broken the rules and set a new standard amongst its competitors - targeting both males and females, ranging in age from 18-30 year olds, and middle to upper middle class. Starbucks caters to all needs; they offer non-caffeinated drinks, for children or non-coffee drinkers, sandwiches, sweets, and a variety of juices and pastries. Locations of all stores are carefully selected for convenience and Starbucks specifically targets places that are heavy with pedestrian street traffic. Starbucks has leased space in supermarkets, airports, and shopping centres. Offering numerous locations in a small area assures that customers have choices, and that the choice remains Starbucks....

    Read More
    1268 Words 5 Pages

Popular Essays

Become a StudyMode Member

Sign Up - It's Free